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

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 Criteria 5 requirements: –501© status or school –Established and continuously operating –Reasonable progress –Office in the county –Criminal History

Licensing Review Gaming program Guidestar Checklist Secretary of State New – establishment Renewal – ATC Application ask for exactly how money made and spent

Office Inspection Look at office Look at office Equipment Equipment Leases, utility bills, bank records Leases, utility bills, bank records Records maintained by parent org (if any) Records maintained by parent org (if any) How public contacts them How public contacts them Reverse number look up Reverse number look up Web search Web 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

Penalties Administrative actions Administrative actions License denials License denials

Ways to Assist Compliance Training Conference Newsletter

DISCUSSION AND QUESTIONS