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.
History: Laws 1997, ch. 190, ยง 37.
Structure New Mexico Statutes
Chapter 60 - Business Licenses
Section 60-2E-1 - Short title.
Section 60-2E-3 - Definitions.
Section 60-2E-4 - Limited gaming activity permitted.
Section 60-2E-5 - Gaming control board created.
Section 60-2E-6 - Board; meetings; quorum; records.
Section 60-2E-7 - Board's powers and duties.
Section 60-2E-8 - Board regulations; discretionary regulations; procedure; required provisions.
Section 60-2E-9 - Executive director; employment; qualifications.
Section 60-2E-10 - Executive director; powers; duties.
Section 60-2E-11 - Investigation of executive director candidates and employees.
Section 60-2E-12 - Conflicts of interest; board; executive director; employees.
Section 60-2E-13 - Activities requiring licensing.
Section 60-2E-13.1 - Temporary possession of gaming device for limited purpose.
Section 60-2E-14 - Licensure; application.
Section 60-2E-15 - License, certification and work permit fees.
Section 60-2E-16 - Action by board on applications.
Section 60-2E-17 - Investigation for licenses, certifications and permits.
Section 60-2E-18 - Eligibility requirements for companies.
Section 60-2E-19 - Company applicants; nonprofit organization applicants; required information.
Section 60-2E-22 - Change in company ownership.
Section 60-2E-30 - Licensing of distributors of gaming devices.
Section 60-2E-33 - Emergency orders of board.
Section 60-2E-34.1 - Self-exclusion from gaming establishments; procedure; fines; confidentiality.
Section 60-2E-35 - Internal control systems.
Section 60-2E-36 - Gaming employees; issuance of work permits; revocation of work permits.
Section 60-2E-37 - Age requirement for patrons and gaming employees.
Section 60-2E-38 - Calculation of net take; certain expenses not deductible.
Section 60-2E-39 - Limitations on taxes and license fees.
Section 60-2E-40 - Use of chips, tokens or legal tender required for all gaming.
Section 60-2E-42 - Motion for release of confidential information.
Section 60-2E-43 - Gaming machine central system.
Section 60-2E-44 - Machine specifications.
Section 60-2E-46 - Examination of gaming devices; cost allocation.
Section 60-2E-47 - Gaming tax; imposition; administration.
Section 60-2E-47.1 - Repealed.
Section 60-2E-48 - Civil actions to restrain violations of Gaming Control Act.
Section 60-2E-49 - Testimonial immunity.
Section 60-2E-50 - Crime; manipulation of gaming device with intent to cheat.
Section 60-2E-52 - Crime; cheating.
Section 60-2E-54 - Crime; reporting and record violations; penalty.
Section 60-2E-56 - Underage gaming; penalty for permitting or participation.
Section 60-2E-57 - Crime; general penalties for violation of act.
Section 60-2E-59 - Administrative appeal of board action.
Section 60-2E-60 - Judicial review of administrative actions.
Section 60-2E-62 - Crime; unlawful possession of gaming device.