Slot machine accounting controls and audits - 4 Pa. Cons. Stat. § 1322

Legal Research Home > Pennsylvania Statutes

     § 1322.  Slot machine accounting controls and audits.
        (a)  Approval.--Except as otherwise provided by this part,
     each slot machine license applicant shall, in addition to
     obtaining a slot machine license, obtain approval from the board
     in consultation with the department of its proposed site plans
     and internal control systems and audit protocols prior to the
     installation and operation of slot machines at the licensed
     facility.
        (b)  Minimum requirements.--At a minimum, the applicant's or
     person's proposed internal controls and audit protocols shall:
            (1)  Safeguard its assets and revenues, including, but
        not limited to, the recording of cash and evidences of
        indebtedness related to the slot machines.
            (2)  Provide for reliable records, accounts and reports
        of any financial event that occurs in the operation of a slot
        machine, including reports to the board related to the slot
        machines.
            (3)  Ensure as provided in section 1323 (relating to
        central control computer system) that each slot machine
        directly provides or communicates all required activities and
        financial details to the central control computer as set by
        the board.
            (4)  Provide for accurate and reliable financial records.
            (5)  Ensure any financial event that occurs in the
        operation of a slot machine is performed only in accordance
        with the management's general or specific authorization, as
        approved by the board.
            (6)  Ensure that any financial event that occurs in the
        operation of a slot machine is recorded adequately to permit
        proper and timely reporting of gross revenue and the
        calculation thereof and of fees and taxes and to maintain
        accountability for assets.
            (7)  Ensure that access to assets is permitted only in
        accordance with management's specific authorization, as
        approved by the board.
            (8)  Ensure that recorded accountability for assets is
        compared with actual assets at reasonable intervals and
        appropriate action is taken with respect to any
        discrepancies.
            (9)  Ensure that all functions, duties and
        responsibilities are appropriately segregated and performed
        in accordance with sound financial practices by competent,
        qualified personnel.
        (c)  Internal control.--Each slot machine license applicant
     shall submit to the board and department, in such manner as the
     board shall require, a description of its administrative and
     accounting procedures in detail, including its written system of
     internal control. Each written system of internal control shall
     include:
            (1)  Records of direct and indirect ownership in the
        proposed slot machine licensee, its affiliate, intermediary,
        subsidiary or holding company.
            (2)  An organizational chart depicting appropriate
        segregation of functions and responsibilities.
            (3)  A description of the duties and responsibilities of
        each position shown on the organizational chart.
            (4)  A detailed narrative description of the
        administrative and accounting procedures designed to satisfy
        the requirements of this section.
            (5)  Record retention policy.
            (6)  Procedure to ensure that assets are safeguarded,
        including mandatory count procedures.
            (7)  A statement signed by the chief financial officer of
        the proposed licensed gaming entity or other competent person
        and the chief executive officer of the proposed licensed
        gaming entity or other competent person attesting that the
        officer believes, in good faith, that the system satisfies
        the requirements of this section.
            (8)  Any other item that the board may require in its
        discretion.

Last modified: November 27, 2007