In addition to retaining KPMG LLP to audit the consolidated financial statements for 2001,
the Company and its affiliates retained KPMG and many other accounting and consulting firms
to provide various advisory, auditing, and consulting services in 2001. GE understands the need
for KPMG to maintain objectivity and independence in its audit of the Company's financial
statements. Therefore, GE does not use KPMG for internal audit work, and only uses KPMG for
non-audit work when it concludes that KPMG is the most appropriate provider of that service.
GE's use of KPMG for non-audit services declined significantly in 2001. The Audit Committee
annually evaluates whether the Company's use of KPMG for non-audit services is compatible with
KPMG's independence. The aggregate fees billed for professional services by KPMG in 2001 for
these various services were:
GE managers make all management decisions with respect to its financial information systems, and
are responsible for evaluating the adequacy of such systems and for establishing and maintaining the
Company's system of internal accounting controls.