Eversource 2000 Annual Report Download - page 9

7
COMPANY REPORT
The condensed consolidated financial statements in this summary annual report were derived from the
consolidated financial statements that appear in the annual report on Form 10-K filed with the Securities
and Exchange Commission. The consolidated financial statements of Northeast Utilities and subsidiaries
were prepared by the company in accordance with accounting principles generally accepted in the United
States using estimates and judgments, where required, and giving consideration to materiality.
The company has endeavored to establish a control environment that encourages the maintenance of
high standards of conduct in all of its business activities. The company maintains a system of internal
controls over financial reporting, which is designed to provide reasonable assurance to the company’s
management and Board of Trustees regarding the preparation of reliable, published financial statements.
The system is supported by an organization of trained management personnel, policies and procedures,
and a comprehensive program of internal audits. Through established programs, the company regularly
communicates to its management employees their internal control responsibilities and policies prohibiting
conflicts of interest.
The Audit Committee of the Board of Trustees is composed entirely of independent trustees. The Audit
Committee meets periodically with management, the internal auditors and the independent auditors to
review the activities of each and to discuss audit matters, financial reporting and the adequacy
of internal controls.
Because of inherent limitations in any system of internal controls, errors or irregularities may occur and not
be detected. The company believes, however, that its system of internal accounting controls and control
environment provide reasonable assurance that its assets are safeguarded from loss or unauthorized use
and that its financial records, which are the basis for the preparation of all financial statements, are reliable.
To the Board of Trustees and
Shareholders of Northeast Utilities:
We have audited, in accordance with auditing standards generally accepted in the United States, the
consolidated balance sheets and consolidated statements of capitalization of Northeast Utilities (a
Massachusetts trust) and subsidiaries as of December 31, 2000 and 1999, and the related consolidated
statements of income, comprehensive income, shareholders’ equity, cash flows, and income taxes for
each of the three years in the period ended December 31, 2000, appearing in the annual report on
Form 10-K filed with the Securities and Exchange Commission (not presented herein). In our report
dated January 23, 2001 (except with respect to the matters discussed in Note 15, as to which the date
is March 13, 2001), also appearing in that annual report on Form 10-K, we expressed an unqualified
opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed consolidated balance sheets as
of December 31, 2000 and 1999, and the related condensed statements of consolidated income and
cash flows for each of the three years in the period ended December 31, 2000, is fairly stated, in all
material respects, in relation to the consolidated financial statements from which it has been derived.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
January 23, 2001
(except with respect to the matters discussed
in Note 15, as to which the date is March 13, 2001)
REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS