Stamps.com 2015 Annual Report Download - page 53

TABLE OF CONTENTS
ITEM 9A. CONTROLS AND PROCEDURES.
Evaluation of disclosure controls and procedures
Wemaintaindisclosurecontrolsandprocedures(assuchtermisdefinedinRules13a-15(e)and15d-15(e)undertheExchange
Act).
AsoftheendoftheperiodcoveredbythisReport,ourmanagementevaluated,withtheparticipationofourPrincipalExecutive
OfficerandPrincipalFinancialOfficer,theeffectivenessofourdisclosurecontrolsandproceduresasoftheendoftheperiodcovered
bythisreport.Basedonthatevaluation,ourPrincipalExecutiveOfficerandPrincipalFinancialOfficerhaveconcluded,asofthattime,
thatourdisclosurecontrolsandprocedureswereeffective.
Management’s report on internal control over financial reporting
Ourmanagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,assuchtermis
definedinExchangeActRule13a-15(f)and15d-15(f).Ourinternalcontrolsystemwasdesignedtoprovidereasonableassuranceto
ourmanagementandBoardofDirectorsregardingthepreparationandfairpresentationofpublishedfinancialstatements.Allinternal
controlsystems,nomatterhowwelldesigned,haveinherentlimitations.Therefore,eventhosesystemsdeterminedtobeeffectivecan
provideonlyreasonableassurancewithrespecttofinancialstatementpreparationandpresentation.
Underthesupervisionandwiththeparticipationofourmanagement,includingourChiefExecutiveOfficerandChiefFinancial
Officer,managementusedthecriteriasetforthbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013
Framework)(COSO)inInternalControl-IntegratedFramework.Basedonourassessmentandthosecriteria,management,including
ourChiefExecutiveOfficerandChiefFinancialOfficer,concludedthatourinternalcontroloverfinancialreportingwaseffectiveasof
December31,2015.Management’sassessmentofandconclusionontheeffectivenessofinternalcontroloverfinancialreportingdid
notincludetheinternalcontrolsofPSISystemsInc.,whichareincludedinthe2015consolidatedfinancialstatementofStamps.com
Inc.andsubsidiariesandconstitutedapproximately$235millionoftotalassetsasofDecember31,2015,approximately$10millionof
revenuesandapproximately$2millionofnetincomefortheyearthenended.SecuritiesandExchangeCommissionguidelinespermit
companiestoexcludeacquisitionsfromtheirassessmentofinternalcontroloverfinancialreportingduringthefirstyearfollowingan
acquisition.
Ernst&Young,LLP,theindependentregisteredpublicaccountingfirmwhoalsoauditedourconsolidatedfinancialstatements,
hasissuedanattestationreportontheeffectivenessofinternalcontroloverfinancialreportingasofDecember31,2015,whichis
includedherein.
Changes in internal controls
OnNovember18,2015,weacquiredEndiciaand,asaresult,wehavebegunintegratingcertainprocesses,systemsandcontrols
relatingtoEndiciaintoourexistingsystemofinternalcontroloverfinancialreportinginaccordancewithourintegrationplans.Except
forcertainprocesses,systemsandcontrolsrelatingtotheintegrationofEndicia,therehavenotbeenanychangesinourinternalcontrol
overfinancialreportingidentifiedinconnectionwiththeevaluationrequiredbyRule13a-15(d)and15d-15(d)oftheExchangeAct
duringthequarterendedDecember31,2015thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,ourinternal
controloverfinancialreporting.
ITEM 9B. OTHER INFORMATION.
None.
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