Sallie Mae 2014 Annual Report Download - page 76

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Changes in Internal Control over Financial Reporting
Before the Spin-Off, the Company relied on the controls and resources of pre-Spin-Off SLM for internal control over
financial reporting. In conjunction with the Spin-Off, several areas of internal control over financial reporting have changed.
We have implemented our own financial, information technology, administrative, and other support systems as well as new
corporate oversight functions, primarily through the retention of pre-Spin-Off SLM personnel, policies and procedures within
the Company and giving consideration to the significantly smaller size of the Company post-Spin-Off.
Other than those noted above, there were no changes in our internal control over financial reporting (as defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended December 31, 2014 that has materially
affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Adoption of COSO 2013
On May 14, 2013, COSO released its revisions and updates to the 1992 document Internal Control - Integrated
Framework. COSO’s goal in updating the framework was to increase its relevance in the increasingly complex and global
business environment so that organizations can better design, implement, and assess internal control.
Given the significant amount of effort required in 2014 to accomplish the Spin-Off, we decided to delay the
implementation of COSO 2013 until 2015. We believe this decision was prudent given the level of effort required to implement
the new framework during a period of significant change at the Company.
Item 9B. Other Information
Nothing to report.
74