Our company will undergo a Security Exchange Commission (SEC) investigation for revenue recognition related to the 2011 fiscal year. As a publicly traded firm, MDC is legally bound to comply with all aspects and requests during the course of the investigation. All financial, proprietary information and operations data will be subject to review and should be submitted timely.
The investigation will focus on revenue recognition timing. The annual audits performed by several contracted accounting firms have failed to identify or recognize deviations from generally accepted accounting principles from our normal operations. All operational facilities and associated departments will provide complete cooperation to external and internal requests for data. Requests will be monitored and filtered to each operational level by the external accounting firm in conjunction with the corporate financial department. Internal auditors will accumulate, confirm completeness, review and present all data to the accounting firm for review prior to submission to the SEC.
A press release has been issued November 11, 2012 providing the general public, stock holders and employees with information related to the immediate resignation of Wade Vandiford, CFO and the SEC investigation. MDC will release bi-weekly updates through press releases and internal memorandums to inform all involved parties of the investigation progress and findings. It is the intention of MDC to accurately report the progress and findings through public communication in an effort to reduce inaccurate reporting by an outside media forum. These communications will assist MDC in maintaining a positive imagery with the public and associated groups through the provision of current activities on a truthful basis.
MDC firmly believes the investigation will result in minimum findings as our company strives to comply