Policy Statement for Controlling the Operations of the Corporation and Subsidiaries

POLICY STATEMENT FOR CONTROLLING THE OPERATIONS OF THE

CORPORATION AND SUBSIDIARIES

Management is charged with the responsibility for controlling the operations of the Corporation and subsidiaries in a manner which:

• Safeguards the Corporation's resources;

• Ensures the reliability of data and information;

• Promotes efficient and effective operations; and,

• Ensures that plans and intentions of the Boards of Directors and management are carried out.

Controlling is an integral part of managing operations. As such, it is the responsibility of management, at all levels of the Corporation, to:

• Identify and evaluate the exposures related to the conduct of its operations;

• Specify and establish the policies, operating standards, procedures, systems, and other disciplines to be used to limit the risks associated with the exposures identified;

• Establish practical controlling processes that require and encourage employees to perform their tasks in a manner that achieves a positive control result; and,

• Maintain the adequacy and effectiveness of the controlling processes that have been established.

The role of the Internal Audit Department is to assist management to attain company goals by providing an independent, objective, assurance and consulting activity designed to add value and improve an organization’s operations through independently reviewing and evaluating the effectiveness of operations and controls and by providing objective analyses and constructive recommendations. Management retains full control over the implementation of these recommendations.

The corporate policy statement on controlling operations has three dimensions:

I. The Concept of Controlling

II. Management's Responsibility for Controlling

III. Internal Audit's Responsibility for Evaluating the Process of Controlling.

The purpose of this statement is to amplify and clarify the three dimensions...