UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended Commission file number 33-32744
December 31, 2002
CSA Income Fund IV Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts No.04-3072449
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
22 Batterymarch St., Boston, MA 02109
(Address of principal executive Zip Code
offices)
Registrant's telephone number, including area code:(617)357-1700
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: 506,776
Units of Limited Partnership Interest
Indicate by check whether registrant (1) has filed all reports required to
Be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or such shorter period that the registrant
was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ X ]
Number of shares outstanding of each registrant's classes of
securities:
Number of Units
Title of Each Class at December 31, 2002
Units of Limited Partnership 506,776
Interest: $100 per unit
DOCUMENTS INCORPORATED BY REFERENCE
Portions of Part IV are incorporated by reference
to Amendment No. 1 to Form S-1 and Form S-1,
Registration No. 33-32744
The exhibit index is located on pages 18 and 19.
<page>
Part I
Item 1. Business
CSA Income Fund IV Limited Partnership (the "Partnership") was a limited
partnership organized under the provisions of the Massachusetts Uniform
Limited Partnership Act. The Partnership was composed of CSA Lease Funds,
Inc. (an affiliate of CSA Financial Corp.), the sole General Partner, and
as of December 31, 2002, 2,682 Limited Partners owning 506,776 Units of
Limited Partnership Interest of $100 each. The capital contributions of the
Partners aggregated $50,677,600. The Partnership was formed on December 21,
1989 and commenced operations on April 18, 1990.
The General Partner of CSA Income Fund IV Limited Partnership completed the
wind-up of the Partnership during 2002, including a final distribution on
December 13, 2002. A Certificate of Cancellation was filed with the
Commonwealth of Massachusetts on January 29, 2003. This Certificate notified
the Commonwealth that CSA Income Fund IV Limited Partnership was dissolved
effective November 30, 2002.
The Partnership was organized to engage in the business of acquiring
income-producing equipment for investment. The Partnership's principal
objectives were:
1. To acquire and lease equipment, primarily through Operating Leases,
to generate income during their entire useful life;
2. To provide monthly distributions of cash to the Limited Partners
from leasing revenues and from the proceeds of sale or other
disposition of Partnership equipment;
3. To reinvest in additional equipment a portion of lease revenues and
a substantial portion of Cash From Sales and Refinancing during the
first years of the Partnership's operations.
The Partnership was formed primarily for investment purposes and not as
a "tax shelter".
The Partnership has no direct employees. The General Partner has
full and exclusive discretion in management and control of the Partnership.
Selection of the equipment for purchase and lease was based principally on the
General Partner's evaluation of the usefulness of the equipment in commercial
or industrial applications and its estimate of the potential demand for the
equipment at the end of the initial lease term.
The Partnership's equipment may have included:
1. New and reconditioned computer peripheral equipment, computer terminal
systems and data processing systems manufactured by companies such as
Compaq Computer Corporation, Dell Computer Corporation, EMC Corporation
and International Business Machines, Inc. (IBM).
2. New telecommunications and telecomputer equipment consisting
primarily of private automated branch exchanges (PBX's), advanced
high-speed digital telephone switching devices, voice/data
transmission devices and telephone/computer networks as well as
telephone handsets and facsimile transmission products.
<page>
3. New office equipment consisting primarily of photocopying and
graphic processing equipment.
4. New highway transportation equipment and new and reconditioned
transportation equipment consisting primarily of tractors,
trailers, trucks, intermodal equipment, railroad rolling stock,
passenger vehicles and corporate or commercial aircraft.
5. Miscellaneous other types of equipment which meets the investment
objectives of the Partnership.
The equipment leasing industry is highly competitive. In initiating its
leasing transactions, the Partnership competed with leasing companies,
manufacturers that lease their products directly, equipment brokers, dealers
and financial institutions, including commercial banks and insurance
companies. Many competitors were larger than the Partnership and had access
to more favorable financing. Competitive factors in the equipment leasing
business primarily involve pricing and other financial arrangements.
Marketing capability is also a factor.
As of December 31, 2002, the Partnership had completed its wind-up and all
of the equipment in the Partnership's portfolio had been sold. The lessees
representing 10% of total revenues during 2002 were as follows:
America West Airlines, Inc. 50%
Citibank, N.A. 13%
The Partnership's acquisition and leasing of equipment is described more
fully in Notes 3 and 4 to the Financial Statements included in Item 8.
Item 2. Properties
The Partnership neither owned nor leased office space or equipment for the
purpose of managing its day-to-day affairs. The General Partner, CSA Lease
Funds, Inc. ("CLF"), had exclusive control over all aspects of the business
of the Partnership, including provision of any necessary office space. As
such, CLF was compensated through Management fees and reimbursement of
General and Administrative costs related to managing the Partnership's
business. Excluded from the allowable reimbursement to the General Partner,
however, was any of the following: (1) Expenditures for rent or utilities;
and (2) Certain other administrative items.
Item 3. Legal Proceedings
The Partnership is not a party to any pending legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the fourth quarter of 2002.
<page>
PART II
Item 5. Market for the Registrant's Equity Securities and Related
Security Holder Matters
a. The Partnership's limited partnership interests were not publicly traded.
There was no active market for the Partnership's limited partnership
interests.
b. Approximate Number of Equity Security Holders:
Title of Class Number of Limited Partners
Units of Limited Partnership Interests as of 12/31/02
506,776 2,682
Item 6. Selected Financial Data
The following table sets forth selected financial information regarding the
Partnership's financial position and operating results. The information
should be used in conjunction with the Financial Statements and Notes
thereto, and the General Partner's Discussion and Analysis of Financial
Condition and Results of Operations, which are included in Items 7 and 8
of this Report.
<table>
<caption>
Years Ended December 31,
(IN THOUSANDS EXCEPT PER UNIT AMOUNTS)
2002 2001 2000 1999 1998
<s> <c> <c> <c> <c> <c>
Total
Revenues $ 6,808 $ 6,323 $10,808 $15,329 $16,987
Net Income 5,588 578 1,049 1,250 2,671
Net Income
per Limited
Partnership
Unit 10.21 0.91 2.05 2.44 5.22
Total Assets 0 5,451 12,266 21,620 30,692
Notes Payable 0 317 2,285 8,186 15,204
Cash Distribution
per Limited
Partnership Unit
Outstanding $20.67 $10.33 $8.83 $ 6.33 $ 6.00
</table>
<page>
Item 7. General Partner's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Rental income for the years ended December 31, 2002, 2001 and 2000 was
$1,967,420, $6,501,299, and $9,902,211, respectively. Net income for the
years ended December 31, 2002, 2001 and 2000 was $5,588,214, $578,076, and
$1,048,500, respectively. The decrease in rental income is primarily due to
lease expirations anticipated as the partnership completed the wind-up. Net
income was positively impacted by the sale of two (2) airplane engines from
one of the last major leases remaining in the portfolio that generated a gain
of approximately 3.9 million. Overall, the sale of equipment during 2002
resulted in a gain of $4,612,626, as compared to a loss of ($347,139) for
year ended 2001, and a gain of $711,614, for the year ended 2000.
Depreciation expense for 2002, 2001 and 2000 was $744,196, $4,975,058, and
$8,056,432,respectively.
Interest income for 2002, 2001 and 2000 was $101,702, $239,047, and $209,433,
respectively. Interest expense was $15,375, $74,425, and $460,138 for the
years ended December 31, 2002, 2001, and 2000, respectively.
Liquidity and Capital Resources
During 2002, the Partnership generated $1,778,505 in cash flow from
Operations, received $2,124,290 in proceeds from short term investments and
$4,996,068 cash flow from the sale of equipment. The Partnership utilized
these funds along with cash on hand to reduce outstanding notes payable by
$316,992 and make cash distributions of $10,580,904 to the Partners.
The General Partner of CSA Income Fund IV Limited Partnership completed the
wind-up of the Partnership during the fourth quarter of 2002. The Partnership
paid a final distribution to the limited Partners of $9.67 per unit on
December 13, 2002.
Including the final distribution, the Partnership has made cash distributions
to the Limited Partners ranging from 102% to 124% of their initial investment,
depending on when the Limited Partner entered the Partnership.
<page>
Quarterly Financial Data - unaudited
Summarized unaudited quarterly financial data for the years ended December 31,
2002 and 2001 are as follows:
<table>
<caption>
2002 Quarter Ended: 12/31 9/30 6/30 3/31
<s> <c> <c> <c> <c>
Total Revenues $4,784,172 $ 568,783 $ 681,434 $ 773,416
Net Income 4,519,022 304,342 387,862 376,988
Net Income
Per Limited
Partnership Unit
Outstanding 8.77 .44 .41 .59
Cash Distributions
Per Limited
Partnership Unit
Outstanding 11.67 3.00 3.00 3.00
2001 Quarter Ended: 12/31 9/30 6/30 3/31
Total Revenues $ 552,407 $1,741,919 $1,866,071 $2,162,886
Net Income (299,491) 254,963 426,416 196,188
Net Income
Per Limited
Partnership Unit
Outstanding ( .59) .46 .78 .26
Cash Distributions
Per Limited
Partnership Unit
Outstanding 2.83 2.50 2.50 2.50
</table>
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
N/A
<page>
Item 8. Financial Statements
CSA Income Fund IV Limited Partnership
Index to Financial Statements
<table>
Page
Number
<s> <c>
Independent Auditors' Report 8
Statements of Financial Position
as of December 31, 2002 and 2001 9
Statements for the Years Ended
December 31, 2002, 2001 and 2000:
Operations 10
Cash Flows 11
Changes in Partners' Capital (Deficit) 12
Notes to Financial Statements 13
</table>
<page>
INDEPENDENT AUDITORS' REPORT
To the Partners of CSA Income Fund IV Limited Partnership
We have audited the accompanying statements of financial position of CSA
Income Fund IV Limited Partnership as of December 31, 2002 and 2001, and the
related statements of operations, cash flows, and changes in partners'
capital (deficit) for the three years then ended. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
As discussed in note 1 of the financial statements, the General Partner
completed the wind up of the Partnership, with a final distribution on
December 13, 2002.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of CSA Income Fund IV
Limited Partnership as of December 31, 2002 and 2001, and the results
of its operations and its cash flows for the three years then ended in
conformity with accounting principles
generally accepted in the United States of America.
Sullivan Bille, P.C.
Boston, Massachusetts
March 4, 2003
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statements of Financial Position as of
December 31, 2002 and 2001
<table>
<caption>
2002 2001
<s> <c> <c>
Asset
Cash and cash equivalents $ 0 $1,999,033
Short term investment 0 2,124,290
Rentals receivable 0 195,805
Accounts receivable-affiliates 0 3,950
Rental equipment, at cost 0 18,678,320
Less accumulated depreciation 0 (17,550,682)
Net rental equipment 0 1,127,638
Total assets $ 0 $ 5,450,716
Liabilities and Partners' Capital
Accrued management fees $ 0 $ 36,250
Accounts payable 0 16,000
Deferred income 0 88,784
Notes payable 0 316,992
Total liabilities 0 458,026
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 589,509 177,549
Cumulative cash distributions (590,509) (484,665)
0 (306,116)
Limited Partners (506,776 units):
Capital contributions net of
offering costs 46,201,039 46,201,039
Cumulative net income 11,740,911 6,564,657
Cumulative cash distributions (57,941,950) (47,466,890)
0 5,298,806
Total partners' capital 0 4,992,690
Total liabilities and
partners' capital $ 0 $ 5,450,716
See accompanying notes to financial statements.
</table>
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statements of Operations
for the years ended December 31, 2002, 2001 and 2000
<table>
<captioin>
2002 2001 2000
<s> <c> <c> <c>
Revenue:
Rental income $ 1,967,420 $ 6,501,299 $ 9,902,211
Interest income 101,702 239,047 209,433
Gain (loss) on sale of
equipment 4,612,626 (347,139) 711,614
Net gain (loss) on foreign
currency 126,057 (69,924) (14,820)
Total revenue 6,807,805 6,323,283 10,808,438
Expenses:
Depreciation 744,196 4,975,058 8,056,432
Interest 15,375 74,425 460,138
Management fees 101,033 336,246 791,670
General and
administrative 358,987 359,478 451,698
Total expenses 1,219,591 5,745,207 9,759,938
Net income $5,588,214 $ 578,076 $ 1,048,500
Income allocation:
General Partner $ 411,960 $ 115,906 $ 10,485
Limited Partners 5,176,254 462,170 1,038,015
$5,588,214 $ 578,076 $ 1,048,500
Net income per
Limited Partnership
Unit $ 10.21 $ 0.91 $ 2.05
Number of
Limited Partnership
units outstanding 506,776 506,776 506,776
See accompanying notes to financial statements.
</table>
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statements of Cash Flows for the
years ended December 31, 2002, 2001 and 2000
<table>
<caption>
2002 2001 2000
<s> <c> <c> <c>
Cash flows from operations:
Cash received from rental
of equipment $ 2,204,448 $ 6,419,178 $10,199,943
Cash paid for operating and
management expenses (512,270) (792,895) ( 1,200,678)
Interest paid (15,375) (74,425) (471,700)
Interest received 101,702 239,047 209,433
Net cash from operations 1,778,505 5,790,905 8,736,998
Cash flows from investments:
Short term investment - (3,800,667) -
Proceeds on Short term
Investment 2,124,290 1,676,377 -
Purchase of equipment - - (1,142,310)
Sale of equipment 4,996,068 2,100,966 2,637,214
Net cash provided by
(used for) investments 7,120,358 (23,324) 1,494,904
Cash flows from financing:
Proceeds from notes payable - - 485,038
Repayment of notes payable (316,992) (1,967,579) (6,386,008)
Payment of cash
distributions (10,580,904) (5,289,579) (4,521,730)
Net cash used for
financing (10,897,896) ( 7,257,158) (10,422,700)
Net change in cash and
cash equivalents (1,999,033) (1,489,577) (190,798)
Cash and cash equivalents
at beginning of year 1,999,033 3,488,610 3,679,408
Cash and cash equivalents
at end of year $ 0 $1,999,033 $3,488,610
See accompanying notes to financial statements.
</table>
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statement of Changes in Partners' Capital (Deficit)
For years ended December 31, 2002, 2001, and 2000
<table>
<caption>
Limited General
Partners Partner Total
<s> <c> <c> <c>
Balance at December 31, 1999 $13,511,819 $ (334,396) $13,177,423
Net Income 1,038,015 10,485 1,048,500
Cash Distributions (4,476,515) (45,215) (4,521,730)
Balance at December 31, 2000 10,073,319 (369,126) 9,704,193
Net Income 462,170 115,906 578,076
Cash distributions (5,236,683) (52,896) (5,289,579)
Balance at December 31, 2001 5,298,806 (306,116) 4,992,690
Net Income 5,176,254 411,960 5,588,214
Cash distributions (10,475,060) (105,844) (10,580,904)
Balance at December 31, 2002 $ 0 $ 0 $ 0
See accompanying notes to financial statements
</table>
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
December 31, 2002
(1) Organization
CSA Income Fund IV Limited Partnership ("the Partnership") was formed under
the Massachusetts Uniform Limited Partnership Act on December 21, 1989 with
an initial investment of $1,000, from its sole General Partner, CSA Lease
Funds, Inc. and the purchase of 10 Limited Partnership Units at $100 each by
an initial Limited Partner. The Partnership's primary activity was to invest
in equipment to be leased to third parties. On February 22, 1990, the
Partnership began its offering of Limited Partnership Units. The Partnership
commenced operations on April 18, 1990. A Certificate of Cancellation was
filed with the Commonwealth of Massachusetts on January 29, 2003. The
Certificate notified the Commonwealth that the CSA Income Fund IV Limited
Partnership was dissolved effective November 30, 2002.
The General Partner of CSA Income Fund IV Limited Partnership completed the
wind-up of the Partnership during the fourth quarter of 2002. The Partnership
paid a final distribution to the Limited Partners of $9.67 per unit on
December 13, 2002.
Distributable cash from operations, sales or refinancing and profits or
losses for federal income tax purposes was allocated 99% to the Limited
Partners and 1% to the General Partner until Payout has occurred, and
thereafter, 85% and 15% respectively. As provided by the Partnership
Agreement, pursuant to Section 8.3 (c), accounting profits from the
sale of equipment as part of the wind-up of the Partnership are allocated
to each partner first in an amount equal to the negative balance in the
Capital Account of each partner. During the years 2002 and 2001, certain
of these gains were allocated for accounting purposes to the General
Partner to reduce its Capital Account negative balance.
In accordance with the Partnership Agreement, the Partnership was liable to
the General Partner (or its affiliates) for management fees calculated at
5% of gross rental revenues and to certain reimbursable operating expenses
subject to limitations stated in the Partnership Agreement. During 1994, the
Limited Partners approved an Amendment to the Partnership Agreement allowing
for the payment of Management Fees based on gross rental revenues on Sales
Agency leases.
(2) Significant Accounting Policies
The Partnership records are maintained on the accrual basis of accounting.
The Partnership accounts for equipment leases as operating leases; therefore,
rental income is reported when earned. Equipment purchases are depreciated on
a straight-line basis over the initial term of the lease to estimated
realizable value. On a periodic basis, the Partnership conducted a review of
the residual value of its equipment as compared to the estimated net realizable
values for such equipment upon expiration of the related lease. In connection
with this review , there were no residual value depreciation adjustments in
2002, 2001 or 2000.
Deferred income represented prepaid rentals received for active leases that
were recognized when earned.
No provision for income taxes has been made as the liability for such taxes
is that of the Partners rather than the Partnership. The Partnership's
federal tax return is prepared solely to arrive at the Partners' individual
taxable income or loss as reported on form K-1. Partnership taxable income
in 2002, 2001 and 2000 was $4,917,924, $1,472,230, and $2,102,735,
respectively. The differences between Partnership taxable income and book
income are primarily due to the difference between tax and book depreciation
methods and the related differences in the gain or loss on sales of
equipment.
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
The Partnership considers investments with original maturities of three
months or less to be cash equivalents.
Short-term Investment during 2001 and 2002 represents an interest, as an
interim lender, in an investment secured by an equipment lease obligation
reported at fair and actual value.
The preparation of financial statements in conformity with generally
Accepted accounting principles requires the General Partner to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities as of the
date of the financial statements and the reported amounts of revenue and
expenses during the reporting year. Actual results could differ from those
estimates.
(3) Rental Equipment
The Partnership purchased equipment subject to existing leases either
directly from CSA Financial Corp. or the manufacturer. The purchase price
to the Partnership was equal to the lesser of fair market value or cost as
adjusted, if necessary, for rents received and carrying costs, plus an
acquisition fee of 4% of cost. In accordance with Section 6.4 (b) of the
Partnership Agreement, the total of all acquisition fees paid to the General
Partner shall not exceed 15% of the total Capital Contributions received by
the Partnership. This lifetime acquisition fee limit was met during 1996 and
the General Partner was no longer paid acquisition fees on any new Partnership
equipment acquisitions. Also, in accordance with Sections 8.1 and 8.2 of the
Partnership Agreement, during the year 2000, the Partnership reached it's
expiration period for new equipment acquisitions which led to the announced
wind-up process.
A summary of changes in rental equipment owned and its related accumulated
depreciation is as follows:
<table>
<caption>
Beginning Equipment Ending
Balance Additions Sold Balance
<s> <c> <c> <c> <c>
Costs for years ended:
December 31, 2000 $52,073,878 $ 1,142,310 $14,222,790 $38,993,398
December 31, 2001 $38,993,398 $ - $20,315,078 $18,678,320
December 31, 2002 $18,678,320 $ - $18,678,320 $ -
Beginning Equipment Ending
Balance Depreciation Sold Balance
Accumulated depreciation
for years ended:
December 31, 2000 $34,683,355 $ 8,056,432 $11,719,152 $31,020,635
December 31, 2001 $31,020,635 $ 4,975,058 $18,445,011 $17,550,682
December 31, 2002 $17,550,682 $ 744,196 $18,294,878 $ -
</table>
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
(4) Leases
As of December 31, 2002, there were no remaining leases in the Partnership's
portfolio since all the equipment had been sold as part of the wind-up of
the Partnership. As of December 31, 2001, substantially all of the
Partnership's equipment was leased under 54 separate leases to 35 lessees.
Approximately 11% of the Partnership's equipment portfolio (based on cost)
had been leased outside the United States at that date. Two leases
represented approximately 63% (50% and 13%, respectively) of the
Partnership's Revenue in 2002 as compared to four lessees representing
approximately 63% (21%, 17%, 14% and 11%, respectively) in 2001 and three
lessees representing 57% (33%, 12% and 12%, respectively) in 2000.
(5) Short Term Investment
During the year ended December 31, 2001, the Partnership purchased an
interest, as an interim lender, in a short-term investment secured by an
equipment lease obligation yielding 7.75% interest. The Partnership's
portion of the short-term loan participation had been reduced from an
initial investment of $3,800,667 to $2,124,290 as of December 31, 2001, and
was repaid in full during the quarter ended March 31, 2002.
(6) Notes Payable
Notes payable at December 31, 2001, consisted of three (3) nonrecourse notes
due in monthly installments, with an interest rate of 6.85% per annum. Such
notes were collateralized by equipment with a cost of $1,299,122 and were
repaid in full during the year ended December 31, 2002. There were no other
notes payable outstanding during 2002.
(7) Fair Values of Financial Instruments
The following methods and assumptions were used to estimate the fair value
of financial instruments:
Cash, Cash Equivalents and Short-term Investment
The carrying amount of cash, cash equivalents and short-term investment
approximated their fair value due to their short maturity.
Notes Payable
The fair value of the Partnership's notes payable is based on the market price
for the same or similar debt issues or on the current rates offered to the
Partnership for debt with the same remaining maturity. The carrying amount of
notes payable approximated fair value.
<page>
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
(8) Related Party Transactions
Fees and other expenses paid or accrued to be paid by the Partnership to the
General Partner or affiliates of the General Partner for 2002, 2001 and 2000
are as follows:
<table>
<caption>
2002 2001 2000
<s> <c> <c> <c>
Management fees $ 101,033 $ 336,246 $ 791,670
Reimbursable operating
expenses 220,000 250,336 251,203
$ 321,033 $ 586,582 $1,042,873
</table>
In order to complete the Partnership wind-up, an affiliate of the General
Partner, Computer Systems of America, acquired the Partnership's remaining
equipment portfolio having current fair market value of $397,910 for $335,910
in cash and assumed responsibility for payment of remaining Partnership
expenses of $62,000.
During the life of the Partnership, an affiliate of the General Partner, CSA
Financial Corporation ("CSA") had acquired 6,670 units of the Partnership
from Partners who had a need to liquidate their interests. CSA, when
approached, first informed the Limited Partner to consult their Financial
Advisor, since it may be more financially prudent to hold on to the units
until wind-up was completed. Then, if the Limited Partner still wanted to
sell their units, CSA offered to purchase the units at slightly higher than
other prevailing third party offers.
(9) Net Cash Provided from Operations
The reconciliation of net income to net cash from operations for 2002, 2001
and 2000 is as follows:
<table>
<caption>
2002 2001 2000
<s> <c> <c> <c>
Net Income $5,588,214 $ 578,076 $ 1,048,500
(Gain)loss on
sale of equipment (4,612,626) 347,139 (711,614)
Depreciation 744,196 4,975,058 8,056,432
Decrease in
receivables 199,755 26,976 323,103
Increase (decrease)
in payables and
deferred income (141,034) (136,344) 20,577
Net cash from operations $1,778,505 $ 5,790,905 $ 8,736,998
</table>
<page>
(10) Net Gain/(Loss) on Foreign Currency Transactions
Net gain/loss from foreign currency transactions resulted from exchange gains
and losses on foreign bank account balances translated into US dollars at then
prevailing exchange rates.
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosures
None
PART III
Item 10. Directors and Executive Officers of the Registrant
The Partnership has no directors or officers. All management functions are
performed by CSA Lease Funds, Inc., the corporate General Partner. The current
directors and officers of the corporate General Partner are:
Name Age Title(s) Elected
J. Frank Keohane 66 Director & President 04/01/88
Richard P. Timmons 48 Controller 03/01/95
Trevor A. Keohane 36 Director 05/28/93
Gerald J. Porro 55 Clerk 02/01/01
Term of Office: Until a successor is elected.
Item 11. Executive Compensation
(a), (b), (c), (d) and (e): The Officers and Directors of the General Partner
receive no current or proposed direct remuneration in such capacities,
pursuant to any standard arrangements or otherwise, from the Partnership. In
addition, the Partnership has not paid any options, warrants or rights to the
Officers and Directors of the General Partner. There exists no remuneration
plan or arrangement with any Officer or Director of the General Partner
resulting from resignation, retirement or any other termination. See Note 8
of the Notes to Financial Statements included in Item 8 of this report for a
description of the remuneration paid by the Partnership to the General
Partner and its affiliates.
Item 12. Security Ownership of Certain Beneficial Owners and
Management
By virtue of its organization as a limited partnership, the Partnership has
outstanding no securities possessing traditional voting rights. However, as
provided for in Section 13.2 of the Agreement of Limited Partnership
(subject to Section 13.3), a majority in interest of the Limited Partners
have voting rights with respect to:
1. Amendment of the Limited Partnership Agreement.
2. Termination of the Partnership.
3. Removal of the General Partner.
4. Approval or disapproval of the sale of substantially all the
assets of the Partnership if such sale occurs prior to February 22,
1997.
No person or group was known by the General Partner to own beneficially more
than 5% of the Partnership's outstanding Limited Partnership Units prior to
the wind-up of the Partnership during December 2002.
<page>
Item 13. Certain Relationships and Related Transactions
None
Item 14. Controls and Procedures
The General Partner has evaluated the Partnership's disclosure controls and
procedures. Based on that evaluation, it was determined that the Partnership's
disclosure controls and procedures were effective in ensuring information
required to be disclosed by the Partnership in its Exchange Act Reports was
accumulated and communicated to the Partnership's management as appropriate
to allow timely decisions regarding required disclosures.
The General Partner has also evaluated the Partnership's internal control
structure. Based on that evaluation, it was determined that there were no
significant changes in the Partnership's internal controls or in other
factors that could affect these controls subsequent to the date of the
evaluation, including any corrective action with regard to significant
deficiencies and material weaknesses.
PART IV
Item 15. Exhibits, Financial Statements, Schedules and Reports
on Form 8-K
(a) (1) Financial Statements - See accompanying Index to Financial
Statements - Item 8.
(2) Financial Statement Schedules - All schedules have been
omitted as not required, not applicable or the information
required to be shown therein is included in the Financial
Statements and related notes.
(3) Exhibits Index
Except as set forth below, all exhibits to Form 10-K, as set forth in
item 601 of Regulation S-K are not applicable.
<page>
<table>
<caption>
Page Number or
Exhibit Incorporated by
Number Description Reference
<s> <c> <c>
2.1 Certificate of Cancellation effective page 21
November 30, 2002
4.1 Agreement of Limited Partnership *
4.2 Subscription Agreement **
4.3 Certificate of Limited Partnership and ***
Agreement of Limited Partnership dated
April 8, 1988
4.4 First Amended and Restated Certificate ****
of Limited Partnership and Agreement
of Limited Partnership dated June 22,
1988
10.1 Escrow Agreement ***
12.0 First Amendment to Agreement of Limited
Partnership *****
* Included as Exhibit A to Amendment No. 1 to Form S-1,
Registration Statement No. 0-19939 filed with the Securities
and Exchange Commission on June 23, 1988.
** Included as Exhibit C to Amendment No. 1 to Form S-1 to
Registration Statement No. 0-19939 filed with the Securities and
Exchange Commission on June 23, 1988.
*** Included with the Exhibit Volume to Form S-1, Registration
Statement No. 0-19939 filed with the Securities and Exchange
Commission on April 15, 1988.
**** Included with the Exhibit Volume to Amendment No. 1 to Form S-1,
Registration Statement No. 0-19939 filed with the Securities and
Exchange Commission on June 23, 1988.
***** Included in Consent Statement filed on August 3, 1994.
</table>
(b) Reports on Form 8-K: There were no reports filed during the
fourth quarter of 2002.
<page>
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
CSA Income Fund IV Limited
Partnership (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date:
J. Frank Keohane, President
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.
By its General Partner,
CSA Lease Funds, Inc.
Date:
J. Frank Keohane
President & Director
Principal Executive Officer
Date:
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer
<page>
CERTIFICATE OF CANCELLATION
FOR CSA INCOME FUND IV LIMITED PARTNERSHIP
Name of Limited Partnership
The name of the Limited Partnership is CSA Income Fund IV Limited Partnership
(the "Partnership").
Date of filing of the Certificate of Limited Partnership
The date of filing for the Partnership's Certificate of Limited Partnership is
December 21, 1989.
Reason for filing the Certificate of Cancellation
The reason for filing this Certificate of Cancellation is the dissolution of
the partnership effective on November 30, 2002.
Effective Date
The effective date of this Certificate of Cancellation shall be November 30,
2002.
IN WITNESS OF WHEREOF, the undersigned, General Partner of the Partnership,
Has caused this Certificate of Cancellation to be duly executed this January
30, 2003.
J Frank Keohane,
President, CSA Lease Funds, Inc.
General Partner
<page>