S.D. Admin. R. 20:18:35:39

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:18:35:39 - Internal control procedures audit

Licensees shall have internal control procedures independently audited at least once every two years with the results documented in a written report, which shall be maintained and available to the commission. This requirement includes internal control procedures conducted by a sports wagering services provider on behalf of the licensee. The following apply to independent audits:

(1) Independent audits may be conducted by the commission, or a commission approved third-party auditor. The commission may, in its discretion, allow for an internal audit department within the licensee or parent company of the licensee, which is independent of the sports wagering operation, to serve as a third-party auditor for use in completing this audit;

(2) The commission, or third-party auditor shall be responsible for auditing the licensee's compliance with SDCL chapter 42-7 B and chapter 20:18:35, including those adopted in appendix A of GLI-33, the internal control system, and any other applicable rules and regulations;

(3) Documentation, including checklist, programs, reports, corrective actions, and other items, must be prepared to evidence all independent audit work performed as it relates to the requirements of this section, including all instances of noncompliance;

(4) Independent audit reports must include objectives, procedures and scope, findings and conclusions, and recommendations;

(5) Independent audit findings must be reported to management. Management shall respond to the independent audit findings and shall state the corrective measures to be taken to avoid recurrence of the audit exception. Such management responses must be included in the final independent audit report;

(6) Follow-up observation and examinations must verify that corrective action has been taken regarding all instances of noncompliance cited by the independent audits, or by the commission. The verification must be performed within six months following the date of notification; and

(7) Where approved by the commission, a licensee may leverage the results of prior audits conducted within the two-year period by the same third-party auditor in another sports wagering jurisdiction. Such leveraging must be noted in the audit report. This leveraging does not include any internal control procedures unique to the state, which require new audits.

S.D. Admin. R. 20:18:35:39

48 SDR 014, effective 8/22/2021

General Authority: SDCL 42-7B-7, 42-7B-11(13).

Law Implemented: SDCL 42-7B-43, 42-7B-76.

GLI-33 Standards for Event Wagering Systems, v1.1, May 14, 2019, Gaming Laboratories International, LLC. Copies may be obtained without charge from Gaming Laboratories International, LLC, at 600 Airport Road, Lakewood, New Jersey, 08701 (732) 942-3999 and online at Gaminglabs.com/gli-standards.