Philips 2005 Annual Report Download - page 67

Philips Annual Report 2005 67
The aggregate fees billed by KPMG for professional
servicesrenderedforthescalyears2003,2004and2005
were as follows:
in millions of euros 2003 2004 2005
Audit fees 12.4 14.1 14.4
Audit-related fees 2.8 2.8 5.0
Tax fees 2.1 1.0 1.3
Other fees 3.0 3.4 2.9
20.3 21.3 23.6
Audit fees consist of fees for the examination of both the
consolidatednancialstatements(EUR6.7million)and
statutorynancialstatements(EUR5.3million),aswellas
thevericationofinternalcontrols(EUR2.4million).
Audit-related fees primarily consist of fees in connection
with audits of acquisitions and divestments (EUR 4.0 million),
and other audit-related fees (EUR 1.0 million). Tax fees
mainly relate to tax compliance and expatriate tax services.
Other fees mainly comprise fees for royalty audits (EUR 1.4
million), sustainability audits and advice (EUR 1.0 million)
and IT reviews (EUR 0.5 million).
In 2005 the Audit Committee further periodically discussed
the Company’s policy on business controls, the GBP including
the deployment thereof, and the Company’s major areas of
risk, including the internal auditor’s reporting thereon. The
Audit Committee was informed on, discussed and monitored
the progress of the Company in preparing for new internal
controlcerticationrequirements,inparticularfollowing
the US Sarbanes-Oxley Act, and related auditor attestation
thatwillbecomeeffectiveasofthenancialyear2006.It
also periodically discussed overviews on tax, IT, litigation,
environmentalexposuresandnancialexposuresinthe
area of treasury, real estate and pensions. The Company’s
internal and external auditors attended all Audit Committee
meetings in 2005, and the Audit Committee met separately
after each meeting with the President/CEO, the CFO and
the internal and external auditors.
Financial Statements 2005
ThenancialstatementsofKoninklijkePhilipsElectronics
N.V. for 2005, as presented by the Board of Management,
have been audited by KPMG Accountants N.V., independent
auditors. Their reports appear on page 210 and 217 of
thisAnnualReport.Wehaveapprovedthesenancial
statements, and all individual members of the Supervisory
Board (together with the members of the Board of
Management) have signed these documents.
We recommend to shareholders that they adopt the 2005
nancialstatements.Welikewiserecommendtoshareholders
that they adopt the proposal of the Board of Management
to pay a dividend of EUR 0.44 per common share.
Finally, we would like to express our thanks to the members
of the Board of Management, the Group Management
Committee and all other employees for their continued
contribution during the year.
February 13, 2006
The Supervisory Board