Progress Energy 2009 Annual Report Download - page 213

Progress Energy Proxy Statement
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determining whether to approve these services, the Audit Committee will assess whether these services adversely
impair the independence of Deloitte. Any permissible non-audit services provided during a fiscal year that (i) do not
aggregate more than 5 percent of the total fees paid to Deloitte for all services rendered during that fiscal year and
(ii) were not recognized as non-audit services at the time of the engagement must be brought to the attention of the
Controller for prompt submission to the Audit Committee for approval. These de minimis non-audit services must be
approved by the Audit Committee or its designated representative before the completion of the services. Non-audit
services that are specifically prohibited under the Sarbanes-Oxley Act Section 404, SEC rules, and Public Company
Accounting Oversight Board (“PCAOB”) rules are also specifically prohibited under the policy.
Prior to approval of permissible tax services by the Audit Committee, the policy requires Deloitte to
(1) describe in writing to the Audit Committee (a) the scope of the service, the fee structure for the engagement
and any side letter or other amendment to the engagement letter or any other agreement between the Company
and Deloitte relating to the service and (b) any compensation arrangement or other agreement, such as a referral
agreement, a referral fee or fee-sharing arrangement, between Deloitte and any person (other than the Company)
with respect to the promoting, marketing or recommending of a transaction covered by the service; and (2) discuss
with the Audit Committee the potential effects of the services on the independence of Deloitte.
The policy also requires the Controller to update the Audit Committee throughout the year as to the services
provided by Deloitte and the costs of those services. The policy also requires Deloitte to annually confirm its
independence in accordance with SEC and NYSE standards. The Audit Committee will assess the adequacy of this
policy as it deems necessary and revise accordingly.
Set forth in the table below is certain information relating to the aggregate fees billed by Deloitte for
professional services rendered to us for the fiscal years ended December 31, 2009, and December 31, 2008.
2009 2008
Audit fees ............................................................ $3,581,000 $ 3,673,000
Audit-related fees ...................................................... 91,000 94,000
Tax fees .............................................................. 19,000 22,000
Other fees ............................................................ — —
Total Fees ............................................................ $3,691,000 $3,789,000
Audit fees include fees billed for services rendered in connection with (i) the audits of our annual financial
statements and those of our SEC reporting subsidiaries (Carolina Power & Light Company and Florida Power
Corporation); (ii) the audit of the effectiveness of our internal control over financial reporting; (iii) the reviews of the
financial statements included in our Quarterly Reports on Form 10-Q and those of our SEC reporting subsidiaries;
(iv) accounting consultations arising as part of the audits; and (v) audit services in connection with statutory,
regulatory or other filings, including comfort letters and consents in connection with SEC filings and financing
transactions. Audit fees for 2009 and 2008 also include $1,265,000 and $1,264,000, respectively, for services in
connection with the Sarbanes-Oxley Act Section 404 and the related PCAOB Standard No. 2 relating to our internal
control over financial reporting.
Audit-related fees include fees billed for (i) special procedures and letter reports; (ii) benefit plan
audits when fees are paid by us rather than directly by the plan; and (iii) accounting consultations for prospective
transactions not arising directly from the audits.
Tax fees include fees billed for tax compliance matters and tax planning and advisory services.
The Audit Committee has concluded that the provision of the non-audit services listed above as “Tax fees”
is compatible with maintaining Deloitte’s independence.
None of the services provided required approval by the Audit Committee pursuant to the de minimis waiver
provisions described above.