This excerpt taken from the SLE 10-K filed Sep 2, 2005.
Managements Report on Internal Control Over Financial Reporting
Under Section 404 of The Sarbanes-Oxley Act of 2002, the corporation is required to assess the effectiveness of its internal control over financial reporting as of July 2, 2005 and report, based on that assessment, whether the corporations internal controls over financial reporting are effective.
Management of the corporation is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The corporations internal control over reporting is designed to provide reasonable assurance regarding the reliability of the corporations financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
The corporations internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the acquisition, disposition and other transactions regarding the assets of the corporation, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the corporation are being made only in accordance with authorizations of management and directors of the corporation; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the corporations assets that could have a material effect on the financial statements.
Internal control over financial reporting, because of its inherent limitations, may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The corporations management has assessed the effectiveness of its internal control over financial reporting as of July 2, 2005. In making this assessment, the corporation used the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. These criteria are in the areas of control environment, risk assessment, control activities, information and communication, and monitoring. The corporations assessment included documenting, evaluating and testing of the design and operating effectiveness of its internal control over financial reporting. Management of the corporation reviewed the results of its assessment with the Audit Committee of our Board of Directors.
Based on the corporations assessment, management has concluded that, as of July 2, 2005, the corporations internal control over financial reporting was effective.
Managements assessment of the effectiveness of the corporations internal control over financial reporting as of July 2, 2005 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.