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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):
March 13, 2000
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Information Management Associates, Inc.
(Exact name of registrant as specified in its charter)
Connecticut
(State or Other Jurisdiction of Incorporation)
001-13211 06-1289928
(Commission File Number) (I.R.S. Employer Identification No.)
One Corporate Drive, Suite 400, Shelton, Connecticut, 06484
(Address of Principal Executive Offices) (Zip Code)
(203) 925-6800
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Item 4. Change in Registrant's Certifying Accountant.
(a) Previous Independent Accountants
(i) As reported on Form 8-K dated September 23, 1999, Information Management
Associates, Inc. (the "Company") engaged at that time
PricewaterhouseCoopers LLP to audit the financial statements for the year
ending December 31, 1999. On March 13, 2000 the Company dismissed
PricewaterhouseCoopers LLP as its independent accountants.
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(ii) During the period referred to in 4(a)(i), PricewaterhouseCoopers LLP did
not issue any report on any financial statements of the Company.
(iii) The decision to change accountants was approved by the Company's Audit
Committee and the Company's Board of Directors.
(iv) During the period referred to in 4(a)(i), there were no disagreements
with PricewaterhouseCoopers on any matter of accounting principle or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of
PricewaterhouseCoopers would have caused it to make reference thereto in
any report on the financial statements of the Company, had they issued
any such report.
(v) During the Company's most recent fiscal year, no "reportable events" (as
described in Item 304(a)(1)(v) of regulation S-K) have occurred, except
for PricewaterhouseCoopers' communication to the Audit Committee in
connection with its engagement for the period referred to in 4(a)(i)
that:
(A) the Company's accounting procedures reflected a material weakness in
internal controls necessary to ensure proper revenue recognition
accounting for software and associated services, and
(B) PricewaterhouseCoopers had identified certain transactions where the
underlying documentation raises questions regarding the revenue
recognition accounting afforded to the transactions, and which if further
investigated could possibly result in the restatement of previously
issued 1999 interim financial statements.
The Company has authorized PricewaterhouseCoopers to respond fully to the
Company's new independent accountant concerning the nature of each of the
matters described in 4(a)(v)(A) and 4(a)(v)(B) above.
In response to the above matters raised by PricewaterhouseCoopers, as
well as additional matters raised by the Securities and Exchange
Commission, the Company has undertaken an internal review of 1999 and
prior years transactions which could lead to restatements of previously
issued financial statements. The undertaking of the internal review and
the disclosure of the possibility of restatements to previously issued
financial statements was announced in the Company's press release of
February 28, 2000 and its Form 8-K filed on March 1, 2000.
(b) New Independent Accountants
The Company engaged Ernst & Young LLP as its new independent accountants
effective as of March 13, 2000. During the two most recent fiscal years and
through March 13, 2000, the Company has not consulted with Ernst & Young
LLP concerning the Company's financial statements, including the following
items: the application of accounting principles to a specified transaction,
either completed or proposed; or the type of audit opinion that might be
rendered on the Company's financial statements; or any matter that was
either the subject of a disagreement, as that term is defined in Item
304(a)(1)(iv) of Regulation S-K, or a reportable event, as that term is
defined in Item 304(a)(1)(v) of Regulation S-K.
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Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
(c) Exhibits
16.1 Letter of PricewaterhouseCoopers LLP, dated March 15, 2000,
to the Securities and Exchange Commission.
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.
Date: March 20, 2000 INFORMATION MANAGEMENT
ASSOCIATES, INC.
By: /s/John A. Piontkowski
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Name: John A. Piontkowski
Title: Chief Financial Officer
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PRICEWATERHOUSECOOPERS [LOGO]
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PricewaterhouseCoopers LLP
100 Pearl Street
Hartford CT 06103-4508
Telephone:(860) 241-7000
Facsimile (860) 241-7590
March 15, 2000
Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Commissioners:
We have read the statements made by Information Management Associates, Inc.
(copy attached), which we understand will be filed with the Commission, pursuant
to Item 4 of Form 8-K, as part of the Company's Form 8-k report dated March 13,
2000. We agree with the statements concerning our Firm in such Form 8-K.
Yours very truly,
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
cc: John A. Piontkowski
Chief Financial Officer
Information Management Associates, Inc.
One Corporate Drive
Suite 400
Shelton, Connecticut 06484
