BLACKWELL SANDERS PEPER MARTIN LLP
4801 MAIN STREET SUITE 1000 KANSAS CITY, MO 64112
P.O. BOX 219777 KANSAS CITY, MO 64121-6777
TEL: (816) 983-8000 FAX: (816) 983-8080
WEBSITE: www.blackwellsanders.com
Greg S. Steinberg DIRECT FAX: (816) 983-8080
DIRECT: (816) 983-8387 E-MAIL: gsteinberg@blackwellsanders.com
August 26, 2005
VIA EDGAR TRANSMISSION
Ms. Beverly A. Singleton
Staff Accountant
Securities and Exchange Commission
Division of Corporation Finance
100 F. Street, N.E.
Washington, D.C. 20549
Re: Collins Industries, Inc. - Form 8-K, filed August 9, 2005 (File No.
0-32369)
Dear Ms. Singleton:
As I indicated in my letter dated August 19, 2005, I am writing to provide
you with supplemental information regarding actions taken by the audit committee
of Collins Industries, Inc. (the "company") and the board of directors of the
company subsequent to the filing of the August 19th letter. The audit committee
of the company met on August 22, 2005, and recommended to the board of directors
of the company on August 23, 2005, additional steps to be taken and procedures
to be implemented to address each material weakness discussed in the August 19th
letter. This letter is being filed with the Securities and Exchange Commission
today.
As with the August 19th letter, we are providing a copy of this letter to
Timothy P. Davis, Trial Counsel for the Commission in the Ft. Worth, Texas
office.
In addition to the steps and procedures previously identified in the August
19th letter and in company filings, the following additional information has
been reported to me by the company and is being provided regarding each material
weakness in internal controls cited by the company's former independent
auditors:
Control Environment
• In June 2005, the company implemented an employee reporting system
called "My Safe Workplace" which allows employees to report any issues
(including financial and accounting issues) on an anonymous basis to a
third party provider. All reports are initially reviewed by the Vice
President of Human Resources of the company and the Vice President -
Finance and Chief Financial Officer of the company. The chairman of
Ms. Beverly A. Singleton
August 26, 2005
Page 2
the audit committee and certain other executives have unlimited access to
all reports as well as all investigation notes and responses. My Safe
Workplace is administered by an independent third party. Unless the
employee expressly consents, neither the management nor the board of
directors nor any other employee of the Company may know the identity of
the employee filing the complaint/report.
• Information regarding My Safe Workplace has been placed on each bulletin
board in the employee break rooms and has been placed on bulletin boards in
various other work areas. Wallet cards have been given to all current (and
new) employees, along with a letter from the Vice President of Human
Resources of the company explaining the existence of this service. There
has been an article written for inclusion in the next quarterly company
publication, however, a timetable for the publication and distribution has
not been finalized. In addition, the "Chairman's Corner" section of the
company's employee newsletter will mention the company's My Safe Workplace
hotline and website information. The next company employee newsletter is
scheduled to be delivered to all employees of the company in the fourth
quarter of the current fiscal year.
• The company's Code of Conduct is posted on the company's website and on
company bulletin boards and is published annually in the company
newsletter.
• The employees in the company's Kansas facility responsible for not
recording a liability on a timely basis for work performed by a contractor
have either retired or been reassigned and, following the investigation,
reprimanded.
• Either prior to or following the investigation, all employees responsible
for issues associated with the company's documentation to the Ohio
Environmental Protection Agency have either resigned or their employment
has been terminated. The company has contracted with iSi (Integrated
Solutions, Inc.), to help oversee the company's and its subsidiaries' total
Environmental Protection Agency ("EPA") and Occupational Safety and Health
Administration ("OSHA") programs. The company is currently conducting
initial facility assessments, evaluating and re-writing all of its EPA/OSHA
compliance materials and conducting semi-annual onsite inspections of all
facilities to identify and immediately correct any noted non-compliance
issues.
• The President and Vice President - Finance and Chief Financial Officer of
the company are to discuss at the annual President's Meeting the importance
and seriousness of timely, accurate and complete financial reporting with
the Vice President - Finance and Chief Financial Officer, Chief Operating
Officer and Vice President of Marketing, each of whom report directly to
the President, and each of their direct reports. The President and
Ms. Beverly A. Singleton
August 26, 2005
Page 3
Vice President - Finance and Chief Financial Officer of the company are to
also meet quarterly with the subsidiary presidents and subsidiary
controllers to formally review the financial statements. The subsidiary
presidents and the subsidiary controllers should, on a quarterly basis,
certify in writing the financial statements for their operations.
Workers' Compensation
The steps taken and procedures implemented in response to the workers'
compensation material weakness have been previously identified in the August
19th letter and in company filings. No additional steps or procedures were
adopted by the audit committee or board of directors pursuant to their meetings
held on August 22nd and August 23rd, respectively. Management, the audit
committee and the board of directors remain committed to ensuring that the
workers' compensation material weakness has been, and will continue to be,
corrected.
If you have any questions regarding any of the responses, please feel free
to call me at 816-983-8387.
Very truly yours,
BLACKWELL SANDERS PEPER MARTIN LLP
By: /s/ Gregory S. Steinberg
--------------------------------------
Gregory S. Steinberg
cc: Timothy P. Davis, Securities and Exchange Commission
Donald Lynn Collins
William R. Patterson
James C. Tilden
