Nebraska Administrative Code › Topic - RACING COMMISSION, STATE › Title 296 - RULES FOR NEBRASKA RACETRACK GAMING ACT › Chapter 7 - ACCOUNTING AND RECORDS › Section 296-7.004 - AUDITING AND REPORTING REQUIREMENTS

Current through June 17, 2024
7.004.01 Annual and
				Special Audits and other reports
7.004.01A The
				Commission will direct an audit to be performed of the annual financial
				statements of the holder of an Authorized Gaming Operator License including a
				report on the Internal Control System communicating any reportable conditions
				and material weaknesses noted during the audit. Upon written notice by the
				Executive Director other procedures or reports may be required. The annual
				audit will be performed by an independent certified public accountant who is or
				whose firm is licensed in the State of Nebraska. The independent certified
				public accountant who performs the annual audit shall be approved by the
				Commission, and the selection may be based on the recommendation of the holder
				of an Authorized Gaming Operator License.
7.004.01B The annual audit and internal
				control report procedures shall be performed in accordance with generally
				accepted auditing standards. The annual audit report is to be presented in
				accordance with generally accepted accounting principles and contain the
				opinion of the independent certified public accountant as to its fair
				presentation in accordance with such generally accepted accounting
				principles.
7.004.01C To assure the
				integrity of Gaming, compliance with the Act and the rules of the Commission,
				the Executive Director may require at any time a special audit of an owner
				licensee to be conducted by Commission personnel or by contracting with other
				qualified professionals with expertise in the subject matter of the audit. The
				Executive Director will establish the scope, procedures and reporting
				requirements of any special audit.
7.004.01D Quarterly compliance reports by
				independent certified public accountants or qualified Authorized Gaming
				Facility personnel that have been approved by the Executive Director. The
				Executive Director will require quarterly compliance reports to be prepared and
				procedures performed by independent certified public accountants or Commission
				personnel covering the following:
7.004.01E Quarterly agreed-upon procedures to
				ascertain that Admissions and Gross receipts are determined in conformity with
				the Act and this Part;
7.004.01E(i)
				Semi-annual agreed-upon procedures relating to internal control;
7.004.01E(ii) Semi-annual "unannounced"
				observation of the transportation and count of each of the following:
				Electronic Gaming Device Drop, Table Drop, and tip box drop. For purposes of
				these procedures, "unannounced" means that no officers, directors or employees
				of the holder of the Authorized Gaming Operator License are given advance
				information regarding the dates or times of such observations;
7.004.01E(iii) Review of purchasing functions
				and contractual agreements, both oral and written, on a sample basis, to report
				on compliance with the owner licensee's Commission-approved Internal Control
				System and to determine that such purchases and contractual agreements are not
				in excess of their fair market value. This review will be conducted at least
				annually at the direction of the Executive Director; and
7.004.01E(iv) Quarterly reports on deviations
				from the owner licensee's approved Internal Control System based on procedures
				performed in the reports of Gross receipts, procedures relating to internal
				control, purchasing and contracting functions and/or "unannounced"
				observations.
7.004.01F
				Independent certified public accountants performing annual audits will not
				perform compliance services on behalf of the Commission for the same Authorized
				Gaming Operator.
7.004.01G
				Independent certified public accountants who perform compliance services to an
				Authorized Gaming Operator on behalf of the Executive Director will not perform
				an annual audit or any other service for such Authorized Gaming Operator during
				the terms of their engagement and for a period of two years following
				termination of the engagement.
7.004.01H The holder of an Authorized Gaming
				Operator License will prepare a written response relating to findings noted in
				the independent certified public accountant's or Commission's reports. The
				response will indicate in detail the corrective actions taken. Such response
				will be incorporated in the independent certified public accountant's or
				Commission's reports.
7.004.01I The
				Executive Director will determine the number of copies of reports required
				under this Section and such reports will be received by the Commission or
				postmarked no later than the required filing date.
7.004.01I(i) Quarterly reports for procedures
				performed in the first three fiscal quarters of an Authorized Gaming Operator
				licensee's approved fiscal year will be due not later than two months after the
				last day of the quarter.
7.004.01I(ii) Quarterly reports for the
				procedures performed in the fourth fiscal quarter of the Authorized Gaming
				Operator licensee's approved fiscal year and the annual reports will be due not
				later than three months after the last day of the calendar or fiscal
				year.
7.004.01I(iii) Unless
				otherwise established by law, delays in mailing, mail pickups and postmarking
				are the responsibility of the Authorized Gaming Operator licensee.
7.004.01J Authorized Gaming
				Operators who are public reporting companies under the Securities Act of 1933
				or the Securities Exchange Act of 1934 will submit four copies of all reports
				required by the Securities and Exchange Commission to the Commission. These
				reports will be due on the same filing dates as required by the Securities and
				Exchange Commission.
7.004.01K All
				of the audits and reports required by this Section that are performed by
				independent certified public accountants will be prepared at the sole expense
				of the Authorized Gaming Operator licensee.
7.004.01L The reporting year end of the
				holder of an Authorized Gaming Operator License will be December 31 unless
				otherwise approved by the Commission.