Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “accelerated filer, large accelerated filer and smaller reporting company” in Rule 12b-2 of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
As of May 15, 2008, there were 984,369 units of limited partnership interest outstanding.
| | | March 31, | | December 31, | |
| | | 2008 | | 2007 | |
| | | | | | |
ASSETS | | | | | | | |
| | | | | | | | |
| Cash and cash equivalents | | $ | 1,918,445 | | $ | 1,748,610 | |
| Restricted assets and funded reserves | | | 775,299 | | | 673,182 | |
| Accounts receivable | | | 2,504 | | | 5,678 | |
| Prepaid expenses | | | 78,262 | | | 170,539 | |
| Intangible assets, net of accumulated amortization | | | 29,659 | | | 31,220 | |
| Assets held for sale | | | 4,476,807 | | | 4,481,435 | |
| | | | | | | | |
| | | $ | 7,280,976 | | $ | 7,110,664 | |
| | | | | | | | |
| | | | | | | | |
LIABILITIES AND PARTNERS' EQUITY (DEFICIT) | | | | | | | |
| | | | | | | | |
| Liabilities | | | | | | | |
| | | | | | | | |
| Accounts payable and accrued expenses | | $ | 113,261 | | $ | 88,699 | |
| Due to general partners and affiliates | | | 42,974 | | | 18,365 | |
| Liabilities related to assets held for sale | | | 8,543,643 | | | 8,592,152 | |
| | | | | | | | |
| | | | 8,699,878 | | | 8,699,216 | |
| | | | | | | | |
| Partners' equity (deficit) | | | | | | | |
| | | | | | | | |
| Limited partners | | | 2,359,885 | | | 2,191,931 | |
| General partners | | | (3,778,787 | ) | | (3,780,483 | ) |
| | | | | | | | |
| | | | (1,418,902 | ) | | (1,588,552 | ) |
| | | | | | | | |
| | | $ | 7,280,976 | | $ | 7,110,664 | |
See notes to consolidated financial statements.
SECURED INCOME L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Unaudited)
| | | 2008 | | 2007 | |
OPERATIONS | | | | | | | |
| | | | | | | | |
REVENUE | | | | | | | |
| | | | | | | | |
| Interest | | $ | 9,062 | | $ | 17,953 | |
| | | | | | | | |
EXPENSES | | | | | | | |
| | | | | | | | |
| Administrative and management | | | 39,150 | | | 42,817 | |
| Amortization | | | 1,561 | | | 1,561 | |
| | | | | | | | |
| TOTAL EXPENSES | | | 40,711 | | | 44,378 | |
| | | | | | | | |
LOSS FROM CONTINUING OPERATIONS | | | (31,649 | ) | | (26,425 | ) |
| | | | | | | | |
DISCONTINUED OPERATIONS | | | | | | | |
| | | | | | | | |
REVENUE | | | | | | | |
| | | | | | | | |
| Rental | | | 674,260 | | | 671,430 | |
| | | | | | | | |
EXPENSES | | | | | | | |
| | | | | | | | |
| Administrative and management | | | 90,391 | | | 99,184 | |
| Operating and maintenance | | | 140,643 | | | 128,466 | |
| Taxes and insurance | | | 97,813 | | | 103,691 | |
| Financial | | | 140,246 | | | 143,600 | |
| Depreciation and amortization | | | 3,868 | | | 3,868 | |
| | | | | | | | |
| TOTAL EXPENSES | | | 472,961 | | | 478,809 | |
| | | | | | | | |
INCOME FROM DISCONTINUED OPERATIONS | | | 201,299 | | | 192,621 | |
| | | | | | | | |
NET INCOME | | $ | 169,650 | | $ | 166,196 | |
| | | | | | | | |
NET INCOME ATTRIBUTABLE TO | | | | | | | |
| | | | | | | | |
| Limited partners | | $ | 167,954 | | $ | 164,534 | |
| General partners | | | 1,696 | | | 1,662 | |
| | | | | | | | |
| | | $ | 169,650 | | $ | 166,196 | |
| | | | | | | | |
NET INCOME ALLOCATED PER UNIT OF | | | | | | | |
LIMITED PARTNERSHIP INTEREST | | $ | .17 | | $ | .17 | |
| | | | | | | | |
NET LOSS FROM CONTINUING | | | | | | | |
OPERATIONS ALLOCATED PER | | | | | | | |
UNIT OF LIMITED PARTNERSHIP | | $ | (.03 | ) | $ | (.03 | ) |
See notes to consolidated financial statements.
SECURED INCOME L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Unaudited)
| | | 2008 | | 2007 | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | |
| | | | | | | | |
| Net income | | $ | 169,650 | | $ | 166,196 | |
| Adjustments to reconcile net income to net cash provided by operating activities | | | | | | | |
| Amortization | | | 5,429 | | | 5,429 | |
| Increase in restricted assets and funded reserves | | | (102,117 | ) | | (129,314 | ) |
| Decrease (increase) in tenant security deposits | | | 760 | | | (4,244 | ) |
| Decrease in accounts receivable | | | 3,174 | | | 28,070 | |
| Decrease in prepaid expenses | | | 92,277 | | | 94,807 | |
| Increase in accounts payable and accrued expenses | | | 24,562 | | | 8,273 | |
| Increase in tenant security deposits payable | | | 5,431 | | | 2,755 | |
| Increase (decrease) in due to general partners and affiliates | | | 24,609 | | | (5,006 | ) |
| | | | | | | | |
| Net cash provided by operating activities | | | 223,775 | | | 166,966 | |
| | | | | | | | |
| | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | |
| | | | | | | | |
| Distributions to partners | | | | | | (2,171 | ) |
| Principal payments on mortgage | | | (53,940 | ) | | (50,761 | ) |
| | | | | | | | |
| Net cash used in financing activities | | | (53,940 | ) | | (52,932 | ) |
| | | | | | | | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | | | 169,835 | | | 114,034 | |
| | | | | | | | |
| Cash and cash equivalents at beginning of period | | | 1,748,610 | | | 1,884,450 | |
| | | | | | | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | 1,918,445 | | $ | 1,998,484 | |
| | | | | | | | |
| | | | | | | | |
SUPPLEMENTAL INFORMATION | | | | | | | |
| | | | | | | | |
| Financial expenses paid | | $ | 132,589 | | $ | 131,940 | |
| | | | | | | | |
| | | | | | | | |
CASH FLOWS FROM DISCONTINUED OPERATIONS | | | | | | | |
| | | | | | | | |
| Net cash provided by operating activities | | $ | 225,702 | | $ | 176,190 | |
| | | | | | | | |
| Net cash used in financing activities | | $ | (53,940 | ) | $ | (132,511 | ) |
See notes to consolidated financial statements.
SECURED INCOME L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2008
(Unaudited)
| 1. | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. They do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The results of operations are impacted significantly by the results of operations of the Carrollton Partnership, which is provided on an unaudited basis during interim periods. Accordingly, the accompanying consolidated financial statements are dependent on such unaudited information. In the opinion of the General Partners, the consolidated financial statements include all adjustments necessary to reflect fairly the results of the interim periods presented. All adjustments are of a normal recurring nature. No significant events have occurred subsequent to December 31, 2007 and no material contingencies exist which would require additional disclosure in the report under Regulation S-X, Rule 10-01 paragraph A-5. |
| | In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standard (“SFAS”) No. 157, “Fair Value Measurements,” (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (“GAAP”) and expands disclosures about fair value measurements. SFAS 157 applies to other accounting pronouncements that require or permit fair value measurements. Accordingly, SFAS 157 does not require any new fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007. The Partnership has adopted SFAS 157 effective January 1, 2008. On February 6, 2008 the FASB approved the Financial Staff Position that will defer the effective date of SFAS 157 by one year for nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis. The partial adoption of SFAS 157 for financial assets and liabilities did not have a material impact on the Partnership’s consolidated financial position, results of operations or cash flows. |
| | The Partnership adopted SFAS 157 as of January 1, 2008, with the exception of the application of the statement to nonrecurring nonfinancial assets and nonfinancial liabilities. Nonrecurring nonfinancial assets and liabilities for which the Partnership has not applied the provisions of SFAS 157 include intangible assets and long-lived assets included in assets held for sale measured at fair value for impairment testing. |
| | SFAS 157 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets or liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
| | Financial assets accounted for at fair value on a recurring basis as of March 31, 2008 include cash and cash equivalents of $1,918,445 and restricted assets and funded reserves of $775,299 as reflected in the accompanying consolidated balance sheet and tenant security deposits of $171,335 included in assets held for sale as reflected in the accompanying consolidated balance sheet. These assets are carried at fair value based on quoted market prices for identical securities (Level 1 inputs). |
SECURED INCOME L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2008
(Unaudited)
In July 2006, the Columbia Partnership sold its operating complex (“The Westmont”) and the Partnership made distributions to its partners in 2006 and 2007 from proceeds received in connection with such sale. The Columbia Partnership was subsequently dissolved in 2007 and the results of operations attributable to the Columbia Partnership as reflected in the accompanying consolidated statement of operations for the three months ended March 31, 2007 amounted to a loss from discontinued operations of approximately $17,000. Since April 2006, the Carrollton Partnership has entered into three Agreements of Purchase and Sale to sell its operating complex (“Fieldpointe”) at gross prices (before brokerage commissions and other selling costs) ranging from $25,500,000 to $27,100,000; however, on each occasion, the purchaser did not consummate the transaction. With the passage of time and apparent softening of purchase prices in the market, especially as a result of the decline in the condominium conversion market resulting in weakening purchaser demand, the Carrollton general partners felt it was necessary to obtain an independent appraisal of the property. The appraisal estimated a market value for the property of approximately $24,500,000 (before any reduction for brokerage commissions and other selling costs). The Carrollton Partnership has also obtained a Phase I environmental report, an updated survey, and title commitment in contemplation of providing a due diligence package to prospective purchasers in order to provide a more expeditious purchase process. Although the market has softened and has caused a considerably longer time frame to consummate a sale of Fieldpointe than originally anticipated, it remains management’s intention to sell the property. There can be no assurance that a sale will be completed. The disposition of The Westmont and the intention to dispose of Fieldpointe by their respective owners is consistent with the plan of liquidation and winding up of the business of the Partnership, which plan commenced in 2006. Following a sale of Fieldpointe, if consummated, the Partnership intends to distribute the net proceeds to which it is entitled under the Carrollton Partnership’s partnership agreement to its limited and general partners, less a reasonable reserve, in accordance with the terms and conditions of the Partnership’s limited partnership agreement (the “Partnership Agreement”). At such time, the Partnership intends to dissolve. Due to the sale of The Westmont and the potential sale of Fieldpointe and the Partnership’s plans to dissolve upon such sales and the winding up of the business of the Partnership, a significant portion of the assets and liabilities of the Carrollton Partnership are classified as held for sale in the accompanying consolidated balance sheets. Accordingly, the operations of the Carrollton Partnership and the Columbia Partnership (collectively the “Operating Partnerships”) are reported as discontinued operations for the periods presented in the accompanying consolidated statements of operations. Such classification resulted in the cessation of recording depreciation of those assets as of January 1, 2006. However, as the dissolution of the Partnership was not imminent as of March 31, 2008, the consolidated financial statements are presented assuming that the Partnership will continue as a going concern. The appraisal of Fieldpointe indicates that the carrying amount of the associated long-lived assets is recoverable based on applying the standard accounting tests for impairment.
| | The results of operations for the three months ended March 31, 2008 are not necessarily indicative of the results to be expected for the entire year. |
| 2. | Additional information, including the audited December 31, 2007 Consolidated Financial Statements and the Summary of Significant Accounting Policies, is included in the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 on file with the Securities and Exchange Commission. |
SECURED INCOME L.P. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Liquidity and Capital Resources
In July 2006, the Columbia Partnership sold The Westmont; the Columbia Partnership was subsequently dissolved in 2007 and the results of operations attributable to the Columbia Partnership as reflected in the accompanying consolidated statement of operations for the three months ended March 31, 2007 amounted to a loss from discontinued operations of approximately $17,000. Since April 2006, the Carrollton Partnership has entered into three Agreements of Purchase and Sale to sell Fieldpointe at gross prices (before brokerage commissions and other selling costs) ranging from $25,500,000 to $27,100,000; however, on each occasion, the purchaser did not consummate the transaction. With the passage of time and apparent softening of purchase prices in the market, especially as a result of the decline in the condominium conversion market resulting in weakening purchaser demand, the Carrollton general partners felt it was necessary to obtain an independent appraisal of the property. The appraisal estimated a market value for the property of approximately $24,500,000 (before any reduction for brokerage commissions and other selling costs). The Carrollton Partnership has also obtained a Phase I environmental report, an updated survey, and title commitment in contemplation of providing a due diligence package to prospective purchasers in order to provide a more expeditious purchase process. Although the market has softened and has caused a considerably longer time frame to consummate a sale of Fieldpointe than originally anticipated, it remains management’s intention to sell the property. There can be no assurance that a sale will be completed. The disposition of The Westmont and the intention to dispose of Fieldpointe by their respective owners is consistent with the plan of liquidation and winding up of the business of Registrant. Following a sale of Fieldpointe, if consummated, Registrant intends to distribute the net proceeds to which it is entitled under the Carrollton Partnership’s partnership agreement to its limited and general partners, less a reasonable reserve, in accordance with the terms and conditions of the Partnership Agreement. At such time, Registrant intends to dissolve. Due to the sale of The Westmont and the potential sale of Fieldpointe and Registrant’s plans to dissolve upon such sales and the winding up of the business of Registrant, a significant portion of the assets and liabilities of the Carrollton Partnership are classified as held for sale in the accompanying consolidated balance sheets. Accordingly, the operations of the Operating Partnerships are reported as discontinued operations for the periods presented in the accompanying consolidated statements of operations. Such classification resulted in the cessation of recording depreciation of those assets as of January 1, 2006. However, as the dissolution of Registrant was not imminent as of March 31, 2008, the consolidated financial statements are presented assuming that Registrant will continue as a going concern.
Registrant's primary sources of funds are currently rents generated by Fieldpointe and interest derived from deposits, certain of which are restricted in accordance with the terms of Fieldpointe’s mortgage. Registrant's investment would normally be considered highly illiquid if not for the potential sale of Fieldpointe.
In the event a sale of Fieldpointe does not take place, Registrant is not expected to have access to additional sources of financing. Accordingly, if unforeseen contingencies arise that cause Fieldpointe to require capital in addition to that contributed by Registrant and any equity of the Carrollton Partnership’s general partners, potential sources from which such capital needs will be able to be satisfied (other than reserves) would be additional equity contributions or voluntary loans of the Carrollton Partnership’s general partners (which general partners are not required to fund such amounts) or other reserves, if any, which could adversely impact distributions from the Carrollton Partnership to Registrant of operating cash flow and any sale or refinancing proceeds.
Registrant generated cash from operations during the three months ended March 31, 2008 and cash and cash equivalents increased by approximately $170,000 during the period. Mortgage payable (included in liabilities related to assets held for sale in the accompanying consolidated balance sheets) decreased due to principal amortization of approximately $54,000. Property and equipment (included in assets held for sale in the accompanying consolidated balance sheets) are no longer being depreciated, under accounting principles generally accepted in the United States of America, as a result of their classification as held for sale. Prepaid expenses decreased while restricted assets and funded reserves increased in the ordinary course of operations.
SECURED INCOME L.P. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
The consolidated statements of operations in the accompanying financial statements are presented based on the determination that a significant portion of the assets and liabilities of the Operating Partnerships have been classified as held for sale (and therefore reflect the operating activity of the Operating Partnerships as discontinued operations). If Fieldpointe is sold, Registrant intends to dissolve upon making final distributions to its partners. However, there is no assurance that Fieldpointe will ultimately be sold pursuant to the plan. Accordingly, discussion of the consolidated results of operations in the next section is presented without effect to the presentation of discontinued operations.
Three Months Ended March 31, 2008
During the three months ended March 31, 2008, the Carrollton Partnership's operations resulted in net income of approximately $205,000, which includes financial expenses and amortization of approximately $140,000 and approximately $4,000, respectively. As noted above under Liquidity and Capital Resources, there is no depreciation expense recorded for the three months ended March 31, 2008 as a result of the property and equipment of Fieldpointe being classified as held for sale. Accordingly, the Carrollton Partnership generated income from operating activities prior to financial expenses and amortization of approximately $349,000. Mortgage principal payments during the period were approximately $54,000. After considering the mandatory mortgage principal payments and required deposits to mortgage escrows, among other things, Fieldpointe generated cash flow of approximately $142,000 during the three months ended March 31, 2008; such amount represents primarily cash flow from discontinued operations. There can be no assurance that the level of cash flow generated by Fieldpointe during the three months ended March 31, 2008 will continue in future periods.
Registrant’s results of operations for the three months ended March 31, 2008 were comparable to the three months ended March 31, 2007.
As of March 31, 2008, the occupancy of Fieldpointe was approximately 97%. In the event the sale of Fieldpointe does not take place, the future operating results of Fieldpointe will be extremely dependent on market conditions and therefore may be subject to significant volatility.
Three Months Ended March 31, 2007
During the three months ended March 31, 2007, the Carrollton Partnership's operations resulted in net income of approximately $216,000, which includes financial expenses and amortization of approximately $144,000 and approximately $4,000, respectively. As noted above under Liquidity and Capital Resources, there is no depreciation expense recorded for the three months ended March 31, 2007 as a result of the property and equipment of Fieldpointe being classified as held for sale. Accordingly, the Carrollton Partnership generated income from operating activities prior to financial expenses and amortization of approximately $364,000. Mortgage principal payments during the period were approximately $51,000. After considering the mandatory mortgage principal payments and required deposits to mortgage escrows, among other things, Fieldpointe generated cash flow of approximately $160,000 during the three months ended March 31, 2007; such amount represents primarily cash flow from discontinued operations. As of March 31, 2007, the occupancy of Fieldpointe was approximately 99%.
Critical Accounting Policies and Estimates
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires Registrant to make certain estimates and assumptions. The following section is a summary of certain aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of Registrant’s financial condition and results of operations. Registrant believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the consolidated financial statements.
SECURED INCOME L.P. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Registrant records its real estate assets at cost less accumulated depreciation and, if there are indications that impairment exists, adjusts the carrying value of those assets in accordance with Statement of Financial Accounting Standard (“SFAS”) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." See discussion under Liquidity and Capital Resources above regarding the possible disposition of Fieldpointe. Under SFAS No. 144, the long-lived assets of the Carrollton Partnership have been classified as held for sale and are measured at the lower of their carrying amount or fair value less cost to sell. Once classified as held for sale, depreciation of the assets is not recorded. The accompanying consolidated statements of operations do not include any depreciation expense.
New Accounting Pronouncements
In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standard (“SFAS”) No. 157, “Fair Value Measurements,” (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (“GAAP”) and expands disclosures about fair value measurements. SFAS 157 applies to other accounting pronouncements that require or permit fair value measurements. Accordingly, SFAS 157 does not require any new fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007. Registrant has adopted SFAS 157 effective January 1, 2008. On February 6, 2008 the FASB approved the Financial Staff Position that will defer the effective date of SFAS 157 by one year for nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis. The partial adoption of SFAS 157 for financial assets and liabilities did not have a material impact on Registrant’s consolidated financial position, results of operations or cash flows.
Registrant adopted SFAS 157 as of January 1, 2008, with the exception of the application of the statement to nonrecurring nonfinancial assets and nonfinancial liabilities. Nonrecurring nonfinancial assets and liabilities for which Registrant has not applied the provisions of SFAS 157 include intangible assets and long-lived assets included in assets held for sale measured at fair value for impairment testing.
SFAS 157 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets or liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
Financial assets accounted for at fair value on a recurring basis as of March 31, 2008 include cash and cash equivalents of $1,918,445 and restricted assets and funded reserves of $775,299 as reflected in the accompanying consolidated balance sheet and tenant security deposits of $171,335 included in assets held for sale as reflected in the accompanying consolidated balance sheet. These assets are carried at fair value based on quoted market prices for identical securities (Level 1 inputs).
Item 3. Quantitative and Qualitative Disclosure about Market Risk
None
SECURED INCOME L.P. AND SUBSIDIARIES
Item 4. Controls and Procedures
Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed by Registrant in reports that Registrant files or submits under the Exchange Act is recorded, processed, summarized and timely reported as provided in SEC rules and forms. Registrant periodically reviews the design and effectiveness of its disclosure controls and procedures, including compliance with various laws and regulations that apply to its operations. Registrant makes modifications to improve the design and effectiveness of its disclosure controls and procedures, and may take other corrective action, if its reviews identify a need for such modifications or actions. In designing and evaluating the disclosure controls and procedures, Registrant recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Registrant has carried out an evaluation, under the supervision and the participation of its management, including the Chief Executive Officer and Chief Financial Officer of Wilder Richman Resources Corporation (“WRRC”), one of Registrant’s general partners, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act), as of the three months ended March 31, 2008. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer of WRRC concluded that Registrant’s disclosure controls and procedures were effective as of March 31, 2008.
Item 4T. Controls and Procedures
There were no changes in Registrant’s internal control over financial reporting during the three months ended March 31, 2008 that have materially affected, or are reasonably likely to materially affect, Registrant’s internal control over financial reporting.
SECURED INCOME L.P. AND SUBSIDIARIES
Part II - Other Information
Item 1. Legal Proceedings
Registrant is not aware of any material legal proceedings.
Item 1A. Risk Factors
There have been no material changes from the risk factors previously disclosed in Item 1A of Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits
Exhibit 31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
Exhibit 31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
Exhibit 32.1 Section 1350 Certification of Chief Executive Officer
Exhibit 32.2 Section 1350 Certification of Chief Financial Officer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: May 15, 2008
| SECURED INCOME L.P. |
| | | |
| By: | Wilder Richman Resources Corporation, General Partner |
| | | |
| | By: | /s/Richard Paul Richman |
| | | Richard Paul Richman - Chief Executive Officer |
| | | |
| | By: | /s/Neal Ludeke |
| | | Neal Ludeke - Chief Financial Officer |
| | | |
| | | |
| By: | WRC-87A Corporation, General Partner |
| | | |
| | By: | /s/Richard Paul Richman |
| | | Richard Paul Richman - Executive Vice President and Treasurer |
