Iowa Admin. Code r. 491-5.2 - Annual reports
Licensees shall submit audits to the
(1) The audit of financial transactions and
condition of licensee 's operation shall include:
a. An internal control letter;
b. Documentation that the audit shall be
conducted by certified public accountants authorized to practice in the state
of Iowa under Iowa Code chapter 542;
c. A balance sheet; and
d. A profit-and-loss statement pertaining to
the licensee 's activities in the state, including a breakdown of expenditures
and subsidies.
(2) If the
licensee 's fiscal year does not correspond to the calendar year, a supplemental
schedule indicating financial activities on a calendar-year basis shall be
included in the report.
(3) In the
event of a license termination, change in business entity, or material change
in ownership, the administrator may require the filing of an interim report, as
of the date of occurrence of the event. The filing due date shall be the later
of 30 calendar days after notification to the licensee or 30 calendar days
after the date of the occurrence of the event, unless an extension is
granted.
(4) An engagement letter
for the audit between the licensee and auditing firm shall be available upon
request. The engagement letter requirement does not apply to the licensed
qualified sponsoring organization. Conditions of engagement for the audit shall
include, at a minimum, the following requirements:
a. The auditing firm shall report any
material errors, irregularities or illegal acts that come to the firm's
attention during the course of an audit to the licensee 's audit committee or
senior management as required by the rules of professional conduct that apply
to the auditing firm. The licensee shall report such material errors,
irregularities or illegal acts to the commission in a timely manner following
reporting to the licensee 's audit committee or senior management.
b. The auditing firm shall inform the
commission in writing of matters that come to the firm's attention that
represent significant deficiencies in the design or operation of the internal
control structure.
c. The audit
supervisor or an audit staff member conducting the audit must have experience
or training in the gaming industry.
d. The auditing firm agrees to respond timely
to all reasonable requests of successor auditors.
e. The auditing firm agrees, if requested by
the commission , to provide licensee management and the commission with
recommendations designed to help the licensee make improvements in its internal
control structure and operation, and other matters that are discovered during
the audit.
(5) For a
licensed subsidiary of a parent company, an audit of the parent company may be
filed with the following conditions:
a. The
consolidated financial statements shall include in the supplemental schedule,
or elsewhere as determined by the licensee and auditing firm, for each
licensee : balance sheets, statements of operations, statements of cash flows,
schedules of operating expenses and schedules of adjusted gross revenue and
taxes and fees paid to governmental agencies.
b. Any internal audit staff assisting with
the audit shall report any material errors, irregularities or illegal acts that
come to the staff's attention during the course of an audit to the licensee 's
audit committee or senior management as required by the rules of professional
conduct. The licensee shall report such material errors, irregularities or
illegal acts to the commission in a timely manner following reporting to the
licensee 's audit committee or senior management.
c. All other requirements in this rule are
met and included for each entity licensed in Iowa unless an exception is
granted in writing by the commission (or administrator ).
(6) The annual audit report required by Iowa
Code section
99D.20
shall include a schedule detailing the following information: number of
performances; attendance; regulatory fee; total mutuel handle and taxes paid to
the state, city, and county; unclaimed winnings; purses paid indicating
sources; total breakage and disbursements; and the disbursements of 1 percent
of exotic wagers on three or more racing animals.
(7) The annual audit report required by Iowa
Code section
99F.13
shall include:
a. A schedule detailing a
weekly breakdown of adjusted gross revenue; taxes paid to the state, city,
county, and county endowment fund; and regulatory fees.
b. A report on whether material weaknesses in
internal accounting control exist.
(8) Internal control records, compliance
records, marketing expenses, and supplemental schedules included in the annual
reports shall be kept confidential, as outlined in Iowa Code section
99F.12(4).
Notes
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