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Wackenhut Corrections Corporation
 

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): May 28, 2002

WACKENHUT CORRECTIONS CORPORATION

(Exact Name of Registrant as Specified in its Charter)
         
Florida   1-14260   65-0043078
 
 
(State or Other Jurisdiction of
Incorporation)		   (Commission File Number)   (IRS Employer
Identification No.)
     
4200 Wackenhut Drive #100, Palm Beach Gardens, FL   33410-4243
 
(Address of Principal Executive Offices)   (Zip Code)

(Registrant’s Telephone Number, Including Area Code) (561) 622-5656

Not Applicable

(Former Name or Former Address, if Changed since Last Report)

 

Items 4. Change in Registrant’s Certifying Accountant.

     On May 29, 2002, Wackenhut Corrections Corporation (the “Company”) announced that its Board of Directors, upon recommendation of the Audit Committee of the Board of Directors, has selected Ernst & Young LLP (“Ernst & Young”) to serve as the Company’s independent public accountants for fiscal 2002. Ernst & Young replaces Arthur Andersen LLP (“Arthur Andersen”) in this role, effective May 28, 2002.

     Arthur Andersen’s reports on the Company’s consolidated financial statements for each of the fiscal years ended December 30, 2001 and December 31, 2000 did not contain an adverse opinion or disclaimer of opinion, nor were the reports qualified or modified as to uncertainty, audit scope or accounting principles.

     During the fiscal years ended December 30, 2001 and December 31, 2000 and the interim period between December 30, 2001 and the filing date of this Current Report on Form 8-K, there were no disagreements between the Company and Arthur Andersen on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Arthur Andersen’s satisfaction, would have caused Arthur Andersen to make reference to the subject matter of the disagreement in connection with its report on the Company’s consolidated financial statements for such year, and there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.

     The Company provided Arthur Andersen with a copy of the foregoing disclosures. Attached as Exhibit 16 is a copy of Arthur Andersen’s letter, dated May 28, 2002, stating its agreement with such statements.

     During the fiscal years ended December 30, 2001 and December 31, 2000 and through the filing date of this Current Report on Form 8-K, the Company did not consult Ernst & Young regarding any of the matters or reportable events set forth in Items 304(a)(2)(i) and (ii) of Regulation S-K.

2

 

Item 7. Financial Statements And Exhibits

     (c)  Exhibits.

     
Exhibit No.   Description
 
16   Letter from Arthur Andersen LLP dated May 28, 2002
 
99   Press Release dated May 29, 2002

3

 

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.
         
        WACKENHUT CORRECTIONS CORPORATION
 
 
May 29, 2002   By:   /s/ John G. O’Rourke
     
Date       John G. O’Rourke
        Senior Vice President – Finance, Chief Financial Officer and Treasurer (Principal Financial Officer and duly authorized signatory)

4

 

EXHIBIT INDEX

     
Exhibit No.   Description
 
16   Letter from Arthur Andersen LLP dated May 28, 2002
 
99   Press Release dated May 29, 2002 

                                                                      EXHIBIT 16

Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

May 28, 2002

Dear Sir/Madam:

We have read the second and third paragraphs of Item 4 included in the Form 8-K
dated May 28, 2002 of Wackenhut Corrections Corporation to be filed with the
Securities and Exchange Commission and are in agreement with the statements
contained therein.

Very truly yours,


/s/ Arthur Andersen LLP

Arthur Andersen LLP







                                                                      EXHIBIT 99

WCC                                                                NEWS RELEASE
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4200 Wackenhut Drive, Palm Beach Gardens, FL 33410        F0R IMMEDIATE RELEASE


                  WACKENHUT CORRECTIONS APPOINTS ERNST & YOUNG
                       AS INDEPENDENT PUBLIC ACCOUNTANTS



PALM BEACH GARDENS, FLA. -- MAY 29, 2002 -- WACKENHUT CORRECTIONS CORPORATION
(NYSE: WHC) ("WCC") today announced that it has engaged Ernst & Young LLP to
serve as WCC's independent certified public accountants for fiscal 2002,
replacing Arthur Andersen LLP effective May 28, 2002. Ernst & Young was
recommended by WCC's Audit Committee and the firm's appointment was approved by
WCC's Board of Directors.

During WCC's two most recent fiscal years and the interim period from December
30, 2001 to the present, there were no disagreements with Arthur Andersen on
matters of accounting principles or practices, financial statement disclosure,
or auditing scope or procedure. The reports issued by Arthur Andersen on WCC's
financial statements during this period did not contain any adverse opinion or a
disclaimer of opinion, or any qualification or modification as to uncertainty,
audit scope, or accounting principles.

George C. Zoley, WCC's Chairman and Chief Executive Officer said, "Ernst & Young
has a strong reputation and offers WCC a worldwide solution to our global
accounting needs. We look forward to working with the firm in its new role as
WCC's independent accountants." WCC does not anticipate a delay from normal
financial reporting as a result of the transition to a new accounting firm. WCC
is scheduled to release 2002 second quarter financial results on August 1, 2002.

WCC, a world leader in the privatized corrections industry, has contracts/awards
to manage 61 correctional/detention facilities in North America, Europe,
Australia, South Africa and New Zealand with a total of approximately 43,000
beds. WCC also provides prisoner transportation services, electronic monitoring
for home detainees, correctional health care and mental health services. WCC
offers government agencies a turnkey approach to the development of new
correctional and mental health institutions that includes design, construction,
financing and operations.

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS REGARDING FUTURE EVENTS
AND FUTURE PERFORMANCE OF WCC THAT INVOLVE RISKS AND UNCERTAINTIES THAT COULD
MATERIALLY AFFECT ACTUAL RESULTS, INCLUDING STATEMENTS REGARDING WCC ANTICIPATED
TRANSITION AND TIMELY FINANCIAL REPORTING CAPABILITIES WITH A NEW INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS. INVESTORS SHOULD REFER TO DOCUMENTS THAT WCC FILES
FROM TIME TO TIME WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A DESCRIPTION
OF CERTAIN FACTORS THAT COULD CAUSE ACTUAL RESULTS TO VARY FROM CURRENT
EXPECTATIONS AND FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE.
SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO WCC'S ABILITY TO MAINTAIN NORMAL
FINANCIAL REPORTING, WHILE TRANSITIONING TO A NEW ACCOUNTING FIRM AND OTHER
FACTORS CONTAINED IN WCC'S SECURITIES AND EXCHANGE COMMISSION FILINGS, INCLUDING
THE FORMS 10-K, 10-Q AND 8-K REPORTS.

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Contact:   Margaret Pearson - (561) 691-6406 or MPEARSON@WACKENHUT.COM