Humana 2010 Annual Report Download - page 133

Download and view the complete annual report

Please find page 133 of the 2010 Humana annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

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,
2010. 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, 2010, the Company’s internal control over financial reporting was effective
based on those criteria.
In conducting management’s evaluation as described above, Concentra, acquired December 21, 2010, was
excluded. We plan to complete our evaluation of Concentra’s internal control over financial reporting by the first
anniversary of the acquisition as required by the Securities and Exchange Commission’s rules. The operations of
Concentra, which are included in the 2010 consolidated financial statements of the Company, constituted
approximately 0.1% of the Company’s consolidated revenues and income before income taxes for the year ended
December 31, 2010, and approximately 6% of total assets as of December 31, 2010.
The effectiveness of our internal control over financial reporting as of December 31, 2010 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 119.
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, 2010 that have materially affected, or are reasonably likely to materially affect, the
Company’s internal control over financial reporting.
Michael B. McCallister
Chairman 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
ITEM 9B. OTHER INFORMATION
None.
123