Current through Register No. 12, March 21, 2024
(a) The
charitable organization, or the operator employer hired to act on behalf of the
organization, shall develop, implement and adhere to written internal control
policies and procedures designed to ensure effective control over the gaming
operation by discouraging and protecting against illicit behavior and
safeguarding the integrity of the games.
(b) The internal control policies and
procedures required in (a) above shall address a minimum of the following
areas:
(1) The implementation of an
organizational structure designed to segregate functions, duties, and
responsibilities in accordance with sound business practices to prohibit
individuals from being in a position that allows them to both commit and
conceal an error or to perpetrate a fraud in their normal course of
duties;
(2) Control of games of
chance equipment inventory to prevent unauthorized access, misappropriation,
forgery, theft, or fraud, including systems and safeguards with regard to the
receipt, storage, inventory and disbursal of chips, cards, dice, and other
sensitive equipment utilized in games of chance;
(3) A system for the collection and security
of moneys at the table games, the transfer and recordation of chips between the
table games and the cashiers' cage, the transfer of money from the table games
to the counting process, and the process and equipment to assure security for
the counting and recordation of revenue;
(4) Adequate safeguards within the cashiers'
cage for:
a. The receipt, storage, inventory
and disbursal of chips, cash, counter checks and other cash equivalents used in
gaming;
b The cashing of
checks;
c. The redemption of chips
and other cash equivalents used in gaming; and
d. The recording of transactions pertaining
to gaming;
(5) An
accounting system of controls established in accordance with (c)-(d) below to
safeguard assets and ensure that:
a.
Financial records are prepared and maintained completely, accurately and
reliably;
b Revenue and fees are
properly reported and paid;
c.
Accountability of assets is maintained; and
d. The charitable organization and the game
operator employer review records and reports periodically, and, when
applicable, appropriate action is taken with respect to any
discrepancies;
(6) When
tournaments are offered, a system for tracking the amount that that a player
has spent for buy-ins and re-buys to ensure players do not exceed the limits
set by RSA
287-D:14, XV and XVI;
(7) Standards governing the utilization of
the surveillance and security designed to prevent unauthorized access,
activities, misappropriation, forgery, theft, or fraud;
(8) When applicable, physical and systems
controls for information technology, including data back-up, and maintenance of
systems; and
(9) Procedures and
controls for ensuring that the gaming area is secure during normal operations,
as well as contingency plans to address unforeseen incidences such as power
outages, or episodes of equipment failure.
(c) The charitable organization, or the
operator employer hired to act on behalf of the organization, shall establish
and maintain an accounting system for all activities conducted in conjunction
with games of chance that includes a minimum of the following:
(1) Internal controls to secure and count all
cash received in connection with a game of chance event, including the
requirements that no fewer than 2 individuals be responsible for counting the
receipts;
(2) Methods of accounting
for chip sale and reimbursement; and
(3) Verification of all transfers of cash and
chips between game table(s) and the central counting area.
(d) General accounting records shall consist
of controls established to safeguard assets and ensure accurate and complete
records of all transactions pertaining to gaming revenue and activities of
operational accountability that:
(1) Record
gaming activity transactions in an accounting system to identify and track all
revenues, expenses, assets, and liabilities;
(2) Produce financial statements to include,
at a minimum, an income statement and a balance sheet;
(3) Produce appropriate subsidiary ledgers to
support the balance sheet;
(4)
Inventory and safeguard assets;
(5)
Prepare, review, and maintain accurate financial statements;
(6) Prepare minimum bankroll calculations;
and
(7) Maintain and preserve all
financial books, records, and relevant supporting documentation.
(e) The treasurer of the
charitable organization or a bona fide member of the charitable organization
designated by the treasurer shall be in full charge of, and primarily
responsible for, the proper utilization of all monies derived from the conduct
of games of chance.
(f) The
licensee shall maintain a copy of the current controls and procedures in the
gaming area, or otherwise make them available for inspection upon
request.
(g) The licensee shall
maintain a copy of any superseded changes to its internal controls for a
minimum of 2 years.
