HR Block 2012 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 2012 HR Block annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
DISCUSSION OF FINANCIAL RESPONSIBILITY
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 certain
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 to live up to high standards of
integrity.
The Audit Committee of the Board of Directors, composed solely of independent outside directors, meets
periodically with management, the independent auditor 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 auditor 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 2012, 2011 and 2010. The
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, 2012.
Based on our assessment, management concluded that as of April 30, 2012, the Company’s internal control
over financial reporting was effective based on the criteria set forth by COSO. The Company’s external auditor,
Deloitte & Touche LLP, an independent registered public accounting firm, has issued an audit report on the
effectiveness of the Company’s internal control over financial reporting.
William C. Cobb Gregory J. Macfarlane
President and Chief Executive Officer Chief Financial Officer
H&R BLOCK 2012 Form 10K
35