Juno 2014 Annual Report Download - page 71

Table of Contents
The effectiveness of the Company's internal control over financial reporting at December 31, 2014 has been audited by PricewaterhouseCoopers LLP, an
independent registered public accounting firm, as stated in their report which appears herein.
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In connection with the preparation of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, which was filed with the SEC on
August 18, 2014, we concluded that there was a combination of deficiencies that constituted a material weakness in our internal control over financial
reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.
The previous material weakness in internal control over financial reporting was related to the failure to maintain effective controls over the accounting
for income taxes and related disclosures. Specifically, management identified four deficiencies in internal control related to the accounting for income taxes,
which individually were not determined to be material weaknesses; however, when considering these deficiencies in the aggregate, they constituted a
material weakness. Management determined that these deficiencies related to the level of precision of management's review controls related to the provision
for income taxes and reconciliation of tax-related balance sheet accounts. Management's review controls over the provision for income taxes, deferred taxes,
income taxes payable, and liabilities for uncertain tax positions, as well as review controls related to the federal tax returns, specifically the review of the
return-to-provision analysis, operated at a level of precision to prevent or detect potential material misstatements from being reported, but were not sufficient
to prevent or detect individually immaterial errors that, when aggregated, could be material to the Company's financial reporting.
We implemented changes and improvements in the internal control over financial reporting to remediate the control deficiencies that gave rise to the
material weakness. Specifically, the following have been implemented:
•Re-evaluated the design of income tax accounting processes and implemented new and improved processes and controls, as appropriate,
including adding supplemental oversight and review; and
•Strengthened the precision of the internal review process to ensure the completeness and accuracy of the accounting for income taxes,
including re-training and/or hiring of personnel to operate the controls at the appropriate level of precision; and
•Enhanced standardized documentation and process in the income tax provision area.
Upon completion of our testing of the design and operating effectiveness of these new control procedures, management concluded that the previously-
identified material weakness was remediated as of December 31, 2014.
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As described above, there were changes in quarter ended December 31, 2014 in the Company's internal control over financial reporting that materially
affected, or are reasonably likely to materially affect, internal control over financial reporting.
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None.
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