compliance audit - how to make sure real charities are getting the money
TRANSCRIPT
COMPLIANCE AUDIT - COMPLIANCE AUDIT -
HOW TO MAKE SURE REAL HOW TO MAKE SURE REAL CHARITIES ARE GETTING THE CHARITIES ARE GETTING THE
MONEYMONEY
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 CriteriaLicensing Criteria
5 requirements:5 requirements:– 501© status or school501© status or school– Established and continuously operatingEstablished and continuously operating– Reasonable progressReasonable progress– Office in the countyOffice in the county– Criminal HistoryCriminal History
Licensing Review
Gaming program Guidestar Checklist Secretary of State New – establishment Renewal – ATC Application ask for exactly how money
made and spent
Office InspectionOffice Inspection
Look at officeLook at officeEquipmentEquipmentLeases, utility bills, bank recordsLeases, utility bills, bank recordsRecords maintained by parent org (if any)Records maintained by parent org (if any)How public contacts themHow public contacts themReverse number look upReverse number look upWeb searchWeb 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
PenaltiesPenalties
Administrative actionsAdministrative actions License denialsLicense denials
Ways to Assist Compliance
• Training• Conference• Newsletter
DISCUSSION AND QUESTIONSDISCUSSION AND QUESTIONS