# U S Global Investors Inc: Form 10-K/A for the period ended Jun 30, 2022

- Company: [U S Global Investors Inc](/companies/grow.md) (CIK 754811)
- Form: 10-K/A
- Filed: 2022-09-13
- Accepted by EDGAR: Sep 13, 2022, 17:16 ET
- Period: 2022-06-30
- Accession: 0001437749-22-022340
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/754811/000143774922022340/usglobal20220630_10ka.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/754811/000143774922022340/

## Controls and procedures

As filed, 6,425 characters.

***Evaluation of Disclosure Controls and Procedures.*** Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is: (1) recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms; and (2) accumulated and communicated to management, including the principal executive and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. An evaluation was conducted under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of June 30, 2022. Based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2022. Management determined the Company’s document management system was not effectively structured to contain the risk of inaccurate share information being disclosed as of August 19, 2022, in the reports that the Company filed or submitted under the Exchange Act. Notwithstanding the aforementioned with respect to its disclosure controls and procedures, management has concluded that the consolidated financial statements included in the Original Form 10-K present fairly, in all material respects, the Company’s financial position, results of operations, and cash flows as of the dates, and for the periods presented, in accordance with generally accepted accounting principles in the United States of America (“GAAP”).

***Management’s Report on Internal Control over Financial Reporting***. The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting as defined by Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management assessed the effectiveness of its internal control over financial reporting as of June 30, 2022. In making this assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013). Based on the Company’s assessment, management believes that the Company’s management has maintained effective internal control over financial reporting as of June 30, 2022.

***Changes in Internal Control over Financial Reporting.*** Other than as described below, there have not been any changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the fourth quarter ended June 30, 2022, that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

Management identified a deficiency in the design and operating effectiveness of the Company’s internal controls as of September 30, 2021, that represented a material weakness in our internal control over financial reporting. The deficiency was the result of an existing control failing to operate effectively. Management disclosed in the Form 10-Q (“quarterly reports”) during the fiscal year ended June 30, 2022, that the Company’s control involving the review of tax-related journal entries were not adequately performed. Management evaluated its existing controls, noting the multiple attributes within the tax provision review control. Management determined that all existing attributes were performed. Management determined the control involving the review of tax-related journal entries did not include an attribute to ensure inclusion of the deferred assets/liabilities in the quarterly estimated tax rate ("ETR") journal entry adjustment. Management designed and implemented a remediation plan to address the material weakness, which included 1) adding an attribute to the tax provision review control to ensure the changes in deferred tax asset/liabilities accounts are included in the ETR journal entry adjustment, and 2) management’s completion of additional professional education for tax accounting essentials. The additional control attribute and professional education led to a more precise review of the tax provision. Thus, management has concluded that the material weakness was remediated as of June 30, 2022.

***Inherent Limitation of the Effectiveness of Internal Control.*** A control system, no matter how well conceived, implemented and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Limitations inherent in any control system include the following:

- Judgments in decision-making can be faulty, and control and process breakdowns can occur because of simple errors or mistakes.
- Controls can be circumvented by individuals, acting alone or in collusion with others, or by management override.
- The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
- Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with associated policies or procedures.
- The design of a control system must reflect the fact that resources are constrained, and the benefits of controls must be considered relative to their costs.

Because of such inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company or any division of a company have been detected.

Filed Sep 13, 2022.
Source: SEC EDGAR, the filing index for accession 0001437749-22-022340. Last ingested by Listed: Nov 3, 2026, 19:00 ET. No prices; not investment advice.