Material Weakness At Alico
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Alico, Inc. has announced that an material weakness in internal control over financial reporting has been found. The weakness centres on the shortage of qualified financial reporting personnel with sufficient depth, skills and increase to manage the increase in responsibility required under the Sarbanes-Oxley Act of 2002. The lack of staff led to monitoring controls to ensure journal entries are posted in an accuate and timely were ineffective during the fourth quarter of fiscal 2005. An elimination entry into the intercompany accounts was missed. Deferred income taxes and other comprehensive income. The company does not believe that the material weakness impacted any previously filed financial statements. The existence of a material weakness or weaknesses is an indication that there is more than a remote likelihood that a material misstatement of the Company's financial statements will not be prevented or detected in a future period. Sufficient staff have now been added including a qualified and experience financial reporting manager. Enough skills should now be available to prepare financial statements and disclosures in accordance with GAAP. The new measures have not been in place long enough to say whether the material weakness has been corrected.
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