Entergy 2012 Annual Report Download - page 50

Entergy Corporation and Subsidiaries 2012
LEO P. DENAULT ANDREW S. MARSH
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, 2012 and 2011, 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, 2012. 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, 2012 and 2011,
and the results of their operations and their cash flows for each of the
three years in the period ended December 31, 2012, 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, 2012, 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, 2013 expressed an unqualified opinion on
the Corporation’s internal control over financial reporting.
DELOITTE & TOUCHE LLP
New Orleans, Louisiana
February 27, 2013
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 design and 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’s 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, 2012, which is included herein on page 49.
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 maintained
effective internal control over financial reporting as of December
31, 2012. Management further believes that this assessment,
combined with the policies and procedures noted above, provides
reasonable assurance that Entergy’s financial statements are fairly
and accurately presented in accordance with generally accepted
accounting principles.
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