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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) JANUARY 11, 2000
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
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(Exact Name of Registrant as Specified in Charter)
DELAWARE 2-65391 16-1173249
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(State or Other (Commission (IRS Employer
Jurisdiction File Number) Identification No.)
of Incorporation)
2350 NORTH FOREST ROAD, SUITE 12A, GETZVILLE, NEW YORK 14068
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (716) 636-9090
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NONE
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(Former Name or Former Address, if changed Since Last Report)
(Page 1 of 4 pages)
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ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANTS
On January 11, 1999, Deloitte & Touche, LLP ("D & T") notified the Company
that its relationship as the principal accountant to audit the Company's
financial statements had ceased. In its withdrawal letter, D & T did not provide
the Company with any reasons for withdrawing from its auditing relationship with
the Company.
D & T's report on the financial statements of the Company for the fiscal
year ended December 31, 1998 did not contain any adverse opinion or disclaimer
of opinion and was not qualified or modified as to uncertainty, audit scope, or
accounting principles, except that D & T's report included a reference to a
substantial doubt about the Company's ability to continue as a going concern. D
& T has not yet issued a report in connection with the audit of the Company's
financial statements for the fiscal year ended December 31, 1999.
During the Company's fiscal years ended December 31, 1999 and December 31,
1998, and the period subsequent to December 31, 1999 preceding D & T's
withdrawal, there were no disagreements between the Company and D & T on any
matter of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure, which disagreement(s), if not resolved to the
satisfaction of D & T, would have caused D & T to make a reference to the
subject matter of the disagreement(s) in connection with its report on the
Company's financial statements.
There has not occurred, during the two fiscal years ended December 31,
1999, or any subsequent period preceding D & T's withdrawal, any reportable
events, as defined in paragraph (a)(1)(v) of Item 304 of Regulation S-K, with
respect to D & T, except as set forth in a draft letter from D & T addressed to
the general partner of the Company, dated April 30, 1999 ("Draft Letter") but
only received by the general partner on January 13, 1999 in response to a
request to D & T on behalf of the Company. The Draft Letter alleged certain
material and other weaknesses in the Company's internal controls and operations
relative to the preparation of the Company's financial statements for the fiscal
year ended December 31, 1998. According to the Draft Letter, material weaknesses
involve matters coming to the attention of D & T in which the design or
operation of one or more of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by error or fraud in
amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions.
The following material weaknesses in internal controls were noted in the
Draft Letter: unqualified accounting and reporting personnel, poorly reconciled
rent roll, cash accounts and mortgage statements, inadequate physical safeguards
over cash, inadequate procedures for collection of rent, poor designation of the
bad debt expense account, inadequate procedures for the accounting of property
assets, inadequate support for certain construction account disbursements,
weakness in invoice input/payment approval process, inadequate procedures for
purchase order issuance and maintenance and for preparation of monthly financial
statements, inadequate provisions for the maintenance of a separate property and
joint venture account and inadequate procedure for tracking the reimbursement of
employee medical and dental costs.
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The Company is presently studying the Draft Letter which was received only
recently. Following its review, the Company intends to take all practical
actions which it determines to be necessary to remedy any existing weaknesses in
its internal controls.
The Company has authorized D & T to discuss the subject matter of each
alleged material weakness identified in the Draft Letter with the successor
independent accountant subsequently engaged as the principal accountant to audit
the Company's financial statements.
The Company is presently considering candidates for appointment as the
Company's new independent auditors.
The Company has requested a letter from D & T as to whether D & T agrees
or disagrees with the above statements. As of the date of filing of this report
on Form 8-K, the Company has not yet received such letter.
ITEM. 7 FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(a) Not Applicable
(b) Not Applicable
(c) None
(Page 3 of 4 pages)
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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 thereunto duly authorized.
REALMARK PROPERTY INVESTORS
LIMITED PARTNERSHIP
By: Realmark Properties, Inc.,
a general partner
By: /s/ Joseph M. Jayson
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Joseph M. Jayson
President and Director
Dated: January 19, 2000
(Page 4 of 4 pages)
