Iowa Administrative Code › Agency 491 - Racing and Gaming Commission › Chapter 12 - Accounting and Cash Control › Rule 491-12.3 - Facility Internal Controls

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
			 Each facility shall submit a description of internal controls to the
			 commission. The submission shall be made at least 90 days before gaming
			 operations are to commence unless otherwise directed by the administrator. The
			 submission shall include and provide for the following:
a. Administrative control that includes, but
			 is not limited to, the plan of organization and the procedures and records that
			 are concerned with the decision processes leading to management's levels of
			 authorization of transactions.
b.
			 Accounting control that includes the plan of organization and the procedures
			 and records that are concerned with the safeguarding of assets and the
			 reliability of financial records. The accounting control shall be designed to
			 provide reasonable assurance that:
(1)
			 Transactions are executed in accordance with management's general and specific
			 authorization, which shall be consistent with the requirements of this
			 chapter.
(2) Transactions are
			 recorded as necessary to permit preparation of financial statements in
			 conformity with generally accepted accounting principles and to maintain
			 accountability for assets.
(3)
			 Access to assets is permitted only in accordance with management authorization,
			 which shall be consistent with the requirements of this chapter.
(4) The recorded accountability for assets is
			 compared with existing assets at reasonable intervals and appropriate action is
			 taken with respect to any differences.
c. Competent personnel with integrity and an
			 understanding of prescribed internal controls.
d. The segregation of incompatible functions
			 so that no employee is in a position to perpetrate and conceal errors or
			 irregularities in the normal course of the employee's duties.
e. Surveillance internal controls that
			 include:
(1) Surveillance departments that
			 shall be operated in an autonomous fashion, as separate and distinct entities
			 from all other departments. A gaming facility's organizational structure shall
			 place the director of the surveillance department directly under the span of
			 control and authority of the operator's board of directors or appropriate
			 parent company executive where practical. Under no circumstances will the
			 director of surveillance report to or take direction from any authority at a
			 level below the general manager.
(2) Administration of the network for the
			 purpose of utilizing and transmitting live or recorded views or images of a
			 video surveillance system for asset protection, loss prevention, investigation
			 of tort/liability claims, game protection, employee oversight, resolution of
			 patron disputes, corporate governance, management analysis, or other use
			 consistent with a licensee's statutory responsibilities as approved by the
			 administrator.
(3) A system
			 maintenance plan that includes management of:
1. Installations, changes, movements, and
			 malfunctions;
2. A log of available
			 and completed system upgrades, updates, and patches, including
			 descriptions;
3. Universal power
			 supply (UPS) capability, live video and recording redundancies;
4. Electrical outages, emergency evacuation,
			 providing alternative coverage of dedicated areas for DCI approval;
			 and
5. Job descriptions and
			 training of employees responsible for system maintenance, and any external
			 maintenance agreements.
f. Game control, including but not limited to
			 procedures for the storage, removal and record of implements of gambling. The
			 gaming control shall be designed to document:
(1) Access to implements of gambling not in
			 use.
(2) Method for removal of
			 implements of gambling from an active gambling game.
(3) Procedures governing the record of total
			 inventory of implements of gambling, documenting both additions to and removal
			 from storage and active use.
g. Preverified card control, for use with
			 cards approved pursuant to 491-subrule 11.7(9). Controls shall be designed to
			 document:
(1) The procedure governing
			 inspection of the packaging when the cards are put into use on a live table
			 game, including verification of the tamper-evident seal and review of the
			 manufacturer-generated receipt for relevant details.
(2) The procedure for employee breaking of
			 the tamper-evident seal to sign the receipt with name, time the package is
			 being placed in use, and specific table where the package is being
			 used.
(3) The procedure and period
			 to retain the receipt and the details of use. The period of retention must
			 correspond with records maintained by the manufacturer of the cards in
			 accordance with the process submitted pursuant to 491-paragraph
			 11.7(9)
"b."
(4)
			 Any additional procedures that will be used to verify or randomize preverified
			 cards prior to play.