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					                                                           State of Nevada
                                                         Gaming Control Board                              Auditor’s Name and Date

                                                   CPA MICS Compliance Checklist


                                                         ENTERTAINMENT

Licensee                                                                 Review Period

NGC Regulation 6.090(9) requires the CPA to use “criteria established by the chairman” in determining whether a Group I licensee is
in compliance with the Minimum Internal Control Standards (MICS). This checklist is to be used by the CPA in determining whether
the licensee’s entertainment operation is in compliance with the Entertainment MICS.

Name of Entertainment Area:


      Date of Inquiry                 Person Interviewed                                        Position




Checklist Completion Notes:
1) Unless otherwise instructed, examine a completed document for compliance for those questions referring to
   records/documentation as indicated and recalculate where appropriate. Indicate (by tickmark) whether the procedures were
   confirmed via examination/review of documentation, through inquiry of licensee personnel or via observation of procedures.
   Tickmarks used are to be defined at the bottom of each page.

2) All "no" answers require referencing and/or comment, and should be cited as regulation violations, unless the Board Chairman
   has granted a MICS variation or the question requires a “no” answer for acceptability.

3) "(#)" refers to the Minimum Internal Control Standards for Entertainment, Version 4.

4) If multiple areas exist, additional checklists should be completed to adequately document procedures.

5) Walk-throughs should be performed during entertainment status.

Minimum Internal Control Standard Notes
Note 1: Pursuant to Regulation 13.050(1) and (2), the person or entity who is the licensee of the licensed gaming establishment where
        music and dancing privileges or any other entertainment are provided is responsible for the payment of the entertainment tax
        even if some other person or entity is affording entertainment subject to the tax on the premises of the establishment.
Note 2: Pursuant to Regulation 13.050(3) if a person or entity other than the licensee offers entertainment subject to the entertainment
        tax on the licensee’s premises, the licensee must keep all records required by NRS 463 and Regulations 6 and 13.
        Alternatively, the licensee may require the person or entity that offers the entertainment to keep such records, as long as the
        records are provided to the Board upon request in a timely manner.

                               Questions                                      Yes        No   N/A        Comments, W/P Reference
1.   Has the licensee’s written system of internal control for
     entertainment been read prior to the completion of this checklist
     to obtain an understanding of the licensee’s entertainment
     operation?


        Verified per representation.
        Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                              Page 1 of 8
                                                             State of Nevada
                                                           Gaming Control Board                        Auditor’s Name and Date

                                                     CPA MICS Compliance Checklist


                                                           ENTERTAINMENT

Licensee                                                                  Review Period

                          Questions                                            Yes        No   N/A   Comments, W/P Reference
Entertainment Sales Controls

Note: MICS #1 through #9, which are addressed by the questions in
this section, apply to all sales in areas subject to entertainment tax.
2.   Are all sales recorded in such a manner as to be readily
     identifiable by individual sale, in total, and by area for applicable
     periods of entertainment status? (1) Describe how.
3.   For sales recorded in a computerized point-of-sale system, is the
     date/time and transaction number also recorded for each
     individual sale? (1) Verify by examination.
4.   For computerized point-of-sale systems that classify sales by only
     the date/time checks are opened and closed, is documentation
     maintained identifying individual sales made during
     entertainment status? (1, Note) Verify by examination.

     Note: If a point-of-sale system does not provide the required
     information, it may be necessary to close all open checks at the
     start and end of entertainment status. (1, Note)
5.   Is each individual sale identified by type (i.e., taxable, nontaxable
     and complimentary)? (2) Verify by examination.
6.   Is the internal cash register tape or point-of-sale information
     inaccessible to bartenders/cashiers (e.g., keys/passwords are
     maintained by an individual independent of these functions)? (3)
7.   Do all cash register or point-of-sale system overrings or
     admission ticket voids require the authorization and verification
     of the shift supervisor or another individual independent of the
     transaction? (4)
8.   Do all food, beverage, and admission complimentaries that are
     offset against gross sales subject to entertainment and all refunds
     on such sales require the authorization of appropriate personnel
     designated by management? (5) Indicate who performs this
     function.
9.   Is the authorization of all refunds, as described in the previous
     question, documented and maintained to support the amount of
     refunds on sales subject to entertainment tax? (6) Verify by
     examination.




        Verified per representation.
        Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                          Page 2 of 8
                                                            State of Nevada
                                                          Gaming Control Board                       Auditor’s Name and Date

                                                    CPA MICS Compliance Checklist


                                                          ENTERTAINMENT

Licensee                                                                Review Period

                              Questions                                      Yes        No   N/A   Comments, W/P Reference
10. Is the computation of cash proceeds for each bartender/cashier
    documented, verified, and signed for by at least two employees?
    (7) Verify by examination.
11. Are the bartenders’/cashiers’ banks reconciled to the
    entertainment sales documentation with an investigation being
    performed into large cash overages or shortages? (8)
12. Are show admission tickets safeguarded, and are appropriate
    procedures employed in the distribution, use and control of same?
    (9) State procedures.
Package Programs and Discount Show Tickets

Note: Any package program or discount show ticket that includes an
item subject to entertainment tax is subject to MICS #10, which is
addressed in the next question. (Note before 10)
13. If package programs and/or discount show tickets are used, is the
    following documentation maintained: Verify by examination.

    a)     Copies of the package programs, discount show tickets, fliers
           and price breakdowns? (10a)

           Note: For licensees that elect to pay entertainment tax on
           retail, price breakdowns are not required for package
           programs. (10a)
    b) The effective date of the above items? (10b)
    c)     The number of packages/tickets sold by type? (10c)
    d) The retail price of each item in the packages? (10d)

           Note: A reasonable monthly estimate/average of the retail
           price for each item is acceptable. (10d)
14. For licensees that elect to pay entertainment tax on the
    discounted, rather than the retail amounts, does the accounting
    department verify that the breakdown is in compliance with
    Regulation 13 and that entertainment revenue is properly
    computed and included in reported entertainment sales each time
    a change is made to a package program that affects the taxable
    elements within the package? (11)




         Verified per representation.
         Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                        Page 3 of 8
                                                         State of Nevada
                                                       Gaming Control Board                         Auditor’s Name and Date

                                                 CPA MICS Compliance Checklist


                                                        ENTERTAINMENT

Licensee                                                               Review Period

                          Questions                                         Yes        No   N/A   Comments, W/P Reference
Accounting/Audit Standards
Review of documentation evidencing the performance of
entertainment accounting/audit standards is required. Select the
appropriate documentation to determine that all required
procedures are being performed.
15. Daily, are the date and time periods during which taxable
    entertainment was provided documented and reconciled to the
    periods during which entertainment sales were reported as
    indicated pursuant to MICS #1 and #2? (12)

    Note: The above information may be documented by a
    department other than accounting. (12)
16. Daily, is a breakdown of gross sales into taxable and nontaxable
    components for each date and time period prepared that
    summarizes the total of sales by type using the documents as
    required by MICS #1 and #2? (13)
17. Daily, are entertainment contracts, if used, reviewed and
    reconciled to the periods during which entertainment sales are
    made? (14)

    Note: A reconciliation is not necessary for locations with a
    consistent and routine showroom/lounge entertainment schedule
    which is documented and retained. (14)
18. Monthly, do accounting/audit personnel observe all areas of the
    licensed gaming establishment (including any facility operated by
    another person or entity) at varying times of the day and night to
    ensure that each area subject to entertainment tax is reporting
    sales as entertainment revenue? (15)

    Note 1: The observations should include areas such as
    convention facilities, meeting rooms, restaurants, outdoor and
    temporary facilities that have food, beverage and admission sales.
    The observation of these areas can be performed through
    recorded or live surveillance. (15, Note 1)

    Note 2: This standard does not apply to areas in which all sales
    are reported as entertainment revenue. (15, Note 2)




       Verified per representation.
       Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                       Page 4 of 8
                                                            State of Nevada
                                                          Gaming Control Board                         Auditor’s Name and Date

                                                    CPA MICS Compliance Checklist


                                                          ENTERTAINMENT

Licensee                                                                  Review Period

                               Questions                                       Yes        No   N/A   Comments, W/P Reference
19. Do the personnel performing the observations mentioned in the
    previous question document the date, time and areas of the
    gaming establishment observed along with a determination as to
    whether or not the area is subject to entertainment tax and the
    reasoning for the determination? (15) Select one month’s
    document to confirm the date, time and areas of the gaming
    establishment observed. Indicate the month selected, the
    date, time and areas of the gaming establishment observed
    and the results of the review.
20. If less than 2,750 tickets are sold for an event held in a facility
    with a maximum seating capacity of 2,750 or more persons, and
    the event is determined to be nontaxable, are records maintained
    supporting the nontaxable status? (16) Verify by examination.
21. Are records maintained to support deductions from entertainment
    revenue associated with credit/debit card fees paid to credit card
    companies and associated with fees paid to wholesalers? (17)
    Verify by examination.
22. Are only credit/debit card fees that are specifically identifiable
    with entertainment taxable sales for entertainment at the
    licensee’s establishment and which are actually paid to, or
    retained by, the credit/debit card company deducted and is the
    specific dollar amount of the fees, not an estimated amount,
    documented and maintained? (17, Note 1) Verify by
    examination.
23. For entertainment taxable sales transacted by another licensee
    and where the sale and associated credit/debit card fees are
    reported by the licensee that offers entertainment, are records
    maintained to support deductions from entertainment revenue
    that indicate the specific dollar amount of credit/debit card fees,
    not an estimated amount, actually paid or retained by each
    applicable credit/debit card company? (17, Note 2) Verify by
    examination.
24. Are records maintained to support deductions from entertainment
    revenue associated with complimentaries, including hotel folio
    complimentaries? (18) Verify by examination.




        Verified per representation.
        Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                          Page 5 of 8
                                                            State of Nevada
                                                          Gaming Control Board                      Auditor’s Name and Date

                                                    CPA MICS Compliance Checklist


                                                          ENTERTAINMENT

Licensee                                                               Review Period

                               Questions                                    Yes        No   N/A   Comments, W/P Reference
25. Are only complimentary sales supported by documentation
    evidencing the initial sale and subsequent authorized
    complimentary status deducted from reported entertainment sales
    and does the documentation include the specific dollar amount,
    and not an estimated dollar amount, of complimentary sales
    deducted from reported entertainment sales? (18, Note) Verify
    by examination.
26. Are the food and beverage summaries reviewed daily to verify
    the propriety of complimentary charges? (19)
27. Are the recording procedures for entertainment sales (see MICS
    #1 and #2) monitored for correctness at least monthly by
    someone independent of those procedures? (20)
28. For areas of entertainment that are not always in entertainment
    status, are point-of-sale procedures and controls tested to ensure
    that all sales during entertainment status are properly classified as
    entertainment sales? (20, Note)
29. Are all entertainment period sales, including complimentaries,
    summarized and posted to the accounting records? (21) verify
    by examination.
30. For locations with non-computerized entertainment sales
    systems, are all cash register tapes reviewed to ensure the register
    was totaled/subtotaled properly? (22)
31. For each entertainment area, including leased venues, at least
    annually do accounting/audit personnel select one day and foot
    individual sales subject to entertainment tax on the cash register
    tape or the computerized system transaction report, trace the total
    to the total on the tape/system and maintain documentation (e.g.,
    spreadsheet/calculator tape) evidencing the performance of these
    procedures and any variances noted? (23)

    Note 1: Board approved software may be used to comply with
    this standard. (23, Note 1)

    Note 2: This standard does not apply to ticket sales generated
    through a wholesale ticket distributor. (23, Note 2)
32. At least quarterly, do accounting/audit personnel review
    admission tickets for each entertainment area for compliance with
    the provisions of Regulation 13.050(5) and is a sample of each
    type of ticket maintained? (24)

        Verified per representation.
        Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                       Page 6 of 8
                                                            State of Nevada
                                                          Gaming Control Board                         Auditor’s Name and Date

                                                    CPA MICS Compliance Checklist


                                                          ENTERTAINMENT

Licensee                                                                  Review Period

                                Questions                                      Yes        No   N/A   Comments, W/P Reference
33. Monthly, do accounting/audit personnel reconcile entertainment
    taxable revenue from the accounting records to the monthly NGC
    tax returns, is this reconciliation documented and maintained and
    are all variances reviewed, documented and maintained? (25)
    For one month review the reconciliation to verify the proper
    completion of the reconciliation and to determine that the
    variance amount is accurate. Indicate the month/year
    reviewed and the results of the review.
34. If casino entertainment taxable sales are reported on an accrual
    basis (i.e., an advanced admission sale is reported in the month of
    the show/event rather than the month the sale occurred), is the
    following documentation maintained and are the following audit
    procedures performed: Verify by examination.

    a)     Is a daily admission ticket sales report maintained that
           includes the date the admission ticket was sold, the name of
           the show/event for which the admission ticket was sold, the
           identifying number for each ticket sale transaction and the
           dollar amount of the sale? (26a)
    b) Is a report by show/event maintained indicating the
       individual admission tickets sold for that show/event that
       includes the name of the show/event, the date the admission
       ticket was sold, the identifying number of the admission
       ticket sale and the dollar amount of the sale? (26b)
    c)     Monthly, for one day, do accounting/audit personnel perform
           procedures to ensure that admission tickets sold for a future
           show/event were properly included in reported entertainment
           revenue on the day of the show/event, using the documents
           in (a) and (b) above? (26c)
35. Is documentation (e.g., log, checklist, notation on reports, and
    tapes attached to original documents) maintained evidencing the
    performance of entertainment audit procedures, the exceptions
    noted and follow-up of all entertainment audit exceptions? (27)
    Verify by examination.
Written System of Internal Control
36. Has the licensee’s written system of internal control for
    entertainment been re-read prior to responding to the following
    question?



         Verified per representation.
         Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                          Page 7 of 8
                                                          State of Nevada
                                                        Gaming Control Board                      Auditor’s Name and Date

                                                  CPA MICS Compliance Checklist


                                                         ENTERTAINMENT

Licensee                                                             Review Period

                                Questions                                 Yes        No   N/A   Comments, W/P Reference
37. Does the written system of internal control for entertainment
    reflect the actual control procedures in effect for compliance with
    the MICS, variations from the minimum internal control
    standards approved pursuant to Regulation 6.090(8), and
    Regulation 14 associated equipment approvals? [Regulation
    6.090(13)]




        Verified per representation.
        Verified per observation/examination.

VERSION 2
EFFECTIVE: January 21, 2004                                                                                     Page 8 of 8

				
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