Definitions.

1. (1) The following definitions apply to all subsections of this rule:

   1. (a) "Financial statements" means documents, including, at least: Balance sheet, statement of income, statement of retained earnings or changes in equity, statement of cash flows, and all required notes or disclosures.
   2. (b) "Card room gross receipts" means all receipts from all house-banked and nonhouse-banked card games offered by the house-banked card room.

   3. (c) "Independent" means there is no relationship that may influence a certified public accountant's impartiality and objectivity in rendering services.

      Filing with the commission.

2. (2) House-banked card game licensees must submit financial statements covering all financial activities of the licensees' business premises for each business year within one hundred twenty days following the end of their business year.

3. (3) We may authorize a sixty-day extension if a licensee submits a written request explaining the need for the extension.

   Audited financial statements - Gross receipts of over six million dollars or when required by another regulatory agency.

4. (4) Licensees with house-banked card room gross receipts of more than six million dollars for the business year must hire an independent, certified public accounting firm licensed by the Washington state board of accountancy to audit the licensee's financial statements according to Generally Accepted Auditing Standards (GAAS).

   Reviewed financial statements - Gross receipts of one to six million dollars.

5. (5) Licensees with house-banked card room gross receipts of one to six million dollars for the business year must hire an independent, certified public accounting firm licensed by the Washington state board of accountancy to review the licensee's financial statements according to the Statements on Standards for Accounting and Review Services (SSARS) or audit the licensee's financial statements according to GAAS.

   Compiled financial statements - Gross receipts of less than one million dollars.

6. (6) Licensees with house-banked card room gross receipts of less than one million dollars for the business year must hire an independent, certified public accounting firm licensed by the Washington state board of accountancy to compile the licensee's financial statements according to SSARS or audit the licensee's financial statements according to GAAS. This compilation must include all required notes or disclosures on an accrual basis of accounting.

   Financial statement preparation.

7. (7) Licensees must prepare financial statements on a comparative basis. For the first year of operation only, licensees do not have to submit comparative financial statements. Licensees must report gross revenues from each licensed activity separate and apart from all other revenues.

8. (8) All financial statements must be prepared in accordance with the United States' Generally Accepted Accounting Principles (GAAP).

   Consolidated financial statements.

9. (9) Commonly owned or operated business premises may present consolidated financial statements. Licensees must include consolidated schedules presenting separate financial statements for each licensed card room location.

   Change in business year.

10. (10) Licensees must notify us in writing within thirty days if they change their business year. Licensees must submit financial statements covering the period from the end of the previous business year to the end of the new business year.

[Statutory Authority: RCW 9.46.070 (12), (14), (21), 9.46.0282. WSR 14-21-089 (Order 706), § 230-15-740, filed 10/13/14, effective 11/13/14. Statutory Authority: RCW 9.46.070. WSR 07-09-033 (Order 608), § 230-15-740, filed 4/10/07, effective 1/1/08.]