New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle T - New York State Gaming Commission › Chapter IV - Division of Gaming › Subchapter B - Casino Gaming › Part 5315 - Accounting Controls › Section 5315.10 - Audited financial statements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
					 gaming facility licensee, unless specifically exempted by the commission in
					 writing, shall, at its own expense, cause the annual financial statements of
					 such licensee to be audited in accordance with generally accepted auditing
					 standards by an independent certified public accountant licensed to practice in
					 the State.
(b) The annual financial
					 statements required by subdivision (a) of this Part shall be prepared on a
					 comparative basis for a gaming facility licensee's current and prior standard
					 financial year, and shall present financial position and results of operations
					 in conformity with generally accepted accounting principles.
(c) The commission may require other
					 financial information in a format prescribed by the commission to be included
					 as supplementary information in relation to the audited financial statements as
					 a whole. Such information shall be subjected to auditing procedures as required
					 by generally accepted auditing standards and include the independent auditors'
					 report on such supplementary information.
(d) Two copies of the audited financial
					 statements, together with the report thereon of a gaming facility licensee's
					 independent certified public accountant, shall be filed with the commission no
					 later than 120 days following the end of a gaming facility licensee's fiscal
					 year.
(e) In addition to a gaming
					 facility licensee's audited financial statements, each gaming facility licensee
					 shall submit a copy of the management letter prepared by the independent
					 certified public accountant that lists any internal control or operational
					 weaknesses noted during the financial statement audit and recommendations for
					 improvement. The gaming facility licensee shall prepare a response to the
					 issues outlined in the management letter that describes any corrective actions
					 taken or planned to be taken and include a copy of this response with its
					 submission to the commission as required in subdivision (d) of this
					 section.
(f) In addition to the
					 management letter, the commission may require a gaming facility licensee to
					 engage an independent certified public accountant approved by the commission to
					 perform an additional review of internal controls, cause such licensee's
					 business and managerial practices to be audited and review specified
					 expenditures that conform to specifications the commission prescribes. The
					 commission shall notify a gaming facility licensee of the type of report
					 required, the scope of such report and the frequency with which such report
					 should be performed. This review shall be performed at the expense of the
					 gaming facility licensee unless the commission determines otherwise. A gaming
					 facility licensee shall respond to recommendations in such report noting any
					 corrective actions taken or planned to be taken. A gaming facility licensee
					 shall submit to the commission two copies of such report, including the
					 required response to the commission, within 120 days following the end of the
					 period covered by such report, unless the commission instructs
					 otherwise.
(g) If a gaming facility
					 licensee or any of its affiliates is publicly held, such gaming facility
					 licensee or the affiliate shall make available and provide written notice to
					 the commission any report, including, without limitation, forms S-1, 8-K, 10-Q,
					 10-K, proxy or information statements and all registration statements, required
					 to be filed by such licensee or affiliates with the United States Securities
					 and Exchange Commission or other domestic or foreign securities regulatory
					 agency, at the time of filing with such agency.
(h) If an independent certified public
					 accountant who was previously engaged as the principal accountant to audit a
					 gaming facility licensee's financial statements resigns or is dismissed as such
					 gaming facility licensee's principal accountant, or another independent
					 certified public accountant is engaged as principal accountant, a gaming
					 facility licensee shall file a report with the commission within 10 days
					 following the end of the month in which such event occurs, setting forth the
					 following:
(1) the date of such resignation,
					 dismissal or engagement;
(2)
					 whether in connection with the audits of the two most recent years preceding
					 such resignation, dismissal or engagement there were any disagreements with the
					 former accountant on any matter of accounting principles or practices,
					 financial statement disclosure, or auditing scope or procedure, which
					 disagreements if not resolved to the satisfaction of the former accountant
					 would have caused such accountant to make reference in connection with such
					 accountant's report to the subject matter of disagreement, including a
					 description of each such disagreement. The disagreements to be reported shall
					 include those resolved and those not resolved;
(3) whether the principal accountant's report
					 on the financial statements for any of the past two years contained an adverse
					 opinion or disclaimer of opinion or was qualified. The nature of such adverse
					 opinion, disclaimer of opinion or qualification shall be described;
					 and
(4) the gaming facility
					 licensee shall request the former accountant to furnish to the gaming facility
					 licensee a letter addressed to the commission stating whether that accountant
					 agrees with the statements made by the gaming facility licensee in response to
					 subdivision (h) of this section. Such letter shall be filed with the commission
					 as an exhibit to the report required by subdivision (h) of this
					 section.