Connecticut Administrative Code › Title 12 - Taxation › 574-F - Operation of Greyhound Racing, Jai Alai and Off-Track Betting General Provisions › Licensing › Section 12-574-F64 - Accounting system

Current through July 10, 2024
(a)
Scope
. This particular section of these regulations shall apply
				only to association, concessionaire, vendor and their affiliate licensees. When
				the term licensee is used herein, unless otherwise specified, it shall be
				deemed to include only those licensees. The division on its own, or upon
				appropriate application may exempt a licensee from any of the provisions of
				this section. The burden of proving that an exemption should be granted rests
				solely with the licensee.
(b)
Generally
. Pursuant to section
				12-574(k)
				of the Connecticut General Statutes, the executive director may require that
				each licensee establish and maintain an accounting system, which will, at a
				minimum, provide for proper, accurate, complete and timely record keeping and
				recording of all assets, liabilities, equities, obligations, receipts,
				revenues, disbursements and expenses of such licensee, subject to the executive
				director's approval. Such system shall provide for not only accountability and
				an adequate system of internal control, but shall be established on or
				reconcilable to an accrual basis to permit preparation of financial statements
				in conformity with generally accepted accounting principles. Any subsequent
				revisions shall be subject to division approval.
(c)
Uniform reporting
. Each
				licensee shall establish a basic set of books and chart of accounts which shall
				permit reporting in conformity with the uniform reporting system schedules and
				reporting requirements as established by the division for disclosure, licensing
				and interim and fiscal year financial reporting. Any subsequent material
				deviation from such uniform standards must be submitted to and approved by the
				division prior to implementation. Such submission to the division shall list
				the type of books maintained and provide the account code numbers and account
				names by type of account.
(d)
Organizational charts
. Each licensee shall establish an
				organizational chart which shall indicate the lines of authority,
				responsibility and control for each operation of the licensee. Such chart shall
				provide the name and the titles of key managers and supervisory personnel
				including their assistants and a brief description of their responsibility and
				authority. Such organizational chart shall be filed prior to the first day of
				operation with the division and shall be updated annually thereafter and
				promptly for any termination of an individual or reorganization of
				responsibilities, authority or control. Such termination or reorganization must
				be reported together with pertinent details to the division.
(e)
Inventory
. The accounting
				system utilized by licensees shall include detailed information regarding
				purchase of goods for sale, inventory of goods held for sale and goods sold.
				Such system shall indicate the unit of measure, the unit cost of items
				purchased and sold or in inventory, and shall provide adequate control and
				traceability without reconstruction of detailed records.
(f)
Maintenance & storage of
				records
.
(1) Each licensee shall
				provide for the timely processing and recording of data as required by the
				division and shall insure the accuracy of the accounts, ledgers, reports and
				schedules as maintained.
(2) Each
				licensee shall provide for adequate storage and safeguarding of financial and
				related records for five (5) years. Such records, including original source
				documents must be maintained in Connecticut unless the licensee is an
				out-of-state affiliate or unless prior written permission or exemption has been
				granted by the division. The division may, after audit or in the case of
				superfluous records, permit the destruction of records before the expiration of
				this 5 year period. Should the division require the retention of records beyond
				five years, it shall secure such records and provide for their storage. The
				division shall be notified of the disposition of any of the records held in
				excess of five (5) years by the licensees.