N.Y. Racing, Pari-Mutuel Wagering and Breeding Law Section 240
Yearly audit


1.

The franchised corporation shall, at its own expense, cause its annual financial statements to be audited in accordance with generally accepted auditing standards by a qualified independent certified public accountant approved by the franchise oversight board. The annual financial statements shall be prepared on a comparative basis for the current and prior fiscal year and shall present the financial position and results of operations in conformity with generally accepted accounting principles. Three manually-signed copies of the audited financial statements, together with the report thereon of the franchised corporation’s independent certified public accountant shall be filed: one with the franchise oversight board, one with such franchised corporation and one with the office of the attorney general, not later than ninety days following the end of the fiscal year. All such annual financial statements and yearly audits shall be subject to audit by the state comptroller and shall be public records.

2.

The franchised corporation shall require the independent certified public accountant to render the following additional reports:

a.

a report on material weakness in accounting, internal controls, and business and management practices discovered in the ordinary course of preparing such audited financial statements. Whenever in the opinion of the independent certified public accountant there exists no material weaknesses in accounting, internal controls and business and management practices, no report shall be required; and

b.

a report expressing the opinion of the independent certified public accountant that based on his or her examination of the financial statements the franchised corporation has followed, in all material respects, during the period covered by his or her examination, the system of accounting and internal control as filed with the franchise oversight board. Whenever in the opinion of the independent certified public accountant the franchised corporation has deviated from the system of accounting and internal controls filed with the franchise oversight board or the accounts, records, and control procedures examined are not maintained by the franchised corporation in accordance with generally accepted accounting standards the report shall enumerate such deviations. The independent certified public accountant shall also report on areas of the system no longer considered effective, and shall make recommendations in writing regarding improvements in the system of accounting and internal controls.

3.

If the independent certified public accountant who was previously engaged to audit the franchised corporation’s financial statements resigns or is dismissed as the franchised corporation’s auditor, or another independent certified public accountant is engaged as auditor, the franchised corporation shall file a report with the franchise oversight board within ten days following the end of the month in which such event occurs, setting forth the following:

a.

the date of such resignation, dismissal, or engagement;

b.

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 the disagreement; including a description of each such disagreement. The disagreements to be reported include those resolved and those not resolved; and

c.

whether the former 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.

Upon direction of the franchise oversight board, the franchised corporation shall, at its own expense, cause its business and managerial practices to be audited.

Source: Section 240 — Yearly audit, https://www.­nysenate.­gov/legislation/laws/PML/240 (updated Oct. 16, 2020; accessed Jul. 13, 2024).

201
Incorporation
202
Restriction upon commencement of business
202‑A
Liability of the directors of a franchised corporation
202‑B
No debt of the state
203
Right to hold race meetings and races
204
Certificate of payment of stock
205
License for running races and steeplechase meetings
206
Franchise for running races and steeplechase meetings
207
Board of directors of a franchised corporation
208
Conditions of franchise award
209
Examination of the books and accounts by the state comptroller
210
Franchise termination
210‑A
Relinquishment of franchise
211
Fair association, when entitled to privileges
212
Franchise oversight board
213
Project labor agreements
214
Acquisition of racing facilities
216
Disposition of racing facilities or certain assets
217
Revocation of licenses
218
Stewards at race meetings
219
Advertising or promotional material
220
Licenses for participants and employees at race meetings
220‑A
Corporations continued
221
New York Jockey Injury Compensation Fund, Inc
221‑A
Health insurance for jockeys
221‑B
Health insurance for trainers
222
Notice to be posted upon grounds
223
Special police officers
224
Penalty for unlawful racing and betting
225
Registration of race horses
226
Increased or additional entrance fees
228
Pension plans for backstretch employees
229
Backstretch employees drug and alcohol rehabilitation eligibility
230
Membership in a national thoroughbred racing association
231
Pari-mutuel betting on horse races legalized
232
License to conduct pari-mutuel betting at race meetings for running races or steeplechases
233
Bond required of corporation conducting pari-mutuel betting
234
Place and manner of conducting pari-mutuel betting
235
Rules for the conduct of pari-mutuel betting
236
Disposition of pari-mutuel pools
237
Capital improvements
238
Disposition of pari-mutuel pools of the franchised corporation
239
Books and records of pari-mutuel betting
240
Yearly audit
241
Disposition of unpaid money due on account of pari-mutuel tickets not presented
242
Races for horses bred in the state
243
Free or reduced fee passes, cards or badges
244
Revocation of license or franchise
245
Hearing on refusal or revocation of license or franchise
246
Approval of plans of corporation
247
Racing zones
248
Racing season
249
Pari-mutuel employees to be citizens and residents
250
Power of commission to impose penalties
251
Definitions
252
New York state thoroughbred breeding and development fund
253
Powers of the fund
254
Resources of fund
255
Annual audit
256
Annual report
257
Actions against fund

Accessed:
Jul. 13, 2024

Last modified:
Oct. 16, 2020

§ 240’s source at nysenate​.gov

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