The following terms and conditions apply to Hall Charities Associations in the administration of their pooled lottery trust funds. In the event of a conflict between these electronic funds transfer terms and conditions and any other terms and conditions applicable to Hall Charities Associations, these terms and conditions take precedence.
Definitions
bona fide member means a member in good standing of the licensee who has other activities, beyond conducting lotteries, within the organization.
books and records means documents outlining financial details of lottery events and includes, but is not limited to, ledgers, sub ledgers, cheque books, cheque stubs, deposit books, deposit slips, bank statements, cancelled cheques, receipts, invoices, control sheets and EFT records and reports.
electronic funds transfer (EFT) means a system of technology that allows for pooled lottery proceeds to be transferred securely by electronic means from the Hall Charities Association’s lottery trust accounts to its member organizations’ lottery trust accounts.
electronic funds transfer file means a computer-generated list that is transmitted to a financial institution on a regular basis by a Hall Charities Association providing instruction to the financial institution for an electronic transfer of lottery proceeds. The file must contain the source account numbers, the amount to be deposited to each member organization’s accounts and the member organization’s account numbers. The file must also contain the total being transmitted for deposit and the number of deposits.
Hall Charities Association (HCA) means an association formed by all the licensees conducting bingo and other lotteries within a charitable gaming site.
licensee means an organization that has been issued a licence to conduct a lottery under Section 207 of the Criminal Code of Canada and includes a Hall Charities Association.
licensing authority means a person or authority specified by Lieutenant Governor in Council as a licensing authority for purposes of section 207 of the Criminal Code of Canada.
Registrar means the Registrar of Alcohol and Gaming.
Hall Charities Associations who use EFT to transfer pooled proceeds from their lottery trust accounts to member organizations’ lottery trust accounts 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 Electronic Funds Transfer system
1.1 The Hall Charities Association shall decide in accordance with its constitution and bylaws and subject to agreement with its financial institution whether to implement EFT.
1.2 The Hall Charities Association in consultation with its financial institution must determine a maximum amount that may be transferred from each lottery trust account over a specified period of time.
1.3 The Hall Charities Association must notify the licensing authority of the maximum amount determined in accordance with section 1.2 that may be transferred electronically from each lottery trust account.
1.4 In order to implement EFT, there must be 100 percent participation of all member organizations of the Hall Charities Association.
1.5 The Hall Charities Association must obtain from each member organization written authorization for EFT.
1.6 The Hall Charities Association will be in charge of and responsible for setting up the electronic fund transfer system for each designated lottery trust account from which funds will be transferred electronically.
1.7 Each member organization must provide to the Hall Charities Association its banking information, signed by two (2) authorized officers, on a prescribed form, for each lottery trust account to receive funds electronically.
1.8 The prescribed form to set out banking information is attached to and forms part of these terms and conditions.
1.9 The Hall Charities Association shall retain a copy of each member organization’s signed form(s) as set out in section 1.7 of these terms and conditions.
(2) Electronic Funds Transfer requirements
2.1 The Hall Charities Association must ensure that its financial institution’s EFT system has the following capabilities:
- cryptographic security provided by the financial institution;
- an audit capability that records all changes made to the lottery trust account electronic funds transfer file so that changes made cannot be hidden or accounts deleted without leaving an audit trail;
- electronic dual authorization;
- automatically sending electronic confirmation of funds transferred to a designated bona fide member as described in section 3.10; and,
- backup capabilities and utilities for audit purposes.
(3) Responsibilities of Hall Charities Association
3.1 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 Hall Charities Association Pooling of Funds are required to administer EFT funds and be the signing officers on behalf of the Hall Charities Association.
3.2 Hall Charities Associations must use software applications provided by or software required by their financial institution to transfer funds electronically.
3.3 The Hall Charities Association must create EFT files using the software referred to in section 3.2.
3.4 The Hall Charities Association must ensure that sufficient funds are available in the account prior to executing transfer of the lottery proceeds.
3.5 The Hall Charities Association must submit the EFT files on a regular basis to the financial institution.
3.6 The transfer of the funds must be authorized electronically by two (2) of the signing officers referred to in section 3.1.
3.7 The EFT file must be submitted to the financial institution within 48 hours of creating the file to execute the EFTs. The Hall Charities Association must retain a record confirming the transfer of funds.
3.8 The Hall Charities Association must obtain reports from the financial institution summarizing the file information. At minimum the reports must provide:
- the number of accepted or rejected payments and the dollar value of each;
- a returned items report that lists any payments that were returned and why the transactions were returned including the dollar value of each;
- a redirected transaction report that identifies payments intended for closed branches or other financial institutions; and,
- a returned items report that lists payments that were rejected and why the transaction was rejected.
3.9 The Hall Charities Association must ensure that, within 72 hours of receipt, the reports received from the financial institution are reviewed and signed by one of the signing officers described in section 3.1 who did not sign the original authorization for the transfer of funds as described in section 3.6.
3.10 The signing officer described in section 3.9 must prepare a summary setting out any discrepancies in the report received from the financial institution and present it to the board of the Hall Charities Association at a meeting to be held within 60 days.
3.11 Member organizations are responsible for advising the Hall Charities Association of any changes to their lottery trust account(s).
3.12 The Hall Charities Association must supply to the licensing authority a copy of the report set out in section 3.8 for each reporting period within 30 days of receipt.
3.13 The Hall Charities Association must provide a paper record to each of its member organizations summarizing the funds transferred electronically by the Hall Charities Association within 30 days of the transfer.
3.14 The Hall Charities Association must retain copies of all records and/or reports received from the financial institution for a period of four (4) years.
(4) American Currency
4.1 Hall Charities Associations shall not use EFT to transfer American funds.
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