These terms and conditions apply to all lottery licensees except those who conduct and manage charitable gaming events that are subject to the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions (4241E).
DEFINITIONS
CDTA—short form of “consolidated designated trust account,” which means an account designated as a trust account by the financial institution in which it is held by an HCA, into which are deposited the proceeds derived from events conducted and managed pursuant to lottery licenses, in accordance with these terms and conditions.
DLTA—short form of “designated lottery trust account,” which means an account designated as a trust account by the financial institution in which it is held by a lottery licensee, into which are deposited the proceeds derived from events conducted and managed pursuant to lottery licenses, in accordance with these terms and conditions.
EFT—short form of “electronic funds transfer,” which means a system of technology that allows for lottery proceeds to be transferred securely by electronic means to deposit monies into a lottery trust account, to pay for expenses, or to distribute net proceeds to eligible recipients or by an HCA to its member organizations’ lottery trust accounts.
HCA—short form of “Hall Charities Association,” which means an association formed by all the licensees conducting bingo and other lotteries within a bingo hall or other charitable gaming site.
4.1 Licensees must decide in accordance with their constitution and subject to agreement with their financial institution whether to implement electronic funds transfer (EFT). EFT may be used:
4.2 The licensee or HCA, in consultation with its financial institution, must determine a maximum amount that may be transferred electronically from each DLTA or CDTA over a specified period of time.
4.3 In the case of an HCA, it must obtain written authorization from each member organization that is agreeing to the use of EFT. Each participating member organization is responsible for providing the HCA its banking information, approved by two (2) authorized signing officers, for each DLTA to receive funds electronically.
4.4 If the HCA or licensee wishes to pay expenses or distribute the net proceeds derived from the conduct of lottery events by EFT, the HCA or licensee must obtain the payee’s banking information and retain it on file.
4.5 The licensee or the HCA must ensure that its financial institution’s EFT system has the following capabilities:
4.6
4.7 Licensees and the HCA must use software applications provided by or software required by their financial institution to create EFT files and transfer funds electronically.
4.8 The licensee or the HCA must ensure that sufficient funds are available in the account prior to executing any transfer.
4.9 The licensee or the HCA must submit EFT files on a regular basis to its financial institution.
4.10 The transfer of funds must be authorized electronically by two (2) of the bona fide members designated to administer EFT.
4.11 The EFT file must be submitted to the financial institution within two (2) business days of creating the file to execute EFTs. The licensee or the HCA must retain a record confirming the transfer of funds.
4.12 The licensee or the HCA must obtain reports from the financial institution summarizing the file information. At a minimum the reports must provide:
4.13 The licensee or the HCA must ensure that within three (3) business days of receipt, the reports received from the financial institution are reviewed and signed by one (1) of the bona fide members designated to administer EFT who did not sign the original authorization for the transfer of funds. The signing officer must prepare a summary setting out any discrepancies in the report received from the financial institution and present it to the licensee’s or HCA’s Board of Directors at a meeting to be held within 90 days.
The Hall Charities Association (HCA) shall act on behalf of its member organizations who were or are licensed to conduct and manage lottery events in the bingo hall.
2.1 The payment of prizes, reimbursement of out-of-pocket expenses and fees and other charges must be made from the proceeds of the lottery events conducted in the bingo hall.
2.2 Immediately after the lottery event, the licensee must deposit the net proceeds from the conduct of all lottery events into a designated lottery trust account (DLTA). Monies received from other sources must not be deposited into the DLTA.
2.3 The licensee must not exceed the expense levels prescribed by the Registrar. In the event of non-compliance, the licensee must provide the licensing authorities with a written explanation and a plan to bring its expenses into compliance.
2.4 Immediately after the lottery event, the HCA must deposit the proceeds from the conduct of all lottery events into a consolidated designated trust account (CDTA). Monies received from other sources must not be deposited into the CDTA.
3.1 Licensees must keep a copy of the reports that they are required to submit to licensing authorities.
3.2 Licensees must open a DLTA to administer all the funds derived from lottery events. The HCA must open a CDTA on behalf of its member organizations to administer all the funds derived from lottery events conducted in the bingo hall. The DLTA and CDTA must have the following features:
3.3
3.4 For each DLTA, licensees must maintain at a minimum the following general ledger accounts:
3.5 For each CDTA, the HCA must maintain at a minimum the following general ledger accounts:
3.6 In addition to a general journal, the licensee must prepare a revenue journal. At minimum, the daily revenue journal must contain the following information:
3.7 In addition to a general journal, the HCA must prepare a daily revenue journal. At minimum, the daily revenue journal must contain the following information:
3.8 The bank reconciliation must be completed at the end of each month after the receipt of the DLTA or CDTA bank statement. All deposits must be verified and any cheques or disbursements must be reviewed. All items must be accounted for on the bank statement.
3.9
3.10 The licensee and HCA must provide a financial report to its Board of Directors on a monthly basis summarizing all lottery events and activity on the DLTA or CDTA. The report must cover the entire month.
3.11 The bank reconciliation for the DLTA must be reviewed and approved monthly by at least two (2) bona fide members of the licensee.
3.12 The bank reconciliation for the CDTA must be reviewed and approved monthly by at least two (2) bona fide members of different licensees that are member organizations of the HCA.
3.13 The licensee and HCA must ensure that all withdrawals from their respective DLTAs or CDTAs are made by cheque or by electronic funds transfer for the payment of expenses as permitted by the Registrar or for the use of net proceeds as approved in the application for Licence.
3.14 The licensee and HCA must ensure that there are no transfers between any DLTA or a CDTA and a general operating account.
5.1
5.2 Licensees shall provide the HCA at the end of each lottery event with a financial report detailing the results of each lottery event. At minimum, the report must include:
5.3
5.4 Member organizations of the HCA are responsible for any shortages incurred as a result of that member organization’s operation of a lottery event, and these must be indicated on the financial report. Shortages incurred as a result of the Operator of the bingo hall or its employees are the responsibility of the Operator and must be paid to the member organization conducting the charitable gaming event and must be included as part of the net deposit for that event.
5.5 Where a licensee is required to do so, the licensee must file its financial statements with the licensing authority within 180 days after the fiscal year end.
5.6 Each licensee must file with the licensing authorities the compliance reports required by the Registrar within 180 days of its fiscal year end.
5.7 The HCA must make available to its member organizations copies of all reports filed with the licensing authority immediately after they are filed.
6.1 Licensees may choose to provide reimbursement of out-of-pocket expenses to bona fide members.
6.2 After the payment of all allowable expenses, the HCA must divide the remaining proceeds on a pro-rata basis to member organizations of the HCA based on the number of lottery events conducted by each member during the reporting period. Each member’s share must be reduced by the amount of shortages incurred by them.
7.1 Only licensees that conduct bingo or break open tickets from border cities where the majority of bingo players are American may accept American currency for the payment of bingo paper and break open tickets.
7.2
7.3
7.4 All expenses must be paid in Canadian currency only, drawn on the Canadian DLTA or CDTA.
7.5 For the purposes of calculating the adjusted gross receipts, the daily “buying” exchange rate set by the chartered banks must be used. This information must be obtained on a daily basis.
7.6 All players purchasing bingo paper or break open tickets in American currency must be paid prizes in American currency and may be paid from the cash proceeds or from the American DLTA or CDTA.