INTL FCStone 2011 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2011 INTL FCStone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

INTL FCSTONE INC.Form10K 109
PART II
ITEM 9B Other Information
Management’s Report on Internal Control Over Financial Reporting
e management of INTLFCStoneInc. is responsible for
establishing and maintaining adequate internal control over
fi nancial reporting, as such term is defi ned in Exchange Act Rule
13a-15(f). e Company designs and maintains accounting
and internal control systems to provide reasonable assurance
at reasonable cost that assets are safeguarded against loss from
unauthorized use or disposition, and that the fi nancial records
are reliable for preparing fi nancial statements and maintaining
accountability for assets. ese systems are augmented by
written policies, an organizational structure providing division
of responsibilities and careful selection and training of qualifi ed
personnel.
Management (with the participation of the Company’s principal
executive offi cer and principal fi nancial offi cer) has evaluated
the Company’s internal control over fi nancial reporting as of
September30,2011, based on the framework in Internal Control-
Integrated Framework issued by the Committee of Sponsoring
Organizations (COSO) of the Treadway Commission.
ere are limitations inherent in any internal control, such as the
possibility of human error and the circumvention or overriding
of controls. A control system, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that
the objectives of the control system are met, and may not prevent
or detect misstatements. As conditions change over time, so too
may the eff ectiveness of internal controls. A material weakness is
a defi ciency, or a combination of defi ciencies, in internal control
over fi nancial reporting such that there is a reasonable possibility
that a material misstatement of the Company’s annual or interim
fi nancial statements will not be prevented or detected on a timely
basis. A signifi cant defi ciency is a defi ciency, or a combination
of defi ciencies, in internal control over fi nancial reporting that
is less severe than a material weakness, yet important enough to
merit attention by those responsible for oversight of a Company’s
fi nancial reporting.
Management’s assessment of the eff ectiveness of the Company’s
internal control over fi nancial reporting as of September30,2011
excluded INTL Hencorp Futures,LLC, acquired with eff ect from
October1,2010 and Ambrian Commodities Limited, acquired
with eff ect from August31,2011.
Based on its assessment, management has concluded that our
internal control over fi nancial reporting was eff ective as of
September30,2011.
e eff ectiveness of the Company’s internal control over fi nancial
reporting as of September30,2011 has been audited by KPMG
LLP, an independent registered public accounting fi rm, and KPMG
LLP has issued a report on the eff ectiveness of the Company’s
internal control over fi nancial reporting as of September30,2011,
which is included in Item8 “Consolidated Financial Statements
and Supplementary Data” of this Annual Report on Form10-K.
Changes in Internal Control Over Financial Reporting
During the fourth quarter of 2011, the Company reviewed and
subsequently refi ned various internal controls over fi nancial
reporting, relating to an acquisition made in fi scal2010,
surrounding the distribution of over-the-counter customer
statements and the confi rmation of counterparty balances.
We believe these modifi cations enhance the effi ciency and
eff ectiveness of our preparation of the fi nancial statements
produced for management and external reporting. Other than
the foregoing, there were no changes in the Company’s internal
controls over fi nancial reporting during the fi scal year ended
September30,2011 that materially aff ected, or are reasonably
likely to materially aff ect, the Company’s internal control over
fi nancial reporting.
ITEM 9B Other Information
None.