Kansas Administrative Code

Bill validators and bill vali- dator canisters. (a) Each facility manager’s inter- nalcontrolsystemshallincludeinternalcontrolsfor bill validators and their related canisters. The in- ternal controls shall be submitted to and approved by the commission according to K.A.R. 112-104…

Transportation of bill val- idator canisters to and from bill validators; storage. (a) Each facility manager’s internal con- trol system shall include internal controls for the transportation of bill validator canisters. The in- ternal controls shall be submitted to and approved …

Unsecured currency, gam- ing tickets, and coupons. (a)(1) Each facility manager’s internal control system shall include internal controls for unsecured currency, gaming tickets, and coupons. The internal controls shall be submitted to and approved by the commission according to K…

Facility manager’s organiza- tion. (a) Each facility manager’s internal control system shall include organization charts depicting the segregation of functions and the responsibil- ities and descriptions of the duties and respon- sibilities for each position shown. Each facility …

Counting and recording bill validator canisters. (a) Each facility man- ager’s internal control system shall include inter- nal controls for the opening, counting, and re- cording of the contents of bill validator canisters. The internal controls shall be submitted to and approve…

Jackpot payouts. (a) Each facility manager’s internal control system shall in- clude internal controls for jackpot payouts that are not paid directly from an EGM and for the meth- od of jackpot payout specified in subsection (d). The internal controls shall be submitted to and ap…

Annuity jackpots. (a) Each facility manager’s internal control system shall include internal controls for the payment of an annuity jackpot. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. The internal con- trols developed…

Merchandise jackpots. (a) Each facility manager’s internal control system shall include internal controls for the payment of a merchandise jackpot. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. (b) A facility manager sha…

Internal audit standards. (a) Each facility manager’s internal control system shall include internal controls for internal audit standards. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. The facility manager shall main- t…

Information technology standards. (a) Each facility manager’s internal control system shall include internal controls for information technology standards. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104- 1. The management in…

Gaming facility. (a) Each facility manager’s internal control system shall include internal controls for the gaming facility requirements contained within this regulation. The internal controls shall be submitted to and approved by the commission according to K.A.R.

Acceptance of tips or gratu- ities from patrons.Notwithstandingtherequire- ments of K.A.R. 112-107-18, a level I employee or gaming employee who serves in a supervisory position shall be prohibited from soliciting or ac- cepting a tip or gratuity from a patron of the facil- ity m…

Automated teller machines. Automated teller machines may be placed at any location within the gaming facility, if the location is approved by the executive director. (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Waiver of requirements. (a) One or more of the requirements of this article applicable to accounting and internal controls may be waived by the commission on its own ini- tiative, upon the commission’s determination that the compensating control or procedure, as docu- mented in a…

Accounting records. (a) Each facility manager’s internal control system shall include internal controls for accounting records. The internal controls shall be submitted to and approved by the commission according to K.A.R.

Gaming day. (a) The begin- ning and ending times of the gaming day shall be determined by the Kansas lottery and shall be uni- form for all facility managers for the purposes of determining net EGM income. (b) Before beginning gaming operations, each facility manager shall submit…

Signature. An employee signa- ture may be in either of the following formats: (a) Theemployee’sfirstinitial,lastname,andemployee credentialnumber,whichshallbewrittenbytheem- ployee, immediately adjacent to or above the clearly printed or preprinted title of the employee; and (b) …

Unclaimed winnings. (a) Each facility manager’s internal control system shall include internal controls for unclaimed win- nings. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. (b) All winnings, whether property or cash, …

Disputes. (a) If a dispute aris- es with a patron concerning the payment of al- leged winnings, the facility manager shall provide the patron with a patron complaint form and in- structions for submitting a patron complaint. (b) If a facility manager refuses to pay the win- nings…

Physical key controls; au- tomated key controls. (a) “Sensitive keys” shall mean those unlocking devices designated by the Kansas lottery, a facility manager, or the commis- sion as important to preserving the security of the facility manager’s business. Each facility manager sha…

Key control procedures. (a) Each facility manager’s internal controls for keys shall include a key box custodian. Each custodian of a sensitive key box or critical key box shall be issued a sensitive key or critical key access list that notes the authorized employee positions tha…

Key access list. (a) Each facil- ity manager shall maintain a current and accurate key access list for each sensitive key or critical key. Eachfacilitymanagershallprovideacopyofthekey access list to the commission’s director of security. Thekeyaccesslistshallincludethefollowingde…

Key log. (a) Any sensitive key or critical key may be issued only after completion of a sensitive key or critical key log. The key log shall include the following information: (1) The date the key was issued or returned; (2) the key number; (3) the individual or automated key box…

Broken, lost, or missing keys. (a) The internal control system shall include procedures for the following if a critical key or sensitive key is broken: (1) The name of the employee required to re- ceive and replace the broken key; (2) disposition of the broken key; and (3) notifi…

Corrections to forms. (a) Monetary corrections to a figure originally record- ed on a form may be made only in ink by perform- ing the following: (1) Crossing out the error; (2) entering the correct figure; and (3) obtaining the initials of the employee mak- ing the change and th…

Forms, records, and docu- ments. (a) Each facility manager’s internal con- trol system shall include internal controls for forms, records, and documents. The internal con- trols shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Infor- mation requ…

Manual form dispensers. (a) Each facility manager’s accounting or security de- partment shall be responsible for loading and un- loading any locked manual form dispenser. Each form unloaded from the dispenser shall be deliv- ered directly to the accounting department. (b) If the …

Forms; description. (a) Each facility manager shall maintain a supply of all forms listed in subsection (b) and any additional forms that the manager deems necessary to man- age the facility. Each facility manager’s internal control submission shall include an index of all forms …

Purchasing. (a) Each facility manager’s internal control system shall include in- ternal controls for purchasing. (b) The internal controls shall indicate the amount of a single transaction or series of related 440 RACING AND GAMING COMMISSION 112-104-42 transactions that an indi…

Standard financial reports. (a) Each facility manager’s internal control system shall include internal controls for standard finan- cial reports. The internal controls shall be sub- mitted to and approved by the commission under K.A.R. 112-104-1. A facility manager shall file the…

Annual audit; other reports; currency transaction reporting; suspicious transaction reporting. (a) Each facility manag- er’s internal control system shall include internal controls for annual and other audit reports. The internal controls shall be submitted to and ap- proved by t…

Meter readings and related statistical reports. (a) Each facility manager’s internal control system shall include internal controls for meter reading and the related sta- tistical reports. The internal controls shall be submitted to and approved by the commission according to K.A…

Retention, storage, and de- struction of books, records, and documents. (a) Each facility manager’s internal control system shallincludeinternalcontrolsforretention,storage, and destruction of books, records, and documents. (b) For the purposes of this regulation, “books, records…

Complimentaries. (a) Each facility manager’s internal control system shall in- clude internal controls for the authorization, issu- ance, recording, and auditing of complimentaries, including cash and non-cash gifts. The internal controls shall be submitted according to K.A.R.

Security department. (a) Each facility manager shall have a security department that is responsible for the security of the gaming facility. The facility manager, through its security department, shall do the following: (1) Protect the people in the gaming facility; (2) safeguard…

Security plan. (a) Each appli- cant for a facility manager certification shall sub- mit a security plan to the commission at least 120 days before the proposed opening of a racetrack gaming facility or lottery gaming facility. The plan shall be consistent with the applicant’s con…

Emergency operations plan. (a) The director of security in the security de- partment shall maintain an emergency operations plan, including evacuation procedures, to deal with the following: (1) The discovery or threat of an explosive de- vice on the property; (2) a fire or fire …

Security department staffing. (a) Each security department shall be supervised by a director of security, who shall report directly to the general manager. (b) The facility manager shall at all times main- tain sufficient security officers on duty to reason- ably meet the require…

Reports. (a) The director of se- curity shall ensure that a report is prepared re- garding each incident observed by or reported to a security department employee that the employ- ee suspects involves any one of the following: (1) Criminal conduct; (2) injuries to a patron or emp…

Security detention area. (a) The staff of the security department shall have ac- cess to at least one security detention area that is designated and used for the detention of persons by security officers, commission employees, or other law enforcement personnel. (b) The security …

Communications system. (a) Each security department shall have a communi- cations system that allows all security officers on duty to communicate with each other. (b) The communications system shall provide two-way communications between security offi- cers and the surveillance d…

Surveillance system. (a) A fa- cility manager or applicant for a facility manager certification shall have a surveillance system be- fore beginning gaming operations. The surveil- 444 RACING AND GAMING COMMISSION 112-106-1 lance system shall include a digital video system capable…

Surveillance system plan. (a) Each applicant for a facility manager certifica- tion shall submit a surveillance system plan to the commission at least 120 days before the proposed opening of a racetrack gaming facility or lottery gaming facility. (b) A facility manager shall not …

Surveillance department. (a) Each facility manager shall have a surveillance department that is responsible for the following: 446 RACING AND GAMING COMMISSION 112-106-4 (1) Detection of cheating, theft, embezzlement, and other illegal activities in the gaming facility; (2) detec…

Surveillance department staffing. (a) The surveillance department shall be supervised by a director of surveillance. The director of surveillance shall report directly to the facility manager’s board of directors or similar body. The director of surveillance shall not report to o…

Surveillance room. (a) Each facility manager shall have a secure surveillance room with reasonable space, as determined by the executive director, to accommodate the required equipment and operator stations. (b) Each surveillance room shall be located out of the view of the gamin…

Monitoring. (a) The surveil- lance department employees shall continuously record the transmissions from the cameras used to observe the following locations, persons, activi- ties, and transactions: (1)Theentrancestoandexitsfromthefollowing: (A) The gaming facility; (B) the count…

Retention of surveillance re- cordings. (a) All recordings depicting the deten- tion or questioning of an individual suspected of procedural errors, regulatory violations, or crim- inal activity shall be copied and provided to law enforcement agents upon request. Each record- ing…

Electronic gaming machine requirements. (a) Each electronic gaming ma- chine (EGM) approved for use in a gaming facility shall meet the requirements of article 110. (b) Unless a facility manager’s electronic gam- ing monitoring system is configured to automat- ically record all o…

Master list of approved gaming machines. (a) At least 20 days before commencing gaming, each facility manager shall file with the commission, in writing, a complete list of the LFGs and gaming equipment possessed by the facility manager on its gaming floor, in re- stricted areas …