La. Admin. Code tit. 42 § III-4008

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-4008 - Internal Controls; Designated Check Cashing Representative

A. Each designated check cashing representative shall describe, in such manner as the division may approve or require, its administrative and accounting procedures in detail in a written system of internal controls. Each designated check cashing representative shall submit a copy of its internal controls to the division for approval prior to commencement of the designated check cashing representative's operations. The internal controls shall reasonably ensure that:

1. all assets are safeguarded;

2. financial records are accurate and reliable;

3. transactions are performed only in accordance with the designated check cashing representative's internal controls;

4. access to assets is permitted only in accordance with the designated check cashing representative's internal controls;

5. functions, duties and responsibilities are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel.

B. The internal controls 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 an officer of the designated check cashing representative attesting that the system satisfies the requirements of this Section;

5. other information as the division may require; and

6. a flow chart illustrating the information required in Paragraphs 1, 2 and 3 of this Subsection.

C. Each designated check cashing representative shall establish and provide, at the request of the division, the following:

1. an income statement summarizing the revenue and expenses of the entire check cashing cage operation;

2. summary credit card cash advance transaction information:

a. number of transactions per day;

b. total amount advanced by day; and

c. fee revenue generated by day;

3. summary check cashing transaction information:

a. number of transactions per day;

b. total amount advanced by day; and

c. fee revenue generated by day;

4. return check information:

a. total amount of returned checks per month; and

b. total amount of collections per month.

D. The designated check cashing representative shall not implement its initial internal controls unless the division determines that the designated check cashing representative's proposed internal controls satisfy Subsection A of this Section, and approves the system in writing.

E. The designated check cashing representative shall provide to the division a monthly report detailing all insufficient fund checks. The report required under this Subsection shall be submitted to the division within 15 days of the end of each month.

F. Prior to changing any procedure required by this Chapter to be included in the designated check cashing representative's internal controls, the designated check cashing representative shall obtain written approval by the division in the manner prescribed for obtaining approvals in Chapter 29.

G. The internal controls adopted by the designated check cashing representative and approved by the division shall be incorporated into the licensee's or casino operator's internal controls. A violation of any part of the approved internal controls committed by an employee of the designated check cashing representative shall constitute a violation by the designated check cashing representative and shall also constitute a violation by the licensee or casino operator. The licensee or casino operator may be sanctioned in the same manner as the designated check cashing representative for such violation.

La. Admin. Code tit. 42, § III-4008

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1669 (July 2012).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.