La. Admin. Code tit. 42 § III-2711

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-2711 - Audited Financial Statements

A. Each licensee and casino operator shall submit to the division, in a manner prescribed by the division, audited financial statements reflecting all financial activities of the licensee's or casino operator's establishment prepared in accordance with generally accepted accounting principles and subjected to an examination conducted according to generally accepted auditing standards by an independent Certified Public Accountant (CPA). The CPA shall incorporate the guidelines established by the division into current procedures for preparing audited financial statements. The submitted audited financial statements required by this Section shall be based on the licensee's or casino operator's business year as approved by the division. The financial statements must further reflect the operating records of food, beverage, hotel, and retail facilities or enterprises owned by the licensee or casino operator or an affiliate and located on the premises or considered part of the operations.

B. The reports required to be filed pursuant to this Section shall be sworn to and signed by:

1. if from a corporation, the chief executive officer and the financial vice president, treasurer or controller;

2. if from a limited liability company, the manager or managing member and the financial vice president, treasurer or controller;

3. if from a partnership, the managing general partner and the financial director;

4. if from a sole proprietorship, the proprietor; or

5. if from any other form of business association, the chief executive officer or other person approved by the division.

C. All audits and reports required by this Section shall be prepared at the sole expense of the licensee or casino operator.

D. Each licensee and casino operator shall engage an independent Certified Public Accountant (CPA) licensed by the Louisiana State Board of Certified Public Accountants. The CPA shall examine the statements in accordance with generally accepted auditing standards. The CPA is prohibited from providing internal audit services. Should the CPA previously engaged as the principal accountant to audit the licensee's or casino operator's financial statements resign or be dismissed as the principal accountant, or if another CPA is engaged as principal accountant, the licensee or casino operator shall file a report with the division within 10 days following the end of the month in which the event occurs, setting forth the following:

1. the date of the resignation, dismissal, or engagement;

2. any disagreements with a former accountant, in connection with the audits of the two most recent years, on any matter of accounting principles, or practices, financial statement disclosure, auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the former accountant, would have caused him to make reference in connection with his report to the subject matter of the disagreement; including a description of each such disagreement; whether resolved or unresolved;

3. whether the principal accountant's report on the financial statements for any of the past two years contained an adverse opinion or a disclaimer of opinion or was qualified. The nature of such adverse opinion, disclaimer of opinion, or qualification shall be described; and

4. a letter from the former accountant furnished to the licensee or casino operator and addressed to the division stating whether the CPA agrees with the statements made by the licensee or casino operator in response to this Section.

E. Unless the division approves otherwise in writing, the statements required must be presented on a comparative basis. Consolidated financial statements may be filed by commonly owned or operated establishments, but the consolidated statements must include consolidating financial information or consolidated schedules presenting separate financial statements for each establishment licensed or authorized to conduct gaming. The CPA shall express an opinion on the consolidated financial statements as a whole and shall subject the accompanying consolidating financial information to the auditing procedures applied in the examination of the consolidated financial statements.

F. Each licensee and casino operator shall submit to the division two originally signed copies of its audited financial statements and the applicable CPA's letter of engagement not later than 120 days after the last day of the licensee's or casino operator's business year. In the event of a license or contract termination, change in business entity, or a change in the percentage of ownership of more than 20 percent, the licensee or casino operator or former licensee or former casino operator shall, not later than 120 days after the event, submit to the division two originally signed copies of audited statements covering the period between the filing of the last financial statement and the date of the event. The division may waive this requirement if the date of the event is within 30 days of the end of the licensee's or casino operator's business year. If a license or contract termination, change in business entity, or a change in the percentage of ownership of more than 20 percent occurs within 120 days after the end of the business year for which a statement has not been submitted, the licensee or casino operator may submit statements covering both the business year and the final period of business.

G. If a licensee or casino operator changes its fiscal year, the licensee or casino operator shall prepare and submit to the division audited financial statements covering the period from the end of the previous business year to the beginning of the new business year not later than 120 days after the end of the period.

H. Reports that directly relate to the CPA's examination of the licensee's or casino operator's financial statements shall be submitted within 120 days after the end of the licensee's or casino operator's business year. The CPA shall incorporate the guidelines established by the division into current procedures for preparing the reports.

I. Each licensee and casino operator shall engage an independent CPA to conduct a quarterly audit of its net gaming proceeds, gross gaming revenue, or net slot machine proceeds. Quarters shall be based upon the licensee's fiscal year. Two signed copies of the auditor's report shall be forwarded to the division not later than 60 days after the last day of the applicable quarter. The CPA shall incorporate the guidelines established by the division into current procedures for preparing the quarterly audit.

J. The division may request additional information and documents from either the licensee or casino operator or their CPA, regarding the financial statements or the services performed by the CPA. The division may review any and all work papers of the CPA at a time and place determined by the division. These requirements shall be included in agreements between the licensee, casino operator or its affiliates and the CPA.

K. The licensee or casino operator shall submit to the division, postmarked by the United States Postal Service or deposited for delivery with a private or commercial interstate carrier, or in another manner approved by the division, any audit report prepared by the Internal Revenue Service (IRS) and issued to the licensee or casino operator. The report is due within 30 days of receipt from the IRS.

La. Admin. Code tit. 42, § III-2711

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1630 (July 2012).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.