Safeway 2000 Annual Report Download - page 46

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Safeway Inc. and Subsidiaries
44
preparation of reliable published financial statements. The
system includes a documented organizational structure and
division of responsibility, established policies and procedures
including a code of conduct to foster a strong ethical climate,
which are communicated throughout Safeway, and the careful
selection, training and development of employees. Internal
auditors monitor the operation of the internal control system
and report findings and recommendations to management
and the Board, and corrective actions are taken to address
control deficiencies and other opportunities for improving
the system as they are identified. The Board, operating
through its Audit Committee, which is composed entirely
of outside directors, provides oversight to the financial
reporting process.
There are inherent limitations in the effectiveness of
any system of internal control, including the possibility of
circumvention or overriding of controls. Accordingly, even
an effective internal control system can provide only
reasonable assurance with respect to financial statement
preparation. Furthermore, the effectiveness of an internal
control system can change with circumstances. As of
December 30, 2000, Safeway believes its system of internal
controls over financial reporting was effective for providing
reliable financial statements.
Steven A. Burd
Chairman, President and Chief Executive Officer
Vasant M. Prabhu
Executive Vice President and Chief Financial Officer
FINANCIAL STATEMENTS
Safeway Inc. is responsible for the preparation, integrity
and fair presentation of its published financial statements.
The accompanying consolidated financial statements have
been prepared in accordance with accounting principles
generally accepted in the United States of America and
necessarily include amounts that are based on judgments
and estimates made by management. Safeway also prepared
the other information included in the annual report and
is responsible for its accuracy and consistency with the
financial statements.
The financial statements have been audited by Deloitte
& Touche, independent auditors, which was given unre-
stricted access to all financial records and related data,
including minutes of all meetings of stockholders, the Board
of Directors, and committees of the Board. Safeway believes
that all representations made to the independent auditors
during their audit were valid and appropriate. The report
of Deloitte & Touche is presented on the following page.
INTERNAL CONTROL SYSTEM
Safeway maintains a system of internal control over financial
reporting, which is designed to provide reasonable assurance
to management and the Board of Directors regarding the
MANAGEMENT’S REPORT