Section 60-2E-35 - Internal control systems.
60-2E-35. Internal control systems.
A. Each gaming operator licensee shall adopt internal control systems that shall include provisions for:
(1) safeguarding its assets and revenues, especially the recording of cash and evidences of indebtedness;
(2) making and maintaining reliable records, accounts and reports of transactions, operations and events, including reports to the board; and
(3) a system by which the amount wagered on each gaming machine and the amount paid out by each gaming machine is recorded on a daily basis, which results may be obtained by the board by appropriate means as described in regulations adopted by the board; all manufacturers are required to have such a system available for gaming operators for the gaming machines that it supplies for use in New Mexico, and all distributors shall make such a system available to gaming operators.
B. The internal control system shall be designed to reasonably ensure that:
(1) assets are safeguarded;
(2) financial records are accurate and reliable;
(3) transactions are performed only in accordance with management's general or specific authorization;
(4) transactions are recorded adequately to permit proper reporting of gaming revenue and of fees and taxes and to maintain accountability of assets;
(5) access to assets is allowed only in accordance with management's specific authorization;
(6) recorded accountability for assets is compared with actual assets at reasonable intervals and appropriate action is taken with respect to any discrepancies; and
(7) functions, duties and responsibilities are appropriately segregated and performed in accordance with sound accounting and management practices by competent, qualified personnel.
C. A gaming operator licensee and an applicant for a gaming operator's license shall describe, in the manner the board may approve or require, its administrative and accounting procedures in detail in a written system of internal control. A gaming operator licensee and an applicant for a gaming operator's license shall submit a copy of its written system to the board. Each written system shall include:
(1) an organizational chart depicting appropriate segregation of functions and responsibilities;
(2) a description of the duties and responsibilities of each position shown on the organizational chart;
(3) a detailed, narrative description of the administrative and accounting procedures designed to satisfy the requirements of Subsection A of this section;
(4) a written statement signed by the licensee's chief financial officer and either the licensee's chief executive officer or a licensed owner attesting that the system satisfies the requirements of this section;
(5) if the written system is submitted by an applicant, a letter from an independent certified public accountant stating that the applicant's written system has been reviewed by the accountant and complies with the requirements of this section; and
(6) other items as the board may require.
D. The board shall adopt and publish minimum standards for internal control procedures.