(A) For-profit bingo organizations must keep complete financial records in accordance with generally-accepted accounting practices. Funds of for-profit bingo organizations must be kept in a separate and distinct bank account with the words “For-Profit Bingo Account - Palm Bay” in its name. No interested party in for-profit bingo organizations, or any spouse, parent, relative to the third degree, daughter-in-law, son-in-law, father-in-law, mother-in-law, sibling or child of an interested party in for-profit bingo organizations may be a designated member of any charity conducting bingo in a bingo hall. All money received from any source by for-profit bingo organizations must be deposited into the bank account within 24 hours of receipt. All authorized expenditures made by for-profit bingo organizations shall be paid by pre-printed, consecutively numbered checks written on the bank account of the for-profit bingo organization. All checks written on the account must show the legal name of the payee and the payee's social security or federal tax I.D. number. All bookkeeping records, including, but not limited to, bank statements, cancelled checks, check books, deposit tickets and receipts, and all leases and agreements shall be maintained by the for-profit bingo organizations on the premises of the bingo hall for a period of no less than three years.
(B) Because it is the intent of the state law regulating bingo that all profits from bingo operations are to go to charity, for-profit bingo organizations must not charge for the rental or sale of property or equipment or supplies any more than is ordinary and customary in the county area for the sale or rental of property, equipment or supplies under similar circumstances. Rental terms for equipment must be compared to long-term rentals rather than short-term or transitory rentals, and because rental of property and equipment is utilized by more than one charity in the bingo hall, the cost for rental of property and equipment must be equitably divided among the various charities operating within such bingo hall.
(C) All bookkeeping records of for-profit bingo organizations shall be available for inspection, auditing and copying by the city and by state and county law enforcement personnel at all times that the bingo hall is open for business upon verbal request, or at any other time mutually agreed upon. In the event an audit by a Florida Certified Public Accountant (CPA), designated by the city, reveals charges to the charities in excess of those which are ordinary and customary in the county area, as determined by such CPA, the for-profit bingo organization shall equitably refund the difference to the charities operating in the bingo hall. In the event a for-profit bingo organization wishes to appeal the determination of the CPA, it may file a notice of appeal with the City Clerk along with a certified audit by a CPA upon which the for-profit bingo organization is basing its appeal. A hearing before the City Council shall be held within 30 days of receipt by the City Clerk of the notice of appeal and the certified audit. The city shall hire a third CPA to review the audits previously performed and any other records deemed appropriate by such CPA, and the city shall base the results of the appeal on all the reports of the CPA presented to the city. If a not-profit bingo operation wishes to appeal any determination made by the City Council under this section, it may appeal such determination to the court of appropriate jurisdiction in the county.
(Ord. 96-09, passed 2-15-96)