La. Admin. Code tit. 42 § III-2714

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-2714 - Internal Controls, Procedures

A. Each licensee and casino operator shall describe, in such manner as the division may approve or require, its procedures in detail in a written system of internal controls. Each licensee and casino operator shall submit a copy of its internal controls to the division for approval prior to commencement of operations. The internal controls shall be implemented to reasonably ensure that:

1. all assets are safeguarded;

2. financial records are accurate and reliable;

3. transactions are performed only in accordance with the internal controls;

4. transactions are recorded adequately to permit proper reporting of gaming revenue, fees and taxes, and all revenues deriving from casino and related facilities and to maintain accountability for assets;

5. access to assets is permitted only in accordance with the internal controls;

6. recorded accountability for assets is compared with actual assets at least annually and appropriate action is taken with respect to any discrepancies; and

7. functions, duties, and responsibilities are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel.

B. The internal controls shall include:

1. an organizational chart depicting appropriate segregation of functions and responsibilities;

2. a description of the duties, responsibilities, access to sensitive areas, and signatory authority of each position shown on the organizational chart;

3. a detailed, narrative description of the administrative and accounting procedures designed to satisfy the requirements of this Section;

4. flow charts illustrating the information required in Paragraphs 1, 2, and 3 of this Subsection;

5. a written statement signed by an officer of the licensee or casino operator attesting that the system satisfies the requirements of this Section;

6. accounting and financial controls including procedures to be utilized in counting, banking, storage and handling of cash;

7. procedures, forms and, where appropriate, formulas covering the calculation of hold percentages, revenue drop, expenses and overhead schedules, complimentary services, cash equivalent transactions, salary structure, and personnel practices;

8. job descriptions and the systems of personnel and chain-of-command, establishing a diversity of responsibility among employees engaged in gaming operations and identifying primary and secondary supervisor positions for areas of responsibility, which areas shall not be so extensive as to be impractical for an individual to monitor;

9. procedures within the cashier's cage for the receipt, storage, and disbursal of chips, if applicable, cash, and other cash equivalents used in gaming, the payoff of jackpots, and the recording of transactions pertaining to gaming operations;

10. if applicable, procedures for the collection and security of monies at the gaming tables;

11. if applicable, procedures for the transfer and recordation of chips between the gaming tables and the cashier's cage;

12. if applicable, procedures for the transfer of monies from the gaming tables to the counting process;

13. procedures for the counting and recordation of revenue;

14. procedures for the security, storage, and recordation of cash equivalents utilized in other gaming operations;

15. procedures for the transfers of monies, cash equivalents or chips, if applicable from and to the slot machines;

16. procedures and standards for the opening and security of slot machines;

17. procedures for the payment and recordation of slot machine jackpots;

18. procedures for the cashing and recordation of checks exchanged by patrons;

19. procedures governing the utilization of the private security force within the designated area;

20. procedures and security standards for the handling and storage of gaming devices, machines, apparatus, including cards and dice, if applicable, and all other gaming equipment;

21. procedures for recording multiple transactions and aggregating the transactions of individuals or on behalf of individuals to ensure compliance with currency transaction report for casinos (CTRC) and suspicious activity report for casinos (SARC) requirements;

22. procedures and rules governing the conduct of particular games and the responsibilities of the gaming personnel in respect thereto; and

23. such other procedures, rules or standards that the division may impose on a licensee or casino operator regarding its operations.

C. Licensees and casino operators may submit automated or computerized processes that satisfy the requirements contained in this Chapter, or accomplish the intent of the requirements contained in this Chapter, for approval in its internal controls. Approval of automated or computerized processes to replace or satisfy the requirements contained in this Chapter may be approved or rejected at the discretion of the division. The division shall explain any rejection and provide opportunity for the licensee or casino operator to amend the processes and resubmit for approval in accordance with the internal control review process.

D. The licensee or casino operator may not implement its initial internal controls unless the division determines the proposed internal controls satisfy this Section, and approves the internal controls in writing. In addition, the licensee and casino operator shall engage an independent CPA to review the proposed internal controls prior to implementation. The CPA shall forward two signed copies of the report reflecting the results of the evaluation of the proposed internal controls prior to implementation.

E. Once the division approves the internal controls, the licensee and casino operator shall comply with all provisions of the approved internal controls.

F. The licensee and casino operator shall have a continuing duty to review its internal controls to ensure the internal controls remain in compliance with the Act and these rules. The licensee and casino operator shall amend its internal controls to comply with the requirements with the Act and these rules.

G. Any change or amendment in procedure including any change or amendment in the internal controls previously approved by the division shall be submitted to the division for prior written approval in accordance with division policies on internal control changes.

H. If the division determines that internal controls do not comply with the requirements of this Section, the division shall so notify the licensee or casino operator in writing. After receiving the notification, the licensee or casino operator shall amend its internal controls to comply with the requirements of this Section.

1. Each licensee and casino operator shall require the independent CPA, engaged for purposes of examining the financial statements, to submit to the licensee and casino operator two signed copies of a written report detailing the continuing effectiveness and adequacy of the internal controls.

2. Using the division's standard Minimum Internal Control questionnaire and guidelines, the independent CPA shall report each event and procedure discovered by him, or otherwise brought to his attention, that does not satisfy the internal controls approved by the division.

3. Not later than 150 days after the end of the its fiscal year, the licensee or casino operator shall submit a signed copy of the CPA's report, the division's standard Minimum Internal Control questionnaire, and any other correspondence directly relating to the internal controls to the division accompanied by the licensee's or casino operator's statement addressing each item of noncompliance as noted by the CPA and describing corrective measures taken.

La. Admin. Code tit. 42, § III-2714

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1632 (July 2012), Amended LR 50833 (6/1/2024).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.