Commission Approval of Internal Control System

PURPOSE: This rule establishes the procedure for approval of internal control system. (1) Each Class B licensee and other licensees as directed by the commission shall describe, in a manner that the commission may approve or require, its administrative and accounting procedures in detail in a written system of internal control. Each written system must include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of 11 CSR 45-9.020 and 11 CSR 45-9.030(1). Additionally, this description shall include a separate section for 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 11 CSR 45-9.020 and 11 CSR 45-9.030(1). Additionally, this description shall include a separate section for the following: 1. Procedures to account for the total number and amount of money received from admissions, including free passes or complimentary admission tickets; 2. Physical characteristics of drop box and tip box; 3. Transportation of drop and tip boxes to and from gaming tables; 4. Procedures for table inventories; 5. Procedures for opening and closing gaming tables; 6. Procedures for fills and credits; 7. Procedures for accepting tips or gratuities; 8. Procedures for transporting chips and tokens to and from gaming tables; 9. Procedures for shift changes at gaming tables; 10. Drop bucket characteristics; 11. Transportation of drop buckets to and from electronic gaming devices; 12. Procedures for chip and token purchases; 13. Procedures for lines of credit and credit instruments; 14. Procedures for transportation of electronic gaming devices; 15. Procedures for jackpot payout; 16. Layout and physical characteristics of cashier’s cage; 17. Procedures for accounting controls; 18. Procedures for exchange of checks submitted by gaming patrons; 19. Procedures for credit card and debit card transactions; 20. Procedures for acceptance, accounting for, and redemption of patron’s cash deposits; 21. Procedures for control of coupon redemption and other complimentary distribution programs; 22. Procedures for federal cash transactions reporting; and 23. Procedures for security and accountability of dice and cards; and (D) Other items as the commission may require. (2) At least ninety (90) days before the riverboat gaming operation commences, unless otherwise directed by the commission, each licensee shall submit to the commission a written description of its internal control system, which is designed to satisfy the requirements of section (1) of this rule. (3) If the written system is the initial submission to the commission, a letter shall be submitted from an independent certified public accountant selected by the commission stating that the licensee’s written system has been reviewed by the accountant and complies with the requirements of section (1) of this rule. (4) The commission shall review each submission required by section (2) of this rule and shall determine whether it conforms to the requirements of section (1) of this rule and whether the system submitted provides adequate and effective controls for the operations of the licensee. If the commission finds any insufficiencies, they shall be specified in writing to the licensee, who shall make appropriate alterations. No licensee shall commence gaming operations unless and until a system of controls is approved. (5) The licensee may not implement a system of internal control procedures that does not satisfy the minimum standards unless the commission, in its sole discretion, determines that the licensee’s proposed system satisfies 11 CSR 45-9.020 and approves the system in writing. Within thirty (30) days after a licensee receives notice of the commission’s approval of procedures that satisfy the requirements of 11 CSR 45-9.020 but that do not satisfy the minimum standards, the licensee shall comply with the approved procedures, amend its written system accordingly, and submit to the commission a copy of the written system as amended and a written description of the variations. AUTHORITY: sections 313.004, 313.800, 313.805, 313.812, 313.817, and 313.830, RSMo 2016.* 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. Amended: Filed June 2, 1995, effective Dec. 30, 1995. Amended: Filed March 18, 1996, effective Oct. 30, 1996. Emergency amendment filed Oct 29, 2008, effective Nov. 15, 2008, expired May 13, 2009. Amended: Filed Oct. 29, 2008, effective April 30, 2009. Emergency amendment filed July 31, 2014, effective Aug. 28, 2014, expired Feb. 26, 2015. Amended: Filed July 31, 2014, effective Feb. 28, 2015. Amended: Filed March 1, 2018, effective Oct. 30, 2018. *Original authority: 313.004, RSMo 1993, amended 1994, 2014; 313.800, RSMo 1991, amended 1993, 1994, 2005, 2014, 2016; 313.805, RSMo 1991, amended 1993, 1994, 2000, 2008, 2010; 313.812, RSMo 1991, amended 1993, 1994, 2000, 2014; 313.817, RSMo 1991, amended 1993, 2000, 2008, 2014, 2016; and 313.830, RSMo 1991, amended 1993, 2000, 2010, 2014.