Code of Massachusetts Regulations
961 CMR - STATE LOTTERY COMMISSION
Title 961 CMR 3.00 - Beano Regulations
Section 3.05 - Reporting and Record Keeping
Universal Citation: 961 MA Code of Regs 961.3
Current through Register 1531, September 27, 2024
(1) Reports.
(a)
Financial Report. A separate financial report form as
specified by the Commission must be filed for each day for which the Licensed
Organization is authorized to conduct Beano games, regardless of whether or not
the Licensed Organization actually conducts Beano games on that day. This form
must be complete in all respects when filed. Failure to adequately complete and
file said form within ten days of the authorized day for which said report is
required to be filed may result in suspension or revocation of the license to
conduct Beano. Control sheets and other such records or forms used by the
Licensed Organization to gather and support the information required to be
reported must be retained by the Licensed Organization and be kept available
for inspection at reasonable times by the Director.
(b) Any organization who does not conduct
Beano for two consecutive occasions must notify the Commission in writing prior
to resuming operations. Financial Reports must be filed for the authorized day
in accordance with 961 CMR 3.05(1)(a).
(c)
Annual Reports.
1.
Required. Every
Licensed Organization must file an annual report with the Commission before
January 31st of each year, in such form as the Director prescribes, setting
forth all monies expended for Lawful Purposes during the preceding calendar
year. A copy of this report must be filed with the Local Licensing Authority.
This report shall be a public record.
2.
Penalty for Failure to
File. Any Licensed Organization which does not file the reports
required in 961 CMR 3.05(1)(a) and (c) may be required to show cause b e fore
the Commission why its license to conduct Beano should not be
revoked.
(2) Records.
(a)
Record Keeping. Accurate records and books shall be
kept by each Licensed Organization in a manner prescribed by the Director
showing in detail the amount and source of Gross Receipts and the expenses
incurred.
(b)
Access to
Records. The Commission, the Local Licensing Authority or their
duly authorized agents or representatives shall at all times have access to all
books and records of any Licensed Organization, including, but not limited to,
originals, for the purpose of examining and checking them.
(c)
Period for Retention of
Records. All records, books of account, bank statements, invoices
and all other papers incidental to the operation of Beano games by the Licensed
Organization shall be retained and available for inspection by the Commission
or its duly authorized representatives for a period of three years from the
close of the calendar year to which the records apply.
(3) Bank Accounts.
(a) Each Licensed Organization shall
establish a separate Special Beano Bank Account. Proceeds from Beano shall be
kept in the Special Beano Bank Account which shall be in the form of a checking
account. Allreceipts from each Beano Occasion less the amount awarded as cash
prizes for that Occasion shall be deposited in this special Beano account no
later than the next business day following the date of the Beano Occasion.
Money shall be withdrawn from this "Special Beano Account" for only the
following purposes:
1. Payment of expenses in
accordance with 961 CMR 3.05(4);
2.
Disbursement from Net Proceeds for a Lawful Purpose as defined in
961 CMR
3.00.
3.
Transfer to one or more interest bearing accounts pending disbursement under
961 CMR 3.05(3)(a)2. Any transfer from any interest bearing account can only be
back into the "Special Beano Account" established by 961 CMR 3.05(3). Except as
authorized by the Director in writing, the total of funds held in interest
bearing accounts plus the total of unexpended Net Proceeds in the "Special
Beano Account" shall not exceed $50,000.
(b) Checks drawn on the Special Beano Bank
Account shall be preprinted and consecutively numbered. The heading of each
check shall contain the following information:
1. The title of the account along with the
Licensed Organization's five digit identification number issued by the
Commission on the first line;
2.
The name of the Licensed Organization on the second line; and
3. The address of the Licensed Organization
on the third and fourth lines.
(c) The commingling of any funds derived from
the operation of Beano with any other funds of the Licensed Organization is
prohibited.
(d) In the event a
Licensed Organization desires to terminate its license to conduct Beano it
must, prior to termination, distribute all Net Proceeds pursuant to 961 CMR
3.05(3)(a). In the event a Licensed Organization fails to renew its license to
conduct Beano it must, no later than 90 days following the expiration date of
said license, distribute all Net Proceeds pursuant to 961 CMR
3.05(3)(a)1.
(e) Each licensed
organization may retain the services of a police officer of the city or town
where the occasion is conducted who may be in attendance from the time sale of
cards or beano opportunities commences until N et Proceeds have been secured by
deposit or otherwise. The police officer may be compensated under 961 CMR
3.05(4)(a) at a rate not to exceed the rate currently prevailing for such
services in said city or town.
(4) Expenses.
(a)
Payment of
Expenses. Money for reasonable and necessary expenses ordinarily
incidental to the conduct of Beano games may be paid from the Gross Receipts
only by checks having preprinted consecutive numbers drawn on the special Beano
bank account established pursuant to 961 CMR 3.05(3). Said checks must be made
payable to the specific person or corporation providing the goods or rendering
the service which gives rise to the expense item and at no time may checks be
payable to cash.
(b)
Nature of Expenses. Only those expenses which are
reasonable and necessary and ordinarily incidental to the conduct of Beano
games as provided for in the Beano Law may be paid from Gross Receipts or
otherwise.
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