Section 296-7.004 - AUDITING AND REPORTING REQUIREMENTS7.004.01 Annual and Special Audits and other reports7.004.01A The Commission will direct an audit to be performed of the annual financial statements of the holder of an Authorized Gaming Operator License including a report on the Internal Control System communicating any reportable conditions and material weaknesses noted during the audit. Upon written notice by the Executive Director other procedures or reports may be required. The annual audit will be performed by an independent certified public accountant who is or whose firm is licensed in the State of Nebraska. The independent certified public accountant who performs the annual audit shall be approved by the Commission, and the selection may be based on the recommendation of the holder of an Authorized Gaming Operator License.7.004.01B 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.7.004.01C To assure the integrity of Gaming, compliance with the Act and the rules of the Commission, the Executive Director may require at any time a special audit of an owner licensee to be conducted by Commission personnel or by contracting with other qualified professionals with expertise in the subject matter of the audit. The Executive Director will establish the scope, procedures and reporting requirements of any special audit.7.004.01D Quarterly compliance reports by independent certified public accountants or qualified Authorized Gaming Facility personnel that have been approved by the Executive Director. The Executive Director will require quarterly compliance reports to be prepared and procedures performed by independent certified public accountants or Commission personnel covering the following:7.004.01E Quarterly agreed-upon procedures to ascertain that Admissions and Gross receipts are determined in conformity with the Act and this Part; 7.004.01E(i) Semi-annual agreed-upon procedures relating to internal control;7.004.01E(ii) 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 Authorized Gaming Operator License are given advance information regarding the dates or times of such observations;7.004.01E(iii) Review of purchasing functions and contractual agreements, both oral and written, on a sample basis, to report on compliance with the owner licensee's Commission-approved Internal Control System and to determine that such purchases and contractual agreements are not in excess of their fair market value. This review will be conducted at least annually at the direction of the Executive Director; and7.004.01E(iv) Quarterly reports on deviations from the owner licensee's approved Internal Control System based on procedures performed in the reports of Gross receipts, procedures relating to internal control, purchasing and contracting functions and/or "unannounced" observations.7.004.01F Independent certified public accountants performing annual audits will not perform compliance services on behalf of the Commission for the same Authorized Gaming Operator.7.004.01G Independent certified public accountants who perform compliance services to an Authorized Gaming Operator on behalf of the Executive Director will not perform an annual audit or any other service for such Authorized Gaming Operator during the terms of their engagement and for a period of two years following termination of the engagement.7.004.01H The holder of an Authorized Gaming Operator License will prepare a written response relating to findings noted in the independent certified public accountant's or Commission's reports. The response will indicate in detail the corrective actions taken. Such response will be incorporated in the independent certified public accountant's or Commission's reports.7.004.01I The Executive Director will determine the number of copies of reports required under this Section and such reports will be received by the Commission or postmarked no later than the required filing date. 7.004.01I(i) Quarterly reports for procedures performed in the first three fiscal quarters of an Authorized Gaming Operator licensee's approved fiscal year will be due not later than two months after the last day of the quarter.7.004.01I(ii) Quarterly reports for the procedures performed in the fourth fiscal quarter of the Authorized Gaming Operator licensee's approved fiscal year and the annual reports will be due not later than three months after the last day of the calendar or fiscal year.7.004.01I(iii) Unless otherwise established by law, delays in mailing, mail pickups and postmarking are the responsibility of the Authorized Gaming Operator licensee.7.004.01J Authorized Gaming Operators who are public reporting companies under the Securities Act of 1933 or the Securities Exchange Act of 1934 will submit four copies of all reports required by the Securities and Exchange Commission to the Commission. These reports will be due on the same filing dates as required by the Securities and Exchange Commission.7.004.01K All of the audits and reports required by this Section that are performed by independent certified public accountants will be prepared at the sole expense of the Authorized Gaming Operator licensee.7.004.01L The reporting year end of the holder of an Authorized Gaming Operator License will be December 31 unless otherwise approved by the Commission.296 Neb. Admin. Code, ch. 7, § 296-7.004
Adopted effective 5/16/2022Amended effective 2/1/2023