§543.8 What are the minimum internal control standards for pull tabs?

\(a\) *Computer applications*. For any computer application utilized,
alternate documentation and/or procedures that provide at least the
level of control described by the standards in this section, as approved
by the Tribal gaming regulatory authority in writing, will be
acceptable.

\(b\) *Pull tab inventory*.

\(1\) Pull tab inventory (including unused tickets) shall be controlled
to assure the integrity of the pull tabs.

\(2\) Purchased pull tabs shall be inventoried and secured by a person
or persons independent of the pull tab sales.

\(3\) The issue of pull tabs to the cashier or sales location shall be
documented and signed for by the person responsible for inventory
control and the cashier. The document log shall include the serial
number of the pull tabs issued.

\(4\) Appropriate documentation shall be given to the redemption booth
for purposes of determining if the winner purchased the pull tab from
the pull tabs issued by the gaming operation. Electronic verification
satisfies this requirement.

\(5\) At the end of each month, a person or persons independent of pull
tab sales and inventory control shall verify the accuracy of the ending
balance in the pull tab control by reconciling the pull tabs on hand.

\(6\) A monthly comparison for reasonableness shall be made of the
amount of pull tabs sold from the pull tab control log to the amount of
revenue recognized.

\(c\) *Access.* Access to pull tabs shall be restricted to authorized
persons.

\(d\) *Transfers.* Transfers of pull tabs from storage to the sale
location shall be secured and independently controlled.

\(e\) *Winning pull tabs*.

\(1\) Winning pull tabs shall be verified and paid as follows:

\(i\) Prize payouts of \$100 or more shall be verified and witnessed by
at least two agents, documentation required.

\(ii\) For automated payout systems that initiate, validate, and print
the dollar amount of the payout on a system-generated form, only one
agent signature verifying and witnessing the payout is required on the
form for a payout of \$100 or more and less than \$600. If the agent can
input or change the dollar amount of the payout by more than \$1 in the
automated system, two agents must verify and witness the payout and sign
the form. For all payouts of \$600 or more, two agents must verify and
witness the payout and sign the form.

\(iii\) Prize payouts over a predetermined amount shall require the
signature and verification of a supervisory or management agent
independent of the pull tab department (in addition to the two
signatures required in paragraph (e) (1) (i) of this section).
Alternatively, if an automated payout system is utilized, only two
signatures are required: one agent and one supervisory or management
agent independent of the pull tab department. This predetermined amount
shall be authorized by management (as approved by the Tribal Gaming
Regulatory Authority), documented, and maintained.

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\(iv\) Total payout shall be computed and recorded by shift.

\(v\) The winning pull tabs shall be voided so that they cannot be
presented for payment again.

\(2\) Personnel independent of pull tab operations shall verify the
amount of winning pull tabs redeemed each day.

\(f\) *Accountability form*.

\(1\) All funds used to operate the pull tab game shall be recorded on
an accountability form.

\(2\) All funds used to operate the pull tab game shall be counted
independently by at least two persons and reconciled to the recorded
amounts at the end of each shift or session. Unverified transfers of
cash and/or cash equivalents are prohibited. (Revised August 12, 2005)

\(g\) *Standards for statistical reports*.

\(1\) Records shall be maintained, which include win, write (sales), and
a win-to-write hold percentage as compared to the theoretical hold
percentage derived from the flare, for each deal or type of game, for:

\(i\) Each shift;

\(ii\) Each day;

\(iii\) Month-to-date; and

\(iv\) Year-to-date or fiscal year-to-date as applicable.

\(2\) A manager independent of the pull tab operations shall review
statistical information at least on a monthly basis and shall
investigate any large or unusual statistical fluctuations. These
investigations shall be documented, maintained for inspection, and
provided to the Tribal gaming regulatory authority upon request.

\(3\) Each month, the actual hold percentage shall be compared to the
theoretical hold percentage. Any significant variations (3%) shall be
investigated.

\(h\) *Electronic equipment*.

\(1\) If the gaming operation utilizes electronic equipment in
connection with the play of pull tabs, then the following standards
shall also apply.

\(i\) If the electronic equipment contains a financial instrument
acceptor, then §543. XX (e) and (f), §543.XX (e) and (f), or §543.XX (e)
and (f) (as applicable) shall apply. (Revised May 4, 2005)

\(ii\) If the electronic equipment uses a bar code or microchip reader,
the reader shall be tested periodically to determine that it is
correctly reading the bar code or microchip.

\(iii\) If the electronic equipment returns a voucher or a payment slip
to the player, then §542.13(n) (as applicable) shall apply.

\(iv\) If the electronic equipment utilizes patron account access cards
for activation of play, then §542.13(o) (as applicable) shall apply.
(Adopted May 11, 2006)

\(2\) \[Reserved\]