N.J. Admin. Code § 13:69D-1.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:69D-1.7 - Annual audit and other reports

(a) Unless specifically exempted by the Division, each casino licensee shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant.

1. Each race track that holds a sports wagering license shall submit its annual audited financial statements to the Division.

(b) The annual financial statements shall be prepared on a comparative basis for the current and prior calendar year, and shall present financial position and results of operations in conformity with generally accepted accounting principles.

(c) The financial statements required by this section shall include a footnote reconciling and explaining any differences between the financial statements included in the casino licensee's quarterly report for the quarter ended December 31, filed in conformity with 13:69D-1.6 of this regulation, and the audited financial statements. Such footnote shall, at a minimum, disclose the effect of such adjustments on:

1. Casino revenues;

2. Revenues net of complimentary services;

3. Total costs and expenses;

4. Income before extraordinary items; and

5. Net income.

(d) One copy of the audited financial statements, together with the report thereon of the casino licensee's or racetrack's independent certified public accountant, shall be filed with the Division by April 30 following the end of the calendar year.

1. Each online gaming operator, each retail and online sports wagering operator, and their intermediary or holding companies shall file any financial information as the Division shall deem necessary to assess the operating results and financial condition for a particular operator and holding company thereof. This information may include, but is not limited to, quarterly or annual financial reports, audited financial statements, projections, and debt compliance certificates.

(e) Each casino licensee shall require its independent certified public accountant to render a report expressing an opinion as to whether the licensee has followed, in all material respects, its system of internal accounting controls based upon the audit of the financial statements pursuant to (a) above. Whenever, in the opinion of the independent certified public accountant, the licensee has materially deviated from its system of internal accounting controls or the accounts, records, and control procedures examined are not maintained by the licensee in accordance with the Casino Control Act and this chapter, the report shall enumerate such deviations and shall make recommendations regarding improvements in the system of internal accounting control. If applicable, the licensee shall prepare a written response to the report which shall indicate the actions taken to address the deviations and recommendations. The report and, if applicable, the response shall be filed with the Division by April 30 following the end of the calendar year.

(f) In accordance with the requirements of section 146 of the Casino Control Act (5:12-146), each casino licensee who has made a decision to pay the in lieu taxes prescribed by that section on its licensed premises, shall file with the Department of the Treasury, not later than 90 days following the completion of the project:

1. A schedule which details by major classification, the costs incurred in the project; and

2. A report expressing the opinion of the licensee's independent certified public accountant that the costs are presented fairly in the schedule.

(g) If the casino licensee or any of its affiliates is publicly held, the licensee or the affiliate shall submit one copy to the Division of any report, including, but not limited to, forms S-1, 8-K, 10-Q and 10-K, proxy or information statements and all registration statements, required to be filed by such licensee or affiliates with the Securities and Exchange Commission or other domestic or foreign securities regulatory agency, at the time of filing with such commission or agency.

(h) If an independent certified public accountant who was previously engaged as the principal accountant to audit the casino licensee's financial statements resigns or is dismissed as the casino licensee's principal accountant, or another independent certified public accountant is engaged as principal accountant, the casino licensee shall file a report with the Division 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 him to make reference in connection with his report to the subject matter of the disagreement;

3. The nature and scope of the disagreements, and whether they were resolved;

4. 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 an otherwise qualified opinion; and

5. The nature of such adverse opinion, disclaimer of opinion, or qualification shall be described.

(i) The casino licensee shall request the former accountant to furnish a letter to the Division, stating whether he or she agrees with the statements made by the casino licensee in the report submitted to the Division.

(j) Any filing required by this section shall be made in a format acceptable to the Division.

N.J. Admin. Code § 13:69D-1.7

Amended by 56 N.J.R. 1182(b), effective 7/1/2024