SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
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 21, 2000
HOME BUILDING BANCORP, INC.
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(Exact name of Registrant as specified in its Charter)
Indiana 0-24896 35-1935840
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
200 East Van Trees Street, Washington, Indiana 47501
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (812) 254-2641
N/A
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(Former name or former address, if changed since last report)
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ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
The following is in response to a letter addressed to the Securities
and Exchange Commission from Kemper CPA Group LLC ("Kemper"), which is attached
as Exhibit 16 to this filing.
With respect to the areas where Kemper is not in complete agreement
with the Registrant's statements surrounding Kemper's resignation, Registrant
states that its understanding of Kemper's Recommendations encompassed all
traditional types of lending products, but did not encompass share loans, as
stated previously. Thus, management believed it had placed "mitigating controls"
"in place," which controls were in effect for all loans except share loans. With
respect to Kemper's more recent assertion that it had "previously directed
management's attention to questionable activities conducted by the alleged
perpetrator," Registrant states that such activities, which had no relation to
the discovery of the defalcation, had occurred approximately two years prior to
the defalcation and had been investigated by Kemper subsequent to its
notification to Registrant of such activities. Registrant also notes that this
matter was not referred to by Kemper in its resignation letter, which was
written three days after the shareholders' vote to reappoint Kemper as
independent auditor failed.
With respect to Kemper's assertion that "quarterly agreed-upon
procedures were in no way related to this matter," Registrant states that it
engaged Kemper on a quarterly, agreed-upon procedure basis to provide review of
lending practices and documentation. Just as Kemper believed its Recommendations
for loans should have been extended to all types of loans, without specification
or exclusion, so the audit committee and management believed all types of loans
were to be sampled by Kemper on a routine, rotating basis. As previously stated,
correspondence from Kemper subsequent to the Recommendations indicated that
prior relevant concerns had been corrected. Further, annual audit procedures and
quarterly agreed-upon procedures did not reveal either the defalcation or the
Company's omission to apply Kemper's Recommendations to share loans.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibit 16 Letter from Kemper CPA Group LLC to the
Securities and Exchange Commission, dated
February 10, 2000. Received via facsimile
on February 11, 2000.
2
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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.
HOME BUILDING BANCORP, INC.
Date: FEBRUARY 15, 2000 By: /S/ BRUCE A. BEESLEY
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Bruce A. Beesley
President and Chief Executive
Officer
1500 CHERRY STREET
MT. CARMEL, ILLINOIS 62863
February 10, 2000
Securities and Exchange Commission
450 Fifth Street
Washington, DC 20549
Re: Home Building Bancorp, Inc.
Commission File No. 0-24896
We were previously the principal accountant for Home Building Bancorp, Inc. and,
under the date of November 4, 1999, we reported on the consolidated financial
statements of Home Building Bancorp, Inc. and subsidiaries as of and for the
years ended September 30, 1999, 1998 and 1997. On January 21, 2000, we resigned.
We have read Home Building Bancorp, Inc.'s statements included under Item 4 of
its Form 8-K, dated January 28, 2000, and we do not agree completely with the
statements for the following reasons:
We believe our inquiries of management regarding loans and the
segregation of duties with respect to loan originations and renewals,
and management's representations to us in response to those inquiries
were in no way specific to a certain class of loans or exclusive of a
certain class of loans. Only upon learning of a defalcation by an
employee were we informed of the limitations of management's responses
to our inquiries. In addition, we had been informed mitigating controls
were in place for close management review of loan originations and
renewals, which had not been performed. Finally, we had previously
directed management's attention to questionable activities conducted by
the alleged perpetrator of a defalcation. Management represented to us
a thorough investigation had been conducted by management with no
indications of any wrong-doing.
Our consideration of the internal control structure of Home Building
Bancorp, Inc. was solely for the purpose of planning our audit
procedures for the purpose of expressing our opinion on the financial
statements of Home Building Bancorp, Inc. and not to provide assurances
as to the adequacy of the internal control system. Often, suggestions
for improving internal controls are made based on management's
representations indicating certain weaknesses. Subsequent corrections
of these weaknesses had also been represented by management and
reported as such by us. We did not express an opinion on internal
control.
We believe the quarterly agreed upon procedures were in no way related
to this matter. The scope of procedures performed and the adequacy of
such procedures were solely the responsibility of the audit committee
of the board of directors.
We are in agreement with management's statements regarding no vote had been
taken at the annual meeting. We also agree, our reports did not contain any
adverse opinion or disclaimer of opinion and were not qualified or modified as
to uncertainty, audit scope, or accounting principles. We also agree there were
no disagreements on any matter of accounting principles, financial statement
disclosure or audit scope.
Very truly yours,
/s/ Kemper CPA Group LLC
Certified Public Accountants and Consultants
