nvcpa32nd Annual

Gaming Conference

May 17 & 18, 2010

11:30 – 12:20 pmDocument imaging: Using technology to improve workflow in a casino environment

Fred HipwellOffice Managing Partner

PricewaterhouseCoopers LLP

Max FisherDirector of Financial Operations-Western Division

Harrah’s Entertainment

Lynda HartzellChief, Audit Division

Nevada Gaming Control Board

nvcpa

Document Imaging-

Using Technology to Improve Workflow in a Casino Environment

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Contents– Harrah’s Entertainment– ERM - IBM E Client– Report & Scan Modules– Leveraging the System– Utilization in Income Control– Process Automation– Offsite Accounting– Upgrade Staff– Future - Where do we go next?– Fun Facts

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Harrah’s Entertainment Company Snapshot

• The world’s largest & most diversified gaming company

• 52 casinos in six countries

• Approx. 39,000 hotel rooms & suites

• 70,000 employees• Industry leading loyalty program

(Total Rewards) with more than 40 Million members

• Net revenues of $8.9 Billion

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Harrah’s Entertainment Todayc

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Electronic Records Management is… • A highly secured enterprise repository of critical business data viewable in a web browser anywhere on our network.

• Technology that reduces physical paper, improves processes & increases productivity.

• Internet access is not required.

• Reduced storage costs.

• Simplified Training.

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Electronic Records Management is…

• A collection of application folders that group data into categories (Systems or Processes.)

• The image to the right is a list of the applications available today. We investigate and develop new applications based on our growing business needs and ROI.

• Efficient - only print what you need, downloadable, able to send as attachment.

• Custom Views - reports by department level.

• One-stop shopping for data needs.

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Electronic Records Management is…

• A collection of application folders that group data into categories (Systems or Processes.)

• The image to the right is a list of the applications available today. We investigate and develop new applications based on our growing business needs and ROI.

• Efficient - only print what you need, downloadable, able to send as attachment.

• Custom Views - reports by department level.

• One-stop shopping for data needs.

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Electronic Records Management is…

File Room vs. Scan Station

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Imaged Data Applications• AP invoices and supporting

documentation• Journal entries• Property tax returns• Treasury transactions• Cashier/cage checks • Scanned Credit Documents• Hotel registration cards• Title 31 Documents• Leases and contracts• Employee signature cards• Risk and incident reports

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Leveraging the System• Reporting/Audit

– Financial Reports to the enterprise - retrieve on demand with no need to distribute.• More than 5,000 Department Level P&L Statements • Hundreds of Financial Statement Books

– Journal Entries - all entries and back-up scanned retrievable at any time.

– Utilization by Internal and External Audit• Minimize document requests• Reduce time to procure requested items• Auditors don’t care what you are doing - they want it now!!!!!!!!!!!!!!!!!!!!!!!!!

– Accounting department transitions from information gatherers to business resource.• AP Invoices• Comp Transactions• General Ledger Detail

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Financial Reports as needed………

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Utilization in Income Control• Process Automation - Information can be extracted to populate reports, workbooks,

and databases– Hotel Accounting/Audit

• Fully Automated - reporting, accounting entries for revenue, settlements, and statistics• Paperless• Transaction testing performed via electronic records• Exception based Audit

– Daily Operating/Flash Reporting• All system reports converge in ERM• Fully automated reporting to Senior Management daily• No data entry or printing

– Slot Accounting• Stored reports populate workbooks• Eliminate clerical error• Streamline accounting entry• Reduce preparation time and focus on decision making

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Accounting Offsite• Accounting becomes easier

– Stored reports for all properties– Scanned images – No need to ship documents between locations– Distance becomes irrelevant

• Northern Nevada - Consolidated accounting of Harrah’s properties in Reno & Tahoe

– Daily Audit Process– Attribute testing and sampling with scanned images– Support Function - Record Coordinator

• Considerations with Staff– Auditing in an electronic environment– Increased technical skill set required– Change in staffing model required

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• Signature Capture-Tablets & Handheld Devices– Hotel– F&B– Casino Floor

• Integration with ERM– Synch image file to ERM menu– Decrease wait time for availability– Reduce Scanning Labor

• True Paperless-Green Environment

Future – Where do we go next

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Fun Facts • Harrah’s Entertainment has been using document imaging platforms for 10

years.• Estimated Annual Paper

Savings

–2 Million Pounds

–80,000 Storage Boxes

–200 Stacks, the height of the Statue of Liberty (300 Feet)

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Transition………………

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Regulator Issues

Lynda HartzellChief

Audit DivisionNevada Gaming Control Board

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• Regulation 6.040 – Keep for 5 years, and provide an index by casino department and date if kept on computer, so plan ahead to properly index such that records can be located promptly.

• Regulation 6.060 – must provide to Audit Division or Tax and License Division upon request, so consider in advance how document requests will be handled.

• NRS 368A.160 – Entertainment Tax records must also be retained for 5 years, and be made available upon demand. Law does not specify paper or electronic form, but consider both retention periods and how records will be retrieved upon request.

• Information Technology Minimum Internal Control Standards for electronic storage of documentation (IT MICS #34 and #35)

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Nevada licensees must comply with:

Nevada Gaming Control Board, Audit Division

• Unalterable media

• Exact duplicate of original document

• Terminal and Printer, and other required equipment must be provided (at the licensee’s expense) to Board Auditors. (Note: the amount of equipment needed will depend on the number of auditors assigned. To maintain efficiency, we need to ensure that our auditors are not waiting excessive amounts of time for access.)

• Controls must exist to ensure accurate reproduction of records including the printing of documents for audit purposes.

• Quarterly reviews of sample documentation by accounting/audit personnel to ensure clarity and completeness.

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Highlights from IT MICS #34:

Nevada Gaming Control Board, Audit Division

If source documents and summary reports are stored on alterable storage media, the media may not be relied upon for the performance of any audit procedures, and the original documents and summary reports must be retained.

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IT MICS #35:

Nevada Gaming Control Board, Audit Division

1.Printed original documents scanned and stored in record retention system.

2.Records transferred via interface from gaming or point-of-sale system to record retention system.

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Two Approaches – Two Sets of Requirements:

Nevada Gaming Control Board, Audit Division

1.Maintain records securely and legibly 2.Index properly to ensure prompt, efficient retrieval3.Supply Board Auditors with equipment and assistance necessary to retrieve promptly4.Best advice: introduce approach to document retention and retrieval to regulatory staff ahead of time to prevent problems during audit (“No Surprises”); ensure licensee staff knows proper procedures.21

Same Objective

Nevada Gaming Control Board, Audit Division

Q&A11:30 – 12:20 pmDocument imaging: Using technology to improve workflow in a casino environment

Fred HipwellOffice Managing Partner

PricewaterhouseCoopers LLP

Max FisherDirector of Financial Operations-Western Division

Harrah’s Entertainment

Lynda HartzellChief, Audit Division

Nevada Gaming Control Board

nvcpa

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