R 432.1903 Board approval of internal control system.

Rule 903. (1) A licensee shall describe, in a manner that the board may approve or require, its administrative and accounting procedures in detail in a written system of internal control. A written system of internal controls shall include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of these rules. Additionally, the description shall include a separate section for all of the following: (a) An organizational chart depicting appropriate segregation of functions and responsibilities. (b) A description of the duties and responsibilities of each position shown on the organizational chart. (c) A detailed, narrative description of the administrative and accounting procedures designed to satisfy the requirements of these rules. Additionally, the description shall include a separate section for all of the following: (i) Physical characteristics of the drop box and tip box. (ii) Transportation of drop and tip boxes to and from gaming tables. (iii) Procedures for table inventories. (iv) Procedures for opening and closing gaming tables. (v) Procedures for fills and credits. (vi) Procedures for accepting and reporting tips and gratuities. (vii) Procedures for transporting chips to and from gaming tables. (viii) Procedures for shift changes at gaming tables. (ix) Procedures for chip purchases. (x) Procedures for the transportation of EGDs. (xi) Procedures for hand-paid jackpots. (xii) Layout and physical characteristics of the cashier's cage. (xiii) Procedures for accounting controls. (xiv) Procedures for the exchange of checks submitted by gaming patrons. (xv) Procedures for credit card and debit card transactions. (xvi) Procedures for the acceptance, accounting for, and redemption of, patron's cash deposits. (xvii) Procedures for the control of coupon redemption and other complimentary distribution programs. (xviii) Procedures for federal cash transactions reporting. (xix) Procedures for computer backups and assuring the retention of financial and gambling operation. (d) Other items as the board may require. (2) Not less than 90 days before the gambling operation commences, unless otherwise directed by the board, a licensee shall submit, to the board, a written description of its internal control system that is designed to satisfy the requirements of subrule (1) of this rule. (3) If the written system is the initial submission to the board, then a letter shall be submitted from an independent certified public accountant selected by the board stating that the licensee's written system has been reviewed by the accountant and is in compliance with the requirements of subrule (1) of this rule. (4) The board shall review each submission required by subrule (2) of this rule and shall determine whether it conforms to the requirements of subrule (1) of this rule and whether the system submitted provides adequate and effective controls for the operations of the licensee. If the board finds any insufficiencies, then the board shall specify the insufficiencies, in writing, and submit the written insufficiencies to the licensee. The licensee shall make appropriate alterations. A licensee shall not commence gambling operations until a system of internal controls is approved.