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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 29, 1996 (May 29, 1996)
SCB COMPUTER TECHNOLOGY, INC.
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(Exact name of registrant as specified in its charter)
Tennessee 0-27694 62-1201561
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
1365 Brierbrook Road, Memphis, Tennessee 38138
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (901) 754-6577
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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SCB Computer Technology, Inc. (the "Company") has issued a press release,
dated May 29, 1996, regarding an internal review of its billing practices
related to the Company's consulting contract with the Tennessee Valley
Authority. The Company's internal review was prompted by a subpoena of a
federal grand jury in Memphis. The press release is filed as an exhibit hereto
and is incorporated herein by reference.
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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.
SCB COMPUTER TECHNOLOGY, INC.
Date: May 29, 1996 By: /s/ Gordon L. Bateman
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Gordon L. Bateman
Chief Financial Officer
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EXHIBIT INDEX
Item Description
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99 Press Release dated May 29, 1996
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EXHIBIT 99
SCB COMPUTER TECHNOLOGY, INC.
1365 WEST BRIERBROOK ROAD
MEMPHIS, TENNESSEE 38138
NEWS RELEASE
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FOR IMMEDIATE RELEASE CONTACT: Ben C. Bryant, Jr.
Vice Chairman of the
Board and Chief
Executive Officer
901-754-6577
Memphis, Tennessee (May 29, 1996) - SCB Computer Technology, Inc.
(Nasdaq/NM:SCBI) announced today the preliminary results of an internal review
of its billing practices relating to the Company's consulting contract with the
Tennessee Valley Authority, which was substantially completed in February 1996.
The internal review was prompted by a subpoena served on the Company by a
federal grand jury in Memphis seeking certain Company records. The Company is
cooperating fully with the government's inquiry and has produced documents
requested by the subpoena. The Company has not been identified as a subject or
target of the U.S. Attorney's investigation, but the Company believes that the
government's investigation is currently focused on the Company's billing
practices under the TVA contract, particularly the hourly billings and expenses
of T. Scott Cobb, the Company's Chairman and President, and Steve N. White, the
Company's Chief Operating Officer. The subpoena appears to be in conjunction
with an audit of the Company's TVA billings being conducted by the Office of
the Inspector General, the results of which audit have not been made known to
the Company.
The Company's internal review was conducted under the direction of a
Special Committee of the Board of Directors, with the assistance of outside
legal counsel and a "Big Six" accounting firm other than the Company's
independent auditors. Out of the approximately $8.1 million of billings to the
TVA under the consulting contract for the period from May 1994 through February
1996, the Special Committee has currently identified, with the assistance of
its outside advisors, less than $50,000 in possible misbillings. These
possible misbillings primarily relate to expenses submitted by a limited number
of employees, including Messrs. Cobb and White, and do not represent a regular
pattern or practice of the Company. In accordance with contractual provisions,
the Company will remit any overcharges to the TVA.
In connection with its internal review, the Special Committee has
recommended and the Board has approved a comprehensive plan to strengthen the
Company's contract administration and compliance programs. Among other things,
the Company will be conducting a search for a senior level employee to assume
the job title of Contract Administrator.
The information contained herein includes certain forward-looking
statements and, due to the preliminary and prospective nature of the
government's investigation, the Company cannot now predict with any certainty
when the investigation will be completed, its ultimate outcome, or the effect
thereof on the Company's financial condition or results of operations. Because
of the foregoing risks and uncertainties, actual results may differ materially.
Based on the internal review and the information known to date, however, the
Company believes that the ultimate outcome of the government's investigation
will not have a material adverse effect on the Company's management, financial
condition, or results of operations. The government's investigation could
result in the imposition of civil or criminal fines or sanctions, including the
exclusion of the Company from future federal government contracts. Any such
result could have a material adverse impact on the Company's financial
condition and results of operation.
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