HR Block 2010 Annual Report Download - page 51

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
DISCUSSION OF FINANCIAL RESPONSIBILITY
We at H&R Block are guided by our core values of client focus, teamwork and responsibility. These values govern
the manner in which we serve clients and each other and are embedded in the execution and delivery of our
responsibilities to our shareholders. H&R Block’s management is responsible for the integrity and objectivity of
the information contained in this document. Management is responsible for the consistency of reporting this
information and for ensuring that accounting principles generally accepted in the United States are used. In
discharging this responsibility, management maintains an extensive program of internal audits and requires the
management teams of our individual subsidiaries to certify their respective financial information. Our system of
internal control over financial reporting also includes formal policies and procedures, including a Code of
Business Ethics and Conduct program designed to encourage and assist all employees and directors in living up to
high standards of integrity.
The Audit Committee of the Board of Directors, composed solely of outside and independent directors, meets
periodically with management, the independent auditors and the chief internal auditor to review matters relating
to our financial statements, internal audit activities, internal accounting controls and non-audit services provided
by the independent auditors. The independent auditors and the chief internal auditor have full access to the Audit
Committee and meet, both with and without management present, to discuss the scope and results of their audits,
including internal control, audit and financial matters.
Deloitte & Touche LLP audited our consolidated financial statements for fiscal years 2010, 2009 and 2008. Their
audits were conducted in accordance with the standards of the Public Company Accounting Oversight Board
(United States).
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as
such term is defined in Exchange Act Rules 12a-15(f). Under the supervision and with the participation of
management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the
effectiveness of our internal control over financial reporting based on the framework in “Internal Control —
Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) as of April 30, 2010.
Based on our assessment, management concluded that as of April 30, 2010, the Company’s internal control over
financial reporting was effective based on the criteria set forth by COSO. The Company’s external auditors,
Deloitte & Touche LLP, an independent registered public accounting firm, have issued an audit report on the
effectiveness of the Company’s internal control over financial reporting.
Russell P. Smyth
President and Chief Executive Officer
Jeffrey T. Brown
Vice President, Interim Chief Financial
Officer and Corporate Controller
H&R BLOCK 2010 Form 10K 35