US Laws, Codes, Statutes & Cases

 
    §  231-a. Yearly audit. 1. The non-profit racing association 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  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.  Two  manually-signed  copies  of  the   audited
  financial statements, together with the report thereon of the non-profit
  racing  association's  independent  certified public accountant shall be
  filed:  one  with  the  board  and  one  with  such  non-profit   racing
  association,  not later than ninety days following the end of the fiscal
  year.
    2. The non-profit racing association  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.  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 will be required; and
    b. a report expressing the opinion of the independent certified public
  accountant that based on his examination of the financial statements the
  non-profit racing association has followed, in  all  material  respects,
  during  the  period covered by his examination, the system of accounting
  and internal control as filed with the board. Whenever in the opinion of
  the  independent  certified  public  accountant  the  non-profit  racing
  association  has  deviated  from  the  system of accounting and internal
  controls filed with the board or  the  accounts,  records,  and  control
  procedures   examined  are  not  maintained  by  the  non-profit  racing
  association 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  non-profit   racing   association's   financial
  statements   resigns   or   is   dismissed   as  the  non-profit  racing
  association's  auditor,  or   another   independent   certified   public
  accountant  is  engaged  as  auditor,  the non-profit racing association
  shall file a report with the 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  him  to  make
  reference  in  connection  with  his 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 option,
  disclaimer of opinion, or qualification shall be described.
    4. Upon direction of the  board,  the  non-profit  racing  association
  shall,  at  its own expense, cause its business and managerial practices
  to be audited.