The following terms and conditions apply to Hall Charities Associations (HCAs) in the administration of its Consolidated Designated Trust Account. These terms and conditions are in addition to the Regular and Special Bingo Licence Terms and Conditions. In the event of any conflict between these terms and conditions and the Regular and Special Bingo Licence Terms and Conditions, the provisions of these terms and conditions will take precedence.

Definitions

Consolidated Designated Trust Account (CDTA) means an account designated as a trust account by the financial institution in which it is held, into which are deposited the proceeds derived from events conducted and managed pursuant to lottery licenses, in accordance with these terms and conditions.

Hall Charities Associations that choose the option of using CDTAs are subject to the following terms and conditions and may be subject to audit and investigation by a licensing authority.

A breach of any term and condition can result in the cancellation or suspension of the licence or in prosecution.

(1) Implementation and Management of CDTAs 

1.1 The HCA must open at minimum, three (3) designated trust accounts:

  1. an account for proceeds derived from lottery events licensed by the Registrar other than BOTs (provincially issued licences);
  2. an account for proceeds derived from BOTs pursuant to a licence issued by the Registrar (provincially issued licences); and
  3. in pooling halls, an account for proceeds derived from bingo events licensed by municipalities.

1.2 The HCA must notify the licensing authority of its intent to use CDTAs and provide details of the set-up of accounts as well as information respecting any existing trust accounts and transfer of funds therein.

1.3 For each CDTA the HCA must maintain at a minimum the following general ledger accounts:

  1. Consolidated Designated Trust Account;
  2. a revenue account for each type of lottery;
  3. a prize account for each type of lottery;
  4. a hall rent account for each type of lottery;
  5. a licence fee account for each type of lottery;
  6. an administrative expense account for each type of lottery game;
  7. an advertising expenses account;
  8. a bank charges account;
  9. a bookkeeping expenses account;
  10. an audit or accounting expenses account;
  11. an account for the reimbursement for out-of-pocket expenses for bona fide members; and
  12. a disbursement account for charities who are members of the HCA.

(2) Journals

2.1 In addition to a general journal, the HCA must prepare a daily revenue journal for each type of lottery conducted. At minimum, the daily revenue journal must contain the following information:

  1. date and time of the lottery event;
  2. name of licensee;
  3. gross receipts;
  4. prizes awarded;
  5. licence fee;
  6. out-of-pocket expenses paid;
  7. (shortages) or overages;
  8. hall rent; and
  9. amount of cash deposited (this is the actual amount of money that will go into the CDTA and must be supported by a deposit slip).

2.2 The financial information set out in each daily revenue journal is to be totalled at the end of the month and posted to the general ledger.

(3) Monthly Summary 

The HCA must prepare a monthly summary, by licence, detailing all receipts and disbursements of the lottery proceeds for the month. It must detail the amount paid to each member of the HCA. The total disbursements must reconcile with the total net receipts shown on the monthly lottery report submitted to the licensing authority, including all expenses outlined in the applicable terms and conditions.

(4) Monthly Bank Reconciliation 

4.1 The bank reconciliation must be completed at the end of each month after the receipt of the 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.

4.2 The bank reconciliation must be reviewed and approved monthly by at least two (2) bona fide members as referred to in 5.1.

(5) Responsibilities of HCA 

5.1 Four (4) bona fide members designated in accordance with Section 9 of the Terms and Conditions issued pursuant to section 2.2(e) of the Regular and Special Bingo Licence Terms and Conditions, “Association Pooling of Funds,” will administer the CDTA.

5.2 The HCA must submit to the licensing authority its daily revenue journal and the monthly summary with the monthly lottery reports.

(6) American Currency 

American currency accepted as payment for any lottery games must be accounted for in accordance with the provisions of the Regular and Special Bingo Licence Terms and Conditions.

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