23 CAR § 358-2210 – Requirements imposed upon systems operators

(a) Each systems operator shall maintain an office in Arkansas and designate a key employee located in the Arkansas office to supervise and be responsible for the day-to-day operations of the off-track pari-mutuel system.
(b)
1. (1) Each systems operator shall submit and comply with an internal control system and all amendments to such systems as have been approved by the Arkansas Racing Commission pursuant to 23 CAR § 358-601 et seq.
2. (2) Each systems operator shall, if required by the commission, amend the written system to comply with any requirements consistent with this part that the commission deems appropriate.
(c) Each systems operator shall prepare financial statements covering all financial activities of the systems operator for each business year and shall engage an independent accountant who shall audit the financial statements in accordance with generally accepted auditing standards, unless the commission allows the systems operator upon written request to engage the independent accountant to review the financial statements in accordance with standards for accounting and review services.
(d) Each systems operator shall submit to the commission two (2) copies of its audited or reviewed financial statements not later than one hundred twenty (120) days after the last day of the systems operator’s business year.
(e) If a systems operator changes its business year, the systems operator shall prepare and submit to the commission audited or reviewed financial statements covering the stub period from the end of the previous business year to the beginning of the new business year, not later than one hundred twenty (120) days after the end of the stub period or incorporate the financial results of the stub period in the financial statements for the new business year.
(f) Reports that directly relate to the independent accountant’s review or audit of the systems operator’s financial statements must be submitted within one hundred twenty (120) days after the end of the systems operator’s business year.
(g)
1. (1) Each systems operator shall require the independent accountant engaged by the systems operator to audit or to review the systems operator’s financial statements to submit to the systems operator two (2) copies of a written report of its compliance with the internal control system approved by the commission.
2. (2) Not later than one hundred fifty (150) days after the end of the systems operator’s business year, the systems operator shall submit two (2) copies of the independent accountant’s report or any other correspondence directly relating to the systems operator’s system of internal control to the commission, accompanied by the systems operator’s statement addressing each item of noncompliance noted by the independent accountant and describing the corrective measure taken.
(h) The commission may request additional information and documents from either the systems operator or the systems operator’s independent accountant, through the systems operator, regarding the financial statements or the services performed by the independent accountant.
(i)
1. (1) Each systems operator shall maintain a revolving fund with the commission in an amount determined by the commission, which may not exceed ten thousand dollars ($10,000) without commission approval, for postlicensing investigative costs.
2. (2) A systems operator shall remit the amount requested by the commission within fifteen (15) days of the request.