Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 412 - UNIFORM SYSTEM OF ACCOUNTS › Section 412.70 - Expense Accounts

Current through Register Vol. 48, No. 28, July 12, 2024
401 Purses
This account shall reflect the aggregate actual purse
				distributions payable pursuant to the Act during the period of the race
				meeting. Separate accounts shall be maintained hereunder to identify the
				amounts of monies used in the payment of purses which were received from
				sources other than the revenues of the licensee conducting the race meeting.
				(See Accounts #202 and #203 in 11 Ill. Adm. Code Section
				412.50
				)
402 Salaries and Wages - Racing
This account shall include the compensation (gross salaries and
				wages) to employees of the licensee in departmental areas other than
				concessions, programs, newspapers and publications and parking. In addition,
				salaries and wages which can be specifically identified as being attributable
				to repair and maintenance services shall not be recorded in this account. In
				this latter respect, the compensation of track superintendents, plant
				directors, etc., shall be allocated to this account unless the time spent by
				such individuals on supervision and direction of specific repair and
				maintenance projects can be identified.
Typical Items
Mutuel Department:
General Office:
Director
Controller and assistants
Manager
Clerks
Supervisors
Secretaries
Calculators
Receptionist
Sellers
Season retention employees
Cashiers
Runners
Tracks and Grounds:
Clerks
Track Superintendent
Physical plant Director
Executive Officers:
Association directors
Promotion:
President
Director of publicity and assistants
Vice president
Public relations personnel
Secretary
Treasurer
403 Salaries and Wages - Concessions
This account shall include the compensation to employees of the
				licensee for their services in operating restaurant, bar and concession
				facilities.
404 Salaries and Wagers - Programs
This account shall include the compensation to employees of the
				licensee for their services in selling daily race programs.
405 Salaries and Wages - Newspapers and Publications
This account shall include compensation to employees of the
				licensee for their services in selling newspapers, racing publications and tip
				sheets.
406 Salaries and Wages - Parking
This account shall include compensation to employees of the
				licensee for their services in operating parking lot facilities.
410 Payroll Taxes
Separate accounts shall be maintained as described below to
				reflect the licensee's share of social security and Federal and state
				unemployment compensation expense. The allocation to such accounts shall be the
				same as that described for Salaries and Wages.
Account
#410.1 Payroll Taxes - Racing
#410.2 Payroll Taxes - Concessions
#410.3 Payroll Taxes - Programs
#410.4 Payroll Taxes - Newspapers and Publications
#410.5 Payroll Taxes - Parking
415 Employee Benefits
Separate accounts shall be maintained as described below to
				reflect all costs other than salaries and wages and payroll taxes incurred by
				the licensee on behalf and to the benefit of its employees. The allocation to
				such accounts shall be the same as that described for Salaries and
				Wages.
Account
#415.1 Employee Benefits - Racing
#415.2 Employee Benefits - Concessions
#415.3 Employee Benefits - Programs
#415.4 Employee Benefits - Newspapers and Publications
#415.5 Employee Benefits - Parking
Typical Items
Workmen's Compensation
Pensions*
Group and life insurance
Medical, hospital, accident, sickness and death benefits or
				insurance*
* Includes payments to the Electrical Insurance Trustees for
				mutuel employees' pension and welfare funds.
420 Horsemen Welfare, Pension and General Funds
This account shall include all costs incurred by the licensee
				on behalf and for the benefit of horsemen operating at the racing meeting as a
				result of agreements and understandings with the Horsemen's Benevolent and
				Protective Association or the Illinois Harness Horsemen's Association.
421 Repairs and Maintenance - Racing
This account shall include the cost of labor, materials used
				and expenses incurred in the repair and maintenance of the race track and all
				the race track and backstretch structures, fixtures and general grounds other
				than those associated with concession (i.e., restaurant and bar) and parking
				lot operations. As a general rule, maintenance operations shall be construed as
				those operations required year-round, as opposed to those operations limited to
				the period of the racing meeting. For example, the cost of cleaning race track
				stands is not properly includable in this account as a maintenance expense
				because the incurrence of such cost is limited to the period of the racing
				meeting. Therefore, if the cleaning was performed by an employee of the
				licensee, the related labor cost would be accounted for either as wages of the
				racing operation or as contractual services of the racing operation if the work
				was performed by a labor force outside the employ of the licensee. However, if
				an outside labor force was contracted with to perform a service on a year-round
				basis, such as the upkeep of the general grounds, the associated cost would be
				properly accounted for in this account rather than as outside service. (See
				Account #440.)
If total costs of labor, materials used or expenses incurred
				under certain circumstances require allocation as to amounts applicable to
				repairs and maintenance, such allocation must be valid and accurate. If the
				accounting required for such allocation is not reasonable under the
				circumstances, then the costs in question shall be included in other
				appropriate accounts herein identified as relating to racing operations.
422 Repairs and Maintenance - Concessions
This account shall include the cost of labor, materials used
				and expenses incurred which are specifically identifiable as repairs and
				maintenance to food- and drink-related facilities (e.g., restaurant, bar and
				concession structures and fixtures).
423 Repairs and Maintenance - Parking
This account shall include the cost of labor, materials used
				and expenses incurred which are specifically identifiable as repairs and
				maintenance to parking lot facilities.
425 Depreciation
The accounts described below shall include the amount of
				depreciation expense which has been incurred during the year as determined by
				the nature and estimated useful life and salvage value of the property
				involved. Such accounts shall only be utilized by those licensees who own the
				land and plant facilities used in the conduct of their racing meetings.
Account
Items
#425.1
All race track buildings, structures, equipment,
						  furniture and fixtures except as set forth below
Depreciation - Racing
#425.2
Restaurant, bar and concession equipment, furniture and
						  fixtures
Depreciation - Concessions
#425.3
Parking lot structures and improvements.
Depreciation - Parking
430 Amortization of Leasehold Improvements
The accounts described below shall include the amount of
				amortization expense incurred during the year on facilities erected or
				installed by licensees on leased facilities used in the conduct of their racing
				meetings. Useful lives used in the determination of such expense shall be the
				shorter of the expected useful life of the facilities or the remaining term of
				the lease.
Account
Amortization of Leasehold Improvements
Items
#430.1
Racing
All race track buildings, structures, equipment,
						  furniture and fixtures except as set forth below
#430.2
Concessions
Restaurant, bar and concession equipment, furniture and
						  fixtures
#430.3
Parking
Parking lot structures and improvements.
435 Track Rental
This account shall include all costs incurred under terms of a
				lease agreement or contract for the use of land or facilities necessary to the
				conduct of the race meeting being reported upon. However if, for example, the
				lessee is required to pay real estate taxes under terms of the lease, such
				expenses shall be accounted for as "Other Taxes" (see Account #455) rather than
				as components of this account.
436 Equipment Rental
This account shall include all equipment rent expenses.
Typical Items
Totalisator
Closed-circuit monitoring
Starting gate
Electronic timer
Photo-finish
Automatic transcribing equipment
Money counters
Office equipment
440 Outside Services
Separate accounts shall be maintained by the operating areas
				described below to reflect the expense incurred by the licensee for services
				rendered by others.
Account
Typical Items
#440.1
Outside Services - Racing
Consulting services
Legal and audit
Ambulance service
Race patrol services
Illinois Department of Law Enforcement - Investigative
						  Services Division
Burn security services
Andy Frain ushers
Armored-car services
Computer services
Tameling and disposal services
Radio and TV coverage
#440.2
Outside Services - Concessions
Expenses under lease with outside operators
#440.3
Outside Services - Programs
Expenses under lease with outside operators
#440.4
Outside Services - Newspapers and Publications
Expenses under lease with outside operators
#440.5
Outside Services - Parking
Expenses under lease with outside operators
445 Costs of Items Sold
Accounts shall be maintained for the operating areas described
				below to reflect the costs of items sold by the licensee during the operation
				of its racing meeting.
Account
Typical Items
#445.1
Cost of Concessions Sold
Cost of food, drink, cigarettes and novelties
#445.2
Cost of Programs Sold
Cost of programs
#445.3
Cost of Newspapers and Publications Sold
Cost of newspapers, racing publications and tip
						  sheets
450 Licenses
Separate accounts shall be maintained by the operating areas
				described below to reflect the license fee expense incurred.
Account
Items
#450.1
Licenses - Racing
License fees required by statute to accompany the
						  application for racing dates and for racing days granted.
#450.2
Concessions
License fees (if any) paid by the licensee for the
						  privilege of operating restaurant and bar facilities
455 Other Taxes
Separate accounts shall be maintained by the operating areas
				described below to reflect all tax expenses which were incurred by the licensee
				in addition to payroll and income tax expenses.
Account
Items
#455.1
Other Taxes - Racing
Real estate, personal property and other advalorem
						  taxes.
#455.2
Other Taxes - Concessions
Sales taxes on sales of food and drink.
460 Utilities
This account shall include the cost incurred by the
				comsumption/utilization of heat, light, power and water as well as telephone
				and telegraph costs.
461 Insurance
This account shall include all insurance expenses incurred by
				the licensee in addition to those insurance expenses accounted for a "Employee
				Benefits."
462 Advertising
This account shall include all advertising and publicity costs
				incurred in addition to those accounted for as "Salaries and Wages" or
				"Contractual Services."
Typical Items
Newspaper, television, radio and magazine costs
Photography and artwork
Public relations fees
Pass and special promotions
463 Contributions
This account shall include the amount of all contributions or
				donations made by the licensee for charitable, social or community welfare
				purposes.
464 Subscriptions and Dues
This account shall be used to account for all disbursements
				made in payment of membership dues.
Typical Items
Harness Tracks of America
Racing Association of Illinois
465 Breeders Awards and Trophies
This account shall reflect the total of all awards and trophies
				distributed by the licensee to breeders of horses.
466 Travel and Entertainment
This account shall include all expenses incurred by the
				licensee during the fiscal reporting period for transportation of its officers
				and employees and for the entertainment of individuals in connection with the
				business of making application for conducting and operating the racing
				meeting.
467 Printing and Stationery
This account shall include the cost and expense incurred for
				publications and pamphlets used by the licensee in it operations.
Typical Items
Condition books
Notices to horsemen
468 General Supplies
This account shall reflect the expense incurred for those
				supplies normally consumed in the administration and operation of the
				licensee's operations.
Account
Typical Item
#468.1
Racing
Office Supplies
Clean Supplies
Gas, oil, grease, etc.
Badges and tickets
Postage
#468.2
Concessions
Miscellaneous supplies (e.g., ice, laundry,
						  etc.)
469 Other
This account shall include all other costs of labor, materials
				supplied or expenses incurred in connection with the operation of the racing
				meeting which are not properly accounted for elsewhere in the accounts.
Account
Typical Items
#469.1
Racing
Uncollectible checks
Cash over and short
Jockey Guild assessment
Bad debts
Amortization of organization expense
470 Other Income
This account shall include those revenues which by their nature
				are not identifiable as being the direct result or benefit of the business of
				conducting a racing meeting.
Typical Items
Rental income -
Race Track
Equipment
Stable areas
Outdoor billboards
Stalls
Interest income -
On advances made to affiliated companies
Investments
Gain on sales -
Equipment
Marketable securities
Insurance recoveries
Dividends
Equity in undistributed earnings of subsidiaries
Refunds
476 Other Expense
This account shall include those costs and expenses which by
				their nature are not identifiable as being directly related to the operation of
				racing meetings.
Typical Items
Interest charges -
Parent company
Affiliated companies
Loss on sales -
Equipment
Marketable securities
Trustees' fees and expenses
480
and
481 Federal and State Income Taxes
Accounts shall be maintained for the operating areas listed
				below to reflect the amount of Federal or state income taxes necessary to meet
				the actual liability for such taxes incurred as a result of operations in these
				specific areas for the period covered by the income statement. Such taxes
				should be computed on a basis from which the income and deductions
				originated.
Account
#480.1
Federal Income Taxes - Racing
#480.2
Federal Income Taxes - Concessions
#480.3
Federal Income Taxes - Programs
#480.4
Federal Income Taxes - Newspapers and
						  Publications
#480.5
Federal Income Taxes - Parking
#481.1
State Income Taxes - Racing
#481.2
State Income Taxes - Concessions
#481.3
State Income Taxes - Programs
#481.4
State Income Taxes - Newspapers and Publications
#481.5
State Income Taxes - Parking
482 Provision for Deferred Income Taxes
Accounts shall be maintained for the operating areas listed
				below to reflect an amount equal to that by which income taxes payable on book
				income for the current year are decreased because of the current deduction for
				income tax purposes of accelerated depreciation, amortization and other timing
				differences. Reference should be made to the instructions for Account #240 in
				11 Ill. Adm. Code Section 412.50
Account
#482.1
Provisions for Deferred Federal and State Income Taxes
						  - Racing
#482.2
Provisions for Deferred Federal and State Income Taxes
						  - Concessions
#482.3
Provisions for Deferred Federal and State Income Taxes
						  - Programs
#482.4
Provisions for Deferred Federal and State Income Taxes
						  - Newspaper and Publications
#482.5
Provisions for Deferred Federal and State Income Taxes
						  -Parking
483 Income Taxes Deferred in Prior Years
Accounts shall be maintained for the operating areas listed
				below to reflect an amount equal to that by which income taxes payable for the
				current year are attributable to a deferral of taxes on income in a prior year.
				(See Account #240 in 11 Ill. Adm. Code Section 412.50)
Account
#483.1
Federal and State Income Taxes Deferred in Prior Years
						  - Racing
#483.2
Federal and State Income Taxes Deferred in Prior Years
						  - Concessions
#483.3
Federal and State Income Taxes Deferred in Prior Years
						  - Programs
#483.4
Federal and State Income Taxes Deferred in Prior Years
						  - Newspaper and Publications
#483.5
Federal and State Income Taxes Deferred in Prior
						  Years
485 Extraordinary Gains and Losses
This account shall include those material gains and losses
				associated with events and transactions which by their underlying nature are of
				a character significantly different from the normal business activities of the
				licensee. Such events and transactions are, by definition, non-recurring
				factors not to be considered in the evaluation of normal business
				operations.
Typical Items
Sale of significant segment of the business
Sale of an investment not acquired for resale
Significant uninsured losses due to fires, floods, etc.
Significant lawsuit losses, etc.