Orbitz 2011 Annual Report Download - page 95

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95
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. As of
December 31, 2011, our management conducted an assessment of the effectiveness of our internal control over financial
reporting using the criteria in Internal Control - Integrated Framework, established by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on this assessment, our management has concluded that our internal control
over financial reporting was not effective as of December 31, 2011, as a result of the material weakness discussed below.
Ineffective Information Technology Controls: Our management identified a number of deficiencies related to the design
and operating effectiveness of certain information technology (“IT”) general and application controls that have a direct impact
on our financial reporting. While none of the individual deficiencies noted in these areas rise to the level of a material
weakness, based on the nature and interrelationship of the noted deficiencies, our management concluded that these
deficiencies, when considered in the aggregate, resulted in a reasonable possibility that a material misstatement in our interim
or annual financial statements would not be prevented or detected on a timely basis.
Specifically, the following material weakness existed as of December 31, 2011: Policies and procedures over IT program
development and change management do not operate at a sufficient level to ensure all changes affecting the financial
statements and underlying accounting records and key reports are identified, authorized, tested and implemented appropriately.
In addition, certain deficiencies were noted in automated, application and manual business controls that are dependent on
system information for their effective operation and, as a result, financial information may not be accurately reflected in key
reports or in the general ledger. These IT-dependent controls include controls over the replication of data between IT
applications, such as data completeness, input controls and validity checks, as well as controls over account reconciliations and
the preparation of journal entries for certain key accounts.
Deloitte & Touche LLP, our independent registered public accounting firm, has audited the financial statements
contained in this Annual Report on Form 10-K and issued an auditors' report on the effectiveness of our internal control over
financial reporting, which report is included herein.
Remediation Plan
We are actively engaged in the development and implementation of a remediation plan to ensure that controls
contributing to this material weakness are designed appropriately and will operate effectively. In late 2011, we established new
leadership over certain IT support functions which will devote a significant amount of effort to improving the quality of the
controls surrounding our IT systems. In addition, we are developing a new subledger system that will strengthen our controls
surrounding account reconciliations and journal entries. We have prioritized these remediation efforts. Until this material
weakness is remediated, we will continue to perform additional procedures to reasonably assure the reliability of financial
reporting and the preparation of our consolidated financial statements contained in future periodic filings.