36.07.04.03

.03 Content of Internal Controls.

A. A facility operator shall develop a written description of its administrative and accounting procedures including the system of internal controls over instant bingo operations.

B. A facility operatorís internal controls are subject to review and approval under this regulation.

C. Internal controls shall, at a minimum, include:

(1) Administrative controls and record keeping that document the authorization of transactions;

(2) Accounting controls that provide reasonable assurance that:

(a) Transactions or financial events which occur in connection with instant bingo operations are:

(i) Executed in accordance with the facility operatorís authorization protocols;

(ii) Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and

(iii) Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets;

(b) Access to assets is permitted only in accordance with the facility operatorís authorization protocols; and

(c) The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy;

(3) Procedures and controls for ensuring:

(a) That an instant bingo machine accurately and timely communicates all required activities and financial details to the instant bingo validation and accounting system;

(b) That all functions, duties and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and

(c) Through the use of a surveillance and a security department, that the facility is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster or any other cause;

(4) Access controls which address, at a minimum:

(a) Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas;

(b) Issuance of a temporary access credential; and

(c) Comprehensive key controls;

(5) A record retention policy;

(6) Procedures and controls over the movement of cash and the count room;

(7) Procedures and standards for conducting internal audits; and

(8) Other procedures and controls the Commission may require to be included in a facility operatorís internal controls.

D. A facility operator shall maintain, in hard copy or electronic form, all superseded internal controls for at least five years subsequent to the date the internal controls were superseded.