§543.15. What are the minimum internal control standards for lines of credit?
25 C.F.R. § 543.15
Supervision. Supervision must be provided as needed for lines of credit by an agent(s) with authority equal to or greater than those being supervised.
Establishment of lines of credit policy.
If a gaming operation extends lines of credit, controls must be established and procedures implemented to safeguard the assets of the gaming operation. Such controls must include a lines of credit policy including the following:
A process for the patron to apply for, modify, and/or re-establish lines of credit, to include required documentation and credit line limit;
Authorization levels of credit issuer(s);
Identification of agents authorized to issue lines of credit;
A process for verifying an applicant's credit worthiness;
A system for recording patron information, to include—
Name, current address, and signature;
Identification credential;
Authorized credit line limit;
Documented approval by an agent authorized to approve credit line limits;
Date, time and amount of credit issuances and payments; and
Amount of available credit.
A process for issuing lines of credit to—
Verify the patron's identity;
Notify the patron of the lines of credit terms, including obtaining patron's written acknowledgment of the terms by signature;
Complete a uniquely identified, multi-part, lines of credit issuance form, such as a marker or counter check, which includes the terms of the lines of credit transaction;
Obtain required signatures;
Determine the amount of the patron's available lines of credit;
Update the credit balance record at the time of each transaction to ensure that lines of credit issued are within the established limit and balance for that patron; and
Require the agent issuing the lines of credit to be independent of the agent who authorized the lines of credit.
A policy establishing credit line limit exceptions to include the following—
Identification of the agent(s) authorized to permit a credit line limit to be exceeded;
Authorization thresholds; and
Required documentation.
A policy governing increases and decreases to a patron's lines of credit account balances to include the following:
Documentation and record keeping requirements;
Independence between the department that receives the payment and the department that maintains custody of the credit balance for payments made by mail;
Collections;
Periodic audits and confirmation of balances; and
If a collection agency is used, a process to ensure documentation of increases and decreases to the lines of credit account balances.
A policy governing write-offs and settlements to include—
Identification of agent(s) authorized to approve write-offs and settlements;
Authorization levels for write-offs and settlements of lines of credit instruments;
Required documentation for write-offs and settlements;
Independence between the agent who established the lines of credit and the agent writing off or settling the lines of credit instrument; and
Necessary documentation for the approval of write-offs and settlements and transmittal to the appropriate department for recording and deductibility.
Variances. The operation must establish, as approved by the TGRA, the threshold level at which a variance must be reviewed to determine the cause. Any such review must be documented.
Notes, amendments, and revision history
Authority
Authority: 25 U.S.C. 2702(2), 2706(b)(1-4), 2706(b)(10).
Source
Source: 77 FR 58712, Sept. 21, 2012, unless otherwise noted.