# COMAR Title 36 — Maryland State Lottery and Gaming Control Agency

## Subtitle 07 — Instant Bingo Machines in Anne Arundel and Calvert Counties

### Chapter 04 — Instant Bingo Minimum Internal Control Standards

#### Regulation .03 Content of Internal Controls.

*COMAR 36.07.04.03*

A. A facility operator shall develop a written description of its administrative and accounting procedures including the system of internal controls over instant bingo operations.

B. A facility operator’s internal controls are subject to review and approval under this regulation.

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 instant bingo operations 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 an instant bingo machine accurately and timely communicates all required activities and financial details to the instant bingo validation and accounting 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;

  (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 maintain, in hard copy or electronic form, all superseded internal controls for at least five years subsequent to the date the internal controls were superseded.