304 KAR 1:010.
RELATES TO: KRS
AUTHORITY: KRS Chapter 13A
FUNCTION, AND CONFORMITY: In order to control and evaluate the business
activities of its various licensees the Department of Parks finds it necessary
to prescribe certain accounting procedures to be used by its licensees. This
administrative regulation will enable the Department of Parks to evaluate the
records and operation of its licensees' businesses.
Accounting Records. (1) Prior to commencing business or upon written notice,
licensees shall obtain the services of a Certified Public Accountant or a firm
of Certified Public Accountants for the purposes of developing an accounting
system including a system of internal controls covering all business operations
conducted upon the premises covered by the license agreement in order to
maintain accurate financial records and books relating to the licensee's
operation. The accounting system developed shall meet the specific approval of the
Department of Parks. All cash registers, receipt documents, contracts, and
other means of supporting a cash or income transaction shall meet the specific
approval of the Department of Parks. The licensee shall bear all expenses
related to development of an accounting and internal control system including
cash registers, receipt forms, and rental contract documents.
(2) The system
used to record income must be in sufficient detail to disclose the amount of
income derived from each category of business conducted on the premises in
order to facilitate compliance with rental consideration provisions under the
license agreement. A complete income chart of accounts proposed for use and the
rate of rental consideration due from each source shall be submitted as a part
of the accounting system study as set out in subsection (1) of this section.
Section 2. Audit
of Records. (1) Each licensee shall provide for an annual examination of the
statement of assets, liabilities, and capital income and expenses performed by
an independent Certified Public Accountant or firm of Certified Public
Accountants. The examination must include a review of the system of internal
control and the accounting of year-end closing procedures and other supporting
evidences necessary for the expression of an opinion on the financial
statements. A written memorandum shall be made setting forth the weaknesses, if
any be ascertained, in internal control and accounting procedures together with
related suggestions for the improvement thereof as noted during the normal
review of internal control. A statement shall be made in the audits as to
compliance or noncompliance with the provisions of license agreement and all
related rules and administrative regulations pertaining thereto.
(2) The audit report
and memorandum must include the names of the Commissioner of Parks and the
Commissioner of the Executive Department for Finance and Administration in the
(3) The audit
and review of internal controls shall be performed annually as of the close of
business on the day corresponding with the end of the licensees' fiscal year.
The audit report and accompanying memorandum must be submitted to the
Commissioner of Parks and the Commissioner of the Executive Department for
Finance and Administration on or before the 15th day of the fourth month
following the close of the licensee's fiscal year.
(4) Included as
a part of the audit record required in this section shall be a schedule which
sets out the names and addresses of all partners whether silent, active, or
limited participating in licensee's business operation authorized by license
agreement if licensee is partnership, or the names and addresses of all
corporation officers and stockholders, if stock not publicly held, if licensee
(5) The licensee
shall file with the Department of Parks a statement setting out the date on
which he intends to end his fiscal year.
(6) The licensee
shall bear all expenses connected with the audit examinations outlined in this
administrative regulation. (PARKS-Rg-3; 1 Ky.R. 755; eff. 5-14-75.)