United Development Funding IV fka UDFI

[Enterprising Investor]

I think most of you would just like to see a 10-K for 2015.

It is probably just not that simple.

Whitley Penn actually informed UDFI on 11/19/15 that the firm declined to stand for reappointment (filed on 11/24/15). It took some time to find a replacement. EisnerAmper became responsible for the fiscal year ending 12/31/15 on 6/08/16.

[…]During the years ended December 31, 2014 and 2015, and during the subsequent interim period through the date of this Current Report on Form 8-K, the Trust did not consult with EisnerAmper LLP regarding (i) the application of accounting principles to a specified transaction, either completed or proposed, (ii) the type of audit opinion that might be rendered on the Trust’s financial statements by EisnerAmper LLP, and neither a written report nor oral advice was provided to the Trust that was an important factor considered by the Trust in reaching a decision as to an accounting, auditing or financial reporting issue or (iii) any other matter that was the subject of a disagreement between the Trust and its former independent registered public accounting firm or was a reportable event (as described in Item 304(a)(1)(iv) or Item 304(a)(1)(v) of Regulation S-K, respectively).

As a lawyer might say, UDFI is basically stating that there was no "forum shopping" in advance of EisnerAmper taking the job.

Now, this does not necessarily mean that EisnerAmper will agree with all of the prior work done by Whitney Penn. Accountants can and do disagree. Sometimes, they even get in trouble with their clients and the government. I know one local firm that got bad advice from it's really big accounting firm regarding the usage of TDAs, and the IRS wanted a really big check from the company after they improperly used those NOLs. Issue resolved without any impact to the company.

I am not saying there is an issue with the prior work. However, issues for all of the UDF entities really started piling up after the 3Q 2015 financials were released. There is also a great deal of litigation that needs to be disclosed.

We all need an unqualified report from EisnerAmper for 2015, 2016, 2017 and soon 2018. I think everyone is working towards that goal.