Reporting and Record Keeping

(1) Reports (a) Financial Report. A separate financial report formas specified by the Director must be filed for each Function for which the Licensed Organization has filed the notice required pursuantto 961 CMR 4.03(2) regardless of whether or not the Licensed Organization actuallyconductsa Function on that day. This form must be complete in all respects when filed. Failure to adequately complete and file said formwithin10 days ofthe day of the Function for which said report is required to be filed may result in suspension or revocation of the Licensed Organization's License to conduct Beano and Charity Games. Control sheets and other such records or forms used by the Licensed Organization to gather and support the information required to be reported must be retained by the Licensed Organization and be kept available for inspection at reasonable times by the Director. A tax in the amount of five per cent of the Gross Receipts derived from the Function shall be paid to the Commission at the time this form is filed. (b) Raffle/Bazaar Law Report. A Licensed Organization shall within 30 days of the expiration of its permit submit a report on a formto be approved by the Commissioner of Public Safety. Such form shall require information concerning the number of Raffles and Bazaars held, the amount of money received, the expenses connected with the Raffle or Bazaar, the names of the winners of prizes exceeding $25.00 in value, the Net Proceeds of the Raffles and Bazaars, and the uses to which the Net Proceeds were applied. Such report shall be certified to by the three persons designated in the permit application as being responsible for such Raffle or Bazaar and by an accountant. Two copies of said report shall be filed with the city or town clerk, and one copy filed with the Director. Failure to file and report shall constitute sufficient grounds for refusal to renew a permit to conduct Raffles and Bazaars. (2) Records (a) Record Keeping. Accurate records and books shallbe kept byeach Licensed Organization in a manner prescribed by the Director showing in detail the amount and source of Gross Receipts, the expenses incurred and the name and address of each person receiving a prize over $25.00 and the value of such prize. (b) Access to Records. The Commission or the Local Licensing Authority or their duly authorized agents or representatives shallat all times have access to all books and records of any Licensed Organization for the purpose of examining and checking them. (c) Periodfor Retention of Records. All records, books of account, bank statements and all other papers incidental to the operation of Raffles and Bazaars by the Licensed Organization shall be retained and available for inspection by the Commission or its duly authorized representatives for a period of four years from the close of the calendar year to which the records apply. (3) Central Accounting System. Each Licensed Organization for the operation of a Function shall establish and maintain a central accounting system in a form prescribed by the Commission for all activities conducted in conjunction with the Function. Licensed Organizations shall obtain control sheets from the Commission. Such system shall contain, but not be limited to, the following items: (a) There shall be adequate personnel and physical areas to provide for the following minimum separation of duties. 1. banker and cashier, (count room) to handle the original bankroll, provide chips to the games and redeem chips; 2. runner to transport chips and lockboxes between stations; 3. pit bosses, each of whom shall supervise the operation of not more than six gambling stations and who shall, if applicable, supervise the transfer of lockboxes and chips to and from the count room; 4. an area for the counting of money (count room) which is segregated from the area in which gambling is conducted. All money received in connection with the Function shall be brought to this area for counting. Once any such money has been brought to this area, three persons shall be assigned to the count area with a minimum of two in the counting area at all times. (b) The beginningbankrolland chip count shallbe verified by at least two persons who shall sign such verification. (c) There shall be documentation containing verifying signatures for the transfer of money and chips between any two stations. (d) All games shall be numbered and except as provided in 961 CMR 4.05(3)(m) be provided with lockboxes and money paddles. The money paddle shall remain in the lockbox slot whenever it is not in use. The money slot of the lockbox shall not exceed 3½ inches in length and ½ in width. (e) The keys to all lockboxes are to be kept in the count room at all times and the lockboxes are to be opened only in the count room by the count room personnel. (f) All games are to be played using chips, script or the like and all currency tendered by the players shall be exchanged for chips, script or the like and immediately placed in the lockbox by the dealer if sale takes place at other than the count room. (g) Allmoneyand chips shallbe transferred to the count room at the end of the occasion for final tabulation, reconciliation, and verification. (h) The final tabulation and reconciliation shall be verified by at least three count room personnel who shall sign such verification. (i) Access to the count room (the bankers and/or cashier's area) shall be restricted to the persons assigned to those functions. (j) Records shall provide sufficient detail to determine the gross receipts of each activity conducted. (k) The records shall contain a reconciliation of the ending cash on hand to net receipts. (l) The ending cash on hand shall be deposited intact at the conclusion of the event, and a validated deposit slip shall be included as part of the event records. (m) In the event that the Licensed Organization allows players to purchase chips, script and the like only from the banker or cashier(s) and allows no sale of chips, script or the like to any other location, with all currency being immediately placed in a lockbox by said banker or cashier(s) games need not be provided with lockboxes and money paddles. (4) Bank Accounts (a) Proceeds from Raffles and Bazaars shall be kept in a separate special Raffle and Bazaar bank account which shall be in the form of a checking account. All receipts from each Raffle and Bazaar less the amount awarded as cash prizes for that Raffle or Bazaar shallbe deposited in this special account no later than the next business day following the date of the Raffle or Bazaar. Money shall be withdrawn from this Special Account for only the following purposes: 1. Payment of expenses in accordance with 961 CMR 4.05(5); 2. Disbursement from Net Proceeds for a Lawful Purpose as defined in 961 CMR 4.00. (b) The commingling of any funds derived from the operation of Raffles and Bazaars with any other funds of the Licensed Organization is prohibited. (5) Expenses (a) Payment ofExpenses. Moneyfor reasonable and necessary expenses may be paid from the Gross Receipts only by checks having preprinted consecutive numbers drawn on the special bank account established pursuant to 961 CMR 4.05(4). Said checks must be made payable to the specific person or corporation providing the goods or rendering the service which gives rise to the expense item and at no time may checks be payable to cash. (b) Nature of Expense. Only those expenses which are reasonable and necessaryand ordinarily incidental to the conduct of Raffles and Bazaars may be paid from Gross Receipts or otherwise.