Business Context and Reporting Period
This Form 8-K is a current report filed by H&R Block, Inc. on July 10, 2003. The filing specifically concerns the H&R Block, Inc. 2000 Employee Stock Purchase Plan (the "Plan") rather than the consolidated operations of the parent company.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The document is a disclosure regarding a change in the independent auditor for the Employee Stock Purchase Plan.
Material Changes
The primary material change reported is the resignation of PricewaterhouseCoopers LLP ("PwC") as the independent accountant for the Plan, effective July 10, 2003. Concurrently, the Plan appointed KPMG, LLP as the new independent accountant for the fiscal year ending June 30, 2003.
- Previous Auditor: PwC resigned after auditing fiscal years ended June 30, 2001, and June 30, 2002.
- New Auditor: KPMG, LLP was engaged by direction of the Board of Directors.
Management Commentary, Risks, and Unusual Items
Management and the Plan confirmed the following regarding the auditor transition:
- No Disagreements: There were no disagreements with PwC regarding accounting principles, practices, financial statement disclosure, or audit scope/procedures during the relevant periods.
- No Reportable Events: No reportable events (as defined in Regulation S-K Item 304(a)(1)(v)) occurred during the fiscal years ended June 30, 2001 and 2002, or through July 10, 2003.
- Audit Opinions: PwC's reports for the 2001 and 2002 fiscal years contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- Consultations: Neither the Plan nor its representatives consulted with KPMG regarding accounting applications or potential audit opinions prior to their engagement.
Investor Verification Checklist
- Verify the attached Exhibit 16.1 (Letter from PwC) to confirm the auditor's agreement with the statements regarding the absence of disagreements and reportable events.
- Confirm that this filing pertains only to the Employee Stock Purchase Plan and does not indicate a change in the independent auditor for H&R Block, Inc.'s consolidated financial statements.
- Review subsequent filings to ensure KPMG, LLP was successfully engaged for the fiscal year ended June 30, 2003.