Shelly Huzaynah 21207019
- Use EDGAR to search for Tri-Valley Corporation (TVC) and Monarch Staffing Inc. Find TVC’s 10-K and Monarch’s 10-KSB for the year ended 12-31-06.
Tri – Valley Corporation (TVC), 10-K Report, Year ended 12/31/2006.
Monarch Staffing Inc. 10-KBS Report, Year ended 12/31/2006.
- Did either company report material weaknesses in ICFR? If so, what were the weaknesses?
Yes, Tri – Valley Corporation (TVC) and Monarch Staffing Inc. report material weaknesses in Internal Control over Financial Report (ICFR). These paragraph contained the weaknesses which concluded by management:
Tri – Valley Corporation (TVC)
Management conducted an evaluation of the effectiveness of Internal Control over Financial Reporting (ICFR) based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company’s internal control over financial reporting was not effective as of December 31, 2006. Management identified internal control deficiencies, which, in management’s judgment, represented material weaknesses in internal control over financial reporting. The control deficiencies generally related to controls over the accounting for complex transactions to ensure such transactions are recorded as necessary to permit preparation of financial statements and disclosures in accordance with generally accepted accounting principles. Such transactions included:
- Proved and unproved properties.
- Loans guaranteed with restricted common stock.
- Deferred income taxes.
- Discontinued operations from the sale of our interest in Tri-Western Resources.
- Share-based payment arrangements.
Monarch Staffing Inc.
The small business issuers other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of small business issuer’s board of directors (or persons performing the equivalent functions) :
- All significant deficiencies or material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information.
- Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.