Mich. Admin. Code R. 432.1903 - Board approval of internal control system
Rule 903.
(1) A
licensee shall describe, in a manner that the board may approve or require, its
administrative and accounting procedures in detail in a written system of
internal control. A written system of internal controls shall include a
detailed narrative description of the administrative and accounting procedures
designed to satisfy the requirements of these rules.
Additionally, the description shall include a separate section for all of the following:
(a)
An organizational chart depicting appropriate segregation of functions and
responsibilities.
(b) A description
of the duties and responsibilities of each position shown on the organizational
chart.
(c) A detailed, narrative
description of the administrative and accounting procedures designed to satisfy
the requirements of these rules. Additionally, the description shall include a
separate section for all of the following:
(i)
Physical characteristics of the drop box and tip box.
(ii) Transportation of drop and tip boxes to
and from gaming tables.
(iii)
Procedures for table inventories.
(iv) Procedures for opening and closing
gaming tables.
(v) Procedures for
fills and credits.
(vi) Procedures
for accepting and reporting tips and gratuities.
(vii) Procedures for transporting chips to
and from gaming tables.
(viii)
Procedures for shift changes at gaming tables.
(ix) Procedures for chip purchases.
(x) Procedures for the transportation of
EGDs.
(xi) Procedures for hand-paid
jackpots.
(xii) Layout and physical
characteristics of the cashier's cage.
(xiii) Procedures for accounting
controls.
(xiv) Procedures for the
exchange of checks submitted by gaming patrons.
(xv) Procedures for credit card and debit
card transactions.
(xvi) Procedures
for the acceptance, accounting for, and redemption of, patron's cash
deposits.
(xvii) Procedures for the
control of coupon redemption and other complimentary distribution
programs.
(xviii) Procedures for
federal cash transactions reporting.
(xix) Procedures for computer backups and
assuring the retention of financial and gambling operation.
(d) Other items as the board may
require.
(2) Not less
than 90 days before the gambling operation commences, unless otherwise directed
by the board, a licensee shall submit, to the board, a written description of
its internal control system that is designed to satisfy the requirements of
subrule (1) of this rule.
(3) If
the written system is the initial submission to the board, then a letter shall
be submitted from an independent certified public accountant selected by the
board stating that the licensee's written system has been reviewed by the
accountant and is in compliance with the requirements of subrule (1) of this
rule.
(4) The board shall review
each submission required by subrule (2) of this rule and shall determine
whether it conforms to the requirements of subrule (1) of this rule and whether
the system submitted provides adequate and effective controls for the
operations of the licensee. If the board finds any insufficiencies, then the
board shall specify the insufficiencies, in writing, and submit the written
insufficiencies to the licensee. The licensee shall make appropriate
alterations. A licensee shall not commence gambling operations until a system
of internal controls is approved.
Notes
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