New York Codes, Rules and Regulations (NYCRR)
Title 9 Part 5109
Executive Department
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3 sections
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9 NYCRR 5109.1 - Annual audit and other related reports
Source version current through Mar 31, 2022
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Mar 31, 2022
(a)Each video lottery gaming agent, unless specifically exempted by the commission in writing, shall, at such agent’s own expense, cause such agent’s annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant licensed to practice in the State.
(b)The annual financial statements shall be prepared on a comparative basis for the video lottery gaming agent’s current and prior standard financial 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 video lottery gaming agent’s annual report and the audited financial statements. Such footnote shall, at a minimum, disclose the effect of such adjustments on:
(1)revenues from the video lottery gaming facility;
(2)revenues net of complimentary services;
(3)total costs and expenses;
(4)income before extraordinary items; and
(5)the net result of revenues less expenses.
(d)Two copies of the audited financial statements, together with the report thereon of the video lottery gaming agent’s independent certified public accountant, shall be filed with the commission not later than 120 days following the end of the video lottery gaming agent’s fiscal year.
(e)In addition to a video lottery gaming agent’s audited financial statements, the video lottery gaming agent shall submit a copy of the management letter prepared by the independent certified public accountant that lists any internal control or operational weaknesses noted during the financial statement audit and recommendations for improvement. The video lottery gaming agent shall prepare a response to the issues outlined in the management letter that describes any corrective actions taken or planned to be taken and include a copy of this response with such agent’s submission to the commission as required in subdivision (d) of this section.
(f)In addition to the management letter, the commission may require the video lottery gaming agent to engage an independent certified public accountant approved by the commission to perform an additional review of internal controls and/or specified expenditures that conform to specifications prescribed by the commission. The commission shall notify the video lottery gaming agent of the type of report required, the scope of such report, and the frequency with which it should be performed. This review shall be performed at the expense of the video lottery gaming agent unless otherwise determined by the commission. The video lottery gaming agent shall respond to recommendations in the report noting any corrective actions taken or planned to be taken. The video lottery gaming agent shall submit two copies of this report including the required response to the commission within 90 days following the end of the period covered by the report, unless otherwise instructed by the commission.
(g)If the video lottery gaming agent or any of such agent’s affiliates is publicly held, the video lottery gaming agent or the affiliate shall submit one copy to the commission of any report, including, but not limited to, forms S-1, 8-K, 10-Q, 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 Securities and Exchange Commission or other agency.
(h)If an independent certified public accountant who was previously engaged as the principal accountant to audit the video lottery gaming agent’s financial statements resigns or is dismissed as the video lottery gaming agent’s principal accountant, or another independent certified public accountant is engaged as principal accountant, the video lottery gaming agent shall file a report with the commission 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 such accountant to make reference in connection with such accountant’s report to the subject matter of disagreement, including a description of each such disagreement. The disagreements to be reported shall include those resolved and those not resolved;
(3)whether the principal accountant’s report on the financial statements for any of the past two years contained an adverse opinion or disclaimer of opinion or was qualified. The nature of such adverse opinion, disclaimer of opinion, or qualification shall be described;
(4)the video lottery gaming agent shall request the former accountant to furnish to the video lottery gaming agent a letter addressed to the commission stating whether that accountant agrees with the statements made by the video lottery gaming agent in response to this subdivision. Such letter shall be filed with the commission as an exhibit to the report required by this subdivision.
(i)The commission has the authority to conduct or have conducted an audit or review of any of the video lottery gaming agent’s financial controls and records.
(j)In those circumstances where the video lottery gaming agent is not currently an active operator of a video lottery gaming facility, or portion thereof, the commission may by written authorization either revise or eliminate the standard reports to be filed by the video lottery gaming agent.
9 NYCRR 5109.2 - Submission of standard financial and statistical reports
Source version current through Nov 15, 2021
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Nov 15, 2021
(a)Each video lottery gaming agent, unless specifically exempted by the commission, shall file quarterly reports of financial, statistical, and informational data. The commission shall prescribe a set of standard reporting forms and instructions to be used by each video lottery gaming agent in filing such reports.
(b)Each report required to be submitted to the commission by this Part shall be received or postmarked not later than the required filing date unless specific approval for an extension is granted in writing to the video lottery gaming agent by the commission. Requests for such extension must be submitted to the commission in writing prior to the required filing date. Quarterly reports shall be due not later than 45 days following the end of the last month of any quarter.
(c)In the event of a video lottery gaming agent license termination, change in business entity, or material change in ownership, the commission may at the commission’s discretion require the filing of an interim report, as of the date of occurrence of the event.
(d)Copies of all financial statements and statistical reports required to be filed with the commission shall be furnished by the video lottery gaming agent.
9 NYCRR 5109.3 - Format and structure of accounting records
Source version current through Nov 15, 2021
A matched Register action is not later than the compiled-text reference date.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Nov 15, 2021
- Related Register notice
- SGC-29-21-00010-A · Adopted rule
- Related notice published
- Nov 24, 2021
- Related notice effective date
- Nov 24, 2021
(a)Maintenance.
The video lottery gaming agent shall maintain complete, accurate, legible and permanent records of all transactions pertaining to such agent’s revenues, expenses, assets, liabilities, and equity in conformance with generally accepted accounting principles. The failure of the video lottery gaming agent to maintain records according to such principles shall be a violation of these regulations.
(b)Specific requirements for records.
The accounting records maintained by the video lottery gaming agent shall be maintained using a double-entry system of accounting with transactions recorded on the accrual basis and supported by detailed subsidiary records. Such subsidiary records shall include, at a minimum, all of the following:
(1)detailed general ledger accounts identifying all revenue, expenses, assets, liabilities, and equity for the video lottery gaming agent;
(2)a record of all investments, advances, loans, and accounts receivable balances due the video lottery gaming agent;
(3)a record of all loans and other accounts payable by the video lottery gaming agent;
(4)a record of all accounts receivable written off as uncollectible by the video lottery gaming agent;
(5)journal entries prepared by the video lottery gaming agent;
(6)records that identify video lottery terminal drop and video lottery terminal win for each video lottery terminal and records accumulated for each video lottery terminal by shift or by another accounting period pre-approved in writing by the commission;
(7)records supporting the accumulation of the costs for complimentary services and items including records required to fully comply with all the Federal financial recordkeeping requirements enumerated in 31 CFR part 103;
(8)records required by a video lottery gaming agent’s system of internal control;
(9)work papers supporting the daily reconciliation of cash accountability;
(10)records supporting the utilization of any expenses funded by the marketing and promotion program;
(11)other records that the commission has required, in writing, to be maintained.
(c)Retention.
Notwithstanding any of this Subchapter to the contrary, all accounting records shall be kept for a period of not less than seven years from their respective dates.