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Can you summarize NDAC Section 99-01.3-03-01?
Accounting Rules > Accounting records and system of internal control.
Short Summary
This document, part of the North Dakota Administrative Code, pertains to organizations involved in games of chance. It outlines the requirements for retaining purchase invoices, receipts, accounting and bank records, as well as receipts documenting eligible uses and solicitations for net proceeds. These records must be retained for three years from the end of the quarter in which the activity was reported on a tax return, unless otherwise provided by rule. Additionally, organizations are required to establish a written system of internal control, comprised of accounting and administrative controls. The system of internal control must be reviewed by authorized personnel determined by the governing board. If the attorney general determines that the system of internal control is inadequate, the organization must address the inadequacy. However, the requirements for a written system of internal control do not apply to organizations that only conduct certain specified activities or are involved in conducting no more than two events during a fiscal year, each lasting no more than fourteen calendar days. The document also specifies the objectives of accounting controls, which include executing authorized transactions, properly recording gaming activity, permitting access to cash and assets as authorized, and periodically comparing recorded assets to actual assets. Furthermore, it outlines the requirements for administrative controls, which describe the interrelationship of employee functions and their division of responsibilities.
Whom does it apply to?
Organizations involved in games of chance
What does it govern?
Accounting records and system of internal control
What are exemptions?
The requirements for a written system of internal control do not apply to organizations that only conduct certain specified activities or are involved in conducting no more than two events during a fiscal year, each lasting no more than fourteen calendar days.
What are the Penalties?
No specific penalties mentioned in the provided document.
Jurisdiction
North Dakota