Iowa Code r. 491-12.3 - Facility internal controls
(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.
(2) A commission representative shall review
each submission required by subrule 12.3(1) and determine whether it conforms
to the requirements of Iowa Code chapter 99F and is consistent with the intent
of this chapter and whether the internal controls submitted provide adequate
and effective control for the operations of the facility. If the commission
representative finds any insufficiencies, the insufficiencies shall be
specified in writing to the facility, which shall make appropriate alterations.
No facility shall commence gaming operations unless and until the internal
controls are approved.
(3) Each
facility shall submit to the commission any changes to the internal controls
previously approved at least 15 days before the changes are to become effective
unless otherwise directed by a commission representative. The proposed changes
shall be submitted to the commission and the changes may be approved or
disapproved by the commission representative. No facility shall alter its
internal controls until the changes are approved.
(4) It shall be the affirmative
responsibility and continuing duty of each occupational licensee to follow and
comply with all internal controls.
Notes
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