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UNITED STATES
SECURITIES 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) September 29, 1995
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Community Psychiatric Centers
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(Exact name of registrant as specified in its charter)
Nevada 1-7008 94-1599386
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6600 W Charleston Boulevard, Suite 118, Las Vegas, Nevada 89102
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (702) 259-3600
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(Former name or former address. If changed since last report)
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Item 4. Changes in Registrant's Certifying Accountant.
The Board of Directors of the Company approved on September 28, 1995 the
dismissal of Ernst & Young and the engagement of Price Waterhouse as the
independent accountants of the Company for the fiscal year ending November 30,
1995, effective September 29, 1995, based on the recommendation of the
Company's Audit Committee.
The reports of Ernst & Young for the fiscal years ended November 30, 1993
and 1994 contained no adverse opinion, disclaimer of opinion or qualification or
modification as to uncertainty, audit scope or accounting principles.
During the fiscal years ended November 30, 1993 and 1994 and the interim
period from December 1, 1994 through August 31, 1995, there were no
disagreements between the Company and Ernst & Young on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure, which, if not resolved to the satisfaction of Ernst & Young would
have caused it to make reference to the subject matter of the disagreement in
connection with its report. No event described in paragraph (a)(1)(v) of Item
304 of Regulation S-K occurred during the Company's fiscal years ending November
30, 1993 or 1994, or the period from December 1, 1994 through August 31, 1995,
except that Ernst & Young advised management and the Board of Directors in a
letter dated January 28, 1994, that, in connection with the audit of the
Company's 1993 fiscal year its representatives had identified certain matters
involving the internal control structure of the Company's subsidiary,
Transitional Hospitals Corporation and its operations which Ernst & Young
considered to be material weaknesses as defined under standards established by
the American Institute of Certified Public Accountants. Ernst & Young further
stated in that letter that these conditions were considered in determining the
nature, timing, and extent of the procedures performed in their audit for the
Company's 1993 fiscal year. Ernst & Young's letter to the Board of Directors
dated January 27, 1995 issued in conjunction with the audit of the Company's
1994 fiscal year stated that they noted no matters involving the internal
control structure and its operations that they considered to be material
weaknesses as defined under standards established by the American Institute of
Certified Public Accountants.
The Company has provided Ernst & Young with a copy of the disclosures
contained herein and has filed as an exhibit hereto the response of Ernst &
Young to the disclosures set forth in this section.
Item 7. Exhibits
A letter from Ernst & Young to the Securities and Exchange Commission dated
October 4, 1995 is attached hereto as exhibit 16.1.
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.
COMMUNITY PSYCHIATRIC CENTERS
Date October 4, 1995 /s/ WENDY SIMPSON
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Wendy Simpson
Chief Financial Officer
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COMMUNITY PSYCHIATRIC CENTERS
INDEX TO EXHIBITS
EXHIBIT
16.1 Letter from Ernst & Young to Securities Exchange Commission dated
October 4, 1995.
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EXHIBIT 16.1
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Gentlemen:
We have read Item 4 of Form 8-K dated October 4, 1995, of Community
Psychiatric Centers and are in agreement with the statements contained in the
second and third paragraphs on page II therein. We have no basis to agree or
disagree with other statements of the registrant contained therein.
Regarding the registrant's statement concerning the lack of internal control to
prepare financial statements, included in the third paragraph on page II
therein, we had considered such matter in determining the nature, timing and
extent of procedures performed in our audit of the registrant's 1993 financial
statements.
Very truly yours,
ERNST & YOUNG LLP
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