New Mexico § 60-2E-35 - Internal control systems

§ 60-2E-35. Internal control systems

A. Each gaming operator licensee shall adopt internal control systems that shall include

provisions for: (1) safeguarding its assets and revenues, especially the recording of cash and evidences

of indebtedness; (2) making and maintaining reliable records, accounts and reports of transactions,

operations and events, including reports to the board; and (3) a system by which the amount wagered on each gaming machine and the amount paid

out by each gaming machine is recorded on a daily basis, which results may be obtained

by the board by appropriate means as described in regulations adopted by the board;

all manufacturers are required to have such a system available for gaming operators

for the gaming machines that it supplies for use in New Mexico, and all distributors

shall make such a system available to gaming operators. B. The internal control system shall be designed to reasonably ensure that: (1) assets are safeguarded; (2) financial records are accurate and reliable; (3) transactions are performed only in accordance with management's general or specific

authorization; (4) transactions are recorded adequately to permit proper reporting of gaming revenue

and of fees and taxes and to maintain accountability of assets; (5) access to assets is allowed only in accordance with management's specific authorization; (6) recorded accountability for assets is compared with actual assets at reasonable

intervals and appropriate action is taken with respect to any discrepancies; and (7) functions, duties and responsibilities are appropriately segregated and performed

in accordance with sound accounting and management practices by competent, qualified

personnel. C. A gaming operator licensee and an applicant for a gaming operator's license shall

describe, in the manner the board may approve or require, its administrative and accounting

procedures in detail in a written system of internal control. A gaming operator licensee and an applicant for a gaming operator's license shall

submit a copy of its written system to the board. Each written system 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 the licensee's chief financial officer and either

the licensee's chief executive officer or a licensed owner attesting that the system

satisfies the requirements of this section; (5) if the written system is submitted by an applicant, a letter from an independent

certified public accountant stating that the applicant's written system has been reviewed

by the accountant and complies with the requirements of this section; and (6) other items as the board may require. D. The board shall adopt and publish minimum standards for internal control procedures.