Section 71IAC13-1-8. Accounting, auditing, internal control, and reporting requirements

   (a) A registered horsemen's association, its officers, directors, officials, or employees shall be prepared to fully account, consistent with generally accepted accounting principles (GAAP) to the commission at any time for all receipts, disbursements, and balances of any monies received pursuant to IC 4-35-7-12. In connection therewith, the registered horsemen's association shall be responsible for the following:

(1) Maintaining a receipts ledger and sufficient documentation to support each receipt of funds pursuant to IC 4-35-7-12.

(2) Maintaining a monthly reconciliation between its records and depository statements.

(3) Directing its depository institution or institutions to provide account balance confirmations and documentation of deposits and expenditures to the commission upon request.

(4) Filing all required federal and state tax returns required on distributions, making required withholdings, and maintaining a copy of all tax returns on file available to commission representatives.

(5) Making all distributions to any person by check or electronic transfer. No distributions shall be made in cash unless the commission or its executive director has approved the distribution.

(6) Filing all required Internal Revenue Service reports of cash payments and maintaining a copy of the report on file or audit.

(7) Maintaining funds received pursuant to the provisions of IC 4-35-7-12 in separate accounts for each of the three (3) categories set out in section 3(1) of this rule. The funds held and maintained in those three (3) separate accounts shall be held and maintained separate from each other and separate from all other funds held or maintained by the registered horsemen's association. The commingling of funds received and distributed pursuant to the provisions of IC 4-35-7-12 with any other funds held or maintained by the registered horsemen's association is strictly prohibited.

(8) Maintaining records in a manner that clearly demonstrates that the monies have been disbursed in compliance with the provisions of IC 4-35-7-12.

  (b) In each monthly payment to each registered horseman's association pursuant to IC 4-35-7-12, each permit holder shall make a separate payment of funds for each of the three (3) categories set out in section 3(1) of this rule. (Indiana Horse Racing Commission; 71 IAC 13-1-8; emergency rule filed Jul 11, 2008, 2:13 p.m.: 20080723-IR-071080595ERA; readopted filed Nov 21, 2014, 2:25 p.m.: 20141217-IR-071140403RFA)