N.H. Admin. Code § Pari 1105.04

Current through Register No. 45, November 7, 2024

Section Pari 1105.04 - Responsibilities of the Licensed Charitable Organization

Licensed charitable organizations shall:

(a) Adopt house rules in accordance with Pari 1106.01 below;

(b) Prominently display the following documents within the hall in areas that are accessible to and easily seen by the public, including in the immediate area where the lucky 7 tickets are sold:

(1) The organization s current lucky 7 license, pursuant to RSA 287-E:20, V;

(2) Two copies of RSA 287-E and Chapter Pari 1100; and

(3) Two copies of any house rules that apply;

(c) Prominently display a sign in the immediate area where the lucky 7 tickets are sold advising the public of the phone number where complaints related to charitable gaming may be made;

(d) Only sell lucky 7 tickets that have been purchased from a licensed distributor and manufactured by a licensed manufacturer, pursuant to RSA 287-E:23;

(e) Utilize only lucky 7 tickets and lucky 7 ticket dispensing devices that have been approved by the commission in accordance with Pari 1110 below;

(f) Ensure that any lucky 7 tickets put into play are:

(1) For traditional tickets, as defined in Pari 1102.11(a), received as unopened deals with an original, unbroken manufacturer's seal; or

(2) For electronically generated tickets, as defined in Pari 1102.11(b), generated or transferred in a secure manner such as encryption, password protected files, or other means that prevent readability;

(g) Immediately return to the distributor, any lucky 7 deals that were not received in a secure manner as described in (f) above, or that do not otherwise comply with existing laws or this chapter;

(h) Sell lucky 7 tickets in accordance with Pari 1106 below;

(i) Establish and institute administrative and accounting procedures and controls to ensure that:

(1) Assets are safeguarded;

(2) Financial records are accurate and reliable;

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

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

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

(6) Functions, duties, and responsibilities are appropriately segregated in accordance with sound business practice;

(7) The integrity of the game is preserved by preventing unauthorized access, misappropriation, forgery, theft, or fraud; and

(8) The charitable organizations retain control over funds jointly held in a cooperative agreement, and that such authority is not extended to a facility owner, or other outside agents;

(j) Maintain records of all purchases of lucky 7 deals, including electronic deals, including, at a minimum, the following:

(1) The date and, in the case of electronic deals, the time the deal was received;

(2) The name of the authorized individual who took possession of the deal from the distributor, or otherwise accepted the deal on behalf of the charitable organization;

(3) The location where deal will be played;

(4) The serial and game form numbers of the deal;

(5) The name and description of the game;

(6) The total number of lucky 7 tickets in the deal; and

(7) The purchase price for the deal;

(k) Maintain records that adequately record, track and reconcile all lucky 7 ticket sales and voids, including, at a minimum, the following:

(1) The date(s) the tickets were sold or voided;

(2) The location where the tickets were sold;

(3) The serial and game form numbers of the deal;

(4) The name and description of the game; and

(5) The total number of lucky 7 tickets sold from the deal;

(l) In addition to the requirements in (j) and (k) above, maintain, at a minimum, the following records pertaining to lucky 7 gaming activities:

(1) Copies of all policies and procedures related to lucky 7 games, including play, surveillance, security, revenue collection, and accounting for, reporting, and auditing the results produced;

(2) When electronic lucky 7 ticket dispensing devices are used, documentation of procedures and controls, including monitoring systems for security incidents, data back-up, and periodic test and maintenance to ensure that the system is functioning properly and the integrity of games is preserved;

(3) Bank statements, check registers, reconciliations, and cancelled checks and bank deposit slips for lucky 7 bank accounts;

(4) Documentation of all prize and promotional payouts;

(5) Documentation of the calculation of charity allocation and state tax;

(6) All written contracts, agreements, leases, rental agreements, or any other statement of understanding regarding the operation of lucky 7 games;

(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) Institute written protocols for receiving cash, including the stipulation that at least 2 persons be present when opening cash collection boxes, with each person counting the cash and attesting to the accuracy of the count by completing a receipt document that includes at a minimum:

(1) The amount of cash withdrawn from the lucky 7 ticket dispensing device;

(2) The date and time of the cash withdrawal; and

(3) The signature of each person involved in the withdrawal;

(n) Ensure the effectiveness of the controls put in place by having a person or persons independent of the lucky 7 ticket sales and inventory control:

(1) Verify the accuracy of the end balance in the lucky 7 control by reconciling the lucky 7 tickets on hand;

(2) Conduct a comparison for reasonableness of the amount of lucky 7 tickets sold from the lucky 7 ticket control log to the amount of revenue recognized;

(3) Review statistical information; and

(4) Investigate any large or unusual statistical fluctuations or other abnormalities noted by the review activities described in (1)-(3) above;

(o) Prepare general accounting record according to U.S. Generally Accepted Accounting Principles (GAAP) on a double-entry system of accounting, maintaining detailed, supporting, and subsidiary records;

(p) Comply with the financial and reporting requirements set forth in Pari 1107 and Pari 1108 below;

(q) When the organization has hired a consultant, submit a copy of the written agreement to the commission prior to services being rendered, in accordance with RSA 287-E:7, II(b);

(r) Maintain all records on the premises for a period of 2 years;

(s) Permit the commission to examine its books, records, inventory and business premises for the purpose of determining compliance with RSA 287-E and this chapter, and make such records available to the commission upon request and within a reasonable time; and

(t) Notify the commission in writing within 15 days of an event affecting the charitable organizations:

(1) Qualifications for licensure under Pari 1103.02, 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.

N.H. Admin. Code § Pari 1105.04

Adopted by Volume XXXV Number 06, Filed February 12, 2015, Proposed by #10773, Effective 2/1/2015, Expires 2/1/2025.