2004 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, 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. 

    HIST: 1994 c 633 art 2 s 7; 2001 c 96 s 5