The consolidated financial statements included in this
Annual Report are the responsibility of Management and have been approved by the
Board of Directors of the Company. These consolidated financial statements have
been prepared by Management in accordance with generally accepted accounting
principles (GAAP) in Canada and include amounts that are based on estimates and
judgments. Financial information contained elsewhere in this Annual Report is
consistent with the consolidated financial statements.
Management has prepared Management’s Discussion and
Analysis (MD&A) which is based on the Company’s financial results prepared
in accordance with Canadian GAAP. It compares the Company’s financial
performance in 2002 to 2001 and should be read in conjunction with the
consolidated financial statements and accompanying notes. In addition,
significant changes between 2001 and 2000 are highlighted. Note 20 to the
consolidated financial statements describes the impact on the consolidated
financial statements of significant differences between Canadian and United
States GAAP.
Management has developed and maintains a system of
internal accounting controls, including a program of internal audits. Management
believes that these controls provide reasonable assurance that financial records
are reliable and form a proper basis for preparation of financial statements.
The internal accounting control process includes Management’s communication to
employees of policies which govern ethical business conduct.
The Board of Directors has appointed an Audit and Risk
Management Committee consisting of unrelated, non-management directors which
meets at least four times during the year with Management and independently with
each of the internal and external auditors and as a group to review any
significant accounting, internal control and auditing matters. The Audit and
Risk Management Committee reviews the consolidated financial statements with
Management and the external auditors before the consolidated financial
statements are submitted to the Board of Directors for approval. The internal
and external auditors have free access to the Audit and Risk Management
Committee without obtaining prior Management approval.
With respect to the external auditors, KPMG LLP, the
Audit and Risk Management Committee approves the terms of engagement and reviews
the annual audit plan, the Auditors’ Report and results of the audit. It also
recommends to the Board of Directors the firm of external auditors to be
appointed by the shareholders.
The independent external auditors, KPMG LLP, have been
appointed by the shareholders to express an opinion as to whether the
consolidated financial statements present fairly, in all material respects, the
Company’s financial position, results of operations and cash flows in accordance
with Canadian generally accepted accounting principles. The report of KPMG LLP
on page 48 outlines the scope of their examination and their opinion on the
consolidated financial statements.
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Harold N. Kvisle
President and
Chief Executive Officer
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Russell K. Girling
Executive Vice-President
and Chief Financial Officer
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February 25, 2003
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