Authority: IC 4-31-7.5-11

Affected: IC 4-31-7.5-16

Sec. 11. (a) A licensed SPMO shall be prepared to fully account, consistent with generally accepted accounting principles (GAAP) to the commission or its designee at any time for all receipts, disbursements, and balances of any monies paid and received pursuant to IC 4-31- 7.5. In connection therewith, the licensed SPMO shall be responsible for the following:

1. (1) Maintaining a receipts ledger and sufficient documentation to support each receipt of funds.
2. (2) Maintaining a monthly reconciliation between its records and depository statements.
3. (3) Directing its depository institution or institutions to provide account balance confirmations and documentation of deposits and expenditures to the commission upon request.
4. (4) Filing all required federal and state tax returns required on distributions, making required withholdings, and maintaining a copy of all tax returns on file available to commission representatives.
5. (5) Making all distributions to any person by check or electronic transfer. No distributions shall be made in cash unless the commission or its executive director has approved the distribution.
6. (6) Filing all required Internal Revenue Service reports and maintaining a copy of the report on file or audit.

(b) A licensed SPMO shall provide to the commission or its designee full access to its records for review and audit.

(c) A licensed SPMO must file with the commission an annual financial statement audited by an independent certified public accountant no later than March 31st after the close of the calendar year.

(d) A licensed SMPO must file with its renewal application to the commission an unaudited balance sheet and profit and loss statement.

(e) A licensed SPMO must file with the commission any tax audit report received from the IRS, department of state revenue, or other federal or state agency auditing the SPMO.

(f) A licensed SPMO shall create standard operating procedures regarding all wagering monies received and distributed, including, but not limited to, a description of its:

1. (1) method of accounting;
2. (2) method of auditing;
3. (3) internal controls; and
4. (4) reporting procedures;

for all wagering accounts.

(g) The commission may require period audits of wagering accounts by an independent certified accountant.

(Indiana Horse Racing Commission; 71 IAC 9-2.2-11; emergency rule filed Aug 29, 2018, 11:12 a.m.: 20180905-IR- 071180370ERA; readopted filed Jul 6, 2023, 1:50 p.m.: 20230802-IR-071230371RFA) NOTE: Agency cited as 71 IAC 9-2.1-11, which was renumbered by the Publisher as 71 IAC 9-2.2-11.