R 432.665a Annual audits and annual compliance reports.

Rule 665a. (1) All of the following provisions apply to annual and special audits and other reports: (a) The board requires an annual audit of the financial condition of the internet gaming operator’s and internet gaming platform provider’s total internet gaming operations. For an internet gaming operator licensed as a casino under the Michigan Gaming Control and Revenue Act, the audit prepared pursuant to section 14 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.214, satisfies this requirement. An independent certified public accountant must perform the annual audit. (b) The annual audit 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 assure the integrity of internet gaming and compliance with the act and these rules, the board may require a special audit of an internet gaming operator or an internet gaming platform provider, or both, to be conducted by board personnel or an independent certified public accountant. The board shall establish the scope, procedures, and reporting requirements of a special audit. For an internet gaming operator who is an Indian tribe, the scope of the special audit must be limited to the internet gaming operator’s internet gaming operations. (2) The board shall require annual compliance reports to be prepared by the internet gaming operator or the internet gaming platform provider, or both, 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 adjusted gross receipts are determined and state and local taxes or payments are paid, in conformity with the act and these rules. (b) Compliance with applicable ordinances and agreements with other governmental authorities. (c) Compliance with internal control procedures, accounting procedures, credit procedures, dispute procedures, and board-imposed security and safety requirements. (d) A material deviation from the internal control procedures, accounting procedures, credit and dispute procedures, and board-imposed security and safety requirements. (e) Corrective action taken to resolve deficiencies observed in subdivisions (a) to (d) of this subrule. (f) Other matters required by the board to measure 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 no later than the required filing date. (4) The reporting year-end of the internet gaming operator and internet gaming platform provider is December 31 unless otherwise approved by the board.