-----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, KfdG82QMsYc0cWjpXPRZVAyGNvchi9uUpw+jsBJOjYL/PSOD+5dYkKVR1lLg9KUG wcUONrwFiWlALpe+wDGSZA== 0000858801-03-000007.txt : 20030326 0000858801-03-000007.hdr.sgml : 20030325 20030325181719 ACCESSION NUMBER: 0000858801-03-000007 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021231 FILED AS OF DATE: 20030326 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CSA INCOME FUND IV LIMITED PARTNERSHIP CENTRAL INDEX KEY: 0000858801 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER RENTAL & LEASING [7377] IRS NUMBER: 043072449 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19939 FILM NUMBER: 03616660 BUSINESS ADDRESS: STREET 1: 22 BATTERYMARCH STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6173571700 MAIL ADDRESS: STREET 1: 22 BATTERY MARCH STREET CITY: BOSTON STATE: MA ZIP: 02109 10-K 1 iv10k2002.txt PIF IV 10K 2002 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended Commission file number 33-32744 December 31, 2002 CSA Income Fund IV Limited Partnership (Exact name of registrant as specified in its charter) Massachusetts No.04-3072449 (State or other jurisdiction of (I.R.S.Employer incorporation or organization) Identification No.) 22 Batterymarch St., Boston, MA 02109 (Address of principal executive Zip Code offices) Registrant's telephone number, including area code:(617)357-1700 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: 506,776 Units of Limited Partnership Interest Indicate by check whether registrant (1) has filed all reports required to Be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ X ] Number of shares outstanding of each registrant's classes of securities: Number of Units Title of Each Class at December 31, 2002 Units of Limited Partnership 506,776 Interest: $100 per unit DOCUMENTS INCORPORATED BY REFERENCE Portions of Part IV are incorporated by reference to Amendment No. 1 to Form S-1 and Form S-1, Registration No. 33-32744 The exhibit index is located on pages 18 and 19. Part I Item 1. Business CSA Income Fund IV Limited Partnership (the "Partnership") was a limited partnership organized under the provisions of the Massachusetts Uniform Limited Partnership Act. The Partnership was composed of CSA Lease Funds, Inc. (an affiliate of CSA Financial Corp.), the sole General Partner, and as of December 31, 2002, 2,682 Limited Partners owning 506,776 Units of Limited Partnership Interest of $100 each. The capital contributions of the Partners aggregated $50,677,600. The Partnership was formed on December 21, 1989 and commenced operations on April 18, 1990. The General Partner of CSA Income Fund IV Limited Partnership completed the wind-up of the Partnership during 2002, including a final distribution on December 13, 2002. A Certificate of Cancellation was filed with the Commonwealth of Massachusetts on January 29, 2003. This Certificate notified the Commonwealth that CSA Income Fund IV Limited Partnership was dissolved effective November 30, 2002. The Partnership was organized to engage in the business of acquiring income-producing equipment for investment. The Partnership's principal objectives were: 1. To acquire and lease equipment, primarily through Operating Leases, to generate income during their entire useful life; 2. To provide monthly distributions of cash to the Limited Partners from leasing revenues and from the proceeds of sale or other disposition of Partnership equipment; 3. To reinvest in additional equipment a portion of lease revenues and a substantial portion of Cash From Sales and Refinancing during the first years of the Partnership's operations. The Partnership was formed primarily for investment purposes and not as a "tax shelter". The Partnership has no direct employees. The General Partner has full and exclusive discretion in management and control of the Partnership. Selection of the equipment for purchase and lease was based principally on the General Partner's evaluation of the usefulness of the equipment in commercial or industrial applications and its estimate of the potential demand for the equipment at the end of the initial lease term. The Partnership's equipment may have included: 1. New and reconditioned computer peripheral equipment, computer terminal systems and data processing systems manufactured by companies such as Compaq Computer Corporation, Dell Computer Corporation, EMC Corporation and International Business Machines, Inc. (IBM). 2. New telecommunications and telecomputer equipment consisting primarily of private automated branch exchanges (PBX's), advanced high-speed digital telephone switching devices, voice/data transmission devices and telephone/computer networks as well as telephone handsets and facsimile transmission products. 3. New office equipment consisting primarily of photocopying and graphic processing equipment. 4. New highway transportation equipment and new and reconditioned transportation equipment consisting primarily of tractors, trailers, trucks, intermodal equipment, railroad rolling stock, passenger vehicles and corporate or commercial aircraft. 5. Miscellaneous other types of equipment which meets the investment objectives of the Partnership. The equipment leasing industry is highly competitive. In initiating its leasing transactions, the Partnership competed with leasing companies, manufacturers that lease their products directly, equipment brokers, dealers and financial institutions, including commercial banks and insurance companies. Many competitors were larger than the Partnership and had access to more favorable financing. Competitive factors in the equipment leasing business primarily involve pricing and other financial arrangements. Marketing capability is also a factor. As of December 31, 2002, the Partnership had completed its wind-up and all of the equipment in the Partnership's portfolio had been sold. The lessees representing 10% of total revenues during 2002 were as follows: America West Airlines, Inc. 50% Citibank, N.A. 13% The Partnership's acquisition and leasing of equipment is described more fully in Notes 3 and 4 to the Financial Statements included in Item 8. Item 2. Properties The Partnership neither owned nor leased office space or equipment for the purpose of managing its day-to-day affairs. The General Partner, CSA Lease Funds, Inc. ("CLF"), had exclusive control over all aspects of the business of the Partnership, including provision of any necessary office space. As such, CLF was compensated through Management fees and reimbursement of General and Administrative costs related to managing the Partnership's business. Excluded from the allowable reimbursement to the General Partner, however, was any of the following: (1) Expenditures for rent or utilities; and (2) Certain other administrative items. Item 3. Legal Proceedings The Partnership is not a party to any pending legal proceedings. Item 4. Submission of Matters to a Vote of Security Holders No matters were submitted to a vote of security holders, through the solicitation of proxies or otherwise, during the fourth quarter of 2002. PART II Item 5. Market for the Registrant's Equity Securities and Related Security Holder Matters a. The Partnership's limited partnership interests were not publicly traded. There was no active market for the Partnership's limited partnership interests. b. Approximate Number of Equity Security Holders: Title of Class Number of Limited Partners Units of Limited Partnership Interests as of 12/31/02 506,776 2,682 Item 6. Selected Financial Data The following table sets forth selected financial information regarding the Partnership's financial position and operating results. The information should be used in conjunction with the Financial Statements and Notes thereto, and the General Partner's Discussion and Analysis of Financial Condition and Results of Operations, which are included in Items 7 and 8 of this Report.
Years Ended December 31, (IN THOUSANDS EXCEPT PER UNIT AMOUNTS) 2002 2001 2000 1999 1998 Total Revenues $ 6,808 $ 6,323 $10,808 $15,329 $16,987 Net Income 5,588 578 1,049 1,250 2,671 Net Income per Limited Partnership Unit 10.21 0.91 2.05 2.44 5.22 Total Assets 0 5,451 12,266 21,620 30,692 Notes Payable 0 317 2,285 8,186 15,204 Cash Distribution per Limited Partnership Unit Outstanding $20.67 $10.33 $8.83 $ 6.33 $ 6.00
Item 7. General Partner's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Rental income for the years ended December 31, 2002, 2001 and 2000 was $1,967,420, $6,501,299, and $9,902,211, respectively. Net income for the years ended December 31, 2002, 2001 and 2000 was $5,588,214, $578,076, and $1,048,500, respectively. The decrease in rental income is primarily due to lease expirations anticipated as the partnership completed the wind-up. Net income was positively impacted by the sale of two (2) airplane engines from one of the last major leases remaining in the portfolio that generated a gain of approximately 3.9 million. Overall, the sale of equipment during 2002 resulted in a gain of $4,612,626, as compared to a loss of ($347,139) for year ended 2001, and a gain of $711,614, for the year ended 2000. Depreciation expense for 2002, 2001 and 2000 was $744,196, $4,975,058, and $8,056,432,respectively. Interest income for 2002, 2001 and 2000 was $101,702, $239,047, and $209,433, respectively. Interest expense was $15,375, $74,425, and $460,138 for the years ended December 31, 2002, 2001, and 2000, respectively. Liquidity and Capital Resources During 2002, the Partnership generated $1,778,505 in cash flow from Operations, received $2,124,290 in proceeds from short term investments and $4,996,068 cash flow from the sale of equipment. The Partnership utilized these funds along with cash on hand to reduce outstanding notes payable by $316,992 and make cash distributions of $10,580,904 to the Partners. The General Partner of CSA Income Fund IV Limited Partnership completed the wind-up of the Partnership during the fourth quarter of 2002. The Partnership paid a final distribution to the limited Partners of $9.67 per unit on December 13, 2002. Including the final distribution, the Partnership has made cash distributions to the Limited Partners ranging from 102% to 124% of their initial investment, depending on when the Limited Partner entered the Partnership. Quarterly Financial Data - unaudited Summarized unaudited quarterly financial data for the years ended December 31, 2002 and 2001 are as follows:
2002 Quarter Ended: 12/31 9/30 6/30 3/31 Total Revenues $4,784,172 $ 568,783 $ 681,434 $ 773,416 Net Income 4,519,022 304,342 387,862 376,988 Net Income Per Limited Partnership Unit Outstanding 8.77 .44 .41 .59 Cash Distributions Per Limited Partnership Unit Outstanding 11.67 3.00 3.00 3.00 2001 Quarter Ended: 12/31 9/30 6/30 3/31 Total Revenues $ 552,407 $1,741,919 $1,866,071 $2,162,886 Net Income (299,491) 254,963 426,416 196,188 Net Income Per Limited Partnership Unit Outstanding ( .59) .46 .78 .26 Cash Distributions Per Limited Partnership Unit Outstanding 2.83 2.50 2.50 2.50
Item 7A. Quantitative and Qualitative Disclosures about Market Risk N/A Item 8. Financial Statements CSA Income Fund IV Limited Partnership Index to Financial Statements Page Number Independent Auditors' Report 8 Statements of Financial Position as of December 31, 2002 and 2001 9 Statements for the Years Ended December 31, 2002, 2001 and 2000: Operations 10 Cash Flows 11 Changes in Partners' Capital (Deficit) 12 Notes to Financial Statements 13
INDEPENDENT AUDITORS' REPORT To the Partners of CSA Income Fund IV Limited Partnership We have audited the accompanying statements of financial position of CSA Income Fund IV Limited Partnership as of December 31, 2002 and 2001, and the related statements of operations, cash flows, and changes in partners' capital (deficit) for the three years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As discussed in note 1 of the financial statements, the General Partner completed the wind up of the Partnership, with a final distribution on December 13, 2002. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CSA Income Fund IV Limited Partnership as of December 31, 2002 and 2001, and the results of its operations and its cash flows for the three years then ended in conformity with accounting principles generally accepted in the United States of America. Sullivan Bille, P.C. Boston, Massachusetts March 4, 2003 CSA INCOME FUND IV LIMITED PARTNERSHIP Statements of Financial Position as of December 31, 2002 and 2001
2002 2001 Asset Cash and cash equivalents $ 0 $1,999,033 Short term investment 0 2,124,290 Rentals receivable 0 195,805 Accounts receivable-affiliates 0 3,950 Rental equipment, at cost 0 18,678,320 Less accumulated depreciation 0 (17,550,682) Net rental equipment 0 1,127,638 Total assets $ 0 $ 5,450,716 Liabilities and Partners' Capital Accrued management fees $ 0 $ 36,250 Accounts payable 0 16,000 Deferred income 0 88,784 Notes payable 0 316,992 Total liabilities 0 458,026 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net income 589,509 177,549 Cumulative cash distributions (590,509) (484,665) 0 (306,116) Limited Partners (506,776 units): Capital contributions net of offering costs 46,201,039 46,201,039 Cumulative net income 11,740,911 6,564,657 Cumulative cash distributions (57,941,950) (47,466,890) 0 5,298,806 Total partners' capital 0 4,992,690 Total liabilities and partners' capital $ 0 $ 5,450,716 See accompanying notes to financial statements.
CSA INCOME FUND IV LIMITED PARTNERSHIP Statements of Operations for the years ended December 31, 2002, 2001 and 2000 2002 2001 2000 Revenue: Rental income $ 1,967,420 $ 6,501,299 $ 9,902,211 Interest income 101,702 239,047 209,433 Gain (loss) on sale of equipment 4,612,626 (347,139) 711,614 Net gain (loss) on foreign currency 126,057 (69,924) (14,820) Total revenue 6,807,805 6,323,283 10,808,438 Expenses: Depreciation 744,196 4,975,058 8,056,432 Interest 15,375 74,425 460,138 Management fees 101,033 336,246 791,670 General and administrative 358,987 359,478 451,698 Total expenses 1,219,591 5,745,207 9,759,938 Net income $5,588,214 $ 578,076 $ 1,048,500 Income allocation: General Partner $ 411,960 $ 115,906 $ 10,485 Limited Partners 5,176,254 462,170 1,038,015 $5,588,214 $ 578,076 $ 1,048,500 Net income per Limited Partnership Unit $ 10.21 $ 0.91 $ 2.05 Number of Limited Partnership units outstanding 506,776 506,776 506,776 See accompanying notes to financial statements.
CSA INCOME FUND IV LIMITED PARTNERSHIP Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000
2002 2001 2000 Cash flows from operations: Cash received from rental of equipment $ 2,204,448 $ 6,419,178 $10,199,943 Cash paid for operating and management expenses (512,270) (792,895) ( 1,200,678) Interest paid (15,375) (74,425) (471,700) Interest received 101,702 239,047 209,433 Net cash from operations 1,778,505 5,790,905 8,736,998 Cash flows from investments: Short term investment - (3,800,667) - Proceeds on Short term Investment 2,124,290 1,676,377 - Purchase of equipment - - (1,142,310) Sale of equipment 4,996,068 2,100,966 2,637,214 Net cash provided by (used for) investments 7,120,358 (23,324) 1,494,904 Cash flows from financing: Proceeds from notes payable - - 485,038 Repayment of notes payable (316,992) (1,967,579) (6,386,008) Payment of cash distributions (10,580,904) (5,289,579) (4,521,730) Net cash used for financing (10,897,896) ( 7,257,158) (10,422,700) Net change in cash and cash equivalents (1,999,033) (1,489,577) (190,798) Cash and cash equivalents at beginning of year 1,999,033 3,488,610 3,679,408 Cash and cash equivalents at end of year $ 0 $1,999,033 $3,488,610 See accompanying notes to financial statements.
CSA INCOME FUND IV LIMITED PARTNERSHIP Statement of Changes in Partners' Capital (Deficit) For years ended December 31, 2002, 2001, and 2000
Limited General Partners Partner Total Balance at December 31, 1999 $13,511,819 $ (334,396) $13,177,423 Net Income 1,038,015 10,485 1,048,500 Cash Distributions (4,476,515) (45,215) (4,521,730) Balance at December 31, 2000 10,073,319 (369,126) 9,704,193 Net Income 462,170 115,906 578,076 Cash distributions (5,236,683) (52,896) (5,289,579) Balance at December 31, 2001 5,298,806 (306,116) 4,992,690 Net Income 5,176,254 411,960 5,588,214 Cash distributions (10,475,060) (105,844) (10,580,904) Balance at December 31, 2002 $ 0 $ 0 $ 0 See accompanying notes to financial statements
CSA INCOME FUND IV LIMITED PARTNERSHIP Notes to Financial Statements December 31, 2002 (1) Organization CSA Income Fund IV Limited Partnership ("the Partnership") was formed under the Massachusetts Uniform Limited Partnership Act on December 21, 1989 with an initial investment of $1,000, from its sole General Partner, CSA Lease Funds, Inc. and the purchase of 10 Limited Partnership Units at $100 each by an initial Limited Partner. The Partnership's primary activity was to invest in equipment to be leased to third parties. On February 22, 1990, the Partnership began its offering of Limited Partnership Units. The Partnership commenced operations on April 18, 1990. A Certificate of Cancellation was filed with the Commonwealth of Massachusetts on January 29, 2003. The Certificate notified the Commonwealth that the CSA Income Fund IV Limited Partnership was dissolved effective November 30, 2002. The General Partner of CSA Income Fund IV Limited Partnership completed the wind-up of the Partnership during the fourth quarter of 2002. The Partnership paid a final distribution to the Limited Partners of $9.67 per unit on December 13, 2002. Distributable cash from operations, sales or refinancing and profits or losses for federal income tax purposes was allocated 99% to the Limited Partners and 1% to the General Partner until Payout has occurred, and thereafter, 85% and 15% respectively. As provided by the Partnership Agreement, pursuant to Section 8.3 (c), accounting profits from the sale of equipment as part of the wind-up of the Partnership are allocated to each partner first in an amount equal to the negative balance in the Capital Account of each partner. During the years 2002 and 2001, certain of these gains were allocated for accounting purposes to the General Partner to reduce its Capital Account negative balance. In accordance with the Partnership Agreement, the Partnership was liable to the General Partner (or its affiliates) for management fees calculated at 5% of gross rental revenues and to certain reimbursable operating expenses subject to limitations stated in the Partnership Agreement. During 1994, the Limited Partners approved an Amendment to the Partnership Agreement allowing for the payment of Management Fees based on gross rental revenues on Sales Agency leases. (2) Significant Accounting Policies The Partnership records are maintained on the accrual basis of accounting. The Partnership accounts for equipment leases as operating leases; therefore, rental income is reported when earned. Equipment purchases are depreciated on a straight-line basis over the initial term of the lease to estimated realizable value. On a periodic basis, the Partnership conducted a review of the residual value of its equipment as compared to the estimated net realizable values for such equipment upon expiration of the related lease. In connection with this review , there were no residual value depreciation adjustments in 2002, 2001 or 2000. Deferred income represented prepaid rentals received for active leases that were recognized when earned. No provision for income taxes has been made as the liability for such taxes is that of the Partners rather than the Partnership. The Partnership's federal tax return is prepared solely to arrive at the Partners' individual taxable income or loss as reported on form K-1. Partnership taxable income in 2002, 2001 and 2000 was $4,917,924, $1,472,230, and $2,102,735, respectively. The differences between Partnership taxable income and book income are primarily due to the difference between tax and book depreciation methods and the related differences in the gain or loss on sales of equipment. CSA INCOME FUND IV LIMITED PARTNERSHIP Notes to Financial Statements The Partnership considers investments with original maturities of three months or less to be cash equivalents. Short-term Investment during 2001 and 2002 represents an interest, as an interim lender, in an investment secured by an equipment lease obligation reported at fair and actual value. The preparation of financial statements in conformity with generally Accepted accounting principles requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting year. Actual results could differ from those estimates. (3) Rental Equipment The Partnership purchased equipment subject to existing leases either directly from CSA Financial Corp. or the manufacturer. The purchase price to the Partnership was equal to the lesser of fair market value or cost as adjusted, if necessary, for rents received and carrying costs, plus an acquisition fee of 4% of cost. In accordance with Section 6.4 (b) of the Partnership Agreement, the total of all acquisition fees paid to the General Partner shall not exceed 15% of the total Capital Contributions received by the Partnership. This lifetime acquisition fee limit was met during 1996 and the General Partner was no longer paid acquisition fees on any new Partnership equipment acquisitions. Also, in accordance with Sections 8.1 and 8.2 of the Partnership Agreement, during the year 2000, the Partnership reached it's expiration period for new equipment acquisitions which led to the announced wind-up process. A summary of changes in rental equipment owned and its related accumulated depreciation is as follows:
Beginning Equipment Ending Balance Additions Sold Balance Costs for years ended: December 31, 2000 $52,073,878 $ 1,142,310 $14,222,790 $38,993,398 December 31, 2001 $38,993,398 $ - $20,315,078 $18,678,320 December 31, 2002 $18,678,320 $ - $18,678,320 $ - Beginning Equipment Ending Balance Depreciation Sold Balance Accumulated depreciation for years ended: December 31, 2000 $34,683,355 $ 8,056,432 $11,719,152 $31,020,635 December 31, 2001 $31,020,635 $ 4,975,058 $18,445,011 $17,550,682 December 31, 2002 $17,550,682 $ 744,196 $18,294,878 $ -
CSA INCOME FUND IV LIMITED PARTNERSHIP Notes to Financial Statements (4) Leases As of December 31, 2002, there were no remaining leases in the Partnership's portfolio since all the equipment had been sold as part of the wind-up of the Partnership. As of December 31, 2001, substantially all of the Partnership's equipment was leased under 54 separate leases to 35 lessees. Approximately 11% of the Partnership's equipment portfolio (based on cost) had been leased outside the United States at that date. Two leases represented approximately 63% (50% and 13%, respectively) of the Partnership's Revenue in 2002 as compared to four lessees representing approximately 63% (21%, 17%, 14% and 11%, respectively) in 2001 and three lessees representing 57% (33%, 12% and 12%, respectively) in 2000. (5) Short Term Investment During the year ended December 31, 2001, the Partnership purchased an interest, as an interim lender, in a short-term investment secured by an equipment lease obligation yielding 7.75% interest. The Partnership's portion of the short-term loan participation had been reduced from an initial investment of $3,800,667 to $2,124,290 as of December 31, 2001, and was repaid in full during the quarter ended March 31, 2002. (6) Notes Payable Notes payable at December 31, 2001, consisted of three (3) nonrecourse notes due in monthly installments, with an interest rate of 6.85% per annum. Such notes were collateralized by equipment with a cost of $1,299,122 and were repaid in full during the year ended December 31, 2002. There were no other notes payable outstanding during 2002. (7) Fair Values of Financial Instruments The following methods and assumptions were used to estimate the fair value of financial instruments: Cash, Cash Equivalents and Short-term Investment The carrying amount of cash, cash equivalents and short-term investment approximated their fair value due to their short maturity. Notes Payable The fair value of the Partnership's notes payable is based on the market price for the same or similar debt issues or on the current rates offered to the Partnership for debt with the same remaining maturity. The carrying amount of notes payable approximated fair value. CSA INCOME FUND IV LIMITED PARTNERSHIP Notes to Financial Statements (8) Related Party Transactions Fees and other expenses paid or accrued to be paid by the Partnership to the General Partner or affiliates of the General Partner for 2002, 2001 and 2000 are as follows:
2002 2001 2000 Management fees $ 101,033 $ 336,246 $ 791,670 Reimbursable operating expenses 220,000 250,336 251,203 $ 321,033 $ 586,582 $1,042,873
In order to complete the Partnership wind-up, an affiliate of the General Partner, Computer Systems of America, acquired the Partnership's remaining equipment portfolio having current fair market value of $397,910 for $335,910 in cash and assumed responsibility for payment of remaining Partnership expenses of $62,000. During the life of the Partnership, an affiliate of the General Partner, CSA Financial Corporation ("CSA") had acquired 6,670 units of the Partnership from Partners who had a need to liquidate their interests. CSA, when approached, first informed the Limited Partner to consult their Financial Advisor, since it may be more financially prudent to hold on to the units until wind-up was completed. Then, if the Limited Partner still wanted to sell their units, CSA offered to purchase the units at slightly higher than other prevailing third party offers. (9) Net Cash Provided from Operations The reconciliation of net income to net cash from operations for 2002, 2001 and 2000 is as follows:
2002 2001 2000 Net Income $5,588,214 $ 578,076 $ 1,048,500 (Gain)loss on sale of equipment (4,612,626) 347,139 (711,614) Depreciation 744,196 4,975,058 8,056,432 Decrease in receivables 199,755 26,976 323,103 Increase (decrease) in payables and deferred income (141,034) (136,344) 20,577 Net cash from operations $1,778,505 $ 5,790,905 $ 8,736,998
(10) Net Gain/(Loss) on Foreign Currency Transactions Net gain/loss from foreign currency transactions resulted from exchange gains and losses on foreign bank account balances translated into US dollars at then prevailing exchange rates. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures None PART III Item 10. Directors and Executive Officers of the Registrant The Partnership has no directors or officers. All management functions are performed by CSA Lease Funds, Inc., the corporate General Partner. The current directors and officers of the corporate General Partner are: Name Age Title(s) Elected J. Frank Keohane 66 Director & President 04/01/88 Richard P. Timmons 48 Controller 03/01/95 Trevor A. Keohane 36 Director 05/28/93 Gerald J. Porro 55 Clerk 02/01/01 Term of Office: Until a successor is elected. Item 11. Executive Compensation (a), (b), (c), (d) and (e): The Officers and Directors of the General Partner receive no current or proposed direct remuneration in such capacities, pursuant to any standard arrangements or otherwise, from the Partnership. In addition, the Partnership has not paid any options, warrants or rights to the Officers and Directors of the General Partner. There exists no remuneration plan or arrangement with any Officer or Director of the General Partner resulting from resignation, retirement or any other termination. See Note 8 of the Notes to Financial Statements included in Item 8 of this report for a description of the remuneration paid by the Partnership to the General Partner and its affiliates. Item 12. Security Ownership of Certain Beneficial Owners and Management By virtue of its organization as a limited partnership, the Partnership has outstanding no securities possessing traditional voting rights. However, as provided for in Section 13.2 of the Agreement of Limited Partnership (subject to Section 13.3), a majority in interest of the Limited Partners have voting rights with respect to: 1. Amendment of the Limited Partnership Agreement. 2. Termination of the Partnership. 3. Removal of the General Partner. 4. Approval or disapproval of the sale of substantially all the assets of the Partnership if such sale occurs prior to February 22, 1997. No person or group was known by the General Partner to own beneficially more than 5% of the Partnership's outstanding Limited Partnership Units prior to the wind-up of the Partnership during December 2002. Item 13. Certain Relationships and Related Transactions None Item 14. Controls and Procedures The General Partner has evaluated the Partnership's disclosure controls and procedures. Based on that evaluation, it was determined that the Partnership's disclosure controls and procedures were effective in ensuring information required to be disclosed by the Partnership in its Exchange Act Reports was accumulated and communicated to the Partnership's management as appropriate to allow timely decisions regarding required disclosures. The General Partner has also evaluated the Partnership's internal control structure. Based on that evaluation, it was determined that there were no significant changes in the Partnership's internal controls or in other factors that could affect these controls subsequent to the date of the evaluation, including any corrective action with regard to significant deficiencies and material weaknesses. PART IV Item 15. Exhibits, Financial Statements, Schedules and Reports on Form 8-K (a) (1) Financial Statements - See accompanying Index to Financial Statements - Item 8. (2) Financial Statement Schedules - All schedules have been omitted as not required, not applicable or the information required to be shown therein is included in the Financial Statements and related notes. (3) Exhibits Index Except as set forth below, all exhibits to Form 10-K, as set forth in item 601 of Regulation S-K are not applicable.
Page Number or Exhibit Incorporated by Number Description Reference 2.1 Certificate of Cancellation effective page 21 November 30, 2002 4.1 Agreement of Limited Partnership * 4.2 Subscription Agreement ** 4.3 Certificate of Limited Partnership and *** Agreement of Limited Partnership dated April 8, 1988 4.4 First Amended and Restated Certificate **** of Limited Partnership and Agreement of Limited Partnership dated June 22, 1988 10.1 Escrow Agreement *** 12.0 First Amendment to Agreement of Limited Partnership ***** * Included as Exhibit A to Amendment No. 1 to Form S-1, Registration Statement No. 0-19939 filed with the Securities and Exchange Commission on June 23, 1988. ** Included as Exhibit C to Amendment No. 1 to Form S-1 to Registration Statement No. 0-19939 filed with the Securities and Exchange Commission on June 23, 1988. *** Included with the Exhibit Volume to Form S-1, Registration Statement No. 0-19939 filed with the Securities and Exchange Commission on April 15, 1988. **** Included with the Exhibit Volume to Amendment No. 1 to Form S-1, Registration Statement No. 0-19939 filed with the Securities and Exchange Commission on June 23, 1988. ***** Included in Consent Statement filed on August 3, 1994.
(b) Reports on Form 8-K: There were no reports filed during the fourth quarter of 2002. Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CSA Income Fund IV Limited Partnership (Registrant) By its General Partner, CSA Lease Funds, Inc. Date: J. Frank Keohane, President Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By its General Partner, CSA Lease Funds, Inc. Date: J. Frank Keohane President & Director Principal Executive Officer Date: Richard P. Timmons Corporate Controller Principal Accounting and Finance Officer CERTIFICATE OF CANCELLATION FOR CSA INCOME FUND IV LIMITED PARTNERSHIP Name of Limited Partnership The name of the Limited Partnership is CSA Income Fund IV Limited Partnership (the "Partnership"). Date of filing of the Certificate of Limited Partnership The date of filing for the Partnership's Certificate of Limited Partnership is December 21, 1989. Reason for filing the Certificate of Cancellation The reason for filing this Certificate of Cancellation is the dissolution of the partnership effective on November 30, 2002. Effective Date The effective date of this Certificate of Cancellation shall be November 30, 2002. IN WITNESS OF WHEREOF, the undersigned, General Partner of the Partnership, Has caused this Certificate of Cancellation to be duly executed this January 30, 2003. J Frank Keohane, President, CSA Lease Funds, Inc. General Partner -----END PRIVACY-ENHANCED MESSAGE-----