Objectives of an Internal Control System

PURPOSE: This rule establishes the objectives of an internal control system. (1) Each Class B licensee and other licensees as directed by the commission shall establish an internal control system that includes the following: (A) Administrative control which includes, but is not limited to, the plan of organization and the procedures and records that are concerned with the decision processes leading to management’s levels of authorization of transactions. (B) Accounting control which includes the plan of organization and the procedures and records that are concerned with the safeguarding of assets and the accuracy and reliability of financial records and are consequently designed to provide reasonable assurance that— 1. Transactions are performed only in accordance with management’s specific or general authorization; 2. Transactions are recorded adequately to permit preparation of financial statements in conformity with generally accepted accounting principles, to permit proper reporting of adjusted gross receipts and of fees and taxes and to maintain accountability for assets; 3. Access to assets is permitted only in accordance with management’s specific authorization; 4. Recorded accountability for assets is compared with actual assets at reasonable intervals and appropriate action is taken with respect to any discrepancies; 5. Functions, duties, and responsibilities are appropriately segregated and performed by competent personnel with integrity and an understanding of prescribed procedures. A. The internal auditor shall report only to the entity or person holding a Class A license, or other reporting as approved by the commission. B. Security personnel shall only report to the general manager. C. Surveillance personnel shall only report directly to an organizational level above that of general manager; and 6. Compliance with the statutes and rules is assured. (C) Areas determined necessary by the commission. AUTHORITY: sections 313.004 and 313.812, RSMo 2000, and sections 313.800, 313.805, and 313.817, RSMo Supp. 2011.* Emergency rule filed Sept. 1, 1993, effective Sept. 20, 1993, expired Jan. 17, 1994. Emergency rule filed Jan. 5, 1994, effective Jan. 18, 1994, expired Jan. 30, 1994. Original rule filed Sept. 1, 1993, effective Jan. 31, 1994. Emergency amendment filed March 18, 1996, effective March 28, 1996, expired Sept. 23, 1996. Amended: Filed March 18, 1996, effective Oct. 30, 1996. Amended: Filed Oct. 29, 2008, effective April 30, 2009. Amended: Filed April 25, 2012, effective Dec. 30, 2012. *Original authority: 313.004, RSMo 1993, amended 1994; 313.800, RSMo 1991, amended 1993, 1994, 2005; 313.805, RSMo 1991, amended 1993, 1994, 2000, 2008, 2010; 313.812, RSMo 1991, amended 1993, 1994, 2000; and 313.817, RSMo 1991, amended 1993, 2000, 2008.