§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 1 of 10  NIGC VERSION 

11/30/2011 

On October 8, 2008, the NIGC published final Class III MICS in the Federal Register. 73 FR 

60492. The effective date of that rule has been postponed until 2012. 76 FR 53817.In 2010, the 

NIGC posted on its web-site draft Class II MICS. The 2010 draft regulations did not suggest new 

language for § 543.3. Because there is no draft 2010 regulation, this document will compare 

the TGWG MICS proposal to the 2008 MICS published in the Federal Register. 

Editing convention: The words in blue (underlined) and red (struck-through) are the additions and 

deletions made by the TGWG.  

2008 Proposed MICS TGWG Version 

§ 543.3 How do tribal governments comply 

with this part? 

(a) Compliance based upon tier. [Reserved] 

(b) Determination of tier. [Reserved] 

(c) Tribal internal control standards. Within six 

months of October 10, 2008, each tribal 

gaming regulatory authority must, in 

accordance with the tribal gaming ordinance, 

establish or ensure that tribal internal control 

standards are established and implemented that 

must: 

(1) Provide a level of control that equals or 

exceeds those set forth in this part; and 

(2) Contain standards to identify, detect and 

deter money laundering in furtherance of a 

criminal enterprise, terrorism, tax evasion or 

other unlawful activity. The standards should 

be designed to facilitate the keeping of records 

and the filing of reports with the appropriate 

federal regulatory and law enforcement 

authorities. 

(3) Establish a deadline, which must not exceed 

six months from the date the tribal gaming 

regulatory authority establishes internal 

controls by which a gaming operation must 

come into compliance with the tribal internal 

control standards. However, the tribal gaming 

regulatory authority may extend the deadline 

by an additional six months if written notice 

citing justification is provided to the 

Commission no later than two weeks before the 

expiration of the six month period. 

(d) Gaming operations. Each gaming operation 

must develop and implement an internal 

control system that, at a minimum, complies 

with the tribal internal control standards. 

(1) Existing gaming operations. All gaming 

§ 543.3 How do tribal governments comply 

with this part? 

(a) Compliance based upon tier. 

[Reserved] 

(b) Determination of tier. [Reserved] 

(a) Determination of tier.  

(1) The determination of tier level shall be 

made based upon the annual gross gaming 

revenues indicated within the gaming 

operation's audited financial statements.   

(2) Gaming operations moving from one tier 

to another shall have nine (9) months from the 

date of the independent certified public 

accountant's audit report to achieve 

compliance with the requirements of the new 

tier.  The TGRA may extend the deadline by 

an additional six (6) months if written notice 

is provided to the Commission no later than 

two (2) weeks before the expiration of the 

nine (9) month period. 

 (c) Tribal internal control standards. Within 

six months of October 10, 2008, each tribal 

gaming regulatory authority b) TICS. TGRAs 

shall ensure that TICS are established and 

implemented that provide a level of control 

that equals or exceeds those set forth in this 

part. 

(1) Evaluation of Existing TICS.  Each TGRA 

must, in accordance with the tribal gaming 

ordinance, establish or ensure that tribal 

internal control standards are established and 

implemented that must: determine whether 

and to what extent their TICS require revision 

to ensure compliance with this part.   

(1) Provide a level of control that equals or 

exceeds those set forth in this part; and 

(2) Contain standards to identify, detect and 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 2 of 10  NIGC VERSION 

11/30/2011 

operations that are operating on or before 

November 10, 2008, must comply with this 

part within the time requirements established in 

paragraph (c) of this section. In the interim, 

such operations must continue to comply with 

existing tribal internal control standards. 

(2) New gaming operations. All gaming 

operations that commence operations after 

April 10, 2009, must comply with this part 

before commencement of operations. 

(e) Submission to Commission. Tribal 

regulations promulgated pursuant to this part 

are not required to be submitted to the 

Commission pursuant to Sec. 522.3(b) of this 

chapter. 

(f) CPA testing. (1) An independent certified 

public accountant (CPA) must be engaged to 

perform "Agreed-Upon Procedures" to verify 

that the gaming operation is in compliance with 

the minimum internal control standards (MICS) 

set forth in this part or a tribally approved 

variance thereto that has received Commission 

concurrence. The CPA must report each event 

and procedure discovered by or brought to the 

CPA's attention that the CPA believes does not 

satisfy the minimum standards or tribally 

approved variance that has received 

Commission concurrence. The "Agreed-Upon 

Procedures" may be performed in conjunction 

with the annual audit. The tribe must submit 

two copies of the report to the Commission 

within 120 days of the gaming operation's 

fiscal year end. In performing the compliance 

audit, the CPA 

must use the Statements on Standards for 

Attestation Engagements No. 10 at Sections 

101 ("Attest Engagements") and 201 ("Agreed-

Upon Procedures Engagements") (collectively 

"SSAE's"), July 12, 2007, American Institute of 

Certified Public Accountants Inc, (AICPA). 

SSAE No. 10 at Sections 101 and 201 are 

incorporated by reference into this section 

with the approval of the Director of the Federal 

Register under 5 U.S.C. 552(a) and 1 CFR part 

51. To enforce any edition other than that 

specified in this section, the Commission must 

publish notice of change in the Federal Register 

and the material must be available to the 

public. You may obtain a copy from the 

deter money laundering in furtherance of a 

criminal enterprise, terrorism, tax evasion or 

other unlawful activity. The standards should 

be designed to facilitate the keeping of 

records and the filing of reports with the 

appropriate federal regulatory and law 

enforcement authorities. Compliance Date.  

All changes necessary to ensure compliance 

with this part shall be promulgated within 

twelve (12) months from the effective date of 

this part and implemented at the 

commencement at the next fiscal year.   At the 

discretion of the TGRA, gaming operations 

may have an additional six (6) months to 

come into compliance with the TICS. 

(3) Establish a deadline, which must not 

exceed six months from the date the tribal 

gaming regulatory authority establishes 

internal controls by which a gaming operation 

must come into compliance with the tribal 

internal control standards. However, the tribal 

gaming regulatory authority may extend the 

deadline by an additional six months if written 

notice citing justification is provided to the 

Commission no later than two weeks before 

the expiration of the six month period. 

(d) Gaming operations. c) SICS.  Each 

gaming operation must develop and 

implement an internal control system a SICS 

that, at a minimum, complies with the tribal 

internal control standards TICS. 

(1) Existing gaming operations. All gaming 

operations that are operating on or before 

November 10, 2008, the effective date of this 

part, must comply with this part within the 

time requirements established in paragraph 

(cb) of this section. In the interim, such 

operations must continue to comply with 

existing tribal internal control standards TICS. 

(2) New gaming operations. All gaming 

operations that commence operations after 

April 10, 2009, the effective date of this part, 

must comply with this part before 

commencement of operations. 

(ed) Submission to Commission. Tribal 

regulations promulgated pursuant to this part 

are not required to be submitted to the 

Commission pursuant to Sec. 522.3(b) of this 

chapter. 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 3 of 10  NIGC VERSION 

11/30/2011 

American Institute of Certified Public 

Accountants, 220 Leigh Farm Rd., Durham, 

NC 27707, 1-888-777-7077, at 

http://www.aicpa.org. You may inspect a copy 

at the National Indian Gaming Commission, 

1441 L Street, NW., Suite 9100, Washington, 

DC 20005, 202-632-7003. All approved 

material is available for inspection at the 

National Archives and Records Administration 

(NARA). For information on the availability of 

this material at NARA, call 202-741-6030 or 

go to 

http://www.archives.gov/federal_register/code

_of_federal_regulations/ibr_locations.html. 

The CPA must perform the "Agreed-Upon 

Procedures" in accordance with the following: 

(i) As a prerequisite to the evaluation of the 

gaming operation's internal control systems, it 

is recommended that theCPA obtain and 

review an organization chart depicting 

segregation of functions and responsibilities, a 

description of the duties and responsibilities of 

each position shown on the organization chart, 

and an accurate, detailed narrative description 

of the gaming operation's procedures in effect 

that demonstrate compliance. 

(ii) Complete the CPA NIGC MICS 

Compliance checklists or other comparable 

testing procedures. The checklists should 

measure compliance on a sampling basis by 

performing inspections, observations and 

substantive testing. The CPA must complete 

separate checklists for bingo and information 

technology. All questions on each applicable 

checklist should be completed. Work-paper 

references are suggested for all "no" responses 

for the results obtained during testing (unless a 

note in the "W/P Ref" can explain the 

exception). 

(iii) The CPA must perform, at a minimum, the 

following procedures in conjunction with the 

completion of the checklists: 

(A) At least one unannounced observation of 

each of the following: financial instrument 

acceptor drop and count. For purposes of these 

procedures, unannounced" means that no 

officers, directors, or employees are given 

advance information regarding the dates or 

times of such observations. The independent 

(f) CPA testing. e) Enforcement of 

Commission MICS. 

(1) An independent certified public 

accountant (CPA) must be engaged to 

perform ‘‘Agreed-Upon Procedures’’ to 

verify that the gaming operation is in 

compliance with the minimum internal control 

standards (MICS) set forth in this part or a 

tribally approved variance thereto that has 

received Commission concurrence. The CPA 

must report each event and procedure 

discovered by or brought to the CPA’s 

attention that the CPA believes does not 

satisfy the minimum standards or tribally 

approved variance that has received 

Commission concurrence. The ‘‘Agreed-

Upon Procedures’’ may be performed in 

conjunction with the annual audit. The tribe 

must submit two copies of the report to the 

Commission within 120 days of the gaming 

operation’s fiscal year end. In performing the 

compliance audit, the CPA must use the 

Statements on Standards for Attestation 

Engagements No. 10 at Sections 101 (‘‘Attest 

Engagements’’) and 201 (‘‘Agreed-Upon 

Procedures Engagements’’) (collectively 

‘‘SSAE’s’’), July 12, 2007, American 

Institute of Certified Public Accountants Inc, 

(AICPA). SSAE No. 10 at Sections 101 and 

201 are incorporated by reference into this 

section with the approval of the Director of 

the Federal Register under 5 U.S.C. 552(a) 

and 1 CFR part 51. To enforce any edition 

other than that specified in this section, the 

Commission must publish notice of change in 

the Federal Register and the material must be 

available to the public. You may obtain a 

copy from the American Institute of Certified 

Public Accountants, 220 Leigh Farm Rd., 

Durham, NC 27707, 1–888–777–7077, at 

http://www.aicpa.org. You may inspect 

a copy at the National Indian Gaming 

Commission, 1441 L Street, NW., Suite 9100, 

Washington, DC 20005, 202–632– 7003. All 

approved material is available for inspection 

at the National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741– 6030 or go to 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 4 of 10  NIGC VERSION 

11/30/2011 

accountant should make arrangements with the 

gaming operation and tribal gaming regulatory 

authority to ensure proper identification of the 

CPA's personnel and to provide for their 

prompt access to the count rooms. The 

checklists should provide for drop and count 

observations. The count room should not be 

entered until the count is in process and the 

CPA should not leave the room until the 

monies have been counted and verified to the 

count sheet by the CPA and accepted into 

accountability. 

(B) Observations of the gaming operation's 

agents as they perform their duties. 

(C) Interviews with the gaming operation's 

agents who perform the relevant procedures. 

(D) Compliance testing of various documents 

relevant to the procedures. The scope of such 

testing should be indicated on the checklist 

where applicable. 

(E) For new gaming operations that have been 

in operation for three months or less at the end 

of their business year, performance of this 

regulation, this section, is not required for the 

partial period. 

(2) Alternatively, at the discretion of the tribe, 

the tribe may engage an independent CPA to 

perform the testing, observations and 

procedures reflected in paragraphs (f)(1)(i), (ii), 

and (iii) of this section utilizing the tribal 

internal control standards adopted by the tribal 

gaming regulatory authority or tribally 

approved variance that has received 

Commission concurrence. Accordingly, the 

CPA will verify compliance by the gaming 

operation with the tribal internal control 

standards. Should the tribe elect this 

alternative, as a prerequisite, the CPA will 

perform the following: 

(i) The CPA must compare the tribal internal 

control standards to the MICS to ascertain 

whether the criteria set forth in the MICS or 

Commission approved variances are adequately 

addressed. 

(ii) The CPA may utilize personnel of the tribal 

gaming regulatory authority to cross-reference 

the tribal internal control standards to the 

MICS, provided the CPA performs a review of 

the tribal gaming regulatory authority 

ttp://www.archives.gov/federalLregister/code

LofLfederalLregulations/ibrLlocations.html. 

The CPA must perform the ‘‘Agreed-Upon 

Procedures’’ in accordance with the 

following: 

(i) As a prerequisite to the evaluation of the 

gaming operation’s internal control systems, it 

is recommended that the CPA obtain and 

review an organization chart depicting 

segregation of functions and responsibilities, a 

description of the duties and responsibilities 

of each position shown on the organization 

chart, and an accurate, detailed narrative 

description of the gaming operation’s 

procedures in effect that demonstrate 

compliance. 

(ii) Complete the CPA NIGC MICS 

Compliance checklists or other comparable 

testing procedures. The checklists should 

measure compliance on a sampling basis by 

performing inspections, observations and 

substantive testing. The CPA must complete 

separate checklists for bingo and information 

technology. All questions on each applicable 

checklist should be completed. Work-paper 

references are suggested for all ‘‘no’’ 

responses for the results obtained during 

testing (unless a note in the ‘‘W/P Ref’’ can 

explain the exception). 

(iii) The CPA must perform, at a minimum, 

the following procedures in conjunction with 

the completion of the checklists: 

(A) At least one unannounced observation of 

each of the following: financial instrument 

acceptor drop and count. For purposes of 

these procedures, ‘‘unannounced’’ means that 

no officers, directors, or employees are given 

advance information regarding the dates or 

times of such observations. The independent 

accountant should make arrangements with 

the gaming operation and tribal gaming 

regulatory authority to ensure proper 

identification of the CPA’s personnel and to 

provide for their prompt access to the count 

rooms. The checklists should provide for drop 

and count observations. The count room 

should not be entered until the count is in 

process and the CPA should not leave the 

room until the monies have been counted and 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 5 of 10  NIGC VERSION 

11/30/2011 

personnel's work and assumes complete 

responsibility for the proper completion of the 

work product. 

(iii) The CPA must report each procedure 

discovered by or brought to the CPA's attention 

that the CPA believes does not satisfy 

paragraph (f)(2)(i) of this section. 

(3) Reliance on Internal Auditors. (i) The CPA 

may rely on the work of an internal auditor, to 

the extent allowed by the professional 

standards, for the performance of the 

recommended procedures specified in 

paragraphs (f)(1)(iii)(B), (C), and (D) of this 

section, and for the completion of the 

checklists as they relate to the procedures 

covered therein. 

(ii) Agreed-upon procedures are to be 

performed by the CPA to determine that the 

internal audit procedures performed for a past 

12-month period (includes two six month 

periods) encompassing a portion or all of the 

most recent business year has been properly 

completed. The CPA will apply the following 

agreed-upon procedures to the gaming 

operation's written assertion: 

(A) Obtain internal audit department work-

papers completed for a 12-month period 

(includes two six month periods) encompassing 

a portion or all of the most recent business year 

and determine whether the CPA NIGC MICS 

Compliance Checklists or other comparable 

testing procedures were included in the internal 

audit work-papers and all steps described in the 

checklists were initialed or signed by an 

internal audit representative. 

(B) For the internal audit work-papers obtained 

in paragraph (f)(3)(ii)(A) of this section, on a 

sample basis, re-perform the procedures 

included in CPA NIGC MICS Compliance 

Checklists or other comparable testing 

procedures prepared by internal audit and 

determine if all instances of noncompliance 

noted in the sample were documented as such 

by internal audit. The CPA NIGC MICS 

Compliance Checklists or other comparable 

testing procedures for the applicable Drop and 

Count procedures are not included in the 

sample re-performance of procedures because 

the CPA is required to perform the drop and 

verified to the count sheet by the CPA and 

accepted into accountability. 

(B) Observations of the gaming operation’s 

agents as they perform their duties. 

(C) Interviews with the gaming operation’s 

agents who perform the relevant procedures. 

(D) Compliance testing of various documents 

relevant to the procedures. The scope of such 

testing should be indicated on the checklist 

where applicable. 

(E) For new gaming operations that have been 

in operation for three months or less at the end 

of their business year, performance of this 

regulation, this section, is not required for the 

partial period. 

(2) Alternatively, at the discretion of the tribe, 

the tribe may engage an independent CPA to 

perform the testing, observations and 

procedures reflected in paragraphs (f)(1)(i), 

(ii), and (iii) of this section utilizing the tribal 

internal control standards adopted by the 

tribal gaming regulatory authority or tribally 

approved variance that has received 

Commission concurrence. Accordingly, the 

CPA will verify compliance by the gaming 

operation with the tribal internal control 

standards. Should the tribe elect this 

alternative, as a prerequisite, the CPA will 

perform thefollowing: 

(i) The CPA must compare the tribal internal 

control standards to the MICS to ascertain 

whether the criteria set forth in the MICS or 

Commission approved variances are 

adequately addressed. 

(ii) The CPA may utilize personnel of the 

tribal gaming regulatory authority to cross-

reference the tribal internal control standards 

to the MICS, provided the CPA performs a 

review of the tribal gaming regulatory 

authority personnel’s work and assumes 

complete responsibility for the proper 

completion of the work product. 

(iii) The CPA must report each procedure 

discovered by or brought to the CPA’s 

attention that the CPA believes does not 

satisfy paragraph (f)(2)(i) of this section. 

(3) Reliance on Internal Auditors.  

(i) The CPA may rely on the work of an 

internal auditor, to the extent allowed by the 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 6 of 10  NIGC VERSION 

11/30/2011 

count observations as required under paragraph 

(f)(1)(iii)(A) of this section of the agreed-upon 

procedures. The CPA's sample should comprise 

a minimum of three percent of the procedures 

required in each CPA NIGC MICS Compliance 

Checklist or other comparable testing 

procedures for the bingo department and five 

percent for the other departments completed by 

internal audit in compliance with the internal 

audit MICS. The re-performance of procedures 

is performed as follows: 

(1) For inquiries, the CPA should either speak 

with the same individual or an individual of the 

same job position as the internal auditor did for 

the procedure indicated in the CPA checklist. 

(2) For observations, the CPA should observe 

the same process as the internal auditor did for 

the procedure as indicated in their checklist. 

(3) For document testing, the CPA should look 

at the same original document as tested by the 

internal auditor for the procedure as indicated 

in their checklist. The CPA need only retest the 

minimum sample size required in the checklist. 

(C) The CPA is to investigate and document 

any differences between their re-performance 

results and the internal audit results. 

(D) Documentation must be maintained for five 

years by the CPA indicating the procedures re-

performed along with the results. 

(E) When performing the procedures for 

paragraph (f)(3)(ii)(B) of this section in 

subsequent years, the CPA must select a 

different sample so that the CPA will re-

perform substantially all of the procedures after 

several years. 

(F) Additional procedures performed at the 

request of the Commission, the tribal gaming 

regulatory authority or management should be 

included in the Agreed-Upon Procedures report 

transmitted to the Commission. 

(4) Report Format. The NIGC has concluded 

that the performance of these procedures is an 

attestation engagement in which the CPA 

applies such Agreed-Upon Procedures to the 

gaming operation's assertion that it is in 

compliance with the MICS and, if applicable 

under paragraph (f)(2) of this section, the tribal 

internal control standards and approved 

variances, provide a level of control that equals 

professional standards, for the performance of 

the recommended procedures specified in 

paragraphs (f)(1)(iii)(B), (C), and (D) of this 

section, and for the completion of the 

checklists as they relate to the procedures 

covered therein. 

(ii) Agreed-upon procedures are to be 

performed by the CPA to determine that the 

internal audit procedures performed for a past 

12-month period (includes two six month 

periods) encompassing a portion or all of the 

most recent business year has been properly 

completed. The CPA will apply the following 

agreed-upon procedures to the gaming 

operation’s written assertion: 

(A) Obtain internal audit department work-

papers completed for a 12-month period 

(includes two six month periods) 

encompassing a portion or all of the most 

recent business year and determine whether 

the CPA NIGC MICS Compliance Checklists 

or other comparable testing procedures were 

included in the internal audit workpapers and 

all steps described in the checklists were 

initialed or signed by an internal audit 

representative. 

(B) For the internal audit work-papers 

obtained in paragraph (f)(3)(ii)(A) of this 

section, on a sample basis, re-perform the 

procedures included in CPA NIGC MICS 

Compliance Checklists or other comparable 

testing procedures prepared by internal audit 

and determine if all instances of 

noncompliance noted in the sample were 

documented as such by internal audit. The 

CPA NIGC MICS Compliance Checklists or 

other comparable testing procedures for the 

applicable Drop and Count procedures are not 

included in the sample reperformance of 

procedures because the CPA is required to 

perform the drop and count observations as 

required under paragraph (f)(1)(iii)(A) of this 

section of the agreed-upon procedures. The 

CPA’s sample should comprise a minimum of 

three percent of the procedures required in 

each CPA NIGC MICS Compliance Checklist 

or other comparable testing procedures for the 

bingo department and five percent for the 

other departments completed by internal audit 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 7 of 10  NIGC VERSION 

11/30/2011 

or exceeds that of the MICS. Accordingly, the 

Statements on Standards for Attestation 

Engagements (SSAE's), specifically SSAE 10, 

at Sections 101 and 201 are applicable. SSAE 

10 provides current, pertinent guidance 

regarding agreed-upon procedure engagements, 

and the sample report formats included within 

those standards should be used, as appropriate, 

in the preparation of the CPA's agreed-upon 

procedures report. If future revisions are made 

to this standard or new SSAE's are adopted that 

are applicable to this type of engagement, the 

CPA is to comply with any revised professional 

standards in issuing their agreed upon 

procedures report. The Commission will 

provide an example report and letter formats 

upon request that may be used and contain all 

of the information discussed below. The report 

must describe all instances of procedural 

noncompliance (regardless of materiality) with 

the MICS or approved variations, and all 

instances where the tribal gaming regulatory 

authority's regulations do not comply with the 

MICS. When describing the agreed-upon 

procedures performed, the CPA should also 

indicate whether procedures performed by 

other individuals were utilized to substitute for 

the procedures required to be performed by the 

CPA. For each instance of noncompliance 

noted in the CPA's agreed-upon procedures 

report, the following information must be 

included: The citation of the applicable MICS 

for which the instance of noncompliance was 

noted; a narrative description of the 

noncompliance, including the number of 

exceptions and sample size tested. 

(5) Report Submission Requirements.  

(i) The CPA must prepare a report of the 

findings for the tribe and management. The 

tribe must submit two copies of the report to 

the Commission no later than 120 days after 

the gaming operation's business year end. This 

report should be provided in addition to any 

other reports required to be submitted to the 

Commission. 

(ii) The CPA should maintain the work-papers 

supporting the report for a minimum of five 

years. Digital storage is acceptable. The 

Commission may request access to these work-

in compliance with the internal audit MICS. 

The re-performance of procedures is 

performed as follows: 

(1) For inquiries, the CPA should either speak 

with the same individual or an individual of 

the same job position as the internal auditor 

did for the procedure indicated in the CPA 

checklist. 

(2) For observations, the CPA should observe 

the same process as the internal auditor did 

for the procedure as indicated in their 

checklist. 

(3) For document testing, the CPA should 

look at the same original document as tested 

by the internal auditor for the procedure as 

indicated in their checklist. The CPA need 

only retest the minimum sample size required 

in the checklist. 

(C) The CPA is to investigate and document 

any differences between their re-performance 

results and the internal audit results. 

(D) Documentation must be maintained for 

five years by the CPA indicating the 

procedures re-performed along with the 

results. 

(E) When performing the procedures for 

paragraph (f)(3)(ii)(B) of this section in 

subsequent years, the CPA must select a 

different sample so that the CPA will re-

perform substantially all of the procedures 

after several years. 

(F) Additional procedures performed at the 

request of the Commission, the tribal gaming 

regulatory authority or management should be 

included in the Agreed-Upon Procedures 

report transmitted to the Commission. 

(4) Report Format. The NIGC has concluded 

that the performance of these procedures is an 

attestation engagement in which the CPA 

applies such Agreed- Upon Procedures to the 

gaming operation’s assertion that it is in 

compliance with the MICS and, if applicable 

under paragraph (f)(2) of this section, the 

tribal internal control standards and approved 

variances, provide a level of control that 

equals or exceeds that of the MICS.  

Accordingly, the Statements on Standards for 

Attestation Engagements (SSAE’s), 

specifically SSAE 10, at Sections 101 and 201 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 8 of 10  NIGC VERSION 

11/30/2011 

papers, through the tribe. 

(6) CPA NIGC MICS Compliance Checklists. 

In connection with the CPA testing pursuant to 

this section and as referenced therein, the 

Commission will provide CPA MICS 

Compliance Checklists upon request. 

(g) Enforcement of Commission Minimum 

Internal Control Standards. 

(1) Each tribal gaming regulatory authority is 

required to establish and implement internal 

control standards pursuant to paragraph (c) of 

this section. Each gaming operation is then 

required, pursuant to paragraph (d) of this 

section, to develop and implement an internal 

control system that complies with the tribal 

internal control standards. Failure to do so may 

subject the tribal operator of the gaming 

operation, or the management contractor, to 

penalties under 25 U.S.C. 2713. 

(2) Recognizing that tribes are the primary 

regulator of their gaming operation(s), 

enforcement action by the Commission will not 

be initiated under this part without first 

informing the tribe and tribal gaming 

regulatory authority of deficiencies in the 

internal controls of its gaming operation and 

allowing a reasonable period of time to address 

such deficiencies. Such prior notice and 

opportunity for corrective action is not required 

where the threat to the integrity of the gaming 

operation is immediate and severe. 

are applicable. SSAE 10 provides current, 

pertinent guidance regarding agreed-upon 

procedure engagements, and the sample report 

formats included within those standards 

should be used, as appropriate, in the 

preparation of the CPA’s agreed-upon 

procedures report. If future revisions are made 

to this standard or new SSAE’s are adopted 

that are applicable to this type of engagement, 

the CPA is to comply with any revised 

professional standards in issuing their agreed 

upon procedures report. The Commission will 

provide an example report and letter formats 

upon request that may be used and contain all 

of the information discussed below. The 

report must describe all instances of 

procedural noncompliance (regardless of 

materiality) with the MICS or approved 

variations, and all instances where the tribal 

gaming regulatory authority’s regulations do 

not comply with the MICS. When describing 

the agreed-upon procedures performed, the 

CPA should also indicate whether procedures 

performed by other individuals were utilized 

to substitute for the procedures required to be 

performed by the CPA. For each instance of 

noncompliance noted in the CPA’s agreed-

upon procedures report, the following 

information must be included: The citation of 

the applicable MICS for which the instance of 

noncompliance was noted; a narrative 

description of the noncompliance, including 

the number of exceptions and sample size 

tested. 

(5) Report Submission Requirements. 

(i) The CPA must prepare a report of the 

findings for the tribe and management. The 

tribe must submit two copies of the report to 

the Commission no later than 120 days after 

the gaming operation’s business year end. 

This report should be provided in addition to 

any other reports required to be submitted to 

the Commission. 

(ii) The CPA should maintain the work-papers 

supporting the report for a minimum of five 

years. Digital storage is acceptable. The 

Commission may request access to these 

work-papers, through the tribe. 

(6) CPA NIGC MICS Compliance Checklists. 

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 9 of 10  NIGC VERSION 

11/30/2011 

In connection with the CPA testing pursuant 

to this section and as referenced therein, the 

Commission will provide CPA MICS 

Compliance Checklists upon request. 

(g) Enforcement of Commission Minimum 

Internal Control Standards. 

(1) Each tribal gaming regulatory authority 

TGRA is required to establish and implement 

internal control standards TICS pursuant to 

paragraph (cb) of this section. Each gaming 

operation is then required, pursuant to 

paragraph (dc) of this section, to develop and 

implement an internal control system a SICS 

that complies with the tribal internal control 

standards TICS. Failure to do so may subject 

the tribal operator of the gaming operation, or 

the management contractor, to penalties under 

25 U.S.C. 2713. 

(2) Recognizing that tribes are the primary 

regulator of their gaming operation(s), 

enforcement action by the Commission will 

not be initiated under this part without first 

informing the tribe and tribal gaming 

regulatory authority TGRA of deficiencies in 

the internal controls SICS of its gaming 

operation and allowing a reasonable period of 

time to address such deficiencies. Such prior 

notice and opportunity for corrective action is 

not required where the threat to the integrity 

of the gaming operation is immediate and 

severe. 

NIGC Comments to TGWG Proposed Regulation 

(a)(2) “Date of the independent certified public accountant’s audit report” is confusing. Does this 

refer to the fiscal year-end date or the date on the CPA’s opinion page?  

(b)(2) Compliance Date:   

Twelve months from the effective date of the Final Rule for a TGRA to promulgate any changes 

appears to be an excessively long time just to develop changes to the TICS. The last sentence is 

confusing as it relates to implementation but does not indicate whether the TICS or the SICS are 

the documents being changed.  

Also, implementing at the beginning of the next fiscal year could possibly add on up to eleven 

months for compliance to regulations which purpose is to strengthen the internal control systems 

of a gaming operation.  

§543.3 How do tribal governments comply with this part?  

Comparison of July TGWG Submission to 2008 Proposed MICS  

Page 10 of 10  NIGC VERSION 

11/30/2011 

The CPA testing (543.7(f)) standards were deleted from the TGWG proposal. The CPA testing 

provisions are intended to provide Tribal gaming operations with a much needed level of review 

of the gaming operations internal controls over financial reporting as it relates to compliance with 

the MICS. The CPA’s Agreed Upon Procedures engagement is an independent evaluation of the 

gaming operation’s internal control systems and is usually the only independent evaluation that a 

Tribe will receive. These engagements may be invaluable to Tribes that maintain less than 

effective Internal Audit functions. And those Tribes whose internal audit functions are effective 

further benefit when the CPA firm determines it can rely on the work of the Internal Audit 

function in completing these engagements, resulting in reduced costs but more importantly, in the 

knowledge that the external CPA audit firm has determined that the work of the Internal Auditors 

can be relied upon.  

TGWG Guidance 

None