Humana 2008 Annual Report Download - page 116

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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 or that the degree of compliance with the policies or procedures may
deteriorate.
We assessed the effectiveness of the Company’s internal control over financial reporting as of December 31,
2008. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO) in Internal Control—Integrated Framework. Based on our assessment, we
determined that, as of December 31, 2008, the Company’s internal control over financial reporting was effective
based on those criteria.
In conducting management’s evaluation as described above, SecureHorizons, OSF, Metcare, and Cariten, all
acquired during 2008, were excluded. These operations, which are included in the 2008 consolidated financial
statements of the Company, constituted less than 2% of the Company’s consolidated revenues and income before
income taxes for the year ended December 31, 2008, and less than 6% of total assets as of December 31, 2008.
The effectiveness of our internal control over financial reporting as of December 31, 2008 has been audited
by PricewaterhouseCoopers LLP, our independent registered public accounting firm, who also audited the
Company’s consolidated financial statements included in our Annual Report on Form 10-K, as stated in their
report which appears on page 102.
Changes in Internal Control over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting during the quarter
ended December 31, 2008 that have materially affected, or are reasonably likely to materially affect, the
Company’s internal control over financial reporting.
On January 1, 2009, the Company implemented a new general ledger system. This implementation was part
of our routine and ongoing process of upgrading and enhancing our financial systems and was not in response to
any internal control deficiency. As appropriate, the Company is modifying the design and documentation of
internal control process and procedures relating to the new system to supplement and complement existing
internal controls over financial reporting.
Michael B. McCallister
President and Chief Executive Officer
James H. Bloem
Senior Vice President, Chief Financial Officer and Treasurer
Steven E. McCulley
Vice President and Controller, Principal Accounting Officer
106