Clearwire 2009 Annual Report Download - page 135

ITEM
9.
Ch
an
g
es In an
d
Disa
g
reements wit
h
Accountants on Accountin
g
an
d
Financia
l
Disc
l
osure
KPMG LLP is the inde
p
endent auditor for S
p
rint Nextel Cor
p
oration and its subsidiaries, which included the
Wi
MAX Operat
i
ons o
f
Spr
i
nt Nexte
l
Corporat
i
on, our account
i
ng pre
d
ecessor. KPMG LLP au
di
te
d
t
h
e
fi
nanc
i
a
l
s
tatements o
f
t
h
eW
i
MAX Operat
i
ons o
f
Spr
i
nt Nexte
l
Corporat
i
on as o
f
Decem
b
er 31, 2007 an
df
or t
h
e
y
ear t
h
en
e
nded
.
De
l
o
i
tte & Touc
h
e LLP was t
h
e
i
n
d
e
p
en
d
ent au
di
tor
f
or C
l
earw
i
re Cor
p
orat
i
on an
d
su
b
s
idi
ar
i
es (w
hi
c
hp
r
i
or
t
o its mer
g
er with the WiMAX Operations of Sprint Nextel Corporation on November 28, 2008 is referred to as Old
Clearwire
)
. Deloitte & Touche LLP audited the consolidated financial statements of Old Clearwire as of Decem-
b
er 31, 2007 an
df
or t
h
e
y
ear en
d
e
d
Decem
b
er 31, 2007
.
Deloitte & Touche LLP was retained as the inde
p
endent auditor for Clearwire Cor
p
oration and subsidiaries,
th
e company resu
l
t
i
ng
f
rom t
h
e merger o
f
O
ld
C
l
earw
i
re an
d
t
h
eW
i
MAX Operat
i
ons o
f
Spr
i
nt Nexte
l
Corporat
i
o
n
on November 28, 2008. Deloitte & Touche LLP has audited the consolidated financial statements of Clearwire
Corporation as of December 31, 2009 and 2008 and for the
y
ears then ended.
I
n connect
i
on w
i
t
h
t
h
eau
di
to
f
t
h
e
y
ear en
d
e
d
Decem
b
er 31, 2007, t
h
ere were no
di
sa
g
reements w
i
t
h
KPMG
LLP on an
y
matter of accountin
g
principles or practices, financial statement disclosure, or auditin
g
scope o
r
p
rocedures, which disa
g
reements if not resolved to their satisfaction would have caused them to make references in
c
onnect
i
on w
i
t
h
t
h
e
i
rop
i
n
i
on to t
h
esu
bj
ect matter o
f
t
h
e
di
sagreement
.
T
he audit re
p
ort of KPMG LLP on the financial statements of the WiMAX O
p
erations of S
p
rint Nextel
Corporat
i
on
f
or t
h
e year en
d
e
d
Decem
b
er 31, 2007
did
not conta
i
n any a
d
verse op
i
n
i
on or
di
sc
l
a
i
mer o
f
op
i
n
i
on, no
r
was
i
t qua
lifi
e
d
or mo
difi
e
d
as to uncerta
i
nt
y
,au
di
t scope, or account
i
n
g
pr
i
nc
i
p
l
es.
ITEM
9
A
.
C
ontrols and Procedures
E
valuation of Disclosure
C
ontrols and Procedures
We ma
i
nta
i
n
di
sc
l
osure contro
l
san
d
proce
d
ures t
h
at are
d
es
ig
ne
d
to ensure t
h
at
i
n
f
ormat
i
on requ
i
re
d
to
be
disclosed in our reports filed under the Exchan
g
e Act is recorded, processed, summarized and reported within th
e
t
ime periods specified in the SEC’s rules and forms. Disclosure controls and procedures include controls an
d
p
roce
d
ures
d
es
ig
ne
d
to ensure t
h
at suc
hi
n
f
ormat
i
on
i
s accumu
l
ate
d
an
d
commun
i
cate
d
to our mana
g
ement,
i
nc
l
u
di
n
g
our C
hi
e
f
Execut
i
ve O
ffi
cer (CEO) an
d
C
hi
e
f
F
i
nanc
i
a
l
O
ffi
cer (CFO), as appropr
i
ate, to a
ll
ow t
i
me
ly
decisions regarding required financial disclosure
.
Our mana
g
ement, under the supervision and with the participation of our CEO and CFO, has evaluated the
e
ffectiveness of the desi
g
n and operation of our disclosure controls and procedures (as defined in Rule 13a-1
5
(e
)
un
d
er t
h
e Exc
h
ange Act) as o
f
Decem
b
er 31, 2009. Base
d
on t
hi
seva
l
uat
i
on, our CEO an
d
CFO conc
l
u
d
e
d
t
h
at, as
o
f
Decem
b
er 31, 2009, our
di
sc
l
osure contro
l
san
dp
roce
d
ures were
i
ne
ff
ect
i
ve,
d
ue to t
h
e mater
i
a
l
wea
k
ness
i
nou
r
i
nternal controls described below in “Management’s Report on Internal Control over Financial Reporting.
”
M
anagement’s Report on Internal Control over Financial Reporting
Our management
i
s respons
ibl
e
f
or esta
bli
s
hi
ng an
d
ma
i
nta
i
n
i
ng a
d
equate
i
nterna
l
contro
l
over
fi
nanc
i
a
l
r
eportin
g
, as that term is defined under Rule 13a-15(e) and 15(d) -15(f) promul
g
ated under the Exchan
g
e Act
.
Internal control over financial reportin
g
refers to the process desi
g
ned b
y
, or under the supervision of, our CEO and
CFO an
d
e
ff
ecte
db
y our
b
oar
d
o
fdi
rectors, management an
d
ot
h
er personne
l
, to prov
id
e reasona
bl
e assurance
r
egar
di
ng t
h
ere
li
a
bili
ty o
ffi
nanc
i
a
l
report
i
ng an
d
t
h
e preparat
i
on o
ffi
nanc
i
a
l
statements
f
or externa
l
purposes
i
n
accordance with
g
enerall
y
accepted accountin
g
principles in the United States, and includes those policies an
d
p
roce
d
ures t
h
at
:
• perta
i
ntot
h
ema
i
ntenance o
f
recor
d
st
h
at
i
n reasona
bl
e
d
eta
il
accurate
ly
an
df
a
i
r
ly
re
fl
ect t
h
e transact
i
on
s
a
nd dis
p
osition of our assets;
12
5