Dominion Power 2000 Annual Report Download - page 72

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The management of Dominion Resources, Inc. is responsible for all
information and representations contained in the Consolidated
Financial Statements and other sections of the annual report. The
Consolidated Financial Statements, which include amounts based
on estimates and judgments of management, have been prepared
in conformity with generally accepted accounting principles. Other
financial information in the annual report is consistent with that in
the Consolidated Financial Statements.
Management maintains a system of internal accounting controls
designed to provide reasonable assurance, at a reasonable cost, that
Dominion’s and its subsidiaries’ assets are safeguarded against loss
from unauthorized use or disposition and that transactions are exe-
cuted and recorded in accordance with established procedures.
Management recognizes the inherent limitations of any system of
internal accounting control, and therefore cannot provide absolute
assurance that the objectives of the established internal accounting
controls will be met.
This system includes written policies, an organizational struc-
ture designed to ensure appropriate segregation of responsibilities,
careful selection and training of qualified personnel, and internal
audits. Management believes that during 2000 the system of inter-
nal control was adequate to accomplish the intended objectives.
The Consolidated Financial Statements have been audited by
Deloitte & Touche LLP, independent auditors, who were designated
by the Board. Their audits were conducted in accordance with audit-
ing standards generally accepted in the United States of America
and include a review of Dominion’s and its subsidiaries’ accounting
systems, procedures and internal controls, and the performance of
tests and other auditing procedures sufficient to provide reasonable
assurance that the Consolidated Financial Statements are not
materially misleading and do not contain material errors.
The Audit Committee of the Board of Directors of Dominion
Resources, Inc., composed entirely of directors who are not officers
or employees of Dominion Resources, Inc. or its subsidiaries, meets
periodically with the independent auditors, the internal auditors and
management to discuss auditing, internal accounting control and
financial reporting matters of the Company and to ensure that each
is properly discharging its responsibilities. Both independent audi-
tors and the internal auditors periodically meet alone with the Audit
Committee and have free access to the Committee at any time.
Management recognizes its responsibility for fostering a strong
ethical climate so that the Company’s affairs are conducted accord-
ing to the highest standards of personal corporate conduct. This
responsibility is characterized and reflected in Dominion’s Code
of Ethics, which addresses potential conflicts of interest, compli-
ance with all domestic and foreign laws, the confidentiality of
proprietary information, and full disclosure of public information.
Dominion Resources, Inc.
Thos. E. Capps Steven A. Rogers
Chairman, President and Vice President, Controller and
Chief Executive Officer Principal Accounting Officer
To the Shareholders and Board of Directors of
Dominion Resources, Inc.
Richmond, Virginia
We have audited the accompanying consolidated balance sheets of
Dominion Resources, Inc. and subsidiaries as of December 31, 2000
and 1999, and the related consolidated statements of income, com-
prehensive income, common shareholders’ equity, and cash flows
for each of the three years in the period ended December 31, 2000.
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those stan-
dards require that we plan and perform the audit to obtain reason-
able assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the account-
ing principles used and significant estimates made by manage-
ment, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of Dominion
Resources, Inc. and subsidiaries as of December 31, 2000 and 1999,
and the results of their operations and their cash flows for each of
the three years in the period ended December 31, 2000, in confor-
mity with accounting principles generally accepted in the United
States of America.
As discussed in Note 3 to the consolidated financial statements,
the Company changed its method of accounting used to develop
the market-related value of pension plan assets in 2000. Also,
as discussed in Note 3 to the consolidated financial statements,
in 2000 the Company changed its method of accounting for its oil
and gas exploration and production activities to the full cost
method of accounting and, retroactively, restated the 1999 and
1998 consolidated financial statements for the change to the full
cost method.
Richmond, Virginia
January 25, 2001
Report of Management’s Responsibilities Independent Auditors’ Report