Ariz. Admin. Code § 19-4-139

Current through Register Vol. 30, No. 44, November 1, 2024

Section R19-4-139 - Accounting

Responsible parties shall maintain an accounting department that is independent from the operation of event wagering. Accounting/revenue audit personnel shall perform the following:

1. Daily, for each cashier station except for kiosks, the write and payouts shall be compared to the cash proceeds/disbursements with a documented investigation being performed on all large variances (i.e., overages or shortages greater than $100 per cashier).

2. Daily, reconcile the dollar amount of player account transactions to the transaction summary report and investigate and document any variances.

3. Daily, select a random sample of five paid retail transactions from the event wagering system transaction report and trace the transaction to the customer's copy of the paid ticket.

4. Daily, for all winning retail payouts equal to or greater than $10,000 and for a random sample of 10 of all other winning retail payouts:

a. The tickets shall be recalculated and regraded using the event wagering system record of event results; and

b. The date and starting time of the event per the results report shall be compared to the date and time on the ticket and in the event wagering system transaction report.

5. Daily, for retail payouts made without event wagering system authorization at the time of payment including such payouts for contest/tournament winners, shall:

a. Trace all payouts to the event wagering system transaction report or the purged tickets report to verify authenticity of the initial event wager;

b. For payouts subsequently entered into the event wagering system by employees, compare the manual payout amount to the event wagering system amount; and

c. For payouts not entered into the event wagering system by employees, enter the payout into the event wagering system and compare the manual payout amount to the event wagering system amount. If the system is inoperative, manually regrade the ticket to ensure the proper payout amount was made.

6. Daily, for all retail voided tickets:

a. The event wagering system reports which display voided ticket information shall be examined to verify that tickets were properly voided in the computer system;

b. The voided tickets shall be examined for a void designation; and

c. If the event wagering system prints void tickets, a void ticket shall be attached to the original ticket.

7. Daily, event wagering system exception reports shall be reviewed for propriety of transactions and unusual occurrences. All noted improper transactions or unusual occurrences noted during the review of exception reports shall be investigated with the results documented.

8. Monthly, foot the customer copy of paid retail tickets for a minimum of one cashier station and trace the totals to those produced by the event wagering system.

9. Quarterly, for each kiosk, foot the vouchers redeemed for a minimum of one day and trace the totals to the totals recorded in the event wagering system and the related accountability document. This procedure may be performed for different kiosks throughout the quarter as long as each kiosk's activity is examined once a quarter. Accounting/revenue audit shall document the test and the results of variance investigations, by kiosk.

10. Quarterly, for a minimum of one day, the event wagering system reports shall be reviewed for the proper calculation of the following:

a. Amounts held by the responsible party for player accounts (if applicable);

b. Amounts accepted by the responsible party as wagers on events whose outcomes have not been determined (futures); and

c. For retail, amounts owed but unpaid on winning event wagers through the period established for honoring winning wagers (unpaid winners and unredeemed vouchers).

11. Quarterly, for a minimum of one day:

a. If future wagers are accepted, review the event wagering system reports to ascertain that future wagers are properly included in write on the day of the event;

b. For retail, recalculate and verify the change in the unpaid winners and unredeemed vouchers balance to the total purged tickets and vouchers; and

c. For retail, select two winning tickets to verify that the wager was accepted, and payouts were made in accordance with the posted house rules.

12. Annually, foot the write on the event wagering system record of written tickets for a minimum of three cashiers for each wagering pool for one day and trace the total to the total produced by the event wagering system.

13. Annually, for a minimum of one day, foot the redeemed vouchers for one cashier station and trace the totals to those produced by the event wagering system.

14. Daily, reconcile all tournament entries and payouts to the dollar amounts recorded in the appropriate accountability document and/or event wagering system report.

15. When payment is made to the winners of a tournament, reconcile the tournament entry fees collected to the actual tournament payouts made.

16. Monthly, review all tournaments, promotions, and bonuses to determine proper accounting treatment and proper win/loss computation.

17. Monthly, perform procedures to ensure that promotions and bonuses are conducted in accordance with conditions provided to the patrons.

18. Documentation shall be maintained evidencing the performance of audit procedures, the exceptions noted, and follow-up of all audit exceptions.

Ariz. Admin. Code § R19-4-139

Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.