2017 | 2018 Annual Report

 

Report of Management

 

The Fiscal Year 2018 (Feb. 1, 2017 through Jan. 31, 2018) financial audit was successful.  Based on procedures they conducted, our external auditors, Baker Tilly Virchow Krause, LLP; Garza, Preis & Co., L.L.C.; and Robert J. Williams, CPA, issued an unmodified opinion, indicating that our financial statements were found to be free of reporting deficiencies.

The audited basic financial statements were prepared by our Management Team in conformity with accounting principles generally accepted in the United States of America, and the statements are presented fairly in all material respects.  We have also prepared other financial information presented in the annual report and have ensured that it is consistent with information in the audited financial statements.

Our Management Team maintains accounting, financial reporting and administrative internal controls designed to provide reasonable assurance that the financial information is relevant, reliable, and accurate and that assets are appropriately accounted for and adequately safeguarded.  These controls are supported by formal policies and procedures readily communicated throughout our Company.  Additionally, CPS Energy has an internal audit function that assists in evaluating the adequacy and effectiveness of our control environment.

CPS Energy’s independent Board of Trustees is responsible for reviewing and accepting both the audited financial statements and Management’s Discussion and Analysis (MD&A).  The Board of Trustees, primarily through two of their members who comprise the Audit & Finance Committee, ensures our Management Team fulfills our responsibilities for financial reporting.  The Board of Trustees also approves the engagement or reappointment of the external auditors.

The Audit & Finance Committee meets regularly with our Management Team, and with the internal and external auditors, to discuss internal control and financial reporting issues and to ensure each party is properly discharging its responsibilities.  The Audit & Finance Committee reviews the audited financial statements and the external auditors’ report and considers the statements for review and acceptance by all members of the Board.

CPS Energy’s external auditors have audited the financial statements in accordance with auditing standards generally accepted in the United States of America.  They performed procedures to obtain audit evidence deemed sufficient and appropriate to provide a basis for their opinion on the fairness of the audited financial statements.  In support of the external auditors’ procedures, our Management Team provided them full and free access to our accounting records.

 
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