8 Colo. Code Regs. § 1505-2-10
Current through Register Vol. 47, No. 22, November 25, 2024
Rule 8 CCR 1505-2-10 - Accounting for Receipts and Deposits10.1 Maintenance of records 10.1.1 Retention period. Each licensee conducting charitable gaming activities must maintain records on forms prescribed or approved by the Secretary of State. These forms must cover bingo occasions, bar and club room sales and raffles. The records must be retained for a period of two years following the calendar year in which bingo, pull tabs or raffles were conducted.10.1.2 Each licensee must record the following receipts: (a) Gross receipts collected for all cards, including strip bingo cards, packs and sheets sold for each occasion;(b) Gross receipts collected for all pull tabs sold for each occasion and in bars and clubrooms; and(c) Gross receipts collected for all raffle tickets sold.10.1.3 Progressive games (a) All receipts from the sale of progressive games must be accounted for separately within the licensee's bingo-raffle checking or savings account created in accordance with sections 24-21-622(3), C.R.S.(b) All receipts from the sale of progressive games must be deposited in the licensee's bingo-raffle account by using separate deposit slips. Deposit slips for progressive bingo and progressive pull tab games must indicate the serial numbers of the progressive bingo cards sold and the serial numbers of the progressive pull tabs sold. Deposit slips for progressive raffles must contain the words "Progressive Raffle." All deposits must be made no later than the close of the business day after the occasion at which the progressive took place.(c) Unless the licensee starts a progressive jackpot bingo game with a secondary jackpot amount, the licensee must continuously hold an amount equal to at least the accrued progressive jackpot prize in the licensee's bingo-raffle checking or savings account for the entire duration of the progression. No part of this amount may be expended, transferred, or otherwise removed from the account before the payment of the progressive jackpot to a winner.(d) If the licensee has started a progressive jackpot bingo game with a secondary jackpot amount, the licensee must continuously hold an amount equal to at least the accrued primary and secondary jackpots in the licensee's bingo-raffle checking or savings account for the entire duration of the progression. No part of this amount may be expended, transferred, or otherwise removed from the account before the payment of the progressive jackpot to a winner.(e) If the licensee conducts a progressive pull tab game or a progressive raffle, the licensee must maintain an amount in the bingo-raffle account sufficient to pay out the total of all prize amounts in the game.(f) If the licensee fails to maintain account balances in accordance with this rule or uses such balances for unlawful purposes, the failure or action is prima facie evidence of fraud.10.2 Method of accounting 10.2.1 Accrual method. The licensee must use the accrual accounting method and must report all incurred bingo-raffle related expenses on the licensee's quarterly financial statement. The licensee must report these expenses regardless of whether the expense is paid when incurred or at a later date. The licensee must not report a payment that was reported in a previous quarter as an expense to be paid.10.2.2 Segregated bank accounts (a) The licensee must indicate on forms provided by the Secretary of State, the financial institution and account numbers for all segregated bingo-raffle checking or savings accounts.(b) The licensee must notify the Secretary of State in writing if the licensee changes the financial institution it uses to maintain the segregated checking or savings accounts or if the licensee closes an account or starts a new account.10.2.3 Accounting for prizes and payouts. The licensee must maintain prize and payout records on forms prescribed or approved by the Secretary of State covering each occasion, bar and club room sales, and each raffle. The licensee must retain the records for a period of two years following the calendar year in which bingo, pull tabs or raffles were conducted. The records must disclose the following information: (a) The amount of the prizes paid to winners in cash or in merchandise for each bingo game at each occasion;(b) The amount of the prizes paid to all pull tab winners at each occasion and bar and club room;(c) The amount of prizes paid to raffle winners for each raffle conducted; and(d) The cost of all merchandise given as prizes in any bingo game, pull tab game, or raffle.10.2.4 Records. The licensee must maintain administrative records on forms prescribed or approved by the Secretary of State covering each occasion, bar and club room sales, and each raffle. The licensee must retain the records for a period of two years following the calendar year in which bingo, pull tabs or raffles were conducted. The records must disclose the following information:(a) The name and signature (as may be required by the Secretary of State's form) of each games manager for the licensee at each bingo occasion, bar and club room or raffle; and(b) The full name of each member working the occasion.10.2.5 Availability of records. The licensee must have available on its premises all required daily records for the current quarter and the immediately preceding quarter on forms prescribed or approved by the Secretary of State. A licensee must be able to print records maintained on a computer upon request of the Secretary of State or authorized representative.10.2.6 Pull tab records. Each licensee that sells pull tabs must record sales and prize payout information on forms prescribed or approved by the Secretary of State, including a current summary of such sales. The licensee must retain the records for a period of two years. The licensee must maintain the records for the current and immediately preceding quarter on the premises where the pull tabs are sold and must make them available to the Secretary of State or authorized representatives upon request.10.2.7 Submission of bank statements to the Secretary of State. Any licensee that surrenders its license, has had its license suspended or revoked, or, for whatever reason, ceases to conduct charitable gaming activities after it has opened a segregated bingo-raffle checking or savings account, or both, must send a copy of the bank statement for each account to the Secretary of State within 30 days after the licensee ceased operations.10.3 Allowable expenses limitations10.3.1 Bookkeeper. A licensee must not pay more than $200 per occasion for bookkeeper or accountant services. The licensee must notify the Secretary of State in writing, signed by an officer of the licensee, if the licensee remunerates its games manager for performing bookkeeping or accounting services.10.3.2 Security (a) A bingo-raffle licensee must not pay more than $400 per occasion for security unless: (1) Security is provided by one or more off-duty law enforcement officers; or(2) The occasion requires additional security, for example, a large number of people or large amount of money will be present on the premises.(b) If a bingo-raffle licensee uses off-duty law enforcement officers, the licensee must notify the Secretary of State and list the names and badge numbers of those officers who perform security duties before paying more than $400 per occasion.(c) If a bingo-raffle licensee uses security other than off-duty law enforcement officers, and payment will exceed $400 for a single occasion, the licensee must notify the Secretary of State and provide a reason for the increase before making the payment.10.3.3 Janitorial. A licensee must not pay more than $200 per occasion for janitorial services. The licensee may only pay for janitorial services in facilities owned by the licensee or in its sole control, or which it uses rent-free.10.3.4 Advertising. A licensee must not pay more than the amount customarily charged by the medium used for advertisements of the same size and duration of publication.10.3.5 Call fulfillment center. A licensee may pay a reasonable amount to contract a call fulfillment center for call reception and data entry only. All activities of the call fulfillment center must comply with Rule 8.1.1(e).10.3.6 Legal services. A licensee may only pay for legal services directly related to an administrative action brought by the Secretary of State or the Colorado Department of Law or for legal advice relating to the interpretation of the Bingo and Raffles Law or these rules.Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/14/201440 CR 17, September 10, 2017, effective 9/30/201744 CR 19, October 10, 2021, effective 11/1/202146 CR 05, March 10, 2023, effective 3/31/202347 CR 18, September 25, 2024, effective 10/15/2024