A. Records:
1. Each licensed organization shall keep records of its gross receipts and profits for each bingo occasion. All deductions from gross receipts from a bingo occasion shall be documented with receipts or other records. The distribution of profits shall be itemized as to payee, amount, and date of payment. Records required by this Chapter shall be preserved for three (3) years.
2. Gross Receipts shall be compared to the checker's records for the bingo occasion by a person who did not sell cards for the bingo occasion. If a discrepancy exceeding twenty dollars ($20.00) is found between the amount of gross receipts for a bingo occasion as determined by the checker's records, and the amount of gross receipts as determined by totaling the cash receipts, the discrepancy shall be reported to and investigated by the City Council.
3. Bingo gross receipts shall be segregated from other revenues of an organization and placed in a separate account. Each organization shall maintain separate records of its bingo operations. The person who accounts for bingo gross receipts and profits shall not be the same person who accounts for other revenues of the licensed organization.
B. Reports:
1. Each licensed organization shall report monthly to its membership its gross receipts from bingo, its profits from bingo, and the distribution of those profits itemized as required by subsection A1.
2. At the time of making its first license application under this Chapter, and on an annual basis thereafter, each licensed organization shall file with the City Council copies of the following:
a. The most recently filed Department of the Treasury, Internal Revenue Service "Return of Organization Exempt from Income Tax", Form 990, or a comparable form if the organization is required to file the form with the Department of the Treasury.
b. The most recently filed Department of the Treasury, Internal Revenue Service "Exempt Organization Business Income Tax", Form 990-T, or a comparable form if the organization is required to file the form with the Department of the Treasury.
c. The most recently filed annual report required of charitable organizations by Minnesota Statutes, section 309.53; provided, that an organization that is licensed to conduct bingo but is exempt from submitting this report to the Department of Commerce under Minnesota Statutes, section 309.53, subdivision 1a, shall nevertheless submit such a report under this Section.
d. The most recently filed Minnesota Department of Commerce "Statement of Bingo Operations". All information contained in the statement shall be true, correct and complete to the best knowledge of the person signing the statement.
e. Any lease agreements required by this Chapter, executed by the organization in regard to premises leased for the conduct of bingo.
3. No person shall knowingly make a false statement in any report required by this Section.
C. Use Of Bingo Receipts: No expense shall be incurred or amounts paid in connection with the conduct of bingo, except those reasonably expended for bingo supplies, equipment, prizes, rent or utilities used during the bingo occasion, bingo license fees, and compensation to persons lawfully hired to conduct or assist in conducting a bingo occasion.
D. Use Of Bingo Profits:
1. Profits from any bingo occasion shall be expended only as authorized by a resolution recorded in the official minutes at a regular meeting of the licensed organization and only for one or more of the following purposes:
a. Benefiting persons by enhancing their opportunity for religious or education advancement, by relieving or protecting them from disease, suffering, or distress, by contributing to their physical well-being, by assisting them in establishing themselves in life as worthy and useful citizens or by increasing their comprehension of and devotion to the principles upon which this nation was founded.
b. Initiating, performing or fostering worthy public works or enabling or furthering the erection or maintenance of public structures.
c. Lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which government would normally render the people.
d. The improving, expanding, maintaining or repairing of real property owned or leased by the licensed organization.
2. Profits from bingo occasions shall not be expended for the erection or acquisition of any real property, unless the City Council specifically authorizes the expenditures after finding that the property will be used exclusively for one or more of the purposes specified in this Section. (Ord. 165, 12-8-1980)