TITLE
15 GAMBLING AND LIQUOR CONTROL
CHAPTER
4 BINGO AND RAFFLES
PART
10 ACCOUNTING REQUIREMENTS
15.4.10.1 ISSUING AGENCY: New
Mexico Gaming Control Board.
[15.4.10.1 NMAC - N, 4/15/2013]
15.4.10.2 SCOPE: This
rule applies to all persons subject to regulations promulgated under the New
Mexico Bingo and Raffle Act by the New Mexico gaming control board.
[15.4.10.2 NMAC - N, 4/15/2013]
15.4.10.3 STATUTORY AUTHORITY: Authority
for this rule derives from the New Mexico Bingo and Raffle Act [Section 60-2F-3
NMSA 1978]. Section 60-2F-6 H authorizes the board to adopt rules to implement
the New Mexico Bingo and Raffle Act and to ensure that games of chance
conducted in New Mexico are conducted with fairness and that the participants
and patrons are protected against illegal practices on any premises.
[15.4.10.3 NMAC - N, 4/15/2013]
15.4.10.4 DURATION: Permanent.
[15.4.10.4 NMAC - N, 4/15/2013]
15.4.10.5 EFFECTIVE DATE: April 15, 2013, unless a later date is cited at the
end of a section.
[15.4.10.5 NMAC - N, 4/15/2013]
15.4.10.6 OBJECTIVE: This
rule establishes standards for accounting and financial reporting procedures
for bingo, raffle and pull-tab licensees under the New Mexico Bingo and Raffle
Act.
[15.4.10.6 NMAC - N, 4/15/2013]
15.4.10.7 DEFINITIONS: [Reserved]
[15.4.10.7 NMAC - N, 4/15/2013]
15.4.10.8 AUDIT PROCEDURES:
A. The board shall:
(1) conduct audits on quarterly
report forms and supporting documents, periodic and special audits or reviews
of the books and records of licensees, examine the books and records of any
licensee when conditions indicate the need for such action or upon the request
of the board;
(2) review and
observe methods and procedures used by licensees, which can include the
counting or handling cash or cash instruments; and
(3) determine
each licensee’s compliance with the act and board rules.
B. Audits shall be conducted in conformity
with generally accepted auditing standards and compliance standards as established
by the board.
C. If not in compliance, the licensee will
have 15 days, after receiving notification from the board, to submit the
required supporting documentation or prepare and submit an amended quarterly
report.
D. During the audit, should it be
determined that an error on the report resulted in an under or over reporting
of tax, the board shall report its findings to the New Mexico taxation and
revenue department, per requirements set forth in the Tax Administration Act
and to the licensee.
E. Each licensee shall submit a complete
quarterly report for each quarter it holds a valid bingo and raffle license. If
a licensee has no bingo, raffle or pull-tab activity during any quarter, for
whatever reason, the licensee shall submit a zero activity report for that
quarter by the prescribed deadline.
[15.4.10.8 NMAC - N, 4/15/2013]
15.4.10.9 ACCOUNTING PROCEDURES:
A. All information set forth in the act is
required to be documented on forms prescribed by the board.
B. The licensee shall separately account
for the gross receipts from all games of chance on the prescribed quarterly
report forms.
C. Each licensee shall maintain an
independent operating bank account to be used for all games of chance, all
receipts shall be deposited and all disbursements shall be made from this
account.
D. Funds from all games of chance shall not
be co-mingled with any other funds used by the licensee.
E. The bingo operating account shall have
an end-of-month cutoff date.
F. The licensees shall reconcile bank
statements monthly.
G. Licensees shall use a check, not a debit
card, ATM card or any form of electronic transfer to pay for any expense out of
the bank operating account unless an electronic payment is required by IRS,
federal, state or, bank regulations
or an automated payroll system that uses direct deposits to employees’
accounts.
H. If a licensee elects to pay bingo and raffle payroll
using direct deposit, the licensee shall maintain adequate records to document
each individual transaction and will provide all copies of such deposit record
transactions with the corresponding bingo and raffle quarterly report form. If
an independent bookkeeping or payroll company is used, the licensee shall keep
a copy of the agreement that authorizes them as the assigned agent to perform
these duties.
I. Licensees with pull-tab dispensers or
video pull-tab dispensers shall empty and reconcile the receipts and payouts
weekly and at the end of each month. The bingo manager shall ensure the audit
printout is legible and retained in its original condition.
J. The receipts from all games of chance
conducted during a bingo occasion shall be deposited into the bingo operating
bank account no later than the next business day. Receipts from pull-tab
dispensers and video pull-tab dispensers shall be deposited into the bingo
operating account on a weekly basis and at the end of each month.
K. Deposit records must be sufficient to
allow a determination of deposits made from each occasion and each game of
chance.
L. Signature stamps shall not be allowed.
M. Pre-signed checks shall not be allowed.
N. Checks shall be signed by two authorized
persons.
O. No check shall be drawn to “cash” or a
fictitious payee. To withdraw funds from the bingo operating account to
replenish the change fund, all checks shall be made payable to the licensee and
the memo section shall state “change fund”.
P. A perpetual inventory of the bingo paper
and pull-tabs shall be maintained by the bingo manager on a form approved by
the board.
Q. All bingo paper and pull-tab not
intended for sale due to defect, damage or any other reason shall be
segregated, and destroyed or returned to a licensed distributor:
(1) prior to destruction of any bingo paper
and pull-tab:
(a) the material
shall be inventoried and recorded on a form approved by the board; and
(b)
the form signed by the highest ranking officer
of the licensee that does not hold a valid staff permit;
(2) all bingo paper
and pull-tab returned to a licensed distributer shall:
(a)
be inventoried and recorded on a form approved
by the board;
(b)
have this form signed by a representative of
the licensed distributor; and
(c)
any monies paid by the distributor to the
operator for returns shall not be subject to the bingo and raffle tax.
R. All unaccounted
for bingo paper and pull-tabs may be subject to the bingo and raffle tax.
S. Bingo paper and
pull-tab inventories shall not be stored or in any way comingled with the bingo
paper and pull-tabs of any other licensee.
T. Any deposits made into the bingo
operating account from the organization for the purpose of revitalizing bingo
and raffle activity shall be noted on the deposit slip. These deposits are not
considered to be bingo and raffle activity receipts and therefore, not subject
to bingo and raffle tax.
[15.4.10.9 NMAC - N, 4/15/2013]
15.4.10.10 QUARTERLY REPORTS:
A. The licensee shall submit quarterly
bingo and raffle activity reports for all games of chance on the prescribed
forms on or before but no later than the 25th day of April, July, October and
January. If any due date falls on Saturday, Sunday or legal holiday, the due
date is the next business day.
B. Licensees shall provide bank statements,
images of the front of all cleared checks, and images of the front of all
deposit slips for the period that corresponds with each report.
C. Each quarterly report shall be submitted
with the required supporting documentation in the following order:
(1) quarterly
report form;
(2) supplement
forms;
(3) bank
statements for each month;
(4) copies of
all check images and deposit slip images; and
(5) copy of
quarterly tax coupon.
D. If a licensee fails to file quarterly
reports within the time required, or if the reports are not properly verified,
accurate, and complete, the licensee’s license may be suspended until the
default has been corrected:
(1) a
$100 processing fee may be assessed for quarterly reports 30 days or more past
due;
(2) a $100 processing fee may be
assessed if the licensee fails to submit all required supporting documentation
or amended quarterly reports per Subsection C of 15.4.10.8 NMAC within 15 days
of notification by the board;
(3) the $100 processing fee
shall be paid within 15 days of receipt of notification along with submission
of the quarterly reports and/or all items requested by the board; to include
amended quarterly reports and required supporting documentation;
(4) failure to submit the
quarterly reports or required items requested by the board; to include amended
quarterly reports, required supporting documentation and the $100 processing
fee within 15 days of receipt of notification, may result in an administrative
citation being issued; and
(5) the
licensee may submit an appeal for the assessment of the processing fee to the
board within 15 days of receipt of notification. The appeal shall include a
written rebuttal to the assessment. Appealing the processing fee does not
relieve the licensee from the obligation to pay the fee or allow the licensee
additional time to submit the quarterly reports or any required supporting
documentation requested by the board.
[15.4.10.10 NMAC - N, 4/15/2013]
15.4.10.11 REPORTING AND PAYMENT PROCEDURES:
A. Each licensee shall prepare an approved
record covering each game of chance. This approved record shall disclose the
following information:
(1) gross
receipts collected from the sale of all bingo cards, pull-tabs or raffle
tickets;
(2) the
retail value of all promotional games;
(3) cash on
hand at the commencement and at the conclusion of each occasion;
(4) signature of
the bingo manager who oversees the occasion on all paperwork; and
(5) name,
signature, and assigned duties of each employee for each occasion.
B. A bingo and raffle tax as established by
statute, of any game of chance held, operated or conducted for or by a
qualified organization shall be imposed on the qualified organization.
C. The tax imposed pursuant to this section
shall be submitted quarterly to the New Mexico taxation and revenue department
on or before April 25, July 25, October 25 and January 25.
D. Fees required under the act and all
reports relating to taxes and fees shall be received by the board no later than
the date specified.
[15.4.10.11 NMAC - N, 4/15/2013]
15.4.10.12 RETENTION OF RECORDS: The
licensee shall maintain all records required pursuant to 15.4.1.12 NMAC.
[15.4.10.12 NMAC - N, 4/15/2013]
HISTORY OF 15.4.10 NMAC:
[RESERVED]