FairPoint Communications 2009 Annual Report Download - page 88
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Table of Contents
We, the management of FairPoint Communications, Inc., are responsible for establishing and maintaining adequate internal control over financial
reporting of the Company. Management has evaluated internal control over financial reporting of the Company using the criteria for effective internal
control established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on such evaluation, management determined that the Company's internal control over financial reporting was not effective as of
December 31, 2009 because the following material weaknesses in internal control over financial reporting existed during 2009:
1. Our information technology controls were not adequate. Adequate testing was not performed to ensure that certain revenue transactions
were properly accounted for and transferred from our billing system to our general ledger. Also, access to our information systems was
not appropriately restricted.
2. Our management oversight and review procedures designed to monitor the accuracy of period-end accounting activities were ineffective.
Specifically, our account reconciliation processes were not adequate to properly identify and resolve discrepancies between our billing
system and our general ledger in a timely manner. In addition, control weaknesses existed relating to revenue, operating expenses,
accounts receivable, fixed assets and income taxes.
The Company's financial statements included in this annual report have been audited by Ernst & Young LLP, independent registered public
accounting firm. Ernst & Young LLP has also provided an attestation report on the Company's internal control over financial reporting.
81
/s/ DAVID L. HAUSER
Chairman and Chief Executive Officer
/s/ LISA R. HOOD
Senior Vice President and Corporate Controller,
Interim Chief Financial Officer