monitors compliance with, and the effectiveness of, established policies and procedures. The consolidated financial statements of CSX have been prepared by management, which is responsible for their content and accuracy. The statements present the results of operations, cash flows and financial position of the Company in conformity with accounting principles generally accepted in the United States and, accordingly, include certain amounts based on management’s judge- ments and estimates. The Audit Committee of the board of directors composed solely of outside directors, meets periodically with management, internal auditors and the independent auditors to review audit findings, adherence to corporate policies and other financial matters. The firm of Ernst & Young LLP, independent auditors, has been engaged to express opinions on the Company’s consolidated finan- cial statements, on Management’s assessment of the effectiveness of internal controls over financial reporting and on the effectiveness of internal control over financial reporting. Its audit was conducted in accordance with the standards of The Public Company Accounting Oversight Board. CSX and its subsidiaries maintain internal controls designed to provide reasonable assurance that assets are safeguarded and transactions are properly author- ized by management and are recorded in conformity with accounting principles generally accepted in the United States. Controls include accounting tests, written policies and procedures and a code of corporate ethics routinely communicated to all employees. An internal audit staff MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING OSCAR MUNOZ Executive Vice President and Chief Financial Officer MICHAEL WARD Chairman, President and CEO Carolyn T. Sizemore Vice President and Controller Michael Wand