Sprint - Nextel 2006 Annual Report Download - page 65

Regulation S-X is filed pursuant to Item 15 of this annual report on Form 10-K and is incorporated herein by
reference.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Disclosure controls are procedures that are designed with the objective of ensuring that information required to
be disclosed in our reports under the Securities Exchange Act of 1934, such as this Form 10-K, is reported in
accordance with the SEC’s rules. Disclosure controls are also designed with the objective of ensuring that such
information is accumulated and communicated to management, including the Chief Executive Officer and
Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
In connection with the preparation of this Form 10-K as of December 31, 2006, under the supervision and
with the participation of our management, including our Chief Executive Officer and Chief Financial Officer,
we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and
procedures. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer each concluded
that the design and operation of the disclosure controls and procedures were effective as of December 31,
2006 in providing reasonable assurance that information required to be disclosed in reports we file or submit
under the Securities Exchange Act of 1934 is accumulated and communicated to management, including the
Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure and in providing reasonable assurance that the information is recorded, processed,
summarized and reported within the time periods specified in the SEC’s rules and forms.
We continue to update our internal control over financial reporting as necessary to accommodate any
modifications to our business processes or accounting procedures. During the quarter ended December 31,
2006, we completed various phases of our systems and processes consolidation plan. These included migrating
certain operating leases on to a single accounting system, migrating certain customers onto a single billing
platform, transitioning part of our call traffic to a new call processing system and standardizing the majority of
our stores onto one point of sale system. There have been no other changes in our internal control over
financial reporting that occurred during the quarter ended December 31, 2006 that have materially affected, or
are reasonably likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting. Our internal control system was designed to provide reasonable assurance to our management and
board of directors regarding the reliability of financial reporting and the preparation of financial statements for
external purposes.
Our management conducted an assessment of the effectiveness of our internal control over financial reporting
as of December 31, 2006. This assessment was based on the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission, or COSO, in Internal Control — Integrated Framework. Based on
this assessment, management believes that, as of December 31, 2006, our internal control over financial
reporting was effective.
Our independent registered public accounting firm has issued a report on management’s assessment of our
internal control over financial reporting. This report appears on page F-4.
As discussed in note 3 to the consolidated financial statements, we completed the acquisition of Nextel
Partners, Inc. in June 2006. We have excluded Nextel Partners from our assessment of the effectiveness of our
internal control over financial reporting as of December 31, 2006. The accounts of Nextel Partners represent
about 2% of our $97.2 billion in total assets and 2% of our $41.0 billion in net operating revenues included in
our consolidated financial statements as of and for the year ended December 31, 2006.
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