WSR 14-17-060 PROPOSED RULES
GAMBLING COMMISSION
[Filed August 15, 2014, 9:05 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-13-037.
Title of Rule and Other Identifying Information: WAC 230-15-740 Preparing required financial statements.
Hearing Location(s): Spokane Davenport Hotel, 10 South Post Street, Spokane, WA 99201, (509) 455-8888, on October 9 or 10, 2014, at 9:00 a.m. or 1:00 p.m. Note: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.
Date of Intended Adoption: October 9 or 10, 2014.
Submit Written Comments to: Susan Newer, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susan.Newer@wsgc.wa.gov, fax (360) 486-3625, by October 1, 2014.
Assistance for Persons with Disabilities: Contact Michelle Rancour by October 1, 2014, TTY (360) 486-3637 or (360) 486-3453.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed change would increase the dollar limit, from $3 million to $6 million, in determining the level of service required by a certified public accountant in preparing financial statements for house-banked card rooms.
Staff worked extensively with licensees on this proposal in 2013 and 2014 to come to this proposed rule change.
Statutory Authority for Adoption: RCW 9.46.070 (12), (14), (21), 9.46.0282.
Statute Being Implemented: Not applicable.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state gambling commission, governmental.
Name of Agency Personnel Responsible for Drafting: Susan Newer, Lacey, (360) 486-3466; Implementation: David Trujillo, Director, Lacey, (360) 486-3512; and Enforcement: Mark Harris, Assistant Director, Lacey, (360) 486-3579.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not prepared because the rule change would not impose additional costs.
A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328
August 15, 2014
Susan Newer
Rules Coordinator
AMENDATORY SECTION (Amending WSR 07-09-033, filed 4/10/07, effective 1/1/08)
WAC 230-15-740 Preparing required financial statements.
Definitions.
(1) The following definitions apply to all subsections of this rule:
(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.
(b) "Card room gross receipts" means all receipts from all house-banked and nonhouse-banked card games offered by the house-banked card room.
(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) 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) 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 ((three)) six million dollars.
(4) Licensees with house-banked card ((game)) room gross receipts of more than ((three)) 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 ((three)) six million dollars.
(5) Licensees with house-banked card room gross receipts of one to ((three)) 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) 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) 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) All financial statements must be prepared in accordance with the United States' Generally Accepted Accounting Principles (GAAP).
Consolidated financial statements.
(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) 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.
|