Safeway 2001 Annual Report Download - page 44

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Financial Statements
Safeway Inc. is responsible for the preparation, integrity and fair
presentation of its published financial statements. The accompa-
nying 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 LLP, independent auditors, which was given unrestrict-
ed access to all financial records and related data, including min-
utes of all meetings of stockholders, the Board of Directors, and
committees of the Board. Safeway believes that all representa-
tions made to the independent auditors during their audit were
valid and appropriate. The report of Deloitte & Touche LLP 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
preparation of reliable published financial statements. The sys-
tem includes a documented organizational structure and divi-
sion 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 con-
trol 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 sys-
tem of internal control, including the possibility of circumven-
tion 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 29, 2001 Safeway believes its
system of internal controls over financial reporting was effective
for providing reliable financial statements.
Steven A. Burd Vasant M. Prabhu
Chairman, President and Executive Vice President
Chief Executive Officer and Chief Financial Officer
SAFEWAY INC. AND SUBSIDIARIES
Management’s Report