Nature and exchange of gaming chips, plaques and tokens

(1) Each Casino Licensee, unless specifically exempted by the Board shall, at its own expense, cause its annual financial statements pertaining to its operations in Belize to be audited in accordance with generally accepted auditing standards by an independent accountant with offices in Belize. (2) The annual financial statements shall be prepared on a comparative basis for the current and prior calendar or fiscal year and shall present the financial position and results of operations in conformity with generally accepted accounting principles. (3) The financial statements required by this Regulation shall include a footnote reconciling and explaining any difference between the financial statements included in the Casino Licensee’s annual report, filed in conformity with Regulation 7 above and the audited financial statements. Such footnote shall, at a minimum, disclose the effect of such adjustment on– (a) casino revenues; (b) casino revenues net of complimentary (c) total costs and expenses; (d) income before any extraordinary items; (e) extraordinary items; and (f) net income. (4) Two copies of the audited financial statements, together with the report thereon of the Casino Licensee’s independent accountant shall be filed with the Board not later than 30 April following the end of the calendar or fiscal year. 140 Gaming Control (5) Each Licensee shall require its independent accountant to render the following additional reports– (a) a report on material weakness in accounting and internal controls. Whenever in the opinion of the independent accountant there exists no material weakness in accounting and internal controls, the report shall say so; (b) a report expressing the opinion of the independent accountant that based on his examination of the financial statements the Licensee has followed, in all material respects, during the period covered by his examination, the system of accounting and internal control approved by the Board. Whenever in the opinion of the independent accountant the Licensee has deviated from the system of accounting and internal controls approved by the Board or the accounts, records, and control procedures examined are not maintained by the Licensee in accordance with the Act and these Regulations, the report shall enumerate such deviations regardless of materiality. The independent accountant shall also report on areas of the system no longer considered effective, and shall make recommendations in writing improvements in the System of Accounting and Internal Controls; (c) a report stating that the independent accountant has conducted such tests and made such enquiries as he considers appropriate to enable him to confirm that no payments prohibited by the Act or any Regulations made thereunder have been made by the Casino, or stating what payments have been Gaming Control 141 made contrary to the Act or any Regulations made thereunder. (6) All reports by the internal audit department of a Casino Licensee shall be consecutively numbered, dated and recorded in a log which shows brief particulars of the contents of each report against each consecutive number. (7) Two copies of the reports required under sub regulations (4) and (5) and two copies of any other reports on accounting and internal controls, administrative controls, or other matters relating to the Casino Licensee’s accounting or operating procedures rendered by the Licensee’s independent accountant, shall be filed with the Board by the Licensee by April 30 following the end of each fiscal year or within thirty (30) days of receipt, whichever is earlier, but the Board shall be given immediate notice of the receipt by the Licensee of any report under subregulation (5) above. (8) If an independent accountant who was previously engaged to audit the Casino Licensee’s financial statements resigns or is dismissed as the Casino Licensee’s auditor, or another independent accountant is engaged as auditor, the Licensee shall file a report with the Board within ten (10) 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 audit of the two most recent years proceeding 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 disagreement if not resolved to the satisfaction of the former accountant would 142 Gaming Control 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 yet resolved; (c) whether the 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; (d) the Casino Licensee shall request the former accountant to furnish to the Casino Licensee a letter addressed to the Board stating whether he agrees with the statements made by the in response to this subregulation. Such letter shall be filed with the Board as an exhibit to the report required by the Regulation.