2005 Idaho Code - 67-7709 — ACCOUNTING AND USE OF BINGO PROCEEDS

                                  TITLE  67
                      STATE GOVERNMENT AND STATE AFFAIRS
                                  CHAPTER 77
                              BINGO AND RAFFLES
    67-7709.  ACCOUNTING AND USE OF BINGO PROCEEDS.
    (1)  (a) All funds received in connection with a bingo game required to be
    licensed pursuant to this chapter and the rules of the state lottery
    commission shall be placed in a separate bank account. No funds may be
    disbursed from this account except the charitable or nonprofit
    organization may expend proceeds for prizes, advertising, utilities and
    the purchase of supplies and equipment in playing bingo, taxes and license
    fees related to bingo, the payment of compensation, and for the purposes
    set forth below for the remaining proceeds.
    (b)  Funds from bingo accounts must be withdrawn by preprinted,
    consecutively numbered checks or withdrawal slips, signed by an authorized
    representative of the licensed authorized organization and made payable to
    a person. A check or withdrawal slip shall not be made payable to "cash,"
    "bearer" or a fictitious payee. The nature of the payment made shall be
    noted on the face of the check or withdrawal slip. Checks for the bingo
    account shall be imprinted with the words "bingo account" and shall
    contain the organization's bingo license name on the face of each check. A
    licensed authorized organization shall keep and account for all checks and
    withdrawal slips, including voided checks and withdrawal slips.
    (c)  Any proceeds available in a bingo account after payment of the
    expenses set forth in paragraph (1)(a) of this subsection shall inure to
    the charitable or nonprofit organization to be used for religious,
    charitable, civic, scientific testing, public safety, literary or
    educational purposes or for purchasing, constructing, maintaining,
    operating or using equipment or land, or a building or improvements
    thereto, owned, leased or rented by and for the charitable or nonprofit
    organization and used for civic purposes or made available by the
    charitable or nonprofit organization for use by the general public from
    time to time, or to foster amateur sports competition, or for the
    prevention of cruelty to children or animals, provided that no proceeds
    shall be used or expended directly or indirectly to compensate officers or
    directors. No employees of the charitable organization may be compensated
    from bingo proceeds except as provided in this subsection.
    (d)  All gross revenues received from bingo games by a charitable or
    nonprofit organization must be disbursed in the following manner, unless
    otherwise provided  in section 67-7708, Idaho Code: not more than
    sixty-five percent (65%) of the gross revenues shall be utilized for
    prizes in the charitable bingo game, not less than twenty percent (20%) of
    gross revenues shall be used for charitable purposes enumerated in this
    subsection and not more than fifteen percent (15%) of the gross revenues
    shall be used for administrative expenses associated with the charitable
    bingo game. If agreed upon by its board of directors, a charitable
    organization may decrease gross revenues spent on administrative expenses
    associated with bingo games and allocate those revenues to prizes so long
    as no more than seventy percent (70%) of the gross revenues is utilized
    for prizes on the bingo game. Two hundred fifty dollars ($250) or
    one-tenth of one percent (.1%) of annual gross revenues, as per the
    previous year's annual bingo report whichever is greater may be paid as
    wages for the conduct of any one (1) bingo session. Such pay shall be on
    an hourly basis and shall be directly related to the preparation, conduct
    of and cleaning following a bingo session.  Such wages shall be part of
    the fifteen percent (15%) gross revenues used for administrative expenses.
    An organization requesting an exemption from the disbursement percentages
    provided in this subsection for administrative costs may request an
    exemption from the state lottery commission.
    (2)  Any charitable or nonprofit organization conducting bingo games
pursuant to this chapter shall prepare a statement at the close of its license
year and shall file such statement with the state lottery. The statement shall
be prepared on a form prescribed by the lottery commission and shall include,
at a minimum, the following information:
    (a)  The number of bingo sessions conducted or sponsored by the licensed
    organization;
    (b)  The location and date at which each bingo session was conducted;
    (c)  The gross revenues of each bingo session;
    (d)  The fair market value of any prize given at each bingo session;
    (e)  The number of individual players participating in each session;
    (f)  The number of cards played in each session;
    (g)  The amount paid in prizes at each session;
    (h)  The amount paid to the charitable organization;
    (i)  All disbursements from bingo revenue and the purpose of those
    disbursements must be documented on a general ledger and submitted with
    the annual bingo report to the Idaho lottery commission; and
    (j)  An accounting of all gross revenues and the disbursements required by
    statute and rule of the state lottery commission must be retained in
    permanent records with the organization, including the date of each
    transaction and the name and address of each payee for all prize payments
    in excess of one hundred dollars ($100).
    (3)  Any organization required to be licensed to conduct bingo operations
under the provisions of this chapter shall use only nonreusable colored bingo
paper or electronic bingo paper so that all sales may be tracked. The
nonreusable colored paper must have a series and serial number on each card.
At the conclusion of each session, all organizations using nonreusable bingo
paper must track their bingo sales per session by recording the series and
serial numbers of all paper sold, damaged, donated or used for promotion in
that session. Each such organization shall keep a ledger of the numbers of all
such papers used during each session. All paper must be tracked as either
sold, damaged, donated, used for promotion, or omitted from the original
distributor or manufacturer. Paper tracking ledgers and invoices from the
distributor or manufacturer for nonrefundable colored bingo paper must be kept
with the permanent records for that bingo operation.
    (4)  Any person who shall willfully or knowingly furnish, supply or
otherwise give false information in any statement filed pursuant to this
section shall be guilty of a misdemeanor.
    (5)  All financial books, papers, records and documents of an organization
shall be kept as determined by rule of the state lottery and shall be open to
inspection by the county sheriff of the county, or the chief of police of the
city, or the prosecuting attorney of the county where the bingo game was held,
or the attorney general or the state lottery at reasonable times and during
reasonable hours.
    (6)  Every charitable or nonprofit organization whose annual gross
revenues exceed two hundred thousand dollars ($200,000) from the operation of
bingo games shall provide the state lottery with a copy of an annual audit of
the bingo operation. The audit shall be performed by an independent public
accountant and submitted within ninety (90) days after the end of the license
year.