N.H. Admin. Code § Lot 7004.04

Current through Register No. 45, November 7, 2024

Section Lot 7004.04 - Responsibilities of the Licensed Charitable Organization

Licensed charitable organizations shall:

(a) Adopt house rules in accordance with Lot 7005.06 below;

(b) Prominently display the following documents within the commercial hall or facility in areas that are accessible to and easily seen by the public, including in the immediate area where bingo games are played:

(1) The organization's current bingo license, pursuant to RSA 287-E:6;

(2) At least one copy of RSA 287-E and this chapter;

(3) At least one copy of any house rules that apply; and

(4) A copy of the current game program;

(c) Prominently display a sign in the immediate area where the bingo games are played advising the public of the phone number where complaints related to charitable gaming may be made;

(d) Only compensate for gaming related services when the individual or entity providing the services is a licensed gaming consultant with whom the organization has a written agreement.

(e) Only reimburse bona fide members of the organization for out-of-pocket expenses in an amount not to exceed $25 per game date when such expenses are itemized and submitted in writing to the organization.

(f) For each bingo event, designate a member of the charitable organization or engage a gaming consultant to act as the gaming manager who shall be responsible for:

(1) Ensuring that the games are conducted in accordance with RSA 287-E and this chapter;

(2) Determining program content, prize level requirements, products to be purchased and put into play;

(3) Overseeing the game event by supervising volunteers, and monitoring the conduct of the games;

(4) Ensuring that all receipts and disbursements have been properly accounted for, all source documents, and inventory records are complete and, all inventory records have been reconciled;

(5) Verifying proper accounting for that all gambling expenditure, equipment, assets and receipts;

(6) Controlling the execution of the games, including payouts and the preparation of transaction records;

(7) Ensuring that all security measures and internal controls are in place to protect the integrity of the games and gaming assets; and

(8) Remaining on the premises during the bingo event to address and resolve any issues that occur during the bingo event;

(g) Only sell bingo supplies and systems that have been:

(1) Purchased from a licensed distributor and manufactured by a licensed manufacturer, pursuant to RSA 287-E:8-a; and

(2) Approved by the commission;

(h) Conduct bingo games in accordance with RSA 287-E and this chapter;

(i) Develop, implement, and adhere to written internal control policies and procedures designed to ensure effective control over the gaming operation by discouraging and protecting against illicit behavior and safeguarding the integrity of the games, which ensure that:

(1) Assets are safeguarded;

(2) Financial records are accurate, reliable and permit proper reporting of gaming revenue, fees and taxes;

(3) Functions, duties, and responsibilities are appropriately segregated and performed in accordance with sound business practice by competent, qualified personnel, with no individual in a position that would allow them to perpetuate and conceal errors or irregularities in the normal course of duties;

(4) Integrity of the game is preserved by preventing unauthorized access, misappropriation, forgery, theft, or fraud;

(5) Controls that have been put in place are effective, and that any abnormalities are investigated and addressed;

(6) Transactions are performed only in accordance with management's general or specific authorization;

(7) Transactions are recorded adequately to permit proper reporting of gaming revenue and of fees and taxes, and to maintain accountability for assets;

(8) Recorded accountability for assets is compared with actual assets at reasonable intervals, and appropriate action is taken with respect to any discrepancies; and

(9) Accountability for assets is maintained in accordance with generally accepted accounting principles; and

(j) Establish and incorporate the following control procedures to provide the maximum accountability for all bingo supplies, systems, revenues and disbursements:

(1) Control the access and distribution of all bingo supplies;

(2) Designate an individual who will control, purchase, track, and account for bingo supplies;

(3) Develop procedures to track the purchase, storage, and distribution to individuals selling bingo supplies and their removal from inventory;

(4) Develop a perpetual inventory tracking system and conduct monthly physical inventory counts to compare and reconcile with that system, and investigate and resolve any discrepancies;

(5) Develop a receipting system for the sale of the cards and sheets to be completed for each bingo event that includes comparing cash register receipt or manual receipt summaries to calculated sales based on the selling price of the cards and sheets sold, where the calculated sales are based on the quantity of cards and sheets sold, determined by the quantity of cards and sheets issued out of inventory at the beginning of the bingo event, less the quantity of cards and sheets returned to inventory at the conclusion of the event;

(6) Develop a procedure to record the gross receipts generated from the sale of cards and sheets sold by floor workers, and implement such procedures through such things as an inventory accounting system or a floor worker sales report;

(7) Limit access to the funds in the bingo bank accounts created in accordance Lot 7007.01(a) to authorized executive members of the organization; and

(8) Assign an individual, who is independent of the person primarily responsible for the control of the inventory and purchasing of the cards and sheets or responsible for accounting for the funds generated from the sale of cards and sheets, to reconcile the funds deposited into the bingo bank accounts to the funds generated from the sale of cards and sheets;

(k) Retain control over funds jointly held in a cooperative agreement, and ensure that such authority is not extended to a facility owner, or other outside agents;

(l) Maintain records pertaining to bingo gaming activities including:

(1) Copies of all policies and procedures;

(2) Any records or documents necessary to track bingo cards and sheets from the date of purchase through the final disposition, including:

a. The purchase register which includes the quantity, description, series, serial number, cut, color, date of purchase, cost and purchase invoice number;

b. Inventory control records which include the quantity and description, series, serial number, cut, color, and date the bingo cards and sheets placed into, withdrawn from, or returned to, inventory;

c. The sales register controls for the cards or sheets sold by individual floor workers, which includes:

1. A record of the quantity of all cards or sheets sold by individual floor workers;

2. The individual's name;

3. The value of the cards or sheets;

4. The type of cards or sheets; and

5. The amount of cash turned in by the individual;

d. The bingo event report which reflects:

1. The gross receipts;

2. Prizes paid;

3. The number of players in attendance; and

4. The quantity of singles, packages, or packets sold with corresponding value of the bingo card or sheet;

e. For each game, the center number of all winning cards, the quantity of winning cards, the game name or number as described on the game program, and the amount of balls called;

f. For each winner-take-all, carryover coverall, and progressive coverall game, the amount of balls called and the value of the prize, if carried over;

g. The record of all prizes paid, with separate listing for those paid by cash from those paid by check;

h. The daily cash count records which include the amount of cash available for deposit and the amount actually deposited in the bingo bank account; and

i. The check register which details all deposits and disbursements from the bingo bank account;

(3) Bank statements, check registers, reconciliations, and cancelled checks and bank deposit slips for bingo bank accounts;

(4) The purchase of bingo paper supplies and electronic bingo player systems, including copies of invoices provided by the distributor;

(5) The calculation of charity allocation and state tax;

(6) All written contracts, agreements, leases, rental agreements, or any other statement of understanding;

(7) Work schedules and assignments of all employees, volunteers and bona fide members; and

(8) Copies of by-laws, articles of incorporation and organization chart listing titles, roles, and responsibilities;

(m) Retain full custody and control over all bank accounts pertaining to bingo and lucky 7 activities;

(n) Comply with the financial and reporting requirements set forth in Lot 7007 below;

(o) Submit copies of any written agreements to the commission prior to services being rendered, as required by RSA 287-E:7, II(b);

(p) Maintain all bingo related records on the premises for a period of 2 years;

(q) Notify the commission in writing within 15 days of an event affecting the charitable organization's:

(1) Qualifications for licensure under Lot 7003.02, such as a change in IRS exemption status; or

(2) Status of good standing with the New Hampshire secretary of state or director of charitable trust, or with the organization's state or national organization;

(r) Not allow an individual to serve as both the treasurer and the chairperson of the charitable organization or their designee;

(s) Notify the commission in writing within 24 hours of cancelling an authorized bingo event, and include the following information in the notification:

(1) The name and contact information of the authorized official of the licensed charitable organization submitting the notification;

(2) The date and location of the cancelled bingo event; and

(3) The reason for the cancellation; and

(t) Take actions to ensure compliance with RSA-E:7, VI such that no person who has been convicted of a felony or class A misdemeanor within the previous 10 years, or a class B misdemeanor within the past 5 years, neither of which has been annulled by the court, or who has violated any of the statutes or rules governing charitable gaming in the past in this or any other state are permitted to participate in the operation of a bingo event licensed under this chapter.

N.H. Admin. Code § Lot 7004.04

Derived from Volume XL Number 28, Filed July 9, 2020, Proposed by #13067, Effective 6/26/2020, Expires 6/27/2030 (See Revision Notes #1, #2, and #3 at chapter heading for Lot 7000).