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I
tem
9
:C
h
anges in an
d
Disagreements Wit
h
Accountants on Accounting an
d
Financia
l
Disc
l
osure
N
one.
I
t
e
m 9A: Controls and Procedures
Evaluat
i
on o
f
D
i
sclosure
C
ontrols and Procedure
s
We eva
l
uate
d
,w
i
t
h
t
h
e part
i
c
i
pat
i
on o
f
our pr
i
nc
i
pa
l
execut
i
ve o
ffi
cer an
d
pr
i
nc
i
pa
lfi
nanc
i
a
l
o
ffi
cer, t
h
e
effectiveness of our disclosure controls and
p
rocedures (as defined in Rule 13a-1
5
(e) under the Securities
Exchange Act of 1934 (the “Exchange Act”)) as of June 30, 2011. Based on this evaluation, the principa
l
execut
i
ve o
ffi
cer an
d
pr
i
nc
i
pa
lfi
nanc
i
a
l
o
ffi
cer
h
ave conc
l
u
d
e
d
t
h
at our
di
sc
l
osure contro
l
san
d
proce
d
ures were
effective as of June 30, 2011, to
p
rovide reasonable assurance that information re
q
uired to be disclosed in our
reports under the Exchange Act is recorded, processed, summarized and reported within the time periods
spec
ifi
e
di
nt
h
e SEC ru
l
es an
df
orms an
d
t
h
at suc
hi
n
f
ormat
i
on
i
s accumu
l
ate
d
an
d
commun
i
cate
d
t
o
mana
g
ement to allow timel
y
decisions re
g
ardin
g
required disclosure
.
Mana
g
ement
’
s Report on Internal
C
ontrol
O
ver F
i
nanc
i
al Report
i
n
g
Management is responsible for establishing and maintaining adequate internal control over financial
reporting as defined in Rule 13a-15(f) under the Exchange Act. Our internal control system is designed t
o
provide reasonable assurance re
g
ardin
g
the reliabilit
y
of financial reportin
g
and the preparation of financia
l
statements for external purposes in accordance with generally accepted accounting principles. Because of it
s
i
n
h
erent
li
m
i
tat
i
ons,
i
nterna
l
contro
l
over
fi
nanc
i
a
l
report
i
ng may not prevent or
d
etect m
i
sstatements. A
l
so
controls deemed effective now ma
y
become inadequate in the future because of chan
g
es in conditions, or becaus
e
com
p
liance with the
p
olicies or
p
rocedures has deteriorated or been circumvented.
Mana
g
ement assessed the effectiveness of our internal control over financial reportin
g
as of June 30, 2011.
I
n making this assessment, management used the criteria established in Internal Control-Integrated Framework
i
ssue
db
yt
h
e Comm
i
ttee o
f
Sponsor
i
ng Organ
i
zat
i
ons o
f
t
h
e Trea
d
way Comm
i
ss
i
on (t
h
e “COSO cr
i
ter
i
a”)
.
B
ased on mana
g
ement’s assessment and the COSO criteria, mana
g
ement believes that our internal control ove
r
f
inancial reporting was effective as of June 30, 2011.
O
ur independent re
g
istered public accountin
g
firm, Ernst & Youn
g
LLP, has issued a report on our interna
l
control over financial reporting. Ernst & Young LLP’s report appears following Item 9A and expresses an
u
nqua
lifi
e
d
op
i
n
i
on on t
h
ee
ff
ect
i
veness o
f
our
i
nterna
l
contro
l
over
fi
nanc
i
a
l
report
i
ng
.
Changes in Internal Control Over Financial Reportin
g
T
here were no chan
g
es in our internal control over financial reportin
g
durin
g
the quarter ended June 30,
2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial
report
i
ng
.
I
mplementation of New Software System
s
T
he Medical se
g
ment is workin
g
on a medical business transformation pro
j
ect, which includes a new
information system for certain supply chain processes. This project did not impact internal control over financial
report
i
ng
d
ur
i
ng
fi
sca
l
2011. T
h
eMe
di
ca
l
segment p
l
ans to trans
i
t
i
on se
l
ecte
d
processes to t
h
e new syste
m
throu
g
hout fiscal 2012 and 2013, and this transition is expected to affect internal control over financial reportin
g
.
I
f this system is not effectively implemented or fails to operate as intended, it could adversely affect th
e
e
ff
ect
i
veness o
f
our
i
nterna
l
contro
l
over
fi
nanc
i
a
l
report
i
ng
.
7
7