Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 238.536, 238.550, 238.560
NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515 and 238.550
authorize the Department of Charitable Gaming to establish and enforce
standards of accounting, record-keeping, and reporting to the department to
ensure charitable gaming receipts are accounted for properly. This
administrative regulation establishes the minimum requirements for accounting,
recordkeeping, and reporting to the department and establishes allowable
charitable gaming expenses.
Section 1.
Bank Account and Records.
(1) A charitable
organization shall maintain a single bank account for charitable gaming
receipts. This account shall be separate from any other account maintained by
the charitable organization.
(2)
Disbursements for charitable gaming expenses and charitable donations shall be
made by check or electronic fund transfer directly from the charitable gaming
account.
(3) All receipts and
donations from each charitable gaming session shall be deposited by the second
business day following the charitable gaming session at which they were
received. The deposit for each charitable gaming session shall be made
separately and shall not be combined with the deposit from any other charitable
gaming session.
(4) All types of
deposits, including startup cash, returned checks collected and check
collection fees, progressive game carry forward, cash prizes not awarded, and
adjusted gross receipts, shall be listed separately on the deposit
reconciliation sheet and the deposit slip. Each individual check shall be
listed separately on the deposit slip. If a register tape is run listing the
amounts of the individual checks, it may be attached to the deposit slip. Total
cash and coins shall be listed separately. The charitable organization shall
keep a copy of the deposit slip.
(5) Checks that have been returned for
insufficient funds that have not been collected shall be retained by the
charitable organization for three (3) years following the close of the calendar
year in which the check was issued. If the check has been turned over for
collection, the charitable organization shall retain a copy of the check with
contact information for the person or entity collecting the check.
(6) Monthly bank statements and
reconciliations for all accounts shall be maintained by the charitable
organization for three (3) years following the close of a calendar
year.
(7) Bank image copies of the
fronts and backs of checks from any account into which charitable gaming funds
are deposited or transferred shall be made available to the department upon
request.
(8) Gross receipts shall
include the money received from the sale of raffle tickets, bingo cards or
faces, pickle jars, bonanza balls, hot balls, card-minding devices, pulltabs,
electronic pulltab devices and electronic pulltabs, charity fundraising event
games, special limited charity fundraising event games, returned check
collections, credit card fees collected by a charitable organization at a
charitable gaming session, and any check collection fees minus returned
checks.
Section 2.
Start-up Cash.
(1) If the source of start-up
cash is not the charitable gaming account, the source of the start-up cash
shall be identified on the charitable gaming session sheet and signed by the
chairperson of the charitable organization.
(2) Start-up cash from one (1) charitable
organization shall not be commingled with the start-up cash from another
charitable organization. The start-up cash shall be identified on the check
withdrawing the funds and on the deposit slip.
Section 3. Charitable Organization Records.
(1) The chief financial officer shall be the
custodian of the gaming records and shall be responsible for ensuring that the
records are accurate, complete, and maintained regularly for inspection by the
department.
(2) A charitable
organization that hand-writes data and later enters the information onto
another form or computer program shall retain the hand-written records along
with the other form or computer generated record.
(3) Charitable organizations shall prepare
and maintain accurate and adequate corporate or other organizational records,
such as articles of incorporation, minutes of board of directors meetings, and
resolutions.
(4) Charitable
organizations shall maintain detailed records of all expenditures made in
furtherance of its charitable purpose, including all charitable
contributions.
(5) All records
shall be made available for inspection and audit at the request of the
department.
(6) Any charitable
organization's records, or copies of those records, deemed necessary to
complete an inspection, audit, or investigation may be obtained by the
department. The department shall provide a written receipt of the records at
the time of taking possession.
(7)
Charitable organizations shall provide records requested by the department
within ten (10) calendar days, unless a longer response time is
granted.
Section 4.
Charitable Gaming Session Records.
(1) Each
charitable organization shall prepare and maintain records for each charitable
gaming session. The charitable gaming session records shall be prepared or
completed by a volunteer or chairperson of the charitable organization. The
charitable gaming session records shall not be completed by an independently
compensated bookkeeper.
(2) Gaming
proceeds shall be counted by an officer or a chairperson of the charitable
organization and the count shall be verified. A count may be verified by a
volunteer.
(3) A charitable gaming
session record shall contain:
(a) The date of
the charitable gaming session;
(b)
The name and license number of the charitable organization conducting the
charitable gaming session;
(c) The
name and address of the donor of every donated prize with a fair market value
in excess of $500; and
(d) A
deposit reconciliation worksheet that records:
1. All currency, coins, checks, and credit
card receipts available for deposit;
2. All profit or loss from each gaming
activity, all start-up cash, all cash from incomplete pulltab sales, any
progressive game carry forward, returned checks collected and check collection
fees, and all other gaming receipts that should be available for
deposit;
3. Any variance between
the amount of currency, coins, checks, and credit card receipts actually
available for deposit, and the amount that should be available for deposit
according to the charitable gaming session records;
4. The amount of donations received at the
charitable gaming session that will be deposited into the general
account;
5. The printed name and
signature of the chairperson in charge of the charitable gaming
session;
6. The printed name and
signature of the person taking the deposit from the charitable gaming
session;
7. The printed name and
signature of the person making the deposit, if different from the person taking
the deposit; and
8. The printed
name and signature of the person in possession of the start-up cash, and the
amount and source of the start-up cash.
(4) If a charitable organization offers
coupons for bingo paper or a card-minding device, a voucher shall be completed
when the coupon is redeemed, and the coupon and the voucher shall be retained
with the charitable gaming session records.
(5) If a charitable organization offers
coupons for pulltabs or electronic pulltab devices, the type and number of
pulltabs, electronic pulltab devices, and credits loaded on each device, if
any, given away shall be recorded on the charitable gaming session records and
on CG-FIN Attachment C and D. The coupon shall be retained with the charitable
gaming session records.
(6) If the
charitable organization sells gift certificates for bingo paper or a
card-minding device, the receipts for the sale shall be counted as gaming
receipts on the day they are received. When the gift certificate is redeemed, a
voucher shall be completed and the gift certificate and the voucher shall be
retained with the charitable gaming session records.
(7) If the charitable organization sells gift
certificates for pulltabs or electronic pulltab devices, the receipts for the
sale shall be counted as gaming receipts on the day they are received. When the
gift certificate is redeemed, the type and number of pulltabs, electronic
pulltab devices, and credits loaded on each device, if any, given away shall be
recorded on the charitable gaming session records and on CG-FIN Attachment C
and D. The gift certificate shall be retained with the charitable gaming
session records.
(8) If the
charitable organization plays a paper pulltab game that contributes in whole or
in part to a progressive raffle jackpot, the charitable organization shall
report its deposits and receipts on Worksheet WS-06c, Worksheet WS-14b, and
Worksheet WS-15a.
(9) All
charitable gaming receipts and records shall be kept separate from
noncharitable gaming receipts and records.
(10) All charitable gaming session records
shall be retained by the charitable organization for a period of three (3)
years. Charitable gaming session records shall be made available for inspection
and audit by the department upon request.
(11) Charitable organizations shall provide
records requested by the department within ten (10) calendar days unless a
longer response time is requested and granted by the department.
Section 5. Bingo Paper Sale
Records. Bingo paper sale records shall contain the following information:
(1) Attendance determined by headcount of
number of people playing bingo at a charitable gaming session;
(2) Each type of bingo paper being
sold;
(3) The serial number of the
set of each type of paper sold;
(4)
The number of each type of bingo paper given away with the voucher being
redeemed attached to the charitable gaming session records, if
applicable;
(5) Number of each type
of bingo paper destroyed;
(6) The
number of each type of bingo paper sold;
(7) The price of each type of bingo paper
sold;
(8) The number of pickle jar,
bonanza ball, or hot ball games sold;
(9) The price of pickle jar, bonanza ball, or
hot ball games and whether the price is per person or per pack;
(10) The number of player pick bingo games
sold;
(11) The price of each player
pick bingo game sold;
(12) The
amount of money expected to be received from the sale of bingo paper, player
pick, and pickle jar, bonanza ball, or hot ball for that charitable gaming
session;
(13) The amount of money
actually received from the sale of bingo paper, player pick, and pickle jar,
bonanza ball, or hot ball for that charitable gaming session;
(14) The cash short or cash over from the
sale of bingo paper, player pick, and pickle jar, bonanza ball, or hot ball for
that charitable gaming session;
(15) The sales report printed from the player
pick machine that includes the number of games sold, price for each game, and
the amount of money expected from the sale of player pick games for that
charitable gaming session;
(16)
Records of all carryover or cumulative bingo games played, which shall contain
the following information:
(a) The name of
each progressive bingo game in play;
(b) The amount carried over from the previous
charitable gaming session;
(c) The
receipts from the current charitable gaming session;
(d) The amount paid out for the current
charitable gaming session; and
(e)
The amount carried forward to the next charitable gaming session;
(17) A copy of the charitable
gaming session program, which shall include:
(a) The charitable organization name and
license number;
(b) A specific
description of all bingo products for sale and the price of each product;
and
(c) All bingo games played and
the payout and alternate payout, if any, for each game; and
(18) Form CG-Vol.
Section 6. Bingo Payout Records.
(1) Bingo payout records shall contain the
following information:
(a) A list of all bingo
games that will be played at that charitable gaming session;
(b) Each pickle jar, bonanza ball, or hot
ball game available to be awarded;
(c) The prize expected or available to be
awarded for each bingo game and door prize;
(d) The prize that was actually awarded for
each bingo game and door prize;
(e)
A notation for the prize awarded for each bingo game and door prize, specifying
whether the prize was cash, a check, or merchandise, and if merchandise, a
description of that merchandise, the cost of the merchandise and the fair
market value of the merchandise;
(f) If a voucher was issued for card-minding
devices or bingo paper, the fair market value of the card-minding devices or
bingo paper;
(g) The total amount
of all cash awarded for bingo prizes and door prizes;
(h) The total amount of all checks issued as
bingo prizes and door prizes;
(i)
The total cost and fair market value of all merchandise awarded for bingo
prizes and door prizes;
(j) A grand
total of cash, checks, and fair market value of merchandise awarded for bingo
prizes and door prizes, which shall not exceed $5,000; and
(k) If a check from the charitable
organization's charitable gaming account was issued as a prize instead of cash,
the number of the check.
(2) If a paper pulltab or electronic pulltab
device is awarded as a bingo prize, door prize, or promotional item, the person
in charge of bingo payouts shall purchase the pulltabs or electronic pulltab
device and any credits loaded on the device from the pulltab manager by
transfer of cash from bingo payout to pulltab sales. It shall be recorded as a
cash payout on the bingo payout session record, and it shall be included as a
gross receipt on the charitable gaming session's pulltab record and on CG-FIN
Attachment C and D.
Section
7. Card-minding Device Records. Card-minding device records shall
contain the following information:
(1) The
type of programs loaded, including the number of faces;
(2) The number of units rented for each type
of program;
(3) The number of each
type of card-minding device rental given away, with the redeemed voucher
attached to the charitable gaming session records;
(4) The number of units voided for each type
of program;
(5) The price per unit
for each type of program;
(6) The
amount of money expected to be received from the rental of card-minding
devices;
(7) The actual amount of
money received from the rental of card-minding devices for that charitable
gaming session;
(8) The cash short
or cash over from the rental of card-minding devices for that charitable gaming
session;
(9) The total sales
activity report completed on Form CG-FIN;
(10) A copy of the charitable gaming session
program, which shall include:
(a) The
charitable organization name and license number;
(b) A specific description of all bingo
products for sale and the price of each product; and
(c) All bingo games played and the payout and
alternate payout, if any, for each game; and
(11) Form CG-Vol.
Section 8. Pulltab Records.
(1) Pulltab records shall contain the
following information for each charitable gaming session:
(a) The name, serial number, and form number
of all games played;
(b) The name
of all progressive jackpot games in play during that charitable gaming
session;
(c) The ticket count for
each pulltab game sold;
(d) The
price for each ticket;
(e) The
prize expected or available to be awarded for each pulltab game, including the
progressive jackpot games;
(f) If a
pulltab is awarded as a pulltab prize, the information required by subsection
(2) of this section;
(g) The prize
that was actually awarded for each pulltab game, including the progressive
jackpot games;
(h) A notation for
the prize awarded for each pulltab game specifying whether the prize was cash,
a check, or merchandise, and if merchandise, a description of that merchandise
and the cost;
(i) If a pulltab game
was played in conjunction with a progressive jackpot game, as designed by the
manufacturer, the amount contributed to the progressive jackpot;
(j) The cash short or cash over for each
charitable gaming session with pulltabs;
(k) The total amount of all cash awarded for
pulltab prizes;
(l) The total
amount of all checks issued as pulltab prizes;
(m) The total cost of all merchandise awarded
for pulltab prizes;
(n) If a check
from the charitable organization's charitable gaming account was issued as a
pulltab prize instead of cash, the number of the check;
(o) The total amount of money from any
incomplete sale of pulltab games;
(p) Records of any progressive pulltab games
sold, which shall contain the following information:
1. The name of each progressive pulltab
jackpot game in play;
2. The amount
carried over from the previous charitable gaming session;
3. The receipts from the current charitable
gaming session;
4. The amount paid
out for the current charitable gaming session;
5. The amount carried forward to the next
charitable gaming session; and
6.
The serial number of all games that contributed to the prize pool; and (q) Form
CG-Vol.
(2)
If a pulltab is awarded as a pulltab prize, the person in charge of pulltab
payouts shall purchase the pulltabs from the deal being awarded as the prize by
transfer of cash from the deal being sold to the deal being awarded as the
prize. It shall be recorded as a cash payout for the deal being sold and it
shall be included as a gross receipt for the deal being awarded as a pulltab
prize and on CG-FIN Attachment C and D.
Section 9. Electronic Pulltab Device Records.
Electronic pulltab device records shall contain the following information:
(1) The name, serial number, and form number
of all electronic pulltab games played;
(2) The ticket count for each electronic
pulltab game sold;
(3) The price
for each electronic pulltab ticket sold;
(4) The name of all electronic progressive
jackpot games in play during that charitable gaming session;
(5) The prize expected or available to be
awarded for each electronic pulltab game;
(6) The amount of money expected to be
received from the sale of electronic pulltab devices and electronic pulltabs at
a charitable gaming session;
(7)
The actual amount of money received from the sale of electronic pulltab devices
and electronic pulltabs at a charitable gaming session;
(8) The cash short or cash over from the sale
of electronic pulltab devices and electronic pulltabs at a charitable gaming
session;
(9) The electronic pulltab
receipts and payouts report, Form CG-EPRP;
(10) All information required under Section 5
of this administrative regulation; and
(11) Form CG-Vol.
Section 10. Raffle Records.
(1) If the raffle tickets sell for $100 or
more, the raffle records shall contain the following information:
(a) The number of raffle tickets
printed;
(b) The sales price for
each ticket;
(c) The date raffle
ticket sales began;
(d) The date
the raffle drawing was held;
(e) A
voided raffle ticket or copy of a raffle ticket;
(f) If tickets are given to volunteers to
sell, a list of each volunteer's name with the total number of the tickets and
ticket numbers given to them;
(g)
The total amount of money collected for the raffle event;
(h) The total number of ticket stubs
collected from the sale of all raffle tickets for the raffle event;
(i) The total amount of money that should
have been collected based on the number of ticket stubs collected for the
raffle event;
(j) Total cash short
or cash over amount from raffle ticket sales for the raffle event;
(k) A list of all raffle prizes
awarded;
(l) A notation for the
prize awarded for each raffle specifying whether the prize was cash, a check,
or merchandise, and if merchandise, a description of that merchandise and the
cost;
(m) The total amount of all
cash awarded for raffle prizes;
(n)
The total amount of all checks issued as raffle prizes;
(o) If a check from the charitable
organization's charitable gaming account was issued as a prize instead of cash,
the number of the check;
(p) Each
winning ticket stub;
(q) All unsold
tickets;
(r) A list of all raffle
expenses including a copy of all invoices supporting each expense;
and
(s) If the raffle is being
conducted on a special event raffle license issued by the department pursuant
to KRS 238.535(14)(b), the organization shall report its session record using
Worksheet WS-23d, Worksheet-23e, and, when applicable, Worksheet,
WS-23f.
(2) If the
raffle tickets sell for fifty (50) dollars to $100, the raffle records shall
contain the following information:
(a) The
number of raffle tickets printed;
(b) The sales price for each
ticket;
(c) The date raffle ticket
sales began;
(d) The date the
raffle drawing was held;
(e) A
voided raffle ticket or copy of a raffle ticket;
(f) If tickets are given to volunteers to
sell, a list of each volunteer's name with the total number of the tickets and
ticket numbers given to them;
(g)
The total amount of money collected for the raffle event;
(h) The total number of ticket stubs
collected from the sale of all raffle tickets for the raffle event;
(i) The total amount of money that should
have been collected based on the number of ticket stubs collected for the
raffle event;
(j) Total cash short
or cash over amount from raffle ticket sales for the raffle event;
(k) A list of all raffle prizes
awarded;
(l) A notation for the
prize awarded for each raffle specifying whether the prize was cash, a check,
or merchandise, and if merchandise, a description of that merchandise and the
cost;
(m) The total amount of all
cash awarded for raffle prizes;
(n)
The total amount of all checks issued as raffle prizes;
(o) If a check from the charitable
organization's charitable gaming account was issued as a prize instead of cash,
the number of the check;
(p) Each
winning ticket stub;
(q) A list of
all raffle expenses including a copy of all invoices supporting each expense;
and
(r) If the raffle is being
conducted on a special event raffle license issued by the department pursuant
to KRS 238.535(14)(b), the organization shall report its session record using
Worksheet WS-23c, Worksheet-23e, and, when applicable, Worksheet,
WS-23f.
(3)If the raffle
tickets sell for more than five (5) dollars but less than fifty (50) dollars,
the raffle records shall contain the following information:
(a) The number of raffle tickets
printed;
(b) The sales price for
each ticket;
(c) The date raffle
ticket sales began;
(d) The date
the raffle drawing was held;
(e) A
voided raffle ticket or copy of a raffle ticket;
(f) The total amount of money collected for
the raffle event;
(g) The total
number of ticket stubs collected from the sale of all raffle tickets for the
raffle event;
(h) The total amount
of money that should have been collected based on the number of ticket stubs
collected for the raffle event;
(i)
Total cash short or cash over amount from raffle ticket sales for the raffle
event;
(j) A list of all raffle
prizes awarded;
(k) A notation for
the prize awarded for each raffle specifying whether the prize was cash, a
check, or merchandise, and if merchandise, a description of that merchandise
and the cost;
(l)The total amount of
all cash awarded for raffle prizes;
(m)The total amount of all checks issued as
raffle prizes;
(n) If a check from
the charitable organization's charitable gaming account was issued as a prize
instead of cash, the number of the check;
(o) Each winning ticket stub;
(p) A list of all raffle expenses including a
copy of all invoices supporting each expense; and
(q) If the raffle is being conducted on a
special event raffle license issued by the department pursuant to KRS 238.535(14)(b), the organization shall report its session record using
Worksheet WS-23b, Worksheet-23e, and, when applicable, Worksheet,
WS-23f.
(4) If the raffle
ticket sells for five (5) dollars or less, the raffle records shall contain the
following information:
(a) The beginning and
ending serial number or ticket number for each roll of tickets sold or the
beginning and ending number of the tickets printed;
(b) The quantity of tickets sold;
(c) The sales price of the tickets;
(d) The date of the raffle;
(e) The total amount of money collected for
the raffle event;
(f) The total
amount of money that should have been collected based on the number of ticket
stubs collected for the raffle event;
(g) Total cash short or cash over amount from
raffle ticket sales for the raffle event;
(h) A list of all raffle prizes
awarded;
(i) A notation for the
prize awarded for each raffle specifying whether the prize was cash, a check,
or merchandise, and if merchandise, a description of that merchandise and the
cost;
(j) The total amount of all
cash awarded for raffle prizes;
(k)
The total amount of all checks issued as raffle prizes;
(l) If a check from the charitable
organization's charitable gaming account was issued as a prize instead of cash,
the number of the check;
(m) Each
winning ticket stub; and
(n) A list
of all raffle expenses, including a copy of all invoices supporting each
expense.
(o) Nothing in this
subsection shall prohibit an organization from using preprinted tickets for
raffle tickets that sell for five (5) dollars or less, but the organization
shall maintain a session record that complies with Section 10(3) of this
administrative regulation if it sells preprinted tickets for five (5) dollars
or less.
(p) If the raffle is being
conducted on a special event raffle license issued by the department pursuant
to KRS 238.535(14)(b), the organization shall report its session record using
Worksheet WS-23a, Worksheet-23e, and, when applicable, Worksheet,
WS-23f.
Section
11. Charity Fundraising Event Records.
(1) Charity fundraising event records shall
contain the following information:
(a) The
name of each game of chance played;
(b) The price to play each game of
chance;
(c) The adjusted gross
receipts from the sale of each game of chance;
(d) The grand total of adjusted gross
receipts received from the play of all games of chance;
(e) The total amount of all checks issued for
each game of chance prize and door prize;
(f) The total cost of all merchandise awarded
for each type of game of chance prize and door prize;
(g) If a check from the charitable
organization's charitable gaming account was issued as a prize instead of cash,
the number of the check;
(h) If
bingo games are conducted, accurate bingo paper sale records, card-minding
device records, and bingo payout records;
(i) If pulltabs are sold, accurate pulltab
records;
(j) If a raffle is
conducted, accurate raffle records; and
(k) If the charity fundraising event
continues for more than one (1) day, a summary of the required information for
each day.
(2) Special
limited game records for a charity fundraising event shall contain:
(a) The name of each game to be
played;
(b) The adjusted gross
receipts for each game for each day of the charity fundraising event;
and
(c) A list of all merchandise
prizes awarded and the cost.
Section 12. Special Limited Charity
Fundraising Event Records.
(1) Special limited
charity fundraising event records shall contain the following information for
special limited charitable gaming events:
(a)
The name of each game played;
(b)
The quantity of scrip, chips, or imitation money the central bank started with
prior to any sales, and the corresponding cash amount associated with each
denomination of scrip, chips, or imitation money;
(c) The quantity of scrip, chips, or
imitation money the central bank sold during the special limited charity
fundraising event;
(d) The amount
of money received by the central bank from the sale of scrip, chips, or
imitation money;
(e) Cash short or
cash over from the sale of scrip, chips, or imitation money;
(f) The quantity of scrip, chips, or
imitation money collected by the central bank and redeemed for
prizes;
(g) Prizes awarded by the
central bank;
(h) A notation for
prizes awarded specifying whether each prize was cash, check, or merchandise,
and if merchandise, a description of that merchandise and the cost.
(2) The amount of money
corresponding to the scrip, chips, or imitation money collected by the central
bank shall be compared to the sale of scrip, chips, or imitation money by the
central bank at the conclusion of the special limited charity fundraising
event. Any variance shall be documented and cash short or cash over shall be
determined.
(3) For all tournaments
played during special limited charity fundraising events, the special limited
charity fundraising event records shall contain the following information in
addition to the regular records required at special limited charity fundraising
events:
(a) A record of attendance shall be
kept for the special limited charitable games; and
(b) A copy of the charitable gaming session
program, which shall include the:
1.
Charitable organization name and license number;
2. Cost to enter, the cost of the buy-backs,
and the cost of the add-ons;
3.
Rules of the game;
4. Manner for
raising blinds or closing tables; and
5. Prizes. The prizes may be listed as a
percentage of the receipts.
(4) If bingo games are conducted, accurate
bingo paper sale records, card-minding device records, and bingo payout records
shall be maintained.
(5) If
pulltabs are sold, accurate pulltab records shall be maintained.
(6) If raffles are conducted at a special
limited charity fundraising event, accurate raffle records shall be
maintained.
(7) The organization
shall complete Form CG-Vol and keep it with the charitable gaming session
record for that event.
Section
13. Other Allowable Expenses. In addition to those authorized
expenses provided for in KRS 238.550, each of the following expenses is
determined to be legitimate and shall be allowable charitable gaming expenses
of a charitable organization:
(1) The
following customary and usual banking fees or charges paid to any financial
institution, check reader, or verification company in connection with a
charitable organization's charitable gaming account and activities:
(a) Monthly service charges;
(b) Check verification service
charges;
(c) Check printing
charges;
(d) Charges relating to
returned checks;
(e) Copying
charges for bank records; and
(f)
Credit card processing charges;
(2) Volunteer food, to be consumed on gaming
premises, not to exceed fifteen (15) dollars per volunteer, per day;
(3) Any noncash item not to exceed fifty (50)
dollars in fair market value given upon achieving a predetermined goal in a
raffle;
(4) Clothing provided to
volunteers as authorized in these administrative regulations;
(5) Payments made to the Department of
Charitable Gaming;
(6) Printing
costs incurred in connection with a charitable organization's charitable gaming
activities;
(7) Payments for the
purchase of prizes to be awarded during the charitable organization's conduct
of charitable gaming;
(8)
Promotional items;
(9) Federal
excise taxes levied under 26 U.S.C. 4401 and 4411, or fees associated with the
filing of Internal Revenue Service Form 11-C and paid by a charitable
organization during the calendar year; and
(10) Customary and usual fees or charges
incurred in the collection of checks dishonored for insufficient
funds.
Section 14.
Charitable Gaming Expense Categories.
(1) The
items that may be included as a utilities expense, pursuant to KRS 238.550(9)(c), shall be the money paid for electric, gas, water, sewer,
telephone, and trash collection. It may also include any cable or internet
expenses that are incurred by the charitable organization for credit card
services, card-minding devices, or electronic pulltab systems.
(2) The items that may be included as an
advertising expense, pursuant to KRS 238.550, shall be the expenses for a
handout, flyer, radio, television, advertising sign, billboard, or other media
used to promote an event or activity required to be licensed pursuant to KRS
Chapter 238 and any printing costs associated with them.
(3) The items that may be included as a
bookkeeping expense, pursuant to KRS 238.550, shall be the costs of completing
the financial report, the federal excise tax form, and the federal gaming
forms. Bookkeeping expenses shall not include expenses associated with handling
charitable gaming funds, preparing charitable gaming session records, or
ordering supplies.
(4) The items
that may be included as security services, pursuant to KRS 238.550, shall be
the expenses associated with paying a person whose sole duty is to promote and
provide peace, order, and safety at a charitable gaming event which:
(a) May include patrolling the parking lot or
accompanying the charitable organization's personnel to the bank or night
depository with the charitable gaming receipts; and
(b) Shall not include costs for security or
alarm systems or for special lighting for the building or parking
lot.
Section
15. Raffle Recipient Account.
(1)
A licensed charitable organization receiving distributions from an organization
licensed pursuant to KRS 238.535(14)(b) shall maintain a separate bank account
that shall be referred to as the "raffle recipient account," in addition to the
charitable gaming account and general account maintained by the licensed
charitable organization. The raffle recipient account shall be for the sole
purpose of receiving distributions from organizations licensed pursuant to KRS 238.535(14)(b) to hold special event raffles. The funds distributed into the
raffle recipient account shall not be commingled with any other account
maintained by the licensed charitable organization or any personal account or
business account. If the license charitable organization receives distributions
from more than one organization licensed pursuant to KRS 238.535(14)(b), the
licensed charitable organization shall maintain a separate raffle recipient
account for each relationship.
(2)
Any distributions received by a licensed charitable organization from an
organization licensed pursuant to KRS 238.535(14)(b) shall be by check drawn on
the charitable gaming account or electronic fund transfer from the charitable
gaming account from the organization licensed pursuant to KRS 238.535(14)(b).
All distributions shall be made within ten (10) business days of the raffle
drawing.
(3) Any expenditures from
the raffle recipient account shall be directly to forward the charitable
purpose of the licensed charitable organization. No other expenses shall be
paid from the raffle recipient account. Distributions into the raffle recipient
account shall not be transferred to any other account maintained by the
licensed charitable organization or any other person or business.
Section 16. Incorporated by
Reference.
(1) Form CG-Vol, "Charitable Gaming
Volunteer Sign Up Sheet (2018)", is incorporated by reference.
(2) Worksheet WS-06c, "Pulltabs Contributing
to a Progressive Raffle Jackpot (2018)", is incorporated by
reference.
(3) Worksheet WS-14b,
"Progressive Raffle Receipts and Payouts with Pulltab Contributions to Jackpot
(2018)", is incorporated by reference.
(4) Worksheet WS-15a, "Progressive Raffle
with Pulltab Contribution to Jackpot Deposit Reconciliation (2018)", is
incorporated by reference.
(5)
Worksheet WS-23a, "Raffle Receipts and Payouts with a Ticket Price of $5 or
Less (2018)", is incorporated by reference.
(6) Worksheet WS-23b, "Raffle Receipts and
Payouts with a Ticket Price of More than $5, but Less than $50 (2018)", is
incorporated by reference.
(7)
Worksheet WS-23c, "Raffle Receipts and Payouts with a Ticket Price of $50 or
More, but Less than $100 (2018)", is incorporated by reference.
(8) Worksheet WS-23d, "Raffle Receipts and
Payouts with a Ticket Price of $100 or More (2018)", is incorporated by
reference.
(9) Worksheet WS-23e,
"501(c)(7) Raffle Deposit Reconciliation (2018)", is incorporated by
reference.
(10) Worksheet WS-23f,
"Deposit Accountability (When Charitable Gaming Receipts Are Deposited Before
the Raffle Draw (2018)", is incorporated by reference.
(11) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Department of
Charitable Gaming, Public Protection Cabinet, 500 Mero Street 2NW24, Frankfort,
Kentucky 40601-3714, Monday through Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY: KRS 238.515,
238.550