68 IAC 15-8-1 - Applicability; general provisions
Authority: IC 4-33-4; IC 4-35-4
Affected: IC 4-33; IC 4-35
Sec. 1.
(a) This rule
applies to casino licensees.
(b)
The casino licensee must establish policies and procedures in connection with
the internal audit function of its casino operations, including, but not
limited to, the following:
(1) The casino
licensee or its parent company must establish an independent audit committee of
its board of directors, or equivalent board.
(2) The internal audit department or its
equivalent shall report directly to the independent audit committee of the
board of directors, or equivalent board. If the parent company of the casino
licensee establishes the independent audit committee, the internal audit
department or its equivalent may report to the person at the parent company who
is responsible for internal audit, who in turn shall report directly to the
independent audit committee.
(3)
The internal audit department must consist of at least two (2) full-time
on-site internal auditors.
(c) A casino licensee or its parent company
must establish policies that ensure the independence of the independent audit
committee, including, at least, the following:
(1) The chair of the independent audit
committee must be an independent director.
(2) The independent director must not, other
than in his or her capacity as a member of the independent audit committee, the
board of directors, or any other board committee:
(A) accept any consulting, advisory, or other
compensatory fee from the casino licensee or any affiliates;
(B) be a present employee or affiliate of the
casino licensee or any of its affiliates; or
(C) have a relationship with the casino
licensee that would affect his or her exercise of independent
judgment.
(3) An
independent director must fulfill all of the considerations for a financial
expert under
15 U.S.C.
7265(b).
(d) The casino licensee must
document all procedures and results of compliance testing performed under this
rule. All material instances of noncompliance with the submitted internal
controls must be investigated and reported immediately to the commission
staff.
(e) The casino licensee
shall submit quarterly reports to the commission staff. The quarterly reports
submitted under this section shall:
(1)
document the results of compliance testing under this rule;
(2) be submitted to the audit director at the
commission office in Indianapolis, Indiana, within thirty (30) days of the
close of the quarter that the report covers; and
(3) identify repeat findings and list all
corrective action that was taken or will be taken to avoid similar problems in
the future.
(f) At any
time errors are uncovered in the computation of win, the errors shall be
corrected and reported on Form RG-1 for the appropriate gaming day.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
Authority: IC 4-33-4; IC 4-35-4
Affected: IC 4-33; IC 4-35
Sec. 1.
(a) This rule applies to casino licensees.
(b) The casino licensee must establish policies and procedures in connection with the internal audit function of its casino operations, including, but not limited to, the following:
(1) The casino licensee or its parent company must establish an independent audit committee of its board of directors, or equivalent board.
(2) The internal audit department or its equivalent shall report directly to the independent audit committee of the board of directors, or equivalent board. If the parent company of the casino licensee establishes the independent audit committee, the internal audit department or its equivalent may report to the person at the parent company who is responsible for internal audit, who in turn shall report directly to the independent audit committee.
(3) The internal audit department must consist of at least two (2) full-time on-site internal auditors.
(c) A casino licensee or its parent company must establish policies that ensure the independence of the independent audit committee, including, at least, the following:
(1) The chair of the independent audit committee must be an independent director.
(2) The independent director must not, other than in his or her capacity as a member of the independent audit committee, the board of directors, or any other board committee:
(A) accept any consulting, advisory, or other compensatory fee from the casino licensee or any affiliates;
(B) be a present employee or affiliate of the casino licensee or any of its affiliates; or
(C) have a relationship with the casino licensee that would affect his or her exercise of independent judgment.
(3) An independent director must fulfill all of the considerations for a financial expert under 15 U.S.C. 7265(b).
(d) The casino licensee must document all procedures and results of compliance testing performed under this rule. All material instances of noncompliance with the submitted internal controls must be investigated and reported immediately to the commission staff.
(e) The casino licensee shall submit quarterly reports to the commission staff. The quarterly reports submitted under this section shall:
(1) document the results of compliance testing under this rule;
(2) be submitted to the audit director at the commission office in Indianapolis, Indiana, within thirty (30) days of the close of the quarter that the report covers; and
(3) identify repeat findings and list all corrective action that was taken or will be taken to avoid similar problems in the future.
(f) At any time errors are uncovered in the computation of win, the errors shall be corrected and reported on Form RG-1 for the appropriate gaming day.