§ 3518. Video gaming accounting controls and audits.

529 words·~2 min read·/pa/title-4/chapter-35/3518

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(a)Approval.-- Except as otherwise provided by this part, a terminal operator license applicant shall, in addition to obtaining a terminal operator license, obtain approval from the board in consultation with the department of its internal control systems and audit protocols prior to the installation and operation of video gaming terminals at licensed establishments.

(b)Minimum requirements.-- At a minimum, the applicant's proposed internal controls and audit protocols shall:

(1)Safeguard its assets and revenues, including, but not limited to, the recording of cash and cash equivalents and evidences of indebtedness related to the video gaming terminals.

(2)Provide for reliable records, accounts and reports of a financial event that occurs in the operation of a video gaming terminal, including reports to the board related to the video gaming terminals.

(3)Ensure that each video gaming terminal directly provides or communicates all required activities and financial details to the central control computer system as set by the board and the department.

(4)Provide for accurate and reliable financial records.

(5)Ensure a financial event that occurs in the operation of a video gaming terminal is performed only in accordance with the management's general or specific authorization, as approved by the board.

(6)Ensure that a financial event that occurs in the operation of a video gaming terminal is recorded adequately to permit proper and timely reporting of gross revenue and the calculation thereof and of fees and taxes and to maintain accountability for assets.

(7)Ensure that access to assets is permitted only in accordance with management's specific authorization, as approved by the board.

(8)Ensure that recorded accountability for assets is compared with actual assets at intervals as required by the board and appropriate action is taken with respect to discrepancies.

(9)Ensure that all functions, duties and responsibilities are appropriately segregated and performed in accordance with sound financial practices by competent, qualified personnel.

(10)Any other requirement of the board or the department.

(c)Internal control.-- A terminal operator license applicant shall submit to the board and department, in such manner as the board requires, a description of its administrative and accounting procedures in detail, including its written system of internal control. The written system of internal control shall include:

(1)Records of direct and indirect ownership in the proposed terminal operator licensee, its affiliate, intermediary, subsidiary or holding company.

(2)An organizational chart depicting appropriate segregation of employee functions and responsibilities.

(3)A description of the duties and responsibilities of each employee position shown on the organizational chart.

(4)A detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this section.

(5)Record retention policy.

(6)Procedure to ensure that assets are safeguarded, including mandatory count procedures.

(7)A statement signed by the chief financial officer of the terminal operator license applicant or other competent person and the chief executive officer of the terminal operator license applicant or other competent person attesting that the officer believes, in good faith, that the system satisfies the requirements of this section.

(8)Other items that the board or department may require in its discretion.

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