N.Y. Comp. Codes R. & Regs. tit. 9 § 5315.10

Current through Register Vol. 46, No. 45, November 2, 2024

Section 5315.10 - Audited financial statements

(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.

(i) The commission has the authority to conduct, or have conducted, an audit or review of any of a gaming facility licensee's financial controls and records.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 5315.10

Adopted New York State Register November 16, 2016/Volume XXXVIII, Issue 46, eff. 11/16/2016