Ohio Admin. Code 3775-16-20 - External audits and other reports
(A)
Each sports
gaming proprietor, excluding an appointing professional sports organization;
mobile management services provider; and management services provider must have
its annual financial statements audited by an independent registered certified
public accounting firm licensed to practice in this state. The audit must be in
accordance with generally accepted auditing standards and, when applicable, the
standards of the accountancy board. The sports gaming proprietor, mobile
management services provider, or management services provider must report to
the commission the name of the independent registered certified public
accounting firm as well as the lead audit partner or other individual taking
primary responsibility for the financial statement audit engagement before the
start of the engagement.
(B)
The lead audit partner or other individual taking
primary responsibility for the financial statement audit engagement may serve a
maximum of five years in such a position before being required to rotate off
the engagement.
(C)
The annual financial statements audit must be prepared
on a comparative basis for the current and prior fiscal years and present
financial position and results of operations in conformity with generally
accepted accounting principles.
(D)
The audit
required by paragraph (A) of this rule must be filed with the commission, in a
format determined by the executive director, within one hundred twenty days
following the end of the fiscal year.
(E)
Each sports
gaming proprietor must contract with an independent third party to perform an
IT audit. The third party must be approved by the executive director as
qualified, independent, and capable of performing the audit. The audits must be
performed, and a copy of the report provided to the commission, within ninety
days of commencing initial operations and at least once each calendar year. The
audit and corresponding report must assess the following:
(1)
The design,
controls, maintenance, and security of the sports gaming proprietor's IT
systems;
(2)
The sports gaming proprietor's compliance with the IT
and sports gaming system requirements of this chapter; and
(3)
Any other subject
required by the executive director.
(F)
The sports gaming
proprietor must file with the commission the report required by paragraph (E)
of this rule in a format determined by the executive director within one
hundred twenty days following the end of the fiscal year or upon receipt,
whichever is earlier.
(G)
At any time, the executive director may require a
special audit of a sports gaming proprietor, mobile management services
provider, or management services provider by commission personnel, an
independent registered certified public accounting firm, or any other third
party the executive director approves as qualified, independent, and capable of
performing the special audit. The scope, procedures, and reporting requirements
of any special audit are to be established by the executive
director.
(H)
The sports gaming proprietor, mobile management
services provider, or management services provider must notify the commission
of any report that is filed, or required to be filed, with the securities and
exchange commission or other securities regulatory agency.
(I)
All audits and
reports required by this rule are to be prepared at the sole expense of the
sports gaming proprietor, mobile management services provider, or management
services provider.
(J)
The commission may require the termination of any audit
engagement under this rule due to lack of qualification, independence, or
capacity or a finding that the contract or conduct performed thereunder poses a
material risk to the integrity of sports gaming in this state. The invalidation
process is an action against the sports gaming proprietor, mobile management
services provider, or management services provider that is subject to the
hearing procedures and disciplinary actions provided for under rules
3775-1-07 and
3775-1-08 of the Administrative
Code, respectively. If an audit engagement contract is terminated, the sports
gaming proprietor, mobile management services provider, or management services
provider must enter into a new audit engagement contract to ensure the
requirements of this rule are met.
(K)
Each sports
gaming proprietor, mobile management services provider, or management services
provider must file with the commission a copy of any suspicious activity report
filed with the "Financial Crimes Enforcement Network" related to the conduct of
sports gaming in this state.
Notes
Promulgated Under: 119.03
Statutory Authority: 3775.02
Rule Amplifies: 3775.10
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