New Mexico Administrative Code › Title 15 - GAMBLING AND LIQUOR CONTROL › Chapter 1 - GAMES AND GAMING GENERAL PROVISIONS › Part 8 - ACCOUNTING REQUIREMENTS UNDER THE GAMING CONTROL ACT › Section 15.1.8.15 - SYSTEM OF INTERNAL CONTROL PROCEDURES FOR LICENSEES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Each licensee shall establish written
				administrative and accounting procedures for the purpose of verifying the
				licensee's liability for taxes under the act and for the purpose of exercising
				effective control over the licensee's internal financial affairs. The
				procedures shall be designed to satisfy the requirements, and include the
				provisions, set forth in Section
				60-2E-35
				of the act. In addition, the gaming operator licensee's or applicant's
				procedures shall meet the minimum standards established pursuant to board
				regulations.
B. The licensee shall
				not implement internal control procedures that do not satisfy the minimum
				standards unless the board, in its sole discretion, determines that the
				licensee's proposed internal control procedures satisfy the requirements set
				forth in Section
				60-2E-35
				of the act and approves the proposed system in writing. Within 30 days after a
				licensee receives notice of such approval, the licensee shall comply with the
				approved procedures, amend its written procedures as necessary, and submit to
				the board a copy of the written procedures as amended and a written description
				of the variations from the minimum control standards. The licensee's chief
				financial officer and either the licensee's chief executive officer or a
				licensed owner shall sign the report.
C. Each racetrack licensee shall require its
				independent certified public accountant to submit to the licensee, on an annual
				basis, two copies of a written report analyzing the licensee's compliance with
				approved procedures and minimum control standards. Using the criteria
				established by the board, the accountant shall report each event and procedure
				that the accountant believes does not satisfy the minimum standards or
				variations that have been approved by the board in writing pursuant to
				Subsection B of 15.1.8.15 NMAC. Not later than 120 days after the end of the
				licensee's business year, the licensee shall submit to the board a copy of the
				accountant's report and any other documentation relating to the licensee's
				items of noncompliance noted by the accountant and describing the corrective
				measures taken.
D. Before adding
				any computerized system for monitoring gaming machines or any computerized
				associated equipment, the licensee shall do the following:
(1) amend its accounting and administrative
				procedures and internal controls to comply with the minimum
				standards;
(2) submit to the board
				a copy of the procedures as amended and a written description of the amended
				procedures signed by the licensee's chief financial officer and either the
				licensee's chief executive officer or a licensed owner;
(3) comply with any requirements imposed by
				the board regarding administrative approval of computerized gaming machine
				monitoring systems or associated equipment; and
(4) after complying with Paragraph (1) of
				Subsection D of 15.1.8.15 NMAC through Paragraph (3) of Subsection D of
				15.1.8.15 NMAC above, implement the procedures as amended.