Report of the Independent Accountant

Background 

The Board requires all Levy payers to file an annual return which is accompanied by a Report by an Independent Accountant.
 

Requirement to provide an Independent Accountant's Report 

Size of Operator    

                        

Scope of Reporting

How Often?                                                                           

Gross profit (of Group) > £500,000

Full Independent Accountants Report for all entities

Annually

Gross profit (of Group) > £250,000

Full Independent Accountants Report for all entities

Annually

Gross profit (of Group) < £250,000

Full Independent Accountants Report for all entities

Selection of Operators will be selected at random


Failure to provide an Independent Accountant's Report 

If an Operator fails to provide an Independent Accountant's Report where such a report is required, that Operator shall be deemed to have failed to submit a properly completed Form of Declaration. In such circumstances the Chief Executive of the Board shall have power (but no obligation) to instruct an Independent Accountant to provide the required report. On receipt of the required Independent Accountant's Report, the Board will issue a Notice of Assessment, if applicable.



Agreed Upon Procedures for the Independent Accountant 

This work is designed to be performed as an Agreed Upon Procedures (AUP) engagement in accordance with the International Standard on Related Services (ISRS) 4400 “Engagements to perform agreed-upon procedures regarding financial information”. We therefore request that any exceptions identified during the performance of these procedures are formally reported to the Board as part of the completion of the Independent Accountant’s Report. If a particular test is not deemed to be relevant to the Operator, a statement to this effect must be included in the Report of the Independent Accountant.


Information to be included in an Independent Accountant’s Report 

1. State whether your firm act as the statutory auditors (in an independent engagement) for the company or group that has produced the Horserace Betting Levy Board (HBLB) Form of Declaration for which these agreed upon procedures are being performed.

2. Agree the total of profits from leviable bets for the Levy period and Levy payable as shown on the Form of Declaration to the Levy summary created by the bookmaker.

3. Obtain a detailed breakdown of the Levy summary and check that the totals provided by the Operator agree to the Levy summary.

4. Agree the mathematical accuracy of the profit breakdown provided by the bookmaker on the Levy summary.

5.  Select one month and trace the total leviable bets turnover and profit to management’s records.

6. Obtain and provide an explanation from management of the Operator's method of distinguishing between bets placed in Great Britain and those outside Great Britain for the purpose of classifying whether or not a bet is leviable.

7. Obtain and provide an explanation from management of the Operators’ treatment of linked or multi bets the outcome of which is dependent on at least one leviable bet and one non-leviable bet such that the entirety of the bet is not leviable.

8. Obtain and provide an explanation from management of how pool betting operations have been fully accounted for by the pool betting operator and how the pool betting operator has satisfied itself that all Levy payable on pool operations has been captured and included for the purposes of calculating leviable profits.

9.  Obtain an analysis of turnover and gross profit figures of leviable bets by betting platform for the current and previous year to 31st March.  Compare the trends observed in the analysis, identify any differences to the prior year and provide explanations from management for any unusual or significant variances (the Board would consider variances of greater than 10% of the total value to be significant).

10. Obtain and provide an explanation from management of the Operator's internal controls over the completeness of turnover and how they operated during the Levy period. 

11. Obtain and provide an explanation from management for how the Operator's accounting system provides a sound basis for fully and accurately recording turnover and profit on leviable bets.

Last Updated: 22 March 2019