Subject: IAGR Notice of Electronic Ballot Issue for New CPA Appointment

Greetings Members!

As a reminder of our bylaws requirement, the appointment of the accountant for the present financial year is included as a ballot item at the Annual Business Meeting.  Our membership approved the recommendation to retain McGladrey LLP for the 2013 annual review and tax preparation services as the firm had provided such services since our creation as an independent Association in 2011.

In late November 2013, the Board was informed by the McGladrey firm that they would no longer be in a position to discount nearly 90% from their standard billing rates for their services and shared the proposed engagement fees that would raise the cost of services from USD $3,000 paid for 2011-2012 work to USD $ 7,000-9000 for the 2013 services. 

They realize that such an unexpected rate increase would have a significant impact on our operations and thus recommended a smaller experienced firm that is qualified to perform the same services.  We have been in contact with Ellsworth Gilman & Stout, CPA to review the professional needs of IAGR.  They have proposed annual review and tax preparation services for USD $ 4,500 for a one-time engagement.  This proposal is also a significant reduction from their billing rates as well as their original estimate based on initial discussions of the engagement. 

As stewards of the IAGR Treasury, the Board is focused on the objective of securing a professional accounting firm who is mindful of our limited resources and will cooperate in keeping fees to a reasonable cost.  This ballot issue will be presented to the current membership in early April after the required 45 day notice has expired.  The Voting Members will be asked to approve the appointment of the new firm Ellsworth Gilman & Stout, CPAs for the 2013 annual review and tax preparation services.   

The firm's partner has indicated that, if IAGR is satisfied with their services, they would be open to discussing a multi-year engagement in order to manage the escalating costs of such professional services.

We would share this information with the Members to explain this action:

- this "special meeting" is allowed to be held electronically (Section 4) and has been called in order to satisfy the requirement in Section 4.1 (2) that "The following business shall be conducted at each Annual Meeting of the association (a) receiving IAGR's financial statement, and audit report, for the last reportable fiscal year".  Thus, in order to provide the 2013 Annual Review report to the Members in October at the Philadelphia gathering, it will be necessary to obtain Member approval to appoint a new CPA firm this spring with whom IAGR can engage and conduct the review in a timely manner for delivery by October.

- in addition, when the Association moved to independence in 2011, the decision was made at the time to register in Nevada USA and file all appropriate documents within that state & country.  The bylaws Section 7 Funds and Accounts identify further that Section 7.1 (2) "Records and accounts must be kept in the English language showing full and accurate particulars of the financial affairs of the IAGR.  Such records and accounts must be retained for seven (7) years or such period as Nevada's laws and requirements may prescribe."  In order to follow this requirement, IAGR has engaged CPA firms based in Nevada who are most familiar with such regulations.

As always, a complete copy of the most recent bylaws document is located on the IAGR website.  The text is displayed in full as well as a PDF copy of the signed version from the most recent Annual Members meeting.  You may find both available here.

We thank our members in advance for your time to respond on the ballot issue in early April.  If you have questions about this matter, please contact me or any of the Trustees.

Peet Meng LAU
IAGR President

International Association of Gaming Regulators, 7881 W. Charleston Blvd., Ste. 155, Las Vegas, NV 89117, United States
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