§ 542.14 What are the minimum internal control standards for the cage? ( a ) *Computer applications.* For any computer applications 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, will be acceptable.
( b ) *Personal checks, cashier's checks, payroll checks, and counter checks.* ( 1 ) If personal checks, cashier's checks, payroll checks, or counter checks are cashed at the cage, the Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with appropriate controls for purposes of security and integrity.
( 2 ) The Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with procedures for the acceptance of personal checks, collecting and recording checks returned to the gaming operation after deposit, re-deposit, and write-off authorization.
( 3 ) When counter checks are issued, the following shall be included on the check: ( i ) The customer's name and signature;
( ii ) The dollar amount of the counter check (both alpha and numeric);
( iii ) Customer's bank name and bank account number;
( iv ) Date of issuance; and
( v ) Signature or initials of the person approving the counter check transaction.
( 4 ) When traveler's checks or other guaranteed drafts such as cashier's checks are presented, the cashier shall comply with the examination and documentation procedures as required by the issuer.
( c ) *Customer deposited funds.* If a gaming operation permits a customer to deposit funds with the gaming operation at the cage, the following standards shall apply. ( 1 ) The receipt or withdrawal of a customer deposit shall be evidenced by at least a two-part document with one copy going to the customer and one copy remaining in the cage file.
( 2 ) The multi-part receipt shall contain the following information: ( i ) Same receipt number on all copies;
( ii ) Customer's name and signature;
( iii ) Date of receipt and withdrawal;
( iv ) Dollar amount of deposit/withdrawal; and
( v ) Nature of deposit (cash, check, chips); however,
( vi ) Provided all of the information in paragraph (c)(2)(i) through (v) is available, the only required information for all copies of the receipt is the receipt number.
( 3 ) The Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with procedures that: ( i ) Maintain a detailed record by customer name and date of all funds on deposit;
( ii ) Maintain a current balance of all customer cash deposits that are in the cage/vault inventory or accountability; and
( iii ) Reconcile this current balance with the deposits and withdrawals at least daily.
( 4 ) The gaming operation, as approved by the Tribal gaming regulatory authority, shall describe the sequence of the required signatures attesting to the accuracy of the information contained on the customer deposit or withdrawal form ensuring that the form is signed by the cashier.
( 5 ) All customer deposits and withdrawal transactions at the cage shall be recorded on a cage accountability form on a per-shift basis.
( 6 ) Only cash, cash equivalents, chips, and tokens shall be accepted from customers for the purpose of a customer deposit.
( 7 ) The Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with procedures that verify the customer's identity, including photo identification.
( 8 ) A file for customers shall be prepared prior to acceptance of a deposit.
( d ) *Cage and vault accountability standards.* ( 1 ) All transactions that flow through the cage shall be summarized on a cage accountability form on a per shift basis and shall be supported by documentation.
( 2 ) The cage and vault (including coin room) inventories shall be counted by the oncoming and outgoing cashiers. These employees shall make individual counts for comparison for accuracy and maintenance of individual accountability. Such counts shall be recorded at the end of each shift during which activity took place. All discrepancies shall be noted and investigated. Unverified transfers of cash and/or cash equivalents are prohibited.
( 3 ) The Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with a minimum bankroll formula to ensure the gaming operation maintains cash or cash equivalents (on hand and in the bank, if readily accessible) in an amount sufficient to satisfy obligations to the gaming operation's customers as they are incurred. A suggested bankroll formula will be provided by the Commission upon request.
( e ) *Chip and token standards.* The Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with procedures for the receipt, inventory, storage, and destruction of gaming chips and tokens.
( f ) *Coupon standards.* Any program for the exchange of coupons for chips, tokens, and/or another coupon program shall be approved by the Tribal gaming regulatory authority prior to implementation. If approved, the gaming operation shall establish and comply with procedures that account for and control such programs.
( g ) *Accounting/auditing standards.* ( 1 ) The cage accountability shall be reconciled to the general ledger at least monthly.
( 2 ) A trial balance of gaming operation accounts receivable, including the name of the customer and current balance, shall be prepared at least monthly for active, inactive, settled or written-off accounts.
( 3 ) The trial balance of gaming operation accounts receivable shall be reconciled to the general ledger each month. The reconciliation and any follow-up performed shall be documented, maintained for inspection, and provided to the Tribal gaming regulatory authority upon request.
( 4 ) On a monthly basis an evaluation of the collection percentage of credit issued to identify unusual trends shall be performed.
( 5 ) All cage and credit accounting procedures and any follow-up performed shall be documented, maintained for inspection, and provided to the Tribal gaming regulatory authority upon request.
( h ) *Extraneous items.* The Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with procedures to address the transporting of extraneous items, such as coats, purses, and/or boxes, into and out of the cage, coin room, count room, and/or vault.
[67 FR 43400, June 27, 2002, as amended at 70 FR 47107, Aug. 12, 2005]