INTL FCStone 2013 Annual Report Download - page 136

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INTLFCSTONEINC.Form10K 115
PART II
ITEM 9BOther Information
Management identied a material weakness in internal control
over nancial reporting that existed as of September 30, 2013,
related to the accurate and timely accounting for certain principal
over-the-counter derivative trading activities. Specically, controls
over the reconciliation between trading system data and the
general ledger and the review thereof were not designed to detect
errors timely in recording trading gains to the general ledger.
As a result of this material weakness, the Company misstated
certain principal over-the-counter derivative trading activities.
We corrected these misstatements and restated our consolidated
nancial statements for the years ended September 30, 2012
and 2011 and adjusted the preliminary consolidated nancial
statements for the year ended September 30, 2013 in connection
with the issuance of the September 30, 2013 consolidated
nancial statements.
Because of the material weakness described above, management
concluded that the Company did not maintain eective internal
control over nancial reporting as of September 30, 2013.
KPMG LLP, an independent registered public accounting rm,
audited the eectiveness of our internal control over nancial
reporting as of September 30, 2013, and KPMG LLP issued a
report on the eectiveness of the Company’s internal control
over nancial reporting as of September 30, 2013, which is
included in Item 8 “Consolidated Financial Statements and
Supplementary Data” of this Annual Report on Form 10-K and
expresses an adverse opinion on the eectiveness of our internal
control over nancial reporting.
(c) Remediation Steps to Address Material Weakness
We have developed, and are currently implementing, a remediation
plan for this material weakness. We will continue to execute our
remediation plan, which includes, among other things modifying
the design of the reconciliation, adding documentation detailing
the reconciliation and any future changes to the reconciliation
as well as layers of review over manual processes and the
remediation process. As we continue to evaluate and work
to enhance internalcontrol over nancial reporting, we may
determine that additional measures should be taken to address
these or other control deciencies, and/or we should modify the
remediation plan described above.
(d) Changes in Internal Control Over Financial Reporting
ere were no changes in our internal controls over nancial reporting that occurred during the quarter ended September 30, 2013
that materially aected, or are reasonably likely to materially aect, our internal control over nancial reporting.
ITEM 9B Other Information
None.