FairPoint Communications 2006 Annual Report Download - page 99

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
Not applicable.


An evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the
Exchange Act) as of the end of the period covered by this Annual Report was made under the supervision and with the participation of our management,
including our chief executive officer and chief financial officer. Based upon this evaluation, our chief executive officer and chief financial officer have each
concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted
under the Exchange Act is timely recorded, processed, summarized and reported and (b) include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our
management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the
effectiveness of internal control over financial reporting as of December 31, 2006. Internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. Our system of internal control over financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of assets; (ii) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and our
receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial
statements.
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide
only reasonable assurance with respect to financial statement preparation and presentation.
Management performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2006 based upon criteria in
Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such assessment,
management determined that our internal control over financial reporting was effective as of December 31, 2006.
We acquired GITC, Unite and Cass County during the year ended December 31, 2006. Accordingly, management excluded from its assessment of the
effectiveness of our internal control over financial reporting as of December 31, 2006, GITC’s, Unite’s, and Cass County’s internal control over financial
reporting associated with total assets of $36.6 million and total revenues of $6.6 million included in our consolidated financial statements as of and for the
year ended December 31, 2006.
97