Hertz 2014 Annual Report Download - page 221

Table of Contents
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To further enhance the financial close process and address the remediation of this material weakness, our management is currently completing
activities associated with our chart of accounts and utilization of Oracle ERP features.
We have taken steps to improve our design and maintenance of effective controls for accounting estimates, including:
• Where necessary, identified, implemented and documented controls over appropriate accounting methodologies for certain
accounts;
• Held trainings with accounting staff in the first quarter of 2015 to ensure there is a thorough understanding of the underlying
methodologies implemented;
• Established policies and procedures for the approval and implementation of new or modified accounting methodologies;
• Hired accounting personnel with an appropriate level of knowledge and experience to execute the underlying accounting
methodologies; and
• Established policies and procedures for the review, approval and application of appropriate GAAP for transactions and accounting
methodology changes.
In addition, to improve our controls over the processing of manual journal entries, we have reinforced procedures to ensure that manual journal
entries recorded in our financial records are properly prepared, supported by adequate documentation, and independently reviewed and approved.
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We are establishing mechanisms to identify, evaluate, and monitor risks to financial reporting throughout the organization to remediate our material
weakness in the risk assessment process and monitoring, as described below.
We have designed and where appropriate enhanced controls over the preparation, analysis and review of transactions and, execution of balance
sheet and significant account reconciliations. In addition, we have reinforced existing policies and procedures and enacted policy and procedures
changes, where necessary, to better define requirements for effective and timely reconciliations of balance sheet and significant accounts,
including independent review. We have also implemented a training program specific to the review and preparation of account reconciliations.
We are updating our global risk assessment. In addition, we have updated our internal audit plan to include internal audit monitoring activities
responsive to the issues identified in our internal investigation and review of our financial records.
We have implemented new procedures and enhanced controls governing our internal management-led Disclosure Committee, sub-certification, and
external reporting processes associated with the review and approval of the content of our SEC filings and other public disclosures.
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We have formalized procedures to ensure appropriate internal communication between the accounting department and other operating departments
necessary to support the proper functioning of internal controls.
In addition, we are in the process of updating the corporate-wide accounting policies manual to ensure proper accounting for transactions in
compliance with GAAP and consistently applied across all locations. Additional policies will also need to be developed and issued and
corresponding training will need to be provided.
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To address deficiencies in our internal audit function, we hired in 2015 a Senior Vice President and Chief Audit Executive, with global
responsibilities. In addition, we have commenced recruiting for additional staff members and have recently hired a senior auditor. We are currently
supplementing our personnel resources with a substantial number of internal audit consulting resources with financial accounting expertise.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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