Stein Mart 2011 Annual Report Download - page 25

Table of Contents
Management anticipates that the above activities will be completed by the end of the first quarter of 2012 with testing of operating
effectiveness to immediately follow. Additionally, we are reviewing the processes and controls for our new merchandise application systems to
ensure that these legacy system issues will not reoccur.
Identified in the fourth quarter
Credit Card Receivables
During the fourth quarter of 2011, we identified a material weakness in our internal control over financial reporting related to credit card
receivables resulting in an adjustment of $0.6 million to increase expense and decrease credit card receivables to correct the balances.
The following is the material weaknesses and status of remediation activities through January 28, 2012:
We did not maintain effective controls related to the reconciliations of credit card receivables accounts. Specifically, we determined the
account reconciliations for credit card receivables were not designed to appropriately identify errors and the review of these reconciliations by
management did not identify that certain reconciling items lacked sufficient support.
Planned remediation activities are as follows:
Management anticipates that the remediation activities above will be completed by the end of the first quarter of 2012 with testing of operating
effectiveness to follow.
Changes in Internal Control Over Financial Reporting
As discussed above, there were changes in the Company’s internal control over financial reporting during the last fiscal quarter that have
materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
None.
PART III
The information required by this item is incorporated herein by reference to the disclosure found in the Proxy Statement for our June 19, 2012
Annual Meeting of Stockholders.
We have adopted a code of conduct applicable to all of our officers, directors and employees, including the principal executive officer,
principal financial officer, principal accounting officer and persons performing similar functions. The text of this code of conduct may be found
on our web site at www.steinmart.com . We intend to post notice of any waiver from, or amendment to, any provision of our code of conduct
on our web site.
The information required by this item is incorporated herein by reference to the disclosure found in the Proxy Statement for our June 19, 2012
Annual Meeting of Stockholders.
The information required by this item is incorporated herein by reference to the disclosure found in the Proxy Statement for our June 19, 2012
Annual Meeting of Stockholders.
The information required by this item is incorporated herein by reference to the disclosure found in the Proxy Statement for our June 19, 2012
Annual Meeting of Stockholders.
The information required by this item is incorporated herein by reference to the disclosure found in the Proxy Statement for our June 19, 2012
Annual Meeting of Stockholders.
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We are redesigning the account reconciliations for credit card receivables accounts to identify errors on a timely basis.
•
We are adding procedures to ensure reconciliations contain sufficient supporting documentation.
ITEM 9B.
OTHER INFORMATION
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 11. EXECUTIVE COMPENSATION
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
ITEM 14.
PRINCIPAL ACCOUNTING FEES AND SERVICES