2007 Minnesota Statutes

297E.06 ORGANIZATION REPORTS AND RECORDS.
    Subdivision 1. Reports. An organization must file with the commissioner, on a form
prescribed by the commissioner, a report showing all gambling activity conducted by that
organization for each month. Gambling activity includes all gross receipts, prizes, all gambling
taxes owed or paid to the commissioner, all gambling expenses, and all lawful purpose and
board-approved expenditures. The report must be filed with the commissioner on or before the
20th day of the month following the month in which the gambling activity takes place. The
commissioner may require that the reports be filed via magnetic media or electronic data transfer.
    Subd. 2. Business records. An organization shall maintain records supporting the gambling
activity reported to the commissioner. Records include, but are not limited to, the following items:
(1) all winning and unsold tickets, cards, or stubs for pull-tab, tipboard, paddlewheel, and
raffle games;
(2) all reports and statements, including checker's records, for each bingo occasion;
(3) all cash journals and ledgers, deposit slips, register tapes, and bank statements supporting
gambling activity receipts;
(4) all invoices that represent purchases of gambling product;
(5) all canceled checks or copies of substitute checks as defined in Public Law 108-100,
section 3, check recorders, journals and ledgers, vouchers, invoices, bank statements, and other
documents supporting gambling activity expenditures; and
(6) all organizational meeting minutes.
All records required to be kept by this section must be preserved by the organization for at
least 3-1/2 years and may be inspected by the commissioner of revenue at any reasonable time
without notice or a search warrant.
    Subd. 3. Accounts. All gambling activity transactions must be segregated from all other
revenues and expenditures made by the conducting organization.
    Subd. 4. Annual audit. (a) An organization licensed under chapter 349 with gross receipts
from lawful gambling of more than $300,000 in any year must have an annual financial audit of
its lawful gambling activities and funds for that year. An organization licensed under chapter 349
with gross receipts from lawful gambling of more than $150,000 but not more than $300,000 in
any year must have an annual financial review of its lawful gambling activities and funds for that
year. Audits and financial reviews under this subdivision must be performed by an independent
accountant licensed by the state of Minnesota.
(b) The commissioner of revenue shall prescribe standards for audits and financial review
required under this subdivision. The standards may vary based on the gross receipts of the
organization. The standards must incorporate and be consistent with standards prescribed by the
American Institute of Certified Public Accountants. A complete, true, and correct copy of the
audit report must be filed as prescribed by the commissioner.
History: 1994 c 633 art 2 s 7; 2001 c 96 s 5; 2005 c 151 art 8 s 8