GRANITE CONSTRUCTION INC 10-Q

Item 4. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Our management, including our principal executive and principal financial officers, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of March 31, 2023. Based on that evaluation, our principal executive and principal financial officers concluded that, as of March 31, 2023, our disclosure controls and procedures were not effective due to the material weakness previously disclosed in our Annual Report. In light of the material weakness in our internal control over financial reporting, we performed additional analysis and other procedures to validate that our financial information contained in this Form 10-Q was prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Following such additional analysis and procedures, our management, including our principal executive and principal financial officers, has concluded that our financial statements state fairly, in all material respects, our financial position, results of our operations and our cash flows for the periods presented in this Form 10-Q, in conformity with U.S. GAAP. Remediation Plan and Status Management has implemented changes to our internal control over financial reporting to ensure that the material weakness is remediated. We evaluated the impact of the material weakness and implemented the following changes during the quarter ended March 31, 2023:   • We enhanced our accounting for income tax controls on an interim basis to include specific activities to assess the impacts of significant and unusual transactions, such as divestitures of a business.   • We added additional reviews and approvals of the quarterly effective tax rate calculations with regard to significant and unusual transactions to ensure such discrete tax items are appropriately identified and accounted for accurately within the appropriate interim period. We believe these actions will remediate the material weakness, however the material weakness described in our Annual Report will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. Additionally, we may take additional measures to address the material weakness or modify the remediation plan described above. Changes in Internal Control Over Financial Reporting Except for the changes implemented as part of our remediation plan discussed above, there were no changes in our internal control over financial reporting during the quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. PART II. OTHER INFORMATION Item 1. LEGAL PROCEEDINGS The description of the matters set forth in Part I, Item I of this Report under Note 17 of “Notes to the Condensed Consolidated Financial Statements” is incorporated herein by reference. Item 1A. RISK FACTORS There have been no material changes in the risk factors previously disclosed in “Item 1A. Risk Factors” in our Annual Report.