Humana 2007 Annual Report Download - page 107

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
Not applicable.
ITEM 9A. CONTROLS AND PROCEDURES
Management’s Responsibility for Financial Statements and Other Information
We are responsible for the preparation and integrity of the consolidated financial statements appearing in
our Annual Report. The consolidated financial statements were prepared in conformity with accounting
principles generally accepted in the United States and include amounts based on our estimates and judgments.
All other financial information in this report has been presented on a basis consistent with the information
included in the financial statements.
Our control environment is the foundation for our system of internal control over financial reporting and is
embodied in our Business Ethics Policy. It sets the tone of our organization and includes factors such as integrity
and ethical values. Our internal control over financial reporting is supported by formal policies and procedures
which are reviewed, modified and improved as changes occur in business conditions and operations.
The Audit Committee of the Board of Directors, which is composed solely of independent outside directors,
meets periodically with members of management, the internal auditors and our independent registered public
accounting firm to review and discuss internal controls over financial reporting and accounting and financial
reporting matters. Our independent registered public accounting firm and internal auditors report to the Audit
Committee and accordingly have full and free access to the Audit Committee at any time.
Evaluation of Disclosure Controls and Procedures
We have established disclosure controls and procedures to ensure that material information relating to the
Company, including its consolidated subsidiaries, is made known to members of senior management and the
Board of Directors.
Based on our evaluation as of December 31, 2007, we as the principal executive officer, the principal
financial officer and the principal accounting officer of the Company have concluded that the Company’s
disclosure controls and procedures (as defined in the Securities Exchange Act of 1934) are effective to ensure
that the information required to be disclosed by the Company in the reports that it files or submits under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported as specified in Securities and
Exchange Commission rules and forms.
Management’s Report on Internal Control Over Financial Reporting
We are responsible for establishing and maintaining effective internal control over financial reporting as
defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. The 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 (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (ii) 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 (iii) 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.
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