R 432.21519 Accountability; lawful use of proceeds; reasonable expenditures; deposit of proceeds.

Rule 519. (1) The licensee shall be accountable for all cash, prizes, raffle tickets, charity game tickets, and numeral game tickets. (2) In accordance with the act, the entire net proceeds of the licensed gaming event shall be devoted exclusively to the lawful purposes of the qualified organization. (3) To ensure that all proceeds are used for the lawful purposes of the qualified organization, all financial accounts into which proceeds from the licensed gaming event are deposited or transferred shall be open for review by authorized representatives of the bureau. (4) The payment of expenses incurred in connection with the conduct of the licensed gaming event shall be necessary and reasonable. (5) Each check written from financial accounts into which proceeds from the licensed gaming event are deposited or transferred shall meet all of the following requirements: (a) Each check shall be preprinted with the name of the licensee. (b) The check shall be signed by an authorized person or persons. (c) The check shall be made payable to a specific person, business, partnership, corporation, or account. (d) A check shall not be made payable to cash or bearer and shall not be drawn in blank. (e) The check shall contain a brief description of the expense on the memo line. (6) Electronic transfers of funds derived from the conduct of the licensed gaming event shall be done in accordance with directives of the bureau. (7) Cancelled checks written from financial accounts into which proceeds from the licensed gaming event are deposited or transferred shall be returned on a monthly basis to the account holder. Copies of the checks are acceptable, if legible, and if originals can be made available upon request by the bureau. (8) All monies derived from the conduct of the licensed gaming event shall be deposited into the qualified organization's financial account within 2 business days of the drawing or as directed in writing by the bureau. (9) Checks shall not be cashed out of the raffle start cash or gross revenue. (10) Prize payments and worker compensation are the only allowable cash expenditures from proceeds of the licensed gaming event. All other raffle-related expenses shall be paid by check as prescribed by this rule.