CASH » Topics » Item 9A. Controls and Procedures

This excerpt taken from the CASH 10-Q filed May 14, 2009.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

This excerpt taken from the CASH 10-Q filed Feb 11, 2009.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

This excerpt taken from the CASH 10-Q filed Aug 14, 2008.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

This excerpt taken from the CASH 10-Q filed May 15, 2008.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

This excerpt taken from the CASH 10-Q filed May 15, 2008.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

These excerpts taken from the CASH 10-K filed Jan 11, 2008.

Item 9A.                 Controls and Procedures

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

The Company’s management, with the participation of the Company’s Chief Executive Officer and Acting Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls

 

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and procedures, as such term is defined in Rules 13a – 15(e) and 15d – 15(e) of the Exchange Act as of the end of the period covered by the report. Disclosure controls and procedures are designed to ensure that information required to be disclosed by a registrant in the reports that it files or submits under the Securities Exchange Act of 1934 (the “Exchange Act”) is properly recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s (“SEC”) rules and forms.  Disclosure controls and procedures include processes to accumulate and evaluate relevant information and communicate such information to a registrant’s management, including its principal executive and financial officers, as appropriate, to allow for timely decisions regarding required disclosures.

 

Based upon that evaluation, our Chief Executive Officer (principal executive officer) and Acting Chief Financial Officer (principal financial officer) concluded that, as of September 30, 2007 our disclosure controls and procedures were not effective to provide reasonable assurance that (i) the information required to be disclosed by us in this report was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) information required to be disclosed by us in our reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosures, because of the material weaknesses discussed below.  To address those weaknesses, the Company performed additional analyses and other post-closing procedures to ensure that our consolidated financial statements are prepared in accordance with generally accepted accounting principles.  Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

 

The aforementioned evaluation identified the following material weaknesses:

 

1.               The Company discovered in September 2007 that maintenance fees charged to and collected from holders of prepaid gift cards, which were issued through the Company’s network of agent financial institutions, were not recognized as income in the appropriate periods.  As a result, the financial statements were restated for fiscal year 2006 and the first three quarters of 2007. With respect to such restatements, as disclosed in the Company’s previous filings, the effect on the Company’s financial statements for the year ended September 30, 2006 were not considered to be material, while the effects on the Company’s financial statements for the first three quarters of fiscal 2007 were considered to be material; accordingly, amended quarterly reports on Form 10-Q were filed by the Company.

 

2.               We also concluded that the provision for income tax was not calculated correctly for fiscal year 2007 before completion of the consolidated financial statements .

 

As noted above, the issues that resulted from these weaknesses were properly addressed before the completion of our financial statements for the fiscal year ending September 30, 2007. Regarding the first item above, management has implemented new processes that consist of the automation of manual tasks that were subject to human error. Management is working to identify and implement the necessary measures to address the second item to improve our internal control, including the enhancement of our systems and procedures to assure that the second weakness noted above is corrected.

 

Other than as described above, no other change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) occurred during the fourth fiscal quarter of fiscal 2007 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

Section 404 of the Sarbanes-Oxley Act of 2002 requires that companies evaluate and annually report on their systems of internal control over financial reporting.  We are in the process of evaluating, documenting and testing our system of internal control over financial reporting to provide the basis for our report that will, for the first time, be a required part of our annual report on Form 10-K for the fiscal year ending September 30, 2008.  Due to the ongoing evaluation and testing of our internal controls, there can be no assurance that if any control deficiencies are identified they will be corrected before the end of the 2008 fiscal year, or that there may not be significant deficiencies or material weaknesses that would be required to be reported.  In addition, we expect the evaluation process and any required remediation, if applicable, to increase our accounting, legal and other costs and divert management resources from core business operations.

 

Item 9A.                 Controls
and Procedures



 



Any control system, no
matter how well designed and operated, can provide only reasonable (not
absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, have been detected.



 



The Company’s management,
with the participation of the Company’s Chief Executive Officer and Acting
Chief Financial Officer, has evaluated the effectiveness of the Company’s
disclosure controls



 



55
















 



and procedures, as such term is defined in Rules 13a
– 15(e) and 15d – 15(e) of the Exchange Act as of the end of the
period covered by the report.
Disclosure controls and procedures are
designed to ensure that information required to be disclosed by a registrant in
the reports that it files or submits under the Securities Exchange Act of 1934
(the “Exchange Act”) is properly recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission’s
(“SEC”) rules and forms.  Disclosure
controls and procedures include processes to accumulate and evaluate relevant
information and communicate such information to a registrant’s management,
including its principal executive and financial officers, as appropriate, to
allow for timely decisions regarding required disclosures.



 



Based upon that evaluation,
our Chief Executive Officer (principal executive officer) and Acting Chief
Financial Officer (principal financial officer) concluded that, as of September 30,
2007 our disclosure controls and procedures were not effective to provide
reasonable assurance that (i) the information required to be disclosed by us in
this report was recorded, processed, summarized and reported within the time
periods specified in the SEC’s rules and forms, and (ii) information required
to be disclosed by us in our reports that we file or submit under the Exchange Act
is accumulated and communicated to our management, including our principal
executive and financial officers, or persons performing similar functions, as
appropriate to allow timely decisions regarding required disclosures, because
of the material weaknesses discussed below. 
To address those weaknesses, the Company performed additional analyses
and other post-closing procedures to ensure that our consolidated financial
statements are prepared in accordance with generally accepted accounting
principles.  Accordingly, management
believes that the financial statements included in this report fairly present
in all material respects our financial condition, results of operations and
cash flows for the periods presented.



 



The
aforementioned evaluation identified the following material weaknesses:



 



1.               The Company discovered in September 2007
that maintenance fees charged to and collected from holders of prepaid gift
cards, which were issued through the Company’s network of agent financial
institutions, were not recognized as income in the appropriate periods.  As a result, the financial statements were
restated for fiscal year 2006 and the first three quarters of 2007. With
respect to such restatements, as disclosed in the Company’s previous filings,
the effect on the Company’s financial statements for the year ended September
30, 2006 were not considered to be material, while the effects on the Company’s
financial statements for the first three quarters of fiscal 2007 were
considered to be material; accordingly, amended quarterly reports on Form 10-Q
were filed by the Company.



 



2.               We also concluded that the provision for
income tax was not calculated correctly for fiscal year 2007 before completion
of the consolidated financial statements .



 



As
noted above, the issues that resulted from these weaknesses were properly
addressed before the completion of our financial statements for the fiscal year
ending September 30, 2007. Regarding the first item above, management has
implemented new processes that consist of the automation of manual tasks that
were subject to human error. Management is working to identify and implement
the necessary measures to address the second item to improve our internal
control, including the enhancement of our systems and procedures to assure that
the second weakness noted above is corrected.



 



Other than as described
above, no other change in our internal control over financial reporting (as
defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange
Act) occurred during the fourth fiscal quarter of fiscal 2007 that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.



 



Section 404 of the
Sarbanes-Oxley Act of 2002 requires that companies evaluate and annually report
on their systems of internal control over financial reporting.  We are in the process of evaluating,
documenting and testing our system of internal control over financial reporting
to provide the basis for our report that will, for the first time, be a
required part of our annual report on Form 10-K for the fiscal year ending
September 30, 2008.  Due to the
ongoing evaluation and testing of our internal controls, there can be no
assurance that if any control deficiencies are identified they will be
corrected before the end of the 2008 fiscal year, or that there may not be
significant deficiencies or material weaknesses that would be required to be
reported.  In addition, we expect the
evaluation process and any required remediation, if applicable, to increase our
accounting, legal and other costs and divert management resources from core
business operations.



 



This excerpt taken from the CASH 10-Q filed Nov 21, 2007.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

 

This excerpt taken from the CASH 10-Q filed Nov 21, 2007.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met. Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

This excerpt taken from the CASH 10-Q filed Nov 21, 2007.

CONTROLS AND PROCEDURES

 

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

 

 

This excerpt taken from the CASH 10-Q filed Aug 14, 2007.

CONTROLS AND PROCEDURES

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

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