1322 - Slot machine accounting controls and audits.
§ 1322. Slot machine accounting controls and audits. (a) Approval.--Except as otherwise provided by this part, each slot machine license applicant shall, in addition to obtaining a slot machine license, obtain approval from the board in consultation with the department of its proposed site plans and internal control systems and audit protocols prior to the installation and operation of slot machines at the licensed facility. (b) Minimum requirements.--At a minimum, the applicant's or person's proposed internal controls and audit protocols shall: (1) Safeguard its assets and revenues, including, but not limited to, the recording of cash and evidences of indebtedness related to the slot machines. (2) Provide for reliable records, accounts and reports of any financial event that occurs in the operation of a slot machine, including reports to the board related to the slot machines. (3) Ensure as provided in section 1323 (relating to central control computer system) that each slot machine directly provides or communicates all required activities and financial details to the central control computer as set by the board. (4) Provide for accurate and reliable financial records. (5) Ensure any financial event that occurs in the operation of a slot machine is performed only in accordance with the management's general or specific authorization, as approved by the board. (6) Ensure that any financial event that occurs in the operation of a slot machine is recorded adequately to permit proper and timely reporting of gross revenue and the calculation thereof and of fees and taxes and to maintain accountability for assets. (7) Ensure that access to assets is permitted only in accordance with management's specific authorization, as approved by the board. (8) Ensure that recorded accountability for assets is compared with actual assets at reasonable intervals and appropriate action is taken with respect to any discrepancies. (9) Ensure that all functions, duties and responsibilities are appropriately segregated and performed in accordance with sound financial practices by competent, qualified personnel. (c) Internal control.--Each slot machine license applicant shall submit to the board and department, in such manner as the board shall require, a description of its administrative and accounting procedures in detail, including its written system of internal control. Each written system of internal control shall include: (1) Records of direct and indirect ownership in the proposed slot machine licensee, its affiliate, intermediary, subsidiary or holding company. (2) An organizational chart depicting appropriate segregation of functions and responsibilities. (3) A description of the duties and responsibilities of each position shown on the organizational chart. (4) A detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this section. (5) Record retention policy. (6) Procedure to ensure that assets are safeguarded, including mandatory count procedures. (7) A statement signed by the chief financial officer of the proposed licensed gaming entity or other competent person and the chief executive officer of the proposed licensed gaming entity or other competent person attesting that the officer believes, in good faith, that the system satisfies the requirements of this section. (8) Any other item that the board may require in its discretion.