GE 2005 Annual Report Download - page 144

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(144)
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
(a) Evaluation of Disclosure Controls and Procedures
In connection with the restatement discussed above in the explanatory note to this Form 10-K/A and in note 1 to our
financial statements, under the direction of our Chief Executive Officer and Chief Financial Officer, we reevaluated
our disclosure controls and procedures. We identified a material weakness in our internal control over financial
reporting with respect to accounting for hedge transactions, namely, that we did not have adequately designed
procedures to designate, with the specificity required under SFAS 133, each hedged commercial paper transaction.
Solely as a result of this material weakness, we concluded that our disclosure controls and procedures were
not effective as of December 31, 2005.
As of January 1, 2007, we modified our commercial paper hedging program and adopted documentation for
interest rate swaps that we believe complies with the requirements of SFAS 133 and remediated the related internal
control weakness. In connection with this amended Form 10-K, under the direction of our Chief Executive Officer
and Chief Financial Officer, we have evaluated our disclosure controls and procedures as currently in effect,
including the remedial actions discussed above, and we have concluded that, as of this date, our disclosure controls
and procedures are effective.
As previously reported, there was no change in our internal control over financial reporting during the
quarter ended December 31, 2005, that materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.
(b) Management’ s Annual Report on Internal Control over Financial Reporting (as restated)
The management of General Electric Company is responsible for establishing and maintaining adequate
internal control over financial reporting for the company. With the participation of the Chief Executive Officer and
the Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control
over financial reporting as of December 31, 2005, based on the framework and criteria established in Internal
Control — Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway
Commission.
In the company’ s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 3,
2006, management concluded that our internal control over financial reporting was effective as of December 31,
2005. Subsequently, management identified a material weakness in our internal control over financial reporting with
respect to accounting for hedge transactions, namely, that we did not have adequately designed procedures to
designate, with the specificity required under SFAS 133, each hedged commercial paper transaction.