Entergy 2008 Annual Report Download - page 56

54
ENTERGY CORPORATION AND SUBSIDIARIES 2008
54
Management of Entergy Corporation and its subsidiaries has
prepared and is responsible for the financial statements and
related financial information included in this document. To meet
this responsibility, management establishes and maintains a system
of internal controls designed to provide reasonable assurance
regarding the preparation and fair presentation of financial
statements in accordance with generally accepted accounting
principles. This system includes communication through written
policies and procedures, an employee Code of Entegrity, and an
organizational structure that provides for appropriate division of
responsibility and training of personnel. This system is also tested
by a comprehensive internal audit program.
Entergy management assesses the effectiveness of Entergy’s
internal control over financial reporting on an annual basis. In
making this assessment, management uses the criteria set forth
by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control - Integrated Framework.
Management acknowledges, however, that all internal control
systems, no matter how well designed, have inherent limitations
and can provide only reasonable assurance with respect to financial
statement preparation and presentation.
Entergy Corporation and the Registrant Subsidiaries’
independent registered public accounting firm, Deloitte &
Touche LLP, has issued an attestation report on the effectiveness of
Entergy’s internal control over financial reporting as of December
31, 2008, which is included herein on page 55.
In addition, 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 controls, and auditing
and financial reporting matters. The Audit Committee appoints
the independent auditors annually, seeks shareholder ratification
of the appointment, 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 present, providing free
access to the Audit Committee.
Based on management’s assessment of internal controls using
the COSO criteria, management believes that Entergy and each of
the Registrant Subsidiaries maintained effective internal control
over financial reporting as of December 31, 2008. Management
further believes that this assessment, combined with the policies
and procedures noted above, provides reasonable assurance
that Entergy’s and each of the Registrant Subsidiaries’ financial
statements are fairly and accurately presented in accordance with
generally accepted accounting principles.
J. WAYNE LEONARD LEO P. DENAULT
Chairman and Executive Vice President
Chief Executive Officer and Chief Financial Officer
To the Board of Directors and Shareholders
Entergy Corporation and Subsidiaries:
We have audited the accompanying consolidated balance sheets
of Entergy Corporation and Subsidiaries (the “Corporation”) as
of December 31, 2008 and 2007, 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, 2008. 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 conducted our audits in accordance with the standards
of the Public Company Accounting Oversight Board (United
States). 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 provide a
reasonable basis for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of Entergy
Corporation and Subsidiaries as of December 31, 2008 and 2007,
and the results of their operations and their cash flows for each
of the three years in the period ended December 31, 2008, in
conformity with accounting principles generally accepted in the
United States of America.
We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
the Corporation’s internal control over financial reporting
as of December 31, 2008, based on the criteria established in
Internal Control - Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission and our
report dated February 27, 2009 expressed an unqualified opinion
on the Corporation’s internal control over financial reporting.
DELOITTE & TOUCHE LLP
New Orleans, Louisiana
February 27, 2009
Report of Management
Report of Independent Registered
Public Accounting Firm