R. 432.11204 - Quarterly and annual audits and licensee annual compliance reports

R. 432.11204. Quarterly and annual audits and licensee annual compliance reports

Rule 1204.

(1) All of the following provisions apply to annual and special audits and other reports:

(a) In accordance with section 14 of the act, the board shall require quarterly and annual audits of the financial condition of the casino licensee's total operations. An independent certified public accountant who is, or whose firm is, licensed in the state of Michigan shall perform the quarterly and annual audits. The independent certified public accountant who performs the quarterly and annual audits shall be licensed in Michigan.

(b) The quarterly and annual audits shall be performed and presented in accordance with generally accepted accounting principles and contain the opinion of the independent certified public accountant as to its fair preparation and presentation in accordance with generally accepted accounting principles.

(c) To assure the integrity of gaming and compliance with the act and these rules, the board may require a special audit of a casino licensee to be conducted by board personnel or an independent certified public accountant who is, or whose firm is, licensed in Michigan. The board shall establish the scope, procedures and reporting requirements of a special audit.

(d) An audit required in this rule and filed with the board shall, at the same time, be filed with the city.

(2) The board shall require annual compliance reports to be prepared by the licensee and submitted in a manner and form prescribed by the board. The annual compliance report shall address all of the following areas:

(a) Compliance with procedures to ascertain that gross receipts are determined and state and local taxes paid, in conformity with the act and these rules.

(b) Compliance with applicable ordinances and agreements with other governmental authorities.

(c) Compliance with board-approved internal control procedures, accounting procedures, credit procedures, dispute procedures, and board-imposed security and safety requirements.

(d) A material deviation from the casino licensee's approved internal control procedures, accounting procedures, credit and dispute procedures, and board- imposed security and safety requirements.

(e) Corrective action taken by the licensee to resolve deficiencies observed in subdivisions (a) to (d) of this subrule.

(f) Other matters required by the board to measure the licensee's compliance with the act and these rules.

(3) The board shall determine the date of filing and the number of copies of audits or reports required under this rule. The audits or reports shall be received by the board or postmarked not later than the required filing date.

Delays in mailing, mail pickups, and postmarking are the responsibility of the casino licensee.

(4) A casino licensee who is a public reporting company under the securities and exchange act of 1933 or 1934, 15 U.S.C. § 77 and 15 U.S.C. § 78 shall submit a copy of all reports required by the securities and exchange commission to the executive director in a format prescribed by the board. The reports shall be due on the same filing dates as required by the securities and exchange commission.

(5) A casino licensee shall bear the expense of preparing an audit which is required by this rule and which is performed by an independent certified public accountant. Qualified personnel of the casino licensee shall prepare compliance reports and the casino licensee shall bear the expense of preparing the compliance reports.

(6) The reporting year-end of the holder of a casino license shall be December 31 unless otherwise approved by the board.

(1998-2000 AACS)

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