SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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)
January 21, 2000
HOME BUILDING BANCORP, INC.
- - -------------------------------------------------------------------------------
(Exact name of Registrant as specified in its Charter)
Indiana 0-24896 35-1935840
- - -------------------------------------------------------------------------------
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
200 East Van Trees Street, Washington, Indiana 47501
- - -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (812) 254-2641
N/A
- - -------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
In a letter received January 21, 2000 (the "Letter"), Kemper CPA Group
LLC ("Kemper") indicated that Kemper will cease to act as Registrant's
independent auditor, effective January 24, 2000. In the Letter and in a
subsequent written communication, Kemper stated it is unable to rely on
management's representations because it was lead to believe that the Registrant
had implemented adequate segregation of duties for all accounts in a specified
audit area (the "Recommendations") but that it later became known to Kemper that
certain accounts were not subjected to the same controls and procedures as other
accounts within that audit area. Kemper also stated that management had failed
to implement its recommendations regarding internal controls for adequate
segregation of duties or alternative procedures that would mitigate indadequate
segregation. Finally, Kemper stated that the proposal to ratify its appointment
as independent auditor was not approved due to the lack of a second of the
proposal at the annual meeting of Registrant held on January 17, 2000.
Registrant, to the best of its knowledge, believed it had fully
implemented the Recommendations made by Kemper, which were originally made in
connection with the September 30, 1997 audit of the Registrant. Kemper did not
understand that management had not considered certain accounts to be within the
areas that Kemper believed were covered by the Recommendations. Thus the
safeguards added for other audit areas were not implemented for those certain
accounts. Subsequent correspondence in connection with the 1998 audit indicated
that prior relevant concerns regarding internal control had been corrected and
annual audit procedures and quarterly agreed-upon procedures conducted by Kemper
after fiscal 1997, did not reveal the omission. The Recommendations were not
omitted due to a disagreement with Kemper or an unwillingness on the part of the
Registrant to fully implement the Recommendations.
Registrant agrees that due to a failure to second the proposal to
ratify the appointment of Kemper, no vote was taken at the annual meeting
regarding the ratification of Kemper as independent auditor. At the time of
receipt of the Letter, while the matter had been discussed, no decision had been
made by the Board of Directors or committee thereof to recommend or approve a
change of accountants.
To the best of Registrant's knowledge, Kemper's reports on the
Registrant's Financial Statements for each of the past two years did not contain
any adverse opinion or disclaimer of opinion and were not qualified or modified
as to uncertainty, audit scope, or accounting principles. Other than as
discussed above, during the Registrant's two most recent fiscal years, and
interim period preceding Kemper's resignation, there were no disagreements
between the Registrant and Kemper on any matter of accounting principles or
practices, financial statement disclosure, or audit scope or procedures which,
if not resolved to the satisfaction of Kemper, would have caused Kemper to make
a reference to the subject matter of the disagreement in connection with
Kemper's report.
Registrant anticipates, with respect to the matter discussed above,
that there will be no material effect on its financial condition due to fidelity
bond coverage in connection with the defalcation by an employee.
2
<PAGE>
The Registrant has provided Kemper with a copy of this report and has
requested Kemper to furnish the Registrant with a letter addressed to the
Securities and Exchange Commission stating whether it agrees with the statements
made herein. The Registrant has also provided a letter to Kemper authorizing
Kemper to respond fully to any inquiry by a successor accountant concerning the
Registrant and its subsidiary Home Building Savings Bank, FSB.
3
<PAGE>
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: JANUARY 28, 2000 By: /S/ BRUCE A. BEESLEY
----------------- -------------------------------------
Bruce A. Beesley
President and Chief Executive Officer
