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): October 15, 1998
Data Systems Network Corporation
(Exact name of registrant as specified in its charter)
Michigan
(State or other jurisdiction of incorporation)
1-13424 38-2649874
(Commission File Number) (IRS Employer Identification No.)
34705 West Twelve Mile Road, Suite 300, Farmington Hills, Michigan 48331
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (248) 489-8700
Not Applicable
(Former name or former address, if changed since last report)
ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
On October 15, 1998, Plante & Moran, LLP ("Plante") informed the
Board of Directors of Data Systems Network Corporation (the "Registrant")
that it will decline to stand for reappointment, if asked, as auditors for
the Registrant. Plante also notified the Registrant at that time that, as
of the date of such notification, the client-auditor relationship between
the parties was terminated. The Registrant is currently in the process of
selecting independent accountants for its fiscal year ended December 31,
1998. The Registrant has placed no limitations on Plante responding fully
to inquiries of the successor accountant.
The reports of Plante on the Registrant's financial statements for
each of the past two fiscal years contained no adverse opinion or disclaimer
of opinion and were not qualified or modified as to uncertainty, audit scope
or accounting principle, except that, as issued, Plante's report dated
August 20, 1998 included a modification addressing the Registrant's going
concern uncertainty. The Registrant's plans concerning these matters are
described in the footnotes attached to the financial statement referenced in
the report.
In connection with its audits for the two most recent fiscal years
and through August 20, 1998, (i) there were no disagreements between the
Registrant and Plante on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of Plante would have
caused them to make reference thereto in their report on the financial
statement for such fiscal years and (ii) there were no reportable events as
defined in Regulation S-K Item 304(a)(1)(v) except that Plante advised the
Audit Committee of the Registrant's Board of Directors, by letter dated May
21, 1998, of certain items it considered to be material weaknesses in
internal controls in 1997 relating to the Registrant's general accounting
practices then in place, including those relating to billing, accounts
payable and inventory. These items were discussed with the Audit Committee
on September 15, 1998, and management has, and will continue to address the
recommendations of Plante.
The Registrant has provided Plante with a copy of the above
disclosures which the Registrant is making in response to Item 304(a) of
Regulation S-K and has requested that Plante furnish it with a letter
addressed to the Securities and Exchange Commission stating whether or not
it agrees with such disclosures. A copy of such letter dated October 22,
1998 is filed as Exhibit 16 to this Form 8-K.
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 16 Letter from Plante & Moran, LLP, dated October 22, 1998
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.
October 22, 1998 DATA SYSTEMS NETWORK CORPORATION
By: /s/Michael W. Grieves
-----------------------------------
Michael W. Grieves
Chairman, President and Chief
Executive Officer
Exhibit 16
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Gentlemen:
We have read and agree with the comments in Item 4 of Form 8-K of
Data Systems Network Corporation, dated October 22, 1998.
/s/ Plante & Moran, LLP
Plante & Moran, LLP
Southfield, Michigan
October 22, 1998
