270 R.I. Code R. 270-RICR-50-00-2.8

Current through December 3, 2024

Section 270-RICR-50-00-2.8 - Records

A. Each organization shall keep and monitor financial records relating to the game in accordance with the following procedures and said records shall be available for inspection upon demand.

B. Record Keeping. Accurate records and books shall be kept by each licensed organization in a manner prescribed by the Superintendent, showing in detail the amount and source of gross receipts, the expenses incurred and the name and address of each person receiving a prize of over two hundred fifty dollars ($250) and the value of such prize.

1. Access to Records. The Department or local licensing authority or their duly authorized agents or representatives shall at all times have access to all books and records of any licensed organization for the purpose of examining and checking them.

2. Period of Retention of Records. All records, books of account, bank statements and all other papers incidental to the operation of bingo games by the licensed organization shall be retained and available for inspection by the Department or its duly authorized representatives for a period of four years from the close of the calendar year to which the records apply.

C. Bank Accounts

1. Proceeds from bingo shall be kept in a separate special "Games of Chance Account" which shall be in the form of a checking account with preprinted, consecutively numbered checks. All receipts from each bingo occasion, less the amount awarded as cash prizes for that occasion, shall be deposited in this special bingo account no later than the next business day following the date of the bingo occasion. Money shall be withdrawn from this special "Games of Chance Account" only for the following purposes:

a. Payment of expenses in accordance with Rules and Regulations.

b. Disbursement of Net Proceeds for a bona fide charitable purpose.

c. Transfer to one or more interest-bearing accounts pending disbursement. Any transfer from any interest-bearing account can only be by this subsection. Except as authorized by the Superintendent in writing, the total of funds held in interest-bearing accounts, plus the total of unexpended Net Proceeds in the "Games of Chance Account" shall not exceed fifty thousand dollars ($50,000) at any one time without the written permission of the Superintendent. Funds raised for charitable purposes must be expended for those purposes.

d. Withdrawal of cash funds for bingo bank to start each occasion.

e. Transfer to the Organization's "General Fund Account." If a charitable organization is required by Federal Regulations to expend their net proceeds from the game by the organization's General Fund Account, then the General Fund Account must be reviewed by a certified public accountant (CPA Review) each fiscal year, and a copy of that audit report shall be filed with the Department at the time of registration or renewal. The Department, at any time, may request any and all records of any licensed organization for audit purposes.

2. Commingling of Funds Prohibited.

a. No receipts deposited into the special "Games of Chance Account" shall be commingled with any other funds of the charitable organization. Only funds derived from the operation of bingo and other "Games of Chance" shall be deposited in the special "Games of Chance Account" except:

(1) Charitable organizations selling food, beverages and bingo supplies incidental to the game may deposit those funds into the special "Games of Chance Account," provided that all gross receipts from the sale of the aforementioned are deposited into the special "Games of Chance Account" and all expenses are paid by a check made out to a specific person or persons, and at no time shall any check be made out to cash.

(2) Funds raised through the sale of pull-tab lottery tickets obtained from the Rhode Island Lottery Commission may be deposited into the special "Games of Chance Account" and expenses for the purchase of pull-tab lottery tickets may be withdrawn from the special "Games of Chance Account."

(3) Charitable organizations who derive funds from the conduct of other authorized Games of Chance may deposit these receipts into the special "Games of Chance Account" and must pay all expenses by check to a specific person or persons, and at no time shall any check be made payable to cash.

D. Reports Required

1. Bingo Financial Report (Form SP-2)

a. A financial report form as specified by the Department must be filed for each day for which the licensed organization is authorized to conduct bingo games, regardless of whether or not the licensed organization actually conducts the game on that day.

b. This form must be completed in all respects when filed. Failure to adequately complete and file this form within seven (7) calendar days from the completion of the bingo occasion may result in suspension or revocation of approval to conduct the game.

c. The bingo Financial Report shall consist of three copies. One copy will be maintained by the charitable organization, one copy will be filed with the Department and the third copy will be filed with the local licensing authority, if required.

2. Bingo Cash Control Sheet and Prize Schedule

a. Each organization conducting the game shall adopt a cash control sheet and prize schedule which shall be maintained progressively throughout the occasion to detail the gross receipts as they are collected and the prizes as they are awarded.

b. Organizations selling special bingo cards (paper strips) will develop and maintain a system of cash controls to ensure that all gross receipts are accounted for.

c. Cash control sheets, admission/control cards, schedule of games and prizes and other such records or forms used by the licensed organization to gather and support the information required on the Financial Report must be retained by the licensed organization and be kept available for inspection at reasonable times by the Department.

3. Quarterly Bingo Financial Report (Form SP-5)

a. Quarterly Financial Reports, as specified by the Department, must be filed each quarter by the organization authorized to conduct bingo games. The quarterly reports shall include a summary of bingo occasion reports, additional quarterly expenses not already listed on the per occasion bingo reports (Form SP-2) and quarterly disbursements of bingo proceeds.

b. This form must be completed in all respects when filed. Failure to adequately complete and file this form within seven (7) days of the end of the quarter may result in suspension or revocation of approval to conduct the game. This quarterly schedule is as follows:

(1) July - September

(2) October - December

(3) January - March

(4) April - June

c. The original and two copies of the bingo Quarterly Financial Report will be maintained as follows: The original will be filed with the Department; one copy will be maintained by the charitable organization; and one copy will be filed with the local licensing authority, if required.

4. Annual Financial Report (See § 2.5(B) of this Part)

E. Expenses

1. Payment of Expenses. Money for reasonable and necessary expenses ordinarily incidental to the conduct of the game may be paid from the Gross Receipts only by checks having preprinted, consecutive numbers drawn on the special "Games of Chance Account." Said checks must be made payable to the specific person or corporation providing the goods or rendering the service which gave rise to the expense item, and at no time may checks be payable to cash.

2. Nature of Expenses. Only those expenses that are reasonable and necessary and ordinary incidental to the conduct of the game may be paid from the Gross Receipts, as determined by the Department.

3. Total expenses except for prizes shall not exceed 25% of the Gross Receipts or receipts to be raised by conducting the game.

4. A charitable organization may exceed the 25% maximum of gross receipts in the event of special facts or circumstances with written permission of the Department.

F. Complaint Report (SP-3)

1. Every charitable organization shall make available to any player or person a complaint report form (SP-3) provided by the Department for the purpose of making a complaint or reporting any violation of the Bingo Law or this Part. In any dispute involving prizes or the awarding of prizes, the Department shall, at a later date, make the determination. Each party involved, including the member in charge, shall file a complaint report noting the dispute.

270 R.I. Code R. 270-RICR-50-00-2.8