3. Books and Records

3.1    The HCA must keep a copy of the reports prepared by its member organizations as required by “Section 5.2”.

3.2    The HCA must open a consolidated designated trust account (CDTA) on behalf of its member organizations to administer all the funds derived from charitable gaming events conducted in the bingo hall. The CDTA must have the following features:

  1. cheque writing privileges and monthly statements issued
  2. all cheques or electronic images of backs and fronts of cheques must be returned with the monthly statement
  3. all cheques or other withdrawals require the signature of at least two (2) signing officers who must be bona fide members of two (2) different member organizations of the HCA.

3.3    The HCA must provide details of the CDTA account to the licensing authorities.

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

  1. a consolidated designated trust account
  2. a revenue account for each type of lottery
  3. a prize account for each type of lottery
  4. an account for the allocation of five (5) per cent of break open ticket gross wager to the member organizations of the HCA, allocated prior to the calculation of the share of charitable gaming event revenue to go to the Operator of the bingo hall (“Operator”)
  5. an account for the Operator’s share of proceeds from licensed lotteries
  6. an Operator’s revenue clearing account
  7. an account for licence fees for each type of lottery
  8. an administrative expense account for each type of lottery
  9. a Marketing Fund account
  10. a bank charges account
  11. a bookkeeping expenses account
  12. an audit or accounting expenses account
  13. an account for the reimbursement of out-of-pocket expenses of bona fide members
  14. a disbursement account for member organizations who are members of the HCA.

3.5    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:

  1. date and time of the charitable gaming event
  2. name of the licensee
  3. gross receipts for each type of lottery conducted
  4. prizes awarded for each type of lottery conducted
  5. licence fee
  6. out-of-pocket expenses paid by each licensee
  7. overages or shortages incurred by each licensee
  8. the actual amount of cash deposited, supported by a deposit slip, for each type of lottery conducted. 

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

3.6    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.

3.7    Four (4) bona fide members of different licensees that are member organizations of the HCA must be designated to administer the CDTA.

3.8    The bank reconciliation must be reviewed and approved monthly by at least two (2) bona fide members of different licensees that are member organizations of the HCA.

3.9    The HCA must submit to the licensing authorities the Bingo Hall Charity Association summary reports.

3.10  The licensee and HCA must ensure that all withdrawals from their respective designated lottery trust accounts 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.

3.11  The licensee and HCA must ensure that there are no transfers between any designated lottery trust account or a CDTA and a general operating account.