COMPLIANCE AUDIT - HOW TO MAKE SURE REAL CHARITIES ARE GETTING THE MONEY.

COMPLIANCE AUDIT - COMPLIANCE AUDIT -

HOW TO MAKE SURE REAL HOW TO MAKE SURE REAL CHARITIES ARE GETTING THE CHARITIES ARE GETTING THE

MONEYMONEY

Introduction and History

Constitution was amended in 1992 to allow for charitable gaming;

Statute was passed in 1994; Retention percentage was significantly

amended in 1998; Enforcement division was added in 2000; Enforcement in licensing was emphasized in

2002; Significant regulation overhaul in 2006

emphasizing accountability; and Currently a $550 million industry; has been as

high as $608 million.

Licensing CriteriaLicensing Criteria

5 requirements:5 requirements:– 501© status or school501© status or school– Established and continuously operatingEstablished and continuously operating– Reasonable progressReasonable progress– Office in the countyOffice in the county– Criminal HistoryCriminal History

Licensing Review

Gaming program Guidestar Checklist Secretary of State New – establishment Renewal – ATC Application ask for exactly how money

made and spent

Office InspectionOffice Inspection

Look at officeLook at officeEquipmentEquipmentLeases, utility bills, bank recordsLeases, utility bills, bank recordsRecords maintained by parent org (if any)Records maintained by parent org (if any)How public contacts themHow public contacts themReverse number look upReverse number look upWeb searchWeb search

Game Operation Compliance• 9 officers for 750

organizations• 237 with 2 bingo

sessions a week• Review inspection report• New volunteer sheet• New regulations

standardized session records required and provided suggested session records on website

Quarterly Reports• Must submit quarterly for every

quarter licensed regardless of activity

• Must be submitted with all attachments

• Signed by CEO or CFO• Printed in ink or typed• Includes gross receipts; payouts;

winners; expenses; donations; signatories on gaming account

• Now also includes inventory of product

Working the Quarterly

• Verify in proper format• Check math• Verify expenses and donations• Verify check signing authority• Calculate shortages• Write violations• If questions, check expected

deposits

Retention %age Net is required to be at least 40% of

adjusted gross Penalties greatly decreased in 1998 Retention and net continue to increase

even though gross receipts have fallen

PenaltiesPenalties

Administrative actionsAdministrative actions License denialsLicense denials

Ways to Assist Compliance

• Training• Conference• Newsletter

DISCUSSION AND QUESTIONSDISCUSSION AND QUESTIONS