Current through Register Vol. 48, No. 38, September 20, 2024
a) Annual and
Special Audits and other reports
1) The
Administrator shall direct an audit to be performed of the annual financial
statements of the holder of an Owner's License including a report on the
Internal Control System communicating any reportable conditions and material
weaknesses noted in the course of the audit. Upon written notice by the
Administrator other procedures or reports may be required. The annual audit
shall be performed by an independent certified public accountant who is or
whose firm is licensed in the State of Illinois. The independent certified
public accountant who performs the annual audit shall be selected by the
Administrator, and the selection may be based on the recommendation of the
holder of an Owner's License.
2)
The annual audit and internal control report procedures shall be performed in
accordance with generally accepted auditing standards. The annual audit report
is to be presented in accordance with generally accepted accounting principles
and contain the opinion of the independent certified public accountant as to
its fair presentation in accordance with such generally accepted accounting
principles.
3) To assure the
integrity of Gaming, compliance with the Act and the rules of the Board, the
Administrator may require at any time a special audit of an owner licensee to
be conducted by Board personnel or an independent certified public accountant
who is, or whose firm is, licensed in Illinois. The Administrator shall
establish the scope, procedures and reporting requirements of any special
audit.
b) Quarterly
compliance reports by independent certified public accountants or personnel.
The Administrator shall require quarterly compliance reports to be prepared and
procedures performed by independent certified public accountants or Board
personnel covering the following:
1)
Quarterly agreed-upon procedures to ascertain that Admissions and Adjusted
Gross Receipts are determined in conformity with the Act and this
Part;
2) Semi-annual agreed-upon
procedures relating to internal control;
3) Semi-annual "unannounced" observation of
the transportation and count of each of the following: Electronic Gaming Device
Drop, Table Drop, and tip box drop. For purposes of these procedures,
"unannounced" means that no officers, directors or employees of the holder of
the Owner's License are given advance information regarding the dates or times
of such observations;
4) Review of
purchasing functions and contractual agreements, both oral and written, on a
sample basis, in order to report on compliance with the owner licensee's
Internal Control System and to determine that such purchases and contractual
agreements are not in excess of their fair market value. This review shall be
conducted at least annually at the direction of the Administrator;
and
5) Quarterly reports on
deviations from the owner licensee's approved Internal Control System based on
procedures performed in the reports of Admissions and Adjusted Gross Receipts,
procedures relating to internal control, purchasing and contracting functions
and/or "unannounced" observations.
c) Independent certified public accountants
performing annual audits shall not perform compliance services on behalf of the
Administrator for the same owner licensees.
d) Independent certified public accountants
who perform compliance services to an owner licensee on behalf of the
Administrator shall not perform an annual audit or any other service for such
owner licensee during the terms of their engagement and for a period of two
years following termination of the engagement.
e) The holder of an Owner's License shall
prepare a written response relating to findings noted in the independent
certified public accountant's or Board's reports required by subsections (a)
and (b) of this Section. The response shall indicate in detail the corrective
actions taken. Such response shall be incorporated in the independent certified
public accountant's or Board's reports.
f) The Administrator shall determine the
number of copies of reports required under this Section and such reports shall
be received by the Board or postmarked no later than the required filing date.
1) Quarterly reports for procedures performed
in the first three fiscal quarters of an owner licensee's approved fiscal year
shall be due not later than two months after the last day of the
quarter.
2) Quarterly reports for
the procedures performed in the fourth fiscal quarter of the owner licensee's
approved fiscal year and the annual reports shall be due not later than three
months after the last day of the calendar or fiscal year.
3) Delays in mailing, mail pickups and
postmarking are the responsibility of the owner licensee.
g) Owner licensees who are public reporting
companies under the Securities Act of 1933 or the Securities Exchange Act of
1934 shall submit four copies of all reports required by the Securities and
Exchange Commission to the Administrator. These reports shall be due on the
same filing dates as required by the Securities and Exchange
Commission.
h) All of the audits
and reports required by this Section that are performed by independent
certified public accountants shall be prepared at the sole expense of the owner
licensee.
i) The reporting year end
of the holder of an owner's license shall be December 31 unless otherwise
approved by the Administrator.
