Entergy 2011 Annual Report Download - page 56

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 of
Entergy Corporation and Subsidiaries
New Orleans, Louisiana
We have audited the accompanying consolidated balance sheets
of Entergy Corporation and Subsidiaries (the “Corporation”) as of
December 31, 2011 and 2010, and the related consolidated income
statements, consolidated statements of comprehensive income,
consolidated statements of cash flows, and consolidated statements
of changes in equity for each of the three years in the period ended
December 31, 2011. 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, 2011 and 2010, and the results
of their operations and their cash flows for each of the three years in
the period ended December 31, 2011, 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, 2011, 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, 2012 expressed an unqualified opinion on
the Corporation’s internal control over financial reporting.
DELOITTE & TOUCHE LLP
New Orleans, Louisiana
February 27, 2012
REPORT OF MANAGEMENT REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
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
over financial reporting 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, 2011, 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, 2011. 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.
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