Charter 2010 Annual Report Download - page 86

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2010, 2009, AND 2008
(dollars in millions, except share or per share data or where indicated)
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e Board of Directors and Shareholders
Charter Communications, Inc.:
We have audited the accompanying consolidated balance
sheets of Charter Communications, Inc. and subsidiaries (the
Company) as of December 31, 2010 and 2009 (Successor) and
the related consolidated statements of operations, changes in
shareholders' equity (deficit), and cash flows for the year ended
December 31, 2010 (Successor), the one month ended December
31, 2009 (Successor), the eleven months ended November 30,
2009 (Predecessor), and for the year ended December 31, 2008
(Predecessor). We also have audited the Company’s internal control
over financial reporting as of December 31, 2010, based on criteria
established in Internal Control - Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). e Company’s management is responsible
for these consolidated financial statements, for maintaining effective
internal control over financial reporting, and for its assessment of the
effectiveness of internal control over financial reporting, included in
the accompanying Management’s Report on Internal Control over
Financial Reporting (Item 9A). Our responsibility is to express an opinion
on these consolidated financial statements and an opinion on the Company's
internal control over financial reporting based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). ose
standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are
free of material misstatement and whether effective internal control
over financial reporting was maintained in all material respects. Our
audits of the consolidated financial statements included examining,
on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used
and significant estimates made by management, and evaluating
the overall financial statement presentation. Our audit of internal
control over financial reporting included obtaining an understanding
of internal control over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk.
Our audits also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audits
provide a reasonable basis for our opinions.
A company's 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. A company's internal control over financial reporting
includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or disposition of
the company's assets that could have a material effect on the financial
statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial position of
Charter Communications, Inc. and subsidiaries as of December 31,
2010 and 2009 (Successor), and the results of their operations and
their cash flows for the year ended December 31, 2010 (Successor),
the one month ended December 31, 2009 (Successor), the eleven
months ended November 30, 2009 (Predecessor), and for the year
ended December 31, 2008 (Predecessor), in conformity with US
generally accepted accounting principles. Also in our opinion, the
Company maintained in all material respects, effective internal
control over financial reporting as of December 31, 2010, based on
the criteria established in Internal Control - Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission.
As discussed in Notes 1 and 23 to the consolidated financial
statements, the Company filed a petition for reorganization under
Chapter 11 of the United States Bankruptcy Code on March 27,
2009. e Company’s plan of reorganization became effective and
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