Entergy 2003 Annual Report Download - page 51

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Management of Entergy Corporation and its subsidiaries
has prepared and is responsible for the financial statements
and related financial information included herein. The
financial statements are based on accounting principles
generally accepted in the United States of America.
Financial information included elsewhere in this report is
consistent with the financial statements.
To meet their responsibilities with respect to financial
information, management maintains and enforces a system
of internal accounting controls designed to provide
reasonable assurance, on a cost-effective basis, as to the
integrity, objectivity, and reliability of the financial records,
and as to the protection of assets. This system includes
communication through written policies and procedures,
an employee Code of Entegrity, and an organizational struc-
ture that provides for appropriate division of responsibility
and the training of personnel. This system is also tested by
a comprehensive internal audit program.
The Audit Committee of the Board of Directors, composed
solely of independent Directors, meets with the independent
auditors, internal auditors, management, and internal
accountants periodically to discuss internal accounting
controls and auditing and financial reporting matters. The
Audit Committee appoints the independent auditors
annually and reviews with the independent auditors the
scope and results of the audit effort. The Audit Committee
also meets periodically with the independent auditors and
the chief internal auditor without management, providing
free access to the Committee.
Independent public accountants regularly evaluate the
system of internal accounting controls and perform
such tests and other procedures as they deem necessary
to reach and express an opinion on the fairness of
the financial statements. They also provide the Audit
Committee their judgments about the quality of accounting
policies and disclosures.
Management believes that these policies and procedures
provide reasonable assurance that its operations are carried
out with a high standard of business conduct.
J. WAYNE LEONARD LEO P. DENAULT
Chief Executive Officer Executive Vice President
and Chief Financial Officer
To the Board of Directors and Shareholders of Entergy Corporation:
We have audited the accompanying consolidated balance
sheets of Entergy Corporation and subsidiaries as of December
31, 2003 and 2002, and the related consolidated statements of
income; of retained earnings, comprehensive income, and paid-
in capital; and of cash flows for each of the three years in the
period ended December 31, 2003. These financial statements
are the responsibility of the Corporation’s management. Our
responsibility is to express an opinion on these financial
statements based on our audits. We did not audit the financial
statements of Entergy-Koch, LP for the year ended December
31, 2003, the Corporation’s investment in which is accounted
for by the use of the equity method. The Corporation’s equity
in earnings of unconsolidated equity affiliates for the year
ended December 31, 2003 includes $180,110,000 for Entergy
Koch, LP, which earnings were audited by other auditors
whose report has been furnished to us, and our opinion,
insofar as it relates to the amount audited by other auditors
included for such company, is based solely on the report of
such other auditors.
We conducted our audits in accordance with auditing
standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit
to obtain reasonable 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 accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits and the report of other auditors provide
a reasonable basis for our opinion.
In our opinion, based on our audits and the report of other
auditors, such consolidated financial statements present fairly,
in all material respects, the financial position of Entergy
Corporation and subsidiaries as of December 31, 2003 and
2002, and the results of their operations and their cash flows
for each of the three years in the period ended December 31,
2003 in conformity with accounting principles generally
accepted in the United States of America.
As discussed in Notes 1 and 9 to the consolidated financial
statements, Entergy Corporation adopted the provisions of
Statement of Financial Accounting Standards (SFAS) No.
143, “Accounting for Asset Retirement Obligations,” and
Financial Accounting Standards Board Interpretation No. 46,
“Consolidation of Variable Interest Entities,” in 2003, SFAS
No. 142, “Goodwill and Other Intangible Assets,” in 2002,
and SFAS No. 133, “Accounting for Derivative Instruments
and Hedging Activities,” in 2001.
DELOITTE & TOUCHE LLP
New Orleans, Louisiana
March 9, 2004
REPORT OF MANAGEMENT INDEPENDENT AUDITORS’ REPORT
ENTERGY CORPORATION AND SUBSIDIARIES 2003