Current through September 18, 2024
Authority: IC
4-33-4; IC
4-35-4
Affected: IC 4-33; IC 4-35
Sec. 1.
(a) This rule
applies to casino licensees.
(b)
The casino licensee must establish policies and procedures in connection with
the internal audit function of its casino operations, including, but not
limited to, the following:
(1) The casino
licensee or its parent company must establish an independent audit committee of
its board of directors, or equivalent board.
(2) The internal audit department or its
equivalent shall report directly to the independent audit committee of the
board of directors, or equivalent board. If the parent company of the casino
licensee establishes the independent audit committee, the internal audit
department or its equivalent may report to the person at the parent company who
is responsible for internal audit, who in turn shall report directly to the
independent audit committee.
(3)
The internal audit department must consist of at least two (2) full-time
on-site internal auditors.
(c) A casino licensee or its parent company
must establish policies that ensure the independence of the independent audit
committee, including, at least, the following:
(1) The chair of the independent audit
committee must be an independent director.
(2) The independent director must not, other
than in his or her capacity as a member of the independent audit committee, the
board of directors, or any other board committee:
(A) accept any consulting, advisory, or other
compensatory fee from the casino licensee or any affiliates;
(B) be a present employee or affiliate of the
casino licensee or any of its affiliates; or
(C) have a relationship with the casino
licensee that would affect his or her exercise of independent
judgment.
(3) An
independent director must fulfill all of the considerations for a financial
expert under 15 U.S.C.
7265(b).
(d) The casino licensee must document all
procedures and results of compliance testing performed under this rule. All
material instances of noncompliance with the submitted internal controls must
be investigated and reported immediately to the commission staff.
(e) The casino licensee shall submit
quarterly reports to the commission staff. The quarterly reports submitted
under this section shall:
(1) document the
results of compliance testing under this rule;
(2) be submitted to the audit director at the
commission office in Indianapolis, Indiana, within thirty (30) days of the
close of the quarter that the report covers; and
(3) identify repeat findings and list all
corrective action that was taken or will be taken to avoid similar problems in
the future.
(f) At any
time errors are uncovered in the computation of win, the errors shall be
corrected and reported on Form RG-1 for the appropriate gaming day.
