R 432.11204 Annual audits and licensee annual compliance reports.

Rule 1204. (1) All of the following provisions apply to annual and special audits and other reports: (a) In accordance with section 14 of the act, the board shall require annual audits of the financial condition of the casino licensee's total operations. An independent certified public accountant who is, or whose firm is, licensed in this state shall perform the annual audits. The independent certified public accountant who performs the annual audits shall be licensed in this state. (b) The annual audits must be performed and presented in accordance with generally accepted accounting principles and contain the opinion of the independent certified public accountant as to its fair preparation and presentation in accordance with generally accepted accounting principles. (c) To ensure the integrity of gaming and compliance with the act and these rules, the board may require a special audit of a casino licensee to be conducted by board personnel or an independent certified public accountant who is, or whose firm is, licensed in this state. The board shall establish the scope, procedures, and reporting requirements of a special audit. (d) An audit required by this rule and filed with the board must, at the same time, be filed with the city. (2) The board shall require annual compliance reports to be prepared by the licensee and submitted in a manner and form prescribed by the board. The annual compliance report must address all of the following areas: (a) Compliance with procedures to ascertain that gross receipts are properly determined and that state and local taxes are paid in conformity with the act and these rules. (b) Compliance with applicable ordinances and agreements with other governmental authorities. (c) Compliance with board-approved internal control procedures, accounting procedures, credit procedures, dispute procedures, and board-imposed security and safety requirements. (d) A material deviation from the casino licensee's approved internal control procedures, accounting procedures, credit and dispute procedures, and board-imposed security and safety requirements. (e) Corrective action taken by the licensee to resolve deficiencies observed in subdivisions (a) to (d) of this subrule. (f) Other matters required by the board to measure the licensee's compliance with the act and these rules. (3) The board shall determine the date of filing and the number of copies of audits or reports required under this rule. The audits or reports must be received by the board or postmarked not later than the required filing date. Delays in mailing, mail pickups, and postmarking are the responsibility of the casino licensee. (4) A casino licensee that is a public reporting company under the Securities Act of 1933, 15 USC 77a to 77aa, or Securities Exchange Act of 1934, 15 USC 78a to 78qq, shall submit a copy of all reports required by the Securities and Exchange Commission to the executive director in a format prescribed by the board. The reports are due on the same filing dates as required by the Securities and Exchange Commission. (5) A casino licensee shall bear the expense of preparing an audit that is required by this rule and is performed by an independent certified public accountant. Qualified personnel of the casino licensee shall prepare compliance reports and the casino licensee shall bear the expense of preparing the compliance reports. (6) The reporting year-end of the holder of a casino license must be December 31 unless otherwise approved by the board.