Title 9 Part 4821

The financial statement of bingo operations required by ordinance or local laws, State laws and this Chapter shall be on form BC-7 and in the case of limited period bingo, on form BC-9, each as prescribed by the commission. The licensee shall execute and file the original of the report with the clerk of the municipality within seven days after the conclusion of each occasion. Within 15 days after the end of each calendar quarter during which there has been any occasion of bingo, a summary statement of such information shall be on form BC-7Q, as prescribed by the commission. The licensee shall execute and file the original of the quarterly report with the commission and a copy with the clerk of the municipality. The licensee shall retain a copy of each report for its permanent records.

The commission requires every licensee to attach and file with such licensee’s financial statement an additional statement (form BC-7B), as prescribed by the commission, setting forth each item of receipt relating to the sale of bingo opportunities, the names of workers charged with such sales, bingo supplies sold and rent received.

Upon the filing of the financial statement of bingo operations, the licensee shall pay to the clerk of the municipality as an additional license fee a sum in the amount of three percent of the reported net proceeds, if any, for the occasion covered by such statement.

When no games are held on any date when a license authorizes them to be held, a report to that effect must be filed with the clerk of the municipality and the commission.

If the financial statement or summary statement of bingo operation filed by a licensee is not properly verified, or not fully, accurately and truthfully completed, no further license shall issue to it, and any existing license shall be suspended until such time as the default has been corrected.

Before any bingo funds are expended for noncharitable purposes, the licensee organization shall utilize all other sources or potential sources of income to discharge such noncharitable and operating expenses ordinarily incurred. Only in such manner can the organization ensure a maximum availability of the net proceeds of bingo exclusively for application to the worthy causes and undertakings specified in the Bingo Licensing Law. Any licensee organization that is disbursing bingo funds for noncharitable purposes shall make such licensee organization’s general fund and all other books and records available for examination by the commission or the municipal governing body or their representatives.

Each licensee shall maintain one bingo account that shall be designated the “special bingo account” and that shall be in the form of a regular checking account. Into this account shall be deposited all and only monies received from the sale of admission cards, regular bingo cards, extra regular bingo cards, special game cards, limited period bingo cards, supplies, rentals of premises for the conduct of bingo, if any, and all other receipts derived from the conduct of bingo less the amount awarded in cash prizes. Deposits shall be made intact and no later than the next business day following the date of a bingo occasion.

Except for the electronic transfer of funds to State, local and Federal governmental entities in compliance with lawful expenditures set forth in section 4821.18 of this Part; utilities, including light, heat, power and water, telephone, mortgages and payments to licensed bingo suppliers, all monies withdrawn from the special bingo account shall be only by checks having preprinted consecutive numbers, signed by at least two duly authorized officers of the licensee and made payable to a specific person, firm, partnership or corporation with the purpose specified on the check stub, and at no time shall a check be made payable to cash. All checks must be accounted for in the appropriate part of the Financial Statement of Bingo Operations (form BC-7) or quarterly summary statement of bingo operations (form BC-7 Q).

Monies withdrawn from the special bingo account shall only be for one or more of following purposes:

The disbursement of net proceeds on deposit in an interest-bearing account for one or more of the lawful purposes defined in the Bingo Licensing Law and this Chapter shall be made by transferring the amount of the intended disbursement back into the “special bingo account” and then withdrawing the amount therefrom in the manner prescribed in section 4821.9 of this Part.

The commingling of monies derived from the conduct of bingo with any other funds of the licensee is strictly prohibited. At no time shall a disbursement of these monies be for the purpose of transferring such monies, in whole or in part, to any other bank account maintained by the licensee, except as provided in section 4821.10(c) of this Part.

Each licensee shall maintain a single-entry bookkeeping system for the purpose of recording all receipts and expenditures in connection with the conduct of bingo and the disbursement of net proceeds derived therefrom. Such bookkeeping system shall consist of a columnar book prepared in the manner shown in Exhibits 1 and 2 infra (see Appendix T-1 of this Title) and shall be maintained on a calendar or fiscal year basis. The functions of bookkeeper and duly authorized signer of checks shall not be performed by the same person.

The books of account shall be kept up-to-date. The columnar book, deposit books, savings account passbooks, cancelled checks, checkbooks, deposit slips, bank statements and copies of Financial Statements of Bingo Operations (form BC-7) for the previous 18 months and all other books of account shall be available at all bingo occasions and other reasonable times for examination by the commission or the municipal governing body or their representatives. All documents supporting the entries made in the books of account shall be kept by the licensee for a period of no less than four years. These documents include, but are not limited to, bank statements, cancelled checks, deposit slips and invoices for all expenditures.

Each licensee shall require its treasurer or its duly designated officer to report in writing to its chief officer and membership, at least once a month, the number of occasions of bingo played, the gross receipts, the amount of prizes paid and the net profit or loss for each bingo occasion. The chief officer shall require that all of the documents specified in section 4821.14 of this Part be exhibited at each such meeting and such items shall be open to individual membership inspection. Such information must be incorporated in the minutes or proper records of each licensee. Where a licensee is an auxiliary or an affiliate of a parent organization, a copy of the written report shall be filed with the executive officer of the parent organization and incorporated in the minutes of the parent orgranization.

All monies derived from the conduct of bingo must be deposited and kept in banks located within the boundaries of New York State. When said monies are deposited into a checking account, the account shall be designated “special bingo account”; when deposited into an interest- bearing account or federally insured money market account, the account shall be designated “special bingo savings account.” Every licensee shall designate its president or chief officer to receive from the bank the monthly bank statements, cancelled checks of the special bingo account and the records of all other bingo accounts who shall verify and reconcile the BC-7's, BC-7Q's, original bank deposit slips, books and records with the treasurer at least monthly.

An organization's chief officer shall notify the commission and the municipality in writing of such organization’s intent to cease the conduct of bingo. An organization that has ceased to conduct bingo for any reason and has unexpended bingo funds shall:

Upon the final disbursement of such funds, the organization shall submit to the commission and the municipality a final quarterly statement of bingo operations (BC-7Q) documenting the final disposition of such bingo funds.