New York Racing Association
The Association is a not-for-profit organization franchised by New York State to operate the Aqueduct, Belmont and Saratoga racetracks. According to the terms of the franchise, the Association must pay the State a pari-mutuel tax that consists of a certain percentage of the total bets placed at the three tracks. Both the bets placed and the tax owed are calculated by Autotote Systems, Inc., a private firm under contract with the Association. We examined theprocedures used to make these calculations and found that they provide adequate assurance that the calculations are accurate. However, to improve controls over the calculations, we recommended that any proposed changes in the calculation procedures be approved by the State before the changes are implemented.