-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VY9sVBCykxr2z7g0aknK8/QvwvG1qwFP0wptfquqDA9WE5J+dzzKB1vX0xPpaeY7 1zdK6Ha5wcJtggVvmPc/Mw== 0001019892-02-000129.txt : 20021030 0001019892-02-000129.hdr.sgml : 20021030 20021030161215 ACCESSION NUMBER: 0001019892-02-000129 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20021014 ITEM INFORMATION: Changes in registrant's certifying accountant ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20021030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOMEGOLD FINANCIAL INC CENTRAL INDEX KEY: 0000277028 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 570513287 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-08909 FILM NUMBER: 02803268 BUSINESS ADDRESS: STREET 1: 3901 PELHAM ROAD CITY: GREENVILLE STATE: SC ZIP: 29615 BUSINESS PHONE: 8642895400 MAIL ADDRESS: STREET 1: 3901 PELHAM ROAD CITY: GREENVILLE STATE: SC ZIP: 29615 FORMER COMPANY: FORMER CONFORMED NAME: NRUC CORP DATE OF NAME CHANGE: 19911002 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL RAILWAY UTILIZATION CORP DATE OF NAME CHANGE: 19840813 FORMER COMPANY: FORMER CONFORMED NAME: EMERGENT GROUP INC DATE OF NAME CHANGE: 19920703 8-K/A 1 form8ka-10302002.txt FORM 8-K/A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report: October 14, 2002 HOMEGOLD FINANCIAL, INC. (Exact name of registrant as specified in its charter) SOUTH CAROLINA 000-8909 57-0513287 (State or other juris- (Commission (IRS Employer diction of incorporation) File Number) Identification Number) 113 REED AVENUE, LEXINGTON, SOUTH CAROLINA 29072 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (803) 358-1100 The Exhibit Index appears on page 4 hereof. ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT 1. Upon recommendation by the Audit Committee, on October 11, 2002, the Board of Directors of HOMEGOLD FINANCIAL, INC. (the "Company") replaced Elliott Davis, LLC ("Elliott Davis") who declined to stand as auditors for 2002 and engaged Moore Kirkland & Beauston LLP to serve as the Company's auditors for the year ending December 31, 2002. 2. The report of Elliott Davis for the years ended December 31, 2001 and 2000 did not contain an adverse opinion, disclaimer of opinion or qualification as to uncertainty (except as noted in the following sentence), audit scope or accounting principles. The report of Elliott Davis for the year ended December 31, 2001 contained a modification concerning substantial doubt about the Company's ability to continue as a going concern. 3. There were no accounting disagreements under Item 304(a)(1)(iv)(A) of Regulation S-K between the Company and Elliott Davis during the interim periods ended June 30, 2002, subsequent to December 31, 2001. During the year ended December 31, 2001, the Company disagreed with Elliott Davis concerning the accounting treatment of a number of financial issues: a. recording an intangible asset related to the costs of developing a customer leads database; b. recording a valuation reserve to reduce the estimated fair value of the retained interest in certain securitized loans; c. recording adequate valuation reserves related to the Company's deferred tax asset; d. recording an impairment loss on certain long-lived assets; and e. disclosing management's plans in regard to matters related to the Company's ability to continue as a going concern. Audit adjustments were recorded to expense items noted in a. through d. above. The Company also disclosed its plans related to its going concern matters during 2001. All disagreements were discussed with the Audit Committee of the Board of Directors. The Company has authorized Elliott Davis to respond fully to any inquiries by the successor auditors. During the year ended December 31, 2000, the Company disagreed with Elliott Davis concerning the accounting treatment of certain loan fees. This disagreement was resolved by recording an audit adjustment to defer recognition of the loan fees. This disagreement was discussed with the Audit Committee. Further, in connection with performing the audit of the Company for the year ended December 31, 2001, the Audit Committee was advised by Elliott Davis that reportable conditions existed related to significant deficiencies in the operation of internal controls that could adversely affect the Company's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. The Company believes that it has taken steps to correct the weaknesses specified by Elliott Davis. 4. As required by Item 304 of Regulation S-K, Elliott Davis has furnished to the Company letters addressed to the Securities and Exchange Commission stating it agrees with the statements made by the Company herein. Copies of such letters are attached to this Form 8-K/A as Exhibits 16.1 and 16.2. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements of the Business Acquired. Not applicable. (b) Pro Forma Financial Information. Not applicable. (c) Exhibits. 16.1 Letter of Elliott Davis, LLC dated October 14, 2002 16.2 Letter of Elliott Davis, LLC dated October 30, 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HOMEGOLD FINANCIAL, INC. October 30, 2002 By: /s/ Karen A. Miller ----------------------------- Karen A. Miller Executive Vice President Chief Financial Officer Treasurer EXHIBIT INDEX 16.1 Letter of Elliott Davis, LLC dated October 14, 2002 16.2 Letter of Elliott Davis, LLC dated October 30, 2002 EX-16 4 edavisletter-10142002.txt LETTER DATED OCTOBER 14, 2002 [Letterhead of Elliott Davis LLC] October 14, 2002 Securities and Exchange Commission Washington, D.C. 20549 Dear Sir: We have read Item 4 included in the Form 8-K dated October 14, 2002 of HomeGold Financial, Inc. filed with the Securities and Exchange Commission and are in agreement with the statements contained therein, except we are not in a position to comment on the statement, "The registrant believes that it has taken steps to correct the weaknesses specified by Elliott Davis", made by the registrant. Very truly yours, /s/ Elliott Davis, LLC Elliott Davis, LLC EX-16 5 edavisletter-10302002.txt LETTER DATED OCTOBER 30, 2002 [Letterhead of Elliott Davis, LLC] October 30, 2002 Securities and Exchange Commission Washington, D.C. 20549 Dear Sir: We have read Item 4 included in the Form 8-K/A dated October 30, 2002 of HomeGold Financial, Inc. filed with the Securities and Exchange Commission and are in agreement with the statements contained therein, except we are not in a position to comment on the statement, "The registrant believes that it has taken steps to correct the weaknesses specified by Elliott Davis", made by the registrant. Very truly yours, /s/ Elliott Davis LLC Elliott Davis, LLC -----END PRIVACY-ENHANCED MESSAGE-----