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SEC Filings
10-Q
TERRAFORM POWER, INC. filed this Form 10-Q on 08/14/2018
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Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2017, management identified material weaknesses in the Company’s internal control over financial reporting. We carried out an evaluation as of June 30, 2018, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were ineffective as of June 30, 2018 due to the previously identified material weaknesses, which continued to exist as of June 30, 2018.

We performed additional analysis and other procedures in order to prepare the unaudited condensed consolidated financial information in accordance with U.S. GAAP. Notwithstanding such material weaknesses in internal control over financial reporting, our management concluded that our unaudited condensed consolidated financial information presents 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 conformity with generally accepted accounting principles.

As permitted by SEC guidance, management has not evaluated the internal controls of the recently acquired Saeta business, and therefore, management’s assessment of the Company’s internal control over financial reporting does not include an assessment of the internal control over financial reporting of Saeta.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting other than the remediation actions discussed below. The Company continues to develop and implement its remediation plan as described in Item 9A. Controls and Procedures in our Annual Report on Form 10-K for the year ended December 31, 2017. We are continuing to address the material weaknesses and are committed to the remediation of such material weaknesses as timely as possible.

During the second quarter of 2018, we executed the following actions:

We continued hiring key permanent accounting, finance, and IT personnel and refining the future state organization to ensure appropriate segregation of duties and internal control accountability; and
We continued our effort to implement a new cloud-based accounting system. This system was deployed on August 9, 2018, and is expected to increase the efficiency of processing transactions and to produce accurate and timely information in order to address various operational and compliance needs.



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