Current through Register Vol. 50, No. 9, September 20, 2024
A. Each licensee and casino operator shall
describe, in such manner as the division may approve or require, its procedures
in detail in a written system of internal controls. Each licensee and casino
operator shall submit a copy of its internal controls to the division for
approval prior to commencement of operations. The internal controls shall be
implemented to reasonably ensure that:
1. all
assets are safeguarded;
2.
financial records are accurate and reliable;
3. transactions are performed only in
accordance with the internal controls;
4. transactions are recorded adequately to
permit proper reporting of gaming revenue, fees and taxes, and all revenues
deriving from casino and related facilities and to maintain accountability for
assets;
5. access to assets is
permitted only in accordance with the internal controls;
6. recorded accountability for assets is
compared with actual assets at least annually and appropriate action is taken
with respect to any discrepancies; and
7. functions, duties, and responsibilities
are appropriately segregated and performed in accordance with sound practices
by competent, qualified personnel.
B. The internal controls shall include:
1. an organizational chart depicting
appropriate segregation of functions and responsibilities;
2. a description of the duties,
responsibilities, access to sensitive areas, and signatory authority of each
position shown on the organizational chart;
3. a detailed, narrative description of the
administrative and accounting procedures designed to satisfy the requirements
of this Section;
4. flow charts
illustrating the information required in Paragraphs 1, 2, and 3 of this
Subsection;
5. a written statement
signed by an officer of the licensee or casino operator attesting that the
system satisfies the requirements of this Section;
6. accounting and financial controls
including procedures to be utilized in counting, banking, storage and handling
of cash;
7. procedures, forms and,
where appropriate, formulas covering the calculation of hold percentages,
revenue drop, expenses and overhead schedules, complimentary services, cash
equivalent transactions, salary structure, and personnel practices;
8. job descriptions and the systems of
personnel and chain-of-command, establishing a diversity of responsibility
among employees engaged in gaming operations and identifying primary and
secondary supervisor positions for areas of responsibility, which areas shall
not be so extensive as to be impractical for an individual to
monitor;
9. procedures within the
cashier's cage for the receipt, storage, and disbursal of chips, if applicable,
cash, and other cash equivalents used in gaming, the payoff of jackpots, and
the recording of transactions pertaining to gaming operations;
10. if applicable, procedures for the
collection and security of monies at the gaming tables;
11. if applicable, procedures for the
transfer and recordation of chips between the gaming tables and the cashier's
cage;
12. if applicable, procedures
for the transfer of monies from the gaming tables to the counting
process;
13. procedures for the
counting and recordation of revenue;
14. procedures for the security, storage, and
recordation of cash equivalents utilized in other gaming operations;
15. procedures for the transfers of monies,
cash equivalents or chips, if applicable from and to the slot
machines;
16. procedures and
standards for the opening and security of slot machines;
17. procedures for the payment and
recordation of slot machine jackpots;
18. procedures for the cashing and
recordation of checks exchanged by patrons;
19. procedures governing the utilization of
the private security force within the designated area;
20. procedures and security standards for the
handling and storage of gaming devices, machines, apparatus, including cards
and dice, if applicable, and all other gaming equipment;
21. procedures for recording multiple
transactions and aggregating the transactions of individuals or on behalf of
individuals to ensure compliance with currency transaction report for casinos
(CTRC) and suspicious activity report for casinos (SARC)
requirements;
22. procedures and
rules governing the conduct of particular games and the responsibilities of the
gaming personnel in respect thereto; and
23. such other procedures, rules or standards
that the division may impose on a licensee or casino operator regarding its
operations.
C. Licensees
and casino operators may submit automated or computerized processes that
satisfy the requirements contained in this Chapter, or accomplish the intent of
the requirements contained in this Chapter, for approval in its internal
controls. Approval of automated or computerized processes to replace or satisfy
the requirements contained in this Chapter may be approved or rejected at the
discretion of the division. The division shall explain any rejection and
provide opportunity for the licensee or casino operator to amend the processes
and resubmit for approval in accordance with the internal control review
process.
D. The licensee or casino
operator may not implement its initial internal controls unless the division
determines the proposed internal controls satisfy this Section, and approves
the internal controls in writing. In addition, the licensee and casino operator
shall engage an independent CPA to review the proposed internal controls prior
to implementation. The CPA shall forward two signed copies of the report
reflecting the results of the evaluation of the proposed internal controls
prior to implementation.
E. Once
the division approves the internal controls, the licensee and casino operator
shall comply with all provisions of the approved internal controls.
F. The licensee and casino operator shall
have a continuing duty to review its internal controls to ensure the internal
controls remain in compliance with the Act and these rules. The licensee and
casino operator shall amend its internal controls to comply with the
requirements with the Act and these rules.
G. Any change or amendment in procedure
including any change or amendment in the internal controls previously approved
by the division shall be submitted to the division for prior written approval
in accordance with division policies on internal control changes.
H. If the division determines that internal
controls do not comply with the requirements of this Section, the division
shall so notify the licensee or casino operator in writing. After receiving the
notification, the licensee or casino operator shall amend its internal controls
to comply with the requirements of this Section.
I.
1. Each
licensee and casino operator shall require the independent CPA, engaged for
purposes of examining the financial statements, to submit to the licensee and
casino operator two signed copies of a written report detailing the continuing
effectiveness and adequacy of the internal controls.
2. Using the division's standard Minimum
Internal Control questionnaire and guidelines, the independent CPA shall report
each event and procedure discovered by him, or otherwise brought to his
attention, that does not satisfy the internal controls approved by the
division.
3. Not later than 150
days after the end of the its fiscal year, the licensee or casino operator
shall submit a signed copy of the CPA's report, the division's standard Minimum
Internal Control questionnaire, and any other correspondence directly relating
to the internal controls to the division accompanied by the licensee's or
casino operator's statement addressing each item of noncompliance as noted by
the CPA and describing corrective measures taken.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
27:15 and 24.
