N.J. Admin. Code § 13:69D-1.3

Current through Register Vol. 56, No. 24, December 18, 2024

Section 13:69D-1.3 - Licensee's system of internal controls

(a) Each applicant for a casino license shall prepare an initial system of internal procedures and administrative and accounting controls ("internal controls") at least 30 days before gaming operations are to commence, unless otherwise directed by the Division. The internal controls shall include, as applicable and without limitation, the following:

1. Administrative controls which include, without limitation, the procedures and records that are concerned with the decision making processes leading to management's authorization of transactions;

2. Accounting controls which have as their primary objectives the safeguarding of assets and the reliability of financial records and are consequently designed to provide reasonable assurance that:

i. Transactions are executed in accordance with management's general and specific authorization;

ii. Transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and N.J.A.C. 13:69D-1.6, and to maintain accountability for assets;

iii. Access to assets is permitted only in accordance with management authorization; and

iv. The recorded accountability for assets is compared with existing assets, and appropriate action is taken with respect to any differences; and

3. Procedures and controls for ensuring, through the use of the casino security department, that the casino and casino simulcasting facility are constantly secure during normal operations and any emergencies due to malfunctioning equipment, loss of power, any natural disaster or any other cause.

(b) Each casino licensee shall conduct gaming operations in a manner consistent with their internal controls.

(c) Except for security and surveillance internal controls, any changes to internal controls required by N.J.S.A. 5:12-99a may be implemented immediately upon preparation and filing with the Division. Such filing shall be in a manner approved by the Division. Security and surveillance internal controls addressing the requirement of (b) above and any subsequent changes thereto shall be submitted to the Division's Regulatory Enforcement Bureau at its Atlantic City office. Upon submission to the Division of a narrative description of a change in its security or surveillance system of internal controls and unless the Division objects thereto, a casino licensee may immediately implement the change on the 16th calendar day following the delivery of the submission to the Division.

(d) A current version of the internal controls of a casino licensee shall be maintained in, or made available through secure computer access to, the casino accounting department and surveillance department of the casino licensee. The casino licensee shall also maintain a copy of any superseded changes to its internal control submission for a minimum of three years. Each page of the internal controls shall indicate, as applicable, the date on which it was implemented.

(e) The current and superseded internal controls shall be made available through secure computer access to the Division at its onsite office(s).

N.J. Admin. Code § 13:69D-1.3

Amended by 47 N.J.R. 1954(a), effective 8/3/2015