Proctor and Gamble 2013 Annual Report Download - page 47

The Procter & Gamble Company 45
Item 8. Financial Statements and Supplementary Data.
MANAGEMENT'S RESPONSIBILITY FOR
FINANCIAL REPORTING
At The Procter & Gamble Company, we take great pride in
our long history of doing what's right. If you analyze what's
made our Company successful over the years, you may focus
on our brands, our marketing strategies, our organization
design and our ability to innovate. But if you really want to
get at what drives our Company's success, the place to look is
our people. Our people are deeply committed to our Purpose,
Values and Principles. It is this commitment to doing what's
right that unites us.
This commitment to doing what's right is embodied in our
financial reporting. High-quality financial reporting is our
responsibility, one we execute with integrity, and within both
the letter and spirit of the law.
High-quality financial reporting is characterized by accuracy,
objectivity and transparency. Management is responsible for
maintaining an effective system of internal controls over
financial reporting to deliver those characteristics in all
material respects. The Board of Directors, through its Audit
Committee, provides oversight. We have engaged Deloitte &
Touche LLP to audit our Consolidated Financial Statements,
on which they have issued an unqualified opinion.
Our commitment to providing timely, accurate and
understandable information to investors encompasses:
Communicating expectations to employees. Every
employee, from senior management on down, is required to
be trained on the Company's Worldwide Business Conduct
Manual, which sets forth the Company's commitment to
conduct its business affairs with high ethical standards. Every
employee is held personally accountable for compliance and
is provided several means of reporting any concerns about
violations of the Worldwide Business Conduct Manual,
which is available on our website at www.pg.com.
Maintaining a strong internal control environment.Our
system of internal controls includes written policies and
procedures, segregation of duties and the careful selection
and development of employees. The system is designed to
provide reasonable assurance that transactions are executed
as authorized and appropriately recorded, that assets are
safeguarded and that accounting records are sufficiently
reliable to permit the preparation of financial statements
conforming in all material respects with accounting
principles generally accepted in the United States of
America. We monitor these internal controls through control
self-assessments conducted by business unit management. In
addition to performing financial and compliance audits
around the world, our Global Internal Audit organization
provides training and continuously improves internal control
processes. Appropriate actions are taken by management to
correct any identified control deficiencies.
Executing financial stewardship. We maintain specific
programs and activities to ensure that employees understand
their fiduciary responsibilities to shareholders. This ongoing
effort encompasses financial discipline in strategic and daily
business decisions and brings particular focus to maintaining
accurate financial reporting and effective controls through
process improvement, skill development and oversight.
Exerting rigorous oversight of the business.We
continuously review business results and strategic choices.
Our Global Leadership Council is actively involved - from
understanding strategies to reviewing key initiatives,
financial performance and control assessments. The intent is
to ensure we remain objective, identify potential issues,
continuously challenge each other and ensure recognition and
rewards are appropriately aligned with results.
Engaging our Disclosure Committee. We maintain
disclosure controls and procedures designed to ensure that
information required to be disclosed is recorded, processed,
summarized and reported timely and accurately. Our
Disclosure Committee is a group of senior-level executives
responsible for evaluating disclosure implications of
significant business activities and events. The Committee
reports its findings to the CEO and CFO, providing an
effective process to evaluate our external disclosure
obligations.
Encouraging strong and effective corporate governance
from our Board of Directors. We have an active, capable and
diligent Board that meets the required standards for
independence, and we welcome the Board's oversight. Our
Audit Committee comprises independent directors with
significant financial knowledge and experience. We review
significant accounting policies, financial reporting and
internal control matters with them and encourage their
independent discussions with external auditors. Our
corporate governance guidelines, as well as the charter of the
Audit Committee and certain other committees of our Board,
are available on our website at www.pg.com.
P&G has a strong history of doing what's right. Our
employees embrace our Purpose, Values and Principles. We
take responsibility for the quality and accuracy of our
financial reporting. We present this information proudly, with
the expectation that those who use it will understand our
Company, recognize our commitment to performance with
integrity and share our confidence in P&G's future.
/s/ A. G. Lafley
A. G. Lafley
Chairman of the Board, President and Chief Executive
Officer
/s/ Jon R. Moeller
Jon R. Moeller
Chief Financial Officer