To: IGA Member Tribes From: Ernest L. Stevens, Jr., Chairman Jason C. Giles, Executive Director
Re: NIGC Publishes Proposed Rule to Amend Audit Standards (25 C.F.R. Part 571) Date: June 1, 2022
On June 1, 2022, the National Indian Gaming Commission (“NIGC”) published a proposed rule in the Federal Register that, if promulgated, would amend the NIGC’s regulations concerning its Audit Standards. This proposed rule was a subject of the NIGC’s Tribal Consultation Series B, which was held between September 13 and November 1, 2021. Specifically, this proposed rule, if promulgated, would amend the NIGC’s regulations at 25 C.F.R. Part 571 to: 1) eliminate the Commission’s waiver requirement and allow all gaming operations grossing less than $2 million the prior fiscal year to submit financial statements for review in lieu of an audit, so long as the gaming operation’s regulatory agency permits such a disclosure; 2) create a new financial reporting tier for charitable gaming operations with annual gross revenues of $50,000 or less and establish financial reporting regulations for such operations; and 3) add a provision to clarify the limited specifications in which an adverse opinion could satisfy the regulation’s reporting requirements. These specifications include that adverse opinions must be submitted and may only satisfy the requirement if a) the adverse opinion is “the result of the gaming operation meeting the definition of a state or local government” and preparing its financial statements in accordance with the generally accepted accounting principles of the Financial Accounting Standards Board, or b) the adverse opinion pertains to a consolidated audit and the operations not attributable to the adverse opinion are clearly identified. The promulgated rule is silent as to whether disclaimed opinions now satisfy the requirement. Comments to this proposed rule must be submitted no later than July 1, 2022. This proposed rule, as published in the Federal Register , may be found here: https://www.govinfo.gov/content/pkg/FR- 2022-06-01/pdf/2022-11482.pdf Please contact Danielle Her Many Horses at dhermanyhorses@indiangaming.org with any questions or concerns regarding this Alert.
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