304 KAR 1:010. Accounting procedures

Link to law: http://www.lrc.ky.gov/kar/304/001/010.htm
Published: 2015

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      304 KAR 1:010.

Accounting procedures.

 

      RELATES TO: KRS

148.021

      STATUTORY

AUTHORITY: KRS Chapter 13A

      NECESSITY,

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.

 

      Section 1.

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

address.

      (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

if incorporated.

      (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.)