Regulation .04 Content of Internal Controls.
Regulation .04 Content of Internal Controls.LinkCopy Citation
A.
A facility operator shall develop a written description of its administrative and accounting procedures, including the system of internal controls over video lottery terminal and table game operations.
B.
A facility operator’s internal controls are subject to review and approval under Regulation .05 of this chapter.
C.
Internal controls shall, at a minimum, include:
(1)
Administrative controls and record keeping that document the authorization of transactions;
(2)
Accounting controls that provide reasonable assurance that:
(a)
Transactions or financial events which occur in connection with the operation of a video lottery terminal or table game are:
(i)
Executed in accordance with the facility operator’s authorization protocols;
(ii)
Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and
(iii)
Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets;
(b)
Access to assets is permitted only in accordance with the facility operator’s authorization protocols; and
(c)
The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy;
(3)
Procedures and controls for ensuring:
(a)
That a video lottery terminal accurately and timely communicates all required activities and financial details to the:
(i)
Central monitor and control system; and
(ii)
Video lottery system;
(b)
That all functions, duties, and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and
(c)
Through the use of a surveillance and a security department, that the facility is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster, or any other cause;
(4)
Access controls which address, at a minimum:
(a)
Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas;
(b)
Issuance of a temporary access credential; and
(c)
Comprehensive key controls;
(5)
A record retention policy in accordance with Regulation .08 of this chapter;
(6)
Procedures and controls over the movement of cash and the count room;
(7)
Procedures and standards for conducting internal audits; and
(8)
Other procedures and controls the Commission may require to be included in a facility operator’s internal controls.
D.
A facility operator shall make available a current version of its Commission-approved internal controls, in hard copy or through secure computer access, to:
(1)
All mandatory departments required under Regulation .10E(6) of this chapter; and
(2)
The Commission’s on-site office.
E.
A facility operator shall maintain, in hard copy or electronic form, all superseded internal controls together with the written representations required under Regulation .05 of this chapter, for at least 5 years subsequent to the date the internal controls were superseded.