Spring 2012 issue of Horizons

• Process improvement recommendations • Benchmarking data • Industry trends • Assisting licensee with data analytic usage • IT recommendations around ERP and POS systems By sharing information generally already available to the licensor, the licensing audit becomes a collaborative team approach that provides value to the licensee. Additionally, the licensor would have the benefit of being notified of concerns and challenges arising at the licensee level that would otherwise go undetected. In closing, organizations can take advantage of cost-effective expansion efforts through licensing agreements. In order to maximize the benefits of the agreement and mitigate risk factors resulting from the agreement, licensing audits can be executed to provide value for all parties involved. Emphasizing value in the audit process will not only satisfy compliance objectives, but will create a business relationship in which all licensing parties will benefit.

The program should consist of: • Identifying responsible personnel (“risk owners”) for monitoring risks and risk indicators • Monitoring timeline which defines the frequency of assessment and reporting • Reporting requirements, including the method of gathering information from all risk owners and adjusting mitigation strategies as needed Licensee Perspective Licensors have the opportunity to provide value to their licensees by leveraging the information received from the licensing audits. Success from the licensee generally equates to additional success for the licensor, depending on the structure of the licensing agreement. If, as a result of the licensing audit, the licensee was given feedback that could improve its respective organization, licensing audits would be seen as more than just a compliance mechanism; they would be viewed as a valued component of the business partnership.

Feedback could include:

• Company best practices

RubinBrown’s Hospitality & Gaming Services Group Many hotels, country clubs, retailers and gaming operations seek out RubinBrown’s accounting, consulting, and tax services.

Chelle Adams, CPA - St. Louis Partner-In-Charge Hospitality & Gaming Services Group chelle.adams@rubinbrown.com 314.290.3329

Todd Pleimann, CPA - Kansas City Managing Partner, Kansas City Office todd.pleimann@rubinbrown.com 913.499.4411

Greg Osborn, CPA - Denver Managing Partner Denver Office greg.osborn@rubinbrown.com 303.951.1250

www.rubinbrown.com

28