Authority: IC 4-33-4; IC 4-35-4

Affected: IC 4-33; IC 4-35

Sec. 1. (a) This rule applies to casino licensees.

(b) The casino licensee must establish policies and procedures in connection with the internal audit function of its casino operations, including, but not limited to, the following:

1. (1) The casino licensee or its parent company must establish an independent audit committee of its board of directors, or equivalent board.
2. (2) The internal audit department or its equivalent shall report directly to the independent audit committee of the board of directors, or equivalent board. If the parent company of the casino licensee establishes the independent audit committee, the internal audit department or its equivalent may report to the person at the parent company who is responsible for internal audit, who in turn shall report directly to the independent audit committee.
3. (3) The internal audit department must consist of at least two (2) full-time on-site internal auditors.

(c) A casino licensee or its parent company must establish policies that ensure the independence of the independent audit committee, including, at least, the following:

1. (1) The chair of the independent audit committee must be an independent director.

2. (2) The independent director must not, other than in his or her capacity as a member of the independent audit committee, the board of directors, or any other board committee:

   1. (A) accept any consulting, advisory, or other compensatory fee from the casino licensee or any affiliates;
   2. (B) be a present employee or affiliate of the casino licensee or any of its affiliates; or
   3. (C) have a relationship with the casino licensee that would affect his or her exercise of independent judgment.
3. (3) An independent director must fulfill all of the considerations for a financial expert under 15 U.S.C. 7265(b).

(d) The casino licensee must document all procedures and results of compliance testing performed under this rule. All material instances of noncompliance with the submitted internal controls must be investigated and reported immediately to the commission staff.

(e) The casino licensee shall submit quarterly reports to the commission staff. The quarterly reports submitted under this section shall:

1. (1) document the results of compliance testing under this rule;
2. (2) be submitted to the audit director at the commission office in Indianapolis, Indiana, within thirty (30) days of the close of the quarter that the report covers; and
3. (3) identify repeat findings and list all corrective action that was taken or will be taken to avoid similar problems in the future.

(f) At any time errors are uncovered in the computation of win, the errors shall be corrected and reported on Form RG-1 for the appropriate gaming day.

(Indiana Gaming Commission; 68 IAC 15-8-1; filed Jul 18, 1996, 8:45 a.m.: 19 IR 3333; filed Aug 20, 1997, 7:11 a.m.: 21 IR 20; filed Dec 2, 2001, 12:35 p.m.: 25 IR 1072; readopted filed Nov 25, 2002, 10:11 a.m.: 26 IR 1261; readopted filed Nov 14, 2008, 12:51 p.m.: 20081210-IR-068080730RFA; filed Aug 16, 2010, 3:37 p.m.: 20100915-IR-068100064FRA; readopted filed Nov 28, 2016, 4:15 p.m.: 20161228-IR-068160383RFA; readopted filed Oct 17, 2022, 11:45 a.m.: 20221116-IR- 068220276RFA; readopted filed Nov 22, 2023, 8:28 a.m.: 20231220-IR-068230610RFA)