Current through March 14, 2024
(a)
Department consultation. Prior to any audit of the CLC to be
performed by a certified public accountant, the CLC shall provide to the
department the opportunity to meet with the CLC to identify areas of audit to
be conducted by the certified public accountant.
(b)
Annual report. The CLC
shall require that the independent certified public accountant engaged to
conduct the audit required under section 12-802(d) of the Connecticut General
Statutes submits to the department within one-hundred-fifty (150) days after
the close of its fiscal year, a complete set of audited financial statements
that present the CLC's financial position and the results of its operations and
its cash flows in conformity with generally accepted accounting
principles.
(c)
Disclosure.
In addition, the CLC shall disclose the following to the department on
an annual basis:
(1) All related-party
transactions;
(2) An organizational
chart;
(3) Schedules of:
(A) Annuities purchased to fund lottery
prizes;
(B) Miscellaneous revenue
in detail by source;
(C) Promotions
and advertising expenses;
(D)
Payments of major contractual services; and
(E) Professional fees, including legal,
accounting and consulting fees;
(4) A report as to whether any material
deficiencies in internal controls were noted by the independent auditor during
the course of the annual audit of the CLC's financial statements. In addition,
the CLC shall submit to the department a copy of any report and associated
auditor's letters issued by the independent auditor in connection with the
annual audit;
(5) The CLC's
representation letter to the auditor for accounting information material to the
financial statements and for matters relating to audit disclosure requirements.
Any reports resulting from an examination or the performance of mutually agreed
upon procedures relating to the design and/or operating effectiveness of the
CLC's internal controls; and
(6)
Articles of organization and any changes thereto, resolution, amendments to
by-laws, and minutes of meetings of the CLC.
(d)
Recommendations.
Recommendations made as a result of an audit shall be implemented within a
reasonable time frame as established by the CLC. If the CLC disagrees with the
recommendations, it shall provide a written explanation to the department as to
why such recommendations will not be implemented.
(e)
Additional audits.
(1) The department may require, in its sole
discretion, the CLC or any vendor to submit to an audit, by the department or a
third party, of its internal controls. The department, or its duly authorized
representatives, shall be provided with total cooperation and such written
information in a timely manner as may be requested.
(2) Recommendations made as a result of the
audit shall be implemented within a reasonable time frame as established by the
CLC and approved by the department. If the CLC disagrees with the
recommendations, it shall provide a written explanation to the department as to
why said recommendations should not be implemented. Thereafter, a final
determination shall be made by the department as to whether implementation of
such recommendations shall be required.
(f)
Access to other audits. The
CLC shall provide to the department any audit report on the CLC completed by
any governmental body, independent certified public accountant, independent
service auditor, or other consultant, including any audit report performed on
its lottery gaming system.
