Section 99-01.3-03-01 - Accounting records and system of internal control1. An organization shall retain purchase invoices, receipts, accounting and bank records, including receipts documenting eligible uses and solicitations for net proceeds, for three years from the end of the quarter in which the activity was reported on a tax return, unless otherwise provided by rule.2. A governing board of the organization shall establish a written system of internal control, comprised of accounting and administrative controls. An organization may not permit any unauthorized person as determined by the governing board from reviewing this system. If the attorney general determines that a system of internal control is inadequate, an organization shall address the inadequacy. This subsection does not apply to an organization that only conducts a calcutta, raffle, sports pool, paddlewheel described by subsection 1 of section 99-01.3-11-01, or poker, or is involved only in conducting no more than two events during a fiscal year of July first through June thirtieth and each event lasts no more than fourteen calendar days.3. Accounting controls must include procedures and records that achieve these objectives: a. Transactions are executed as authorized by management;b. Gaming activity is properly recorded;c. Access to cash, games, and other assets is permitted as authorized by management; andd. Assets recorded on records are periodically compared to actual assets and any differences are resolved.4. Administrative controls must describe the interrelationship of employee functions and their division of responsibilities.N.D. Admin Code 99-01.3-03-01
Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1, 2006; July 1, 2010.Amended by Administrative Rules Supplement 369, July 2018, effective 7/1/2018.General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1