KeyBank 2007 Annual Report Download - page 61

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59
KEYCORP AND SUBSIDIARIES
Key’s management is responsible for the preparation, content and
integrity of the financial statements and other statistical data and
analyses compiled for this annual report. The financial statements and
related notes have been prepared in conformity with U.S. generally
accepted accounting principles and reflect management’s best estimates
and judgments. Management believes the financial statements and
notes present fairly Key’s financial position, results of operations and cash
flows in all material respects.
Management is responsible for establishing and maintaining a system of
internal control that is designed to protect Key’s assets and the integrity
of its financial reporting. This corporate-wide system of controls
includes self-monitoring mechanisms and written policies and procedures,
prescribes proper delegation of authority and division of responsibility,
and facilitates the selection and training of qualified personnel.
All employees are required to comply with Key’s code of ethics.
Management conducts an annual certification process to ensure that
Key’s employees meet this obligation. Although any system of internal
control can be compromised by human error or intentional circumvention
of required procedures, management believes Key’s system provides
reasonable assurance that financial transactions are recorded and reported
properly, providing an adequate basis for reliable financial statements.
The Board of Directors discharges its responsibility for Key’s financial
statements through its Audit Committee. This committee, which draws
its members exclusively from the outside directors, also hires the
independent auditors.
Management’s Assessment of Internal Control
Over Financial Reporting
Management is responsible for establishing and maintaining adequate
internal control over financial reporting for Key. Management has
assessed the effectiveness of Key’s internal control and procedures over
financial reporting using criteria described in “Internal Control —
Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on that assessment,
management believes Key maintained an effective system of internal
control over financial reporting as of December 31, 2007. Key’s
independent auditors have issued an attestation report, dated February
22, 2008, on Key’s internal control over financial reporting, which is
included in this annual report.
Henry L. Meyer III
Chairman and Chief Executive Officer
Jeffrey B. Weeden
Senior Executive Vice President and Chief Financial Officer
MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING