Bellagio Mcs Case

Bellagio

Bellagio’s management control system is dominated by action and personnel controls, rather than results controls. While the managers may seem justified in being proud of control systems, their potential bias must be kept in mind. The following are the controls employed by Bellagio:

1. Action Controls:

* Physical

* Strict separations of duties

* Constant observation and supervision of gaming area

* Stocks of cash and chips are stored in the casino cage

* Tight security and supervision in count room

* Administrative

* Daily independent cash counts and

* Stringent controls on recording of receipts and disbursements

* Strict procedure to transfer cash and chips to and from nonimprest funds

* Daily reconciliation are performed

* Aggressively pursue collections

* Preaction reviews

* Stringent and frequent auditing procedures

* Action accountability

* Timely analysis of deviations, Strict controls over issuing credit/limits

* Documents serially numbered

2. Personnel Controls

* Hiring experience dealers

* Performing employment screenings independent of registration process

* Licensing of casino personnel

* Training and retaining well-qualified employees

3. Cultural Controls

* Controls legally mandated because the gaming industry is highly regulated and highly competitive

* Report suspicious activities related to money laundering

* Report any cash transaction in excess of $10,000

4. Results Controls

* Variance reports generated using estimated amount and reconciled with actual data with an investigation for deviation on a daily and monthly basis

* Results measures considered in bonuses paid to management personnel

Problems:

* Excellent system of controls over cash but that does not necessarily guarantee good management controls...