Section 60-2E-35 - Internal control systems. - New Mexico Statutes

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.