Hertz 2015 Annual Report Download - page 165

Table of Contents
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consider this material weakness fully remediated, we believe additional time is needed to demonstrate sustainability as it relates to the
revised controls.
Journal Entries
•To address the material weakness associated with controls over journal entries, we have enhanced and reinforced procedures to ensure
that manual journal entries recorded in our financial records are properly prepared, supported by adequate documentation, and
independently reviewed and approved. In order to consider this material weakness fully remediated, we believe additional time is needed to
demonstrate sustainability as it relates to the revised controls.
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•To address the material weakness associated with controls in response to the risk of material misstatement, we are establishing
mechanisms to identify, evaluate, and monitor risks to financial reporting throughout the organization to remediate our material weakness
in the risk assessment process. We are updating our global risk assessment. We have implemented new procedures and enhanced
controls governing our internal management-led Disclosure Committee, sub-certification, and external reporting processes associated with
the review and approval of the content of our SEC filings. In order to consider this material weakness fully remediated, we believe
additional time is needed to demonstrate sustainability as it relates to the revised controls.
•To address the material weakness associated with controls over account reconciliations and other transaction level controls, we have
designed, and where appropriate enhanced, controls over the preparation, analysis and review of transactions and the execution of
balance sheet and significant account reconciliations. In addition, we have reinforced existing policies and procedure and enacted policy
and procedures changes, where necessary, to better define requirements for effective and timely reconciliations of balance sheet and
significant accounts, including independent review. We have also implemented a training program specific to the review and preparation of
account reconciliations. Lastly, we have implemented transaction controls that address the design deficiencies previously identified. In
order to consider this material weakness fully remediated, we believe additional time is needed to demonstrate sustainability as it relates
to the revised controls.
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We have taken actions to address the material weakness associated with controls over monitoring, including (i) the hiring in 2015 of a new Senior
Vice President and Chief Audit Executive, with global responsibilities, (ii) the continued hiring of additional resources with an appropriate level of
knowledge and expertise, (iii) the supplementation of these personnel with qualified consulting resources to ensure an adequate level of staff, (iv)
the reorganization of the internal audit function and (v) enhancements to the Company’s risk assessment process, and (vi) the reporting of
operational and financial assessments to senior management and the Audit Committee. During 2015, the internal audit and Sarbanes-Oxley
compliance teams enhanced (i) our processes associated with the scoping and identification of processes and key controls, (ii) the documentation
of these processes and (iii) our testing procedures to promote the consistency and accuracy of conclusions, deliverables and disclosures
associated with SOX compliance. In order to consider this material weakness to be fully remediated, we believe additional time is needed to
demonstrate sustainability as it relates to our remediation plans.
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