MoneyGram 2015 Annual Report Download - page 66

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Table of Contents
Management’s Responsibility Statement
The management of MoneyGram International, Inc. is responsible for the integrity, objectivity and accuracy of the consolidated financial statements of the
Company. The consolidated financial statements are prepared by the Company in accordance with accounting principles generally accepted in the United States of
America using, where appropriate, management’s best estimates and judgments. The financial information presented throughout the Annual Report is consistent
with that in the consolidated financial statements.
Management is also responsible for establishing and maintaining a system of internal controls and procedures over financial reporting designed to provide
reasonable assurance that the books and records reflect the transactions of the Company and that assets are protected against loss from unauthorized use or
disposition. Such a system is maintained through accounting policies and procedures administered by trained Company personnel and updated on a continuing
basis to ensure their adequacy to meet the changing requirements of our business. The Company requires that all of its affairs, as reflected by the actions of its
employees, be conducted according to the highest standards of personal and business conduct. This responsibility is reflected in our Code of Ethics.
To test compliance with the Company’s system of internal controls and procedures over financial reporting, the Company carries out an extensive audit program.
This program includes a review for compliance with written policies and procedures and a comprehensive review of the adequacy and effectiveness of the internal
control system. Although control procedures are designed and tested, it must be recognized that there are limits inherent in all systems of internal control and,
therefore, errors and irregularities may nevertheless occur. Also, estimates and judgments are required to assess and balance the relative cost and expected benefits
of the controls. Projection of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The Audit Committee of the Board of Directors, which is composed solely of outside directors, meets quarterly with management, internal audit and the
independent registered public accounting firm to discuss internal accounting control, auditing and financial reporting matters, as well as to determine that the
respective parties are properly discharging their responsibilities. Both our independent registered public accounting firm and internal auditors have had and
continue to have unrestricted access to the Audit Committee without the presence of management.
Management assessed the effectiveness of the Company’s internal controls over financial reporting as of December 31, 2015 . In making this assessment,
management used the criteria set forth in InternalControl-IntegratedFramework(2013)issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on our assessment and those criteria, management concluded that the Company’s internal control over financial reporting was effective as of
December 31, 2015 . Management had identified a material weakness in the Company’s internal control over financial reporting related to the reconciliation of
new balance sheet accounts beginning in August 2015, which was both identified and remediated in December 2015. For additional information regarding the
nature of this material weakness, see “ ChangesinInternalControlOverFinancialReporting” in Item 9A of this Annual Report on Form 10-K.
The Company’s independent registered public accounting firm, Deloitte & Touche LLP, has been engaged to audit our financial statements included in this Annual
Report on Form 10-K and the effectiveness of the Company’s system of internal control over financial reporting. Their attestation report regarding the Company’s
internal control over financial reporting is included on page F-3 of this Annual Report on Form 10-K.
F-2