Citizens Community Bancorp Inc. reported that its unaudited interim and audited annual financial statements for the fiscal years ended Sept. 30, 2014, and Sept. 30, 2015, and the unaudited interim financial statements for the fiscal quarters ended Dec. 31, 2015; March 31, 2016; and June 30, 2016, contain accounting errors.
In addition, the Eau Claire, Wis.-based company's preliminary earnings release for the quarter ended Sept. 30, 2016, is no longer reliable, along with other reports or filings that refer to figures in these consolidated financial statements.
The errors are related to the accrual for professional expenses for the covered periods and were discovered during the annual audit of consolidated financial statements for the fiscal year ended Sept. 30, 2016. A number of professional and other expense accrual items were seen to have been overstated resulting in an understatement of net income for the 2014 and 2015 quarterly and yearly fiscal periods and an overstatement of quarterly and annual net income for the year ended Sept. 30, 2016.
A comprehensive restatement for all the covered periods will be made in the company's Form 10-K for the year ended Sept. 30, 2016. The filing will also state a material weakness in the company's disclosure controls and procedures. Citizens Community also said remediation efforts to correct these weaknesses have already been implemented, such as the addition of experienced accounting staff and a review of the finance and accounting departments.