Safeway 2002 Annual Report Download - page 52

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50 SAFEWAY INC. 2002 ANNUAL REPORT
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 pre-
pared 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 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 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, the Audit Committee and the Board of
Directors regarding the preparation of reliable published
financial statements. The system includes a documented
organizational structure and division of responsibility, estab-
lished 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 Audit
Committee of 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 rea-
sonable assurance with respect to financial statement prepa-
ration. Furthermore, the effectiveness of an internal control
system can change with circumstances. As of December 28,
2002 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
MANAGEMENT’S REPORT
SAFEWAY INC. AND SUBSIDIARIES