Annual Report - CoBank

Report of ManagementCoBank, ACBMarch 1, 2012To our Shareholders:The consolidated financial statements of CoBank, ACB (CoBank) are prepared by management, which is responsible for theirintegrity and objectivity, including amounts that must necessarily be based on judgments and estimates. The consolidated financialstatements have been prepared in conformity with accounting principles generally accepted in the United States of America asappropriate in the circumstances. The consolidated financial statements, in the opinion of management, fairly present, in all materialrespects, the consolidated financial position of CoBank. Other consolidated financial information included in the Annual Report toShareholders is consistent with that in the financial statements.To meet its responsibility for reliable consolidated financial information, management depends on accounting and internal controlsystems which have been designed to provide reasonable, but not absolute, assurance that assets are safeguarded and transactions areproperly authorized and recorded. The systems have been designed to recognize that the cost must be related to the benefits derived.To monitor compliance, CoBank’s internal audit staff performs audits of the accounting records, reviews accounting systems andinternal controls, and recommends improvements as deemed appropriate. CoBank’s 2011, 2010 and 2009 consolidated financialstatements have been audited by PricewaterhouseCoopers LLP, independent auditors. In addition, our independent auditors haveaudited our internal control over financial reporting as of December 31, 2011, 2010 and 2009. CoBank is also examined by the FarmCredit Administration.The president and chief executive officer, as delegated by the Board of Directors, has overall responsibility for CoBank’s systemof internal controls and financial reporting, subject to the review of the audit committee of the Board of Directors. The president andchief executive officer reports periodically on those matters to the audit committee. The audit committee consults regularly withmanagement and meets periodically with the independent auditors and internal auditors to review the scope and results of their work.The audit committee reports regularly to the Board of Directors. Both the independent auditors and the internal auditors have directaccess to the audit committee, which is composed solely of directors who are not officers or employees of CoBank.The undersigned certify that this CoBank Annual Report to Shareholders has been reviewed by the undersigned and has beenprepared in accordance with all applicable statutory or regulatory requirements and that the information contained herein is true,accurate and complete to the best of their knowledge.Everett Dobrinski Robert B. Engel David P. BurlageChairman of the Board President and Chief Executive Officer Chief Financial OfficerCoBank 2011 Annual Report111