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Document Sample
Minnesota
Lawful
Gambling Tax
Forms and Instructions
Revised November 2009
Inside this booklet Need help with your gambling taxes?
Form G1
Lawful Gambling Monthly Summary
and Tax Return
Form G7420
Call: 651-297-1772
Request to Destroy Pulltabs, Minnesota Relay 711 (tty)
Tipboards and Paddletickets
Form G7430
Refund for Tax Paid on Unsold E-mail: lawfulgambling.taxes@state.mn.us
Pulltab and Tipboard Ticket
Form G1CC
Annual Certified Cash Count for
Games in Play by Site
Form G1INV
Annual Certified Physical Inventory
by Site
Form G1CI
Annual Certified Physical Inventory
and Cash Count Summary
Schedule A
Gambling Receipts and
Expenses by Site
Schedule B2
Report of Barcoded Games
Schedule ER
Tax Credit for Exempt Raffles
Schedule F
Gambling Fund Reconciliation
Pay your taxes electronically!
Worksheet CS Go to our website at
Lawful Gambling Cash Shortage
Reimbursement www.taxes.state.mn.us
Worksheet E (See Electronic payments on page 4 for step-by-step instructions)
Combined Receipts Tax
Worksheet P
Lawful Gambling Site Profitability
Barcode Label Sheet
1
What’s New
Annual audits, certified physical For information regarding the new star
inventories and cash counts rating system for expenditures, contact the Periodically check our website
Effective July 1, 2009, annual financial audit Gambling Control Board. at www.taxes.state.mn.us for
and review requirements have changed. For updates that apply to lawful
complete details and descriptions to three 2010 interest rate
new annual reporting forms, see page 19. The interest rate for 2010 is 3 percent. gambling taxes.
These three new forms are included in this Minnesota Statutes (Chap-
booklet and are available on our website. Unrelated business income (UBI) tax
Organizations with unrelated business ters 297E and 349) and Rules
Allowable and advertising expense income are required to annually file Form (7861.032 and 8122) relating
thresholds eliminated; new star M4NP, which is available on our website. to lawful gambling taxes can be
rating system Gambling activities are considered unrelated found on the Legislature’s web-
Worksheets EC, Expense Calculation, and business income. If you have questions, send
ADV, Advertising Expenses, are no longer to an email to ubi.taxes@state.mn.us. site at www.leg.state.mn.us.
be used for periods after June 30, 2009.
Contents
General information Directory
What’s new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Who must file . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Minnesota Department of Revenue
Before you start (federal and Minnesota tax ID numbers) . . . . . . . . . . . . . 3 Provides tax forms and information on filing
Filing requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 monthly returns.
Due dates and extensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Information and assistance (8–4:30, M-F)
Penalties and interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Phone:
Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 651-297-1772
Recordkeeping requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 711 Minnesota Relay
Record retention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Fax:
Assembling your return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
651-297-5192
Amended returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Closing your gambling operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 E-mail:
lawfulgambling .taxes@state .mn .us
Instructions for forms and schedules
Form G1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Website (forms/electronic payments):
www .taxes .state .mn .us
Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Schedule B2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Address:
Destroying games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Minnesota Revenue
Fund losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Mail Station 3350
Defective games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 St . Paul, MN 55146-3350
Missing games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Reporting distributor credits or refunds . . . . . . . . . . . . . . . . . . . . . . . 13
Sending barcode labels with Schedule B2 . . . . . . . . . . . . . . . . . . . . . . 14 Minnesota Gambling Control Board
Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Provides information on gambling regulations,
licensing requirements, training opportunities
Mathematical error notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 for organizations’ employees, Schedule C/D,
Determining site profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 “LG” forms and instructions.
Annual financial audits/reviews and annual certified
physical inventories and cash counts . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Information and assistance (8–4:30, M-F)
Phone:
Lawful gambling forms 651-639-4000
The following forms are included in the center of this booklet . Photocopy them Website (all “LG” forms):
to use when you file your gambling tax return. www .gcb .state .mn .us
Forms filed with Revenue Not filed with Revenue Address:
Form G1 Schedule ER Worksheet CS Minnesota Gambling Control Board
Schedule A Form G1CC Worksheet E 1711 West Cty . Rd . B ., Suite 300 South
Schedule F Form G1INV Worksheet P Roseville, MN 55113
Schedule B2 Form G1CI
Barcode Label Sheet Form G7430
Form G7420 The information in this booklet is available in
2 other formats upon request.
General information
Who must file Form G7430. If you reported unsold tickets The U.S. postmark date, or date recorded or
All licensed gambling organizations must for pulltab and tipboard games played marked by a designated delivery service, is
file Form G1, Lawful Gambling Monthly during the calendar year, use this form considered the filing date (private postage
Summary and Tax Return, and the necessary to claim a refund for taxes paid on these meter marks are not valid). When the due
supporting schedules. tickets. File Form G7430 along with the date falls on a Saturday, Sunday or legal
other required forms and schedules for holiday, returns postmarked on the next
February only. business day are considered on time. When
Before you start a return is mailed late, the date it is received
Form G7420. Before you can destroy any
You need both a federal and a at the Department of Revenue is treated as
unused or unusable pulltabs, tipboards and/
Minnesota tax ID number or paddletickets, you must obtain approval
the date filed.
Your federal ID number is also known
to do so. Use this form to request permis- If your return is incomplete, we will return
as your Employer Identification Number
sion from the department to destroy these it to you for completion. If the delay causes
(EIN), and is used to identify a busi-
types of games. your return to be filed late, you will be sub-
ness entity. If you don’t have one, you can
ject to penalty and interest charges.
apply on the IRS website at www.irs.gov Form G1CC. All organizations must annu-
(search for employer ID number) or call ally complete and submit a separate Form
1-800-829-4933. G1CC for each site to record the certified Penalties and interest
cash count for games in play. Late payment. A late-payment penalty is
Your Minnesota tax ID is the seven-digit due if you file your return on time but do
number assigned to you when you reg- Form G1INV. All organizations must annu- not pay all the tax due. If your payment is
ister with the Department of Revenue. ally complete and submit a separate Form one to 30 days late, the penalty is 5 percent
If you don’t have one, apply for one G1INV to record the certified physical of the unpaid tax; 31 to 60 days late, 10 per-
online at www.taxes.state.mn.us or call inventory for each site. cent; over 60 days late, 15 percent.
651-282-5225 or 1-800-657-3605.
Form G1CI. All organizations must annu- If your payment is more than 90 days
You must provide your federal and ally complete and submit Form G1CI to late, you will be referred to the Gambling
Minnesota tax ID number on all lawful summarize the inventory and cash count of Control Board for sanctions.
gambling forms submitted to the all sites after physical inventories and cash
Department of Revenue. counts have been conducted. Late filing. If you also do not file your
return on time, you must pay an additional
Worksheets to complete, but do 5 percent of the unpaid tax.
Filing requirements not file
Forms to submit to the Interest is figured on the total tax plus pen-
The following worksheets are required to be alty at the following rates from the date you
Department of Revenue completed, but are not filed with either the should have paid the tax until the date the
Form G1, Schedule B2 and Schedule F. Department of Revenue or the Gambling total is paid:
If you’ve conducted gambling during the Control Board.
month, file Form G1, Schedule B2 (to report 2010 = 3% 2008 = 8% 2006 = 6%
bar-coded games) and Schedule F. If you Worksheet CS. Use this worksheet to deter- 2009 = 5% 2007 = 8% 2005 = 4%
had no gambling activity during the month, mine if you exceed the allowable limit of
cash shortages per site for fiscal year July 1 The same interest rates apply to refunds.
file Form G1 and Schedule F only.
through June 30. By law, payments are applied first to any
Schedule A. If you have more than one penalties you owe, then to any interest, then
gambling site (whether or not there was any Worksheet E. Use this worksheet to track
your gross receipts for pulltabs, tipboards to the tax.
gambling activity), file this schedule along
with Form G1 and Schedules B2 and F. You and interest for fiscal year July 1 through Abatement. You have the right to request
may also need to file this schedule if your June 30. If you exceed $500,000 during this an abatement of any penalty assessed. To
organization conducted offsite gambling period, you will be subject to the combined request an abatement, contact the depart-
that you do not want to add to an existing receipts tax. ment (see page 2).
site (see Schedule A instructions on page 9). Worksheet P. Use this worksheet to deter-
If you need a filing extension
Barcode label sheet. If you played bar- mine if an individual site is profitable.
Automatic filing extension. You may
coded games during the month, attach the receive one automatic 30-day filing exten-
barcodes to this form (see page 14), and Due dates and extensions sion during a 12-month period.
file this sheet along with the other required Filing deadline
forms and schedules. To request a 30-day filing extension, by the
The regular due date for filing your
regular due date you must mail or fax us a
Schedule ER. File this form along with monthly return (Form G1 and schedules)
written request (see page 2) that includes
other required forms and schedules if you and paying the tax due is the 20th day of
your name, address, federal and state tax ID
conducted tax-exempt raffles during the the month after the month for which the
numbers, license number, and the month
month, for which the net proceeds are used return is being filed. For example, your
for which you are requesting an extension.
exclusively to help relieve the effects of monthly return for July must be received by
poverty, homelessness or disability for an August 20. You must file your return by the
individual or family. due date even if no tax is due. 3
Continued
General information
This is a filing extension only, however, not Note: If you use a payroll service, check to Records include, but are not limited to, the
a payment extension. If you owe tax, you see if you’ve exceeded the thresholds and are following items:
must estimate how much you owe and pay required to pay electronically in the future.
• winning and unsold tickets for pulltab,
it by the regular due date. Any tax not paid
e-File Minnesota. You can pay your tipboard, paddlewheel and raffle games
on time is subject to penalties and interest
lawful gambling taxes electronically over and game flares
(see Penalties and interest on page 3).
the Internet or by phone using our free • reports and statements, including
Approved extensions. You can request a e-File Minnesota system. checker’s records for each bingo occasion
filing extension of more than 30 days or • cash journals, ledgers deposit slips, regis-
• To pay over the Internet, go to our
a 30-day extension for a second month ter tapes and bank statements supporting
website at www.taxes.state.mn.us and
during a 12-month period. Estimate the gambling activity receipts
click “Login to e-File Minnesota” on the
amount on line 13, and pay the tax by the • invoices that represent purchases of gam-
e-Services menu. Follow the prompts for
regular due date (for payment options, see bling products
a business to make a payment of lawful
Payments on page 4). • canceled checks or substitute checks and
gambling tax.
other documents supporting gambling
To request an extension, by the regular • If you don’t have Internet access, you can activity expenditures
due date you must mail or fax us a written pay by phone at 1-800-570-3329. • organizational minutes.
request (see page 2) that includes:
For both methods, you’ll need your
• your federal and state tax ID numbers, Minnesota tax ID number, password and Record retention
• your license number, banking information. Note: If you’re using Gambling-related records must be kept
• the month for which you are requesting the e-File Minnesota system for the first for at least 3½ years, and may be inspected
an extension, time and you need a temporary password, by the department at any reasonable time
call our Registration Services office at without notice or a search warrant.
• the date you expect to file the return, and
651-282-5225 or 1-800-657-3605.
• the reason(s) why you cannot file on time. The retention period for played games starts
After you authorize the payment, you’ll on the due date of the return on which the
Your request must be received by the regular receive a confirmation number for you to game is first reported. It does not start on
due date of the return, or by the automatic keep with your records. You can cancel a the invoice purchase date or the date the
extended due date if you’ve filed for one. We payment up to one business day before the game is removed from play.
will notify you in writing if your request has scheduled payment date if needed.
been approved or denied. For example, if you report a game as
Check payments played on your January 2010 return (due
If it is approved, you must estimate the February 20), the retention period begins
If you’re not required to pay electronically,
amount of tax you will owe for the month Feb. 20, 2010 and ends Aug. 20, 2013.
you can pay by check. Make check pay-
and send us a check and a copy of the
able to Minnesota Revenue. On the memo Keep a copy of all tax returns, schedules and
approval letter (see page 2). If the actual tax
line of your check, write “gambling tax,” worksheets for your records, including all
is more than the amount paid, you will owe
the organization’s license number, and the amended returns.
interest on the difference. Interest will be
month and year of the tax being paid.
calculated from the regular due date until
the date it is paid. When you provide a check as payment, you Assembling your return
are authorizing us to use information from Arrange the forms in the following order
If your request is denied, we will notify you
your check to make a one-time electronic and staple:
by letter and indicate the date by which you
fund transfer from your account. As a result, 1. Form G1 5. Barcode Label Sheet
must file the return.
your bank will report the payment as an 2. Schedule A 6. Schedule ER
electronic transaction, and you will not
Payments receive the canceled check. If we experi-
3.
4.
Schedule F
Schedule B2
7.
8.
Form G7430
Form G7420
Electronic payments ence technical or processing problems,
If your organization’s total sales or with- we may process your payment as a check Mail to: Minnesota Revenue, Mail Station
holding tax liability during the last 12 transaction. 3350, St. Paul, MN 55146-3350.
months ending June 30 was $10,000 or Send only original completed returns,
more, you are required to make payments Recordkeeping schedules and barcodes. Photocopies will
electronically. In addition, if the organi-
zation is required to pay any Minnesota
requirements not be accepted.
Every licensed organization is required to Note: Do not attach LG1010, Schedule C/D.
business tax electronically, you are required
maintain complete, accurate and legible Send the originals to the Gambling Control
to pay all Minnesota business taxes
records supporting all gambling activities Board (see page 2) and keep a copy with
electronically.
(as reported to the department) for the five your records.
types of lawful gambling—bingo, paddle-
wheels, raffles, tipboards and pulltabs. Do not attach worksheets (e.g., Worksheets
CS, E and P). Keep these with your records.
4
Continued
General information, Form G1
Amended returns
File an amended return to report changes
to Form G1 or schedules. Check the box for
Form G1 Merchandise prizes for
meat raffles
amended returns at the top of Form G1. Note: If you have more than one site, If merchandise (meat) prizes are lost
complete Schedule A for each site before before they are awarded, you must reim-
Important: If you use tax software to
filling out Form G1 (see page 9). burse the gambling account for the cost
prepare your gambling tax return, and you
of the prize.
make a change to a previously filed return,
remember to also file an amended return
Fill out the top of Form G1 completely, If meat prizes are spoiled or ruined
with the Department of Revenue. including your federal and state tax ID before they are awarded, you may
numbers, which are required. expense them off on Form G1, line 27,
If you file an amended Form G1 for any
or Schedule A if you have prior approval
month and you have already filed G1 Check the appropriate box if: from your compliance specialist at the
returns for later months, you do not have • The return is an amended return. Gambling Control Board.
to amend the later months if only the profit
• You have an extension to file (either
carryover amount would be changed. If meat prizes are sold, you must sell
an automatic extension or a requested
them for exactly what was paid for the
We will automatically correct the profit car- extension). Attach a copy of your letter
prizes and deposit the proceeds in the
ryover for the later months and will notify requesting an automatic extension or the
gambling account. No entry is required
you of the changes made. Be sure to correct letter from the Department of Revenue
on Form G1 or Schedule A; however,
your own copies, however, for your records granting an additional extension.
Schedule F will be affected (see Note
(Form G1, lines 38, 40 and 44). • You had no gambling activity during the below). Deposit the proceeds into the
Note: To amend Form LG1010, Schedule month to report on lines 1 through 3 and gambling checking account. The meat
C/D, see the instructions in Lawful Purpose lines 8 and 9 of Form G1. Even though cannot be sold for a profit.
Expenditures, which is available on the you have no gambling activity, be sure to
enter income from interest, dividends and If you choose to donate meat prizes,
Gambling Control Board’s website (see page
other investments of gambling funds on you must contact your compliance spe-
2).
line 7. Also, enter any amounts paid for cialist at the Gambling Control Board. If
approved, record the cost of the prize as
Closing your gambling allowable expenses and/or lawful purpose
a lawful purpose expenditure on Form
expenditures on lines 18 through 42.
operation LG1010, Schedule C.
If you permanently stop conducting Line 1 Note: In all of the above cases, you must
gambling activities, you must file Form Bingo reduce the quantity of the merchandise
LG204, License Termination Plan, with the Bingo activity includes any paper and hard inventory maintained on Form LG830,
Gambling Control Board within 30 days card bingo, bar bingo, and linked bingo and reduce the cost of merchandise prizes
from the date you stop the activities. All conducted by the organization. To deter-
on Schedule F, line 11d.
unplayed games in the organization’s pos- mine the gross receipts and prizes paid for
session must either be returned to the dis- bingo, complete the following worksheets:
tributor for credit or a refund, or sent to the The selling price is listed on the distribu-
• LG909, Bingo Occasion Summary/Bingo
department for destruction. This includes tor’s invoice. Adjusting the selling price with
Paper
any unplayed bingo paper the organiza- coupons or certificates will reduce the gross
• LG811, Bingo Occasion Summary/Hard
tion may have. Contact us before shipping receipts from bingo reported on Form G1,
Cards
or bringing in any unplayed games. The line 1A. Report the gross receipts from
• LG920, Bar Bingo Paper Sales
organization must not destroy unplayed bingo certificates at the time they are sold.
games. To figure the amounts to enter on line 1:
Keep all bingo-related records for at least
You must continue to file your monthly tax • Column A: Total the gross sales from line 3½ years.
returns: 5 of all LG909s, line 1 of all LG811s and
line 4 of all LG920s completed during the Line 2
• until all gambling proceeds are expended month. Raffles
and inventory disposed of according to • Column B: Total the prizes paid from line Report all raffles you concluded during the
the Gambling Control Board’s approved 6 of all LG909s, line 2 of all LG811s and month. To determine gross receipts and
termination plan, and the total of lines 5, 8 and 9 for all LG920s prizes paid for raffles, complete the fol-
• for any month in which there is activity. completed during the month. lowing worksheets:
If you have questions, contact the • Column C: Total the net receipts from • LG820, Raffle Inventory and Sales Log
Department of Revenue (see page 2). line 7 of all LG909s, line 3 of all LG811s • LG830, Merchandise Prize Perpetual
and line 11 of all LG920s completed dur- Inventory
ing the month.
To figure the amounts to enter on line 2:
Coupons and certificates are the only items
that may be used to adjust the selling price • Column A: Enter the total gross receipts
of bingo hard cards, sheets, packets, and from LG820, Column 7.
packages (may be adjusted down to zero). 5
Continued
Form G1 (continued)
• Column B: Total of the amount of cash on the top card of the pad when reporting • total prizes paid from line 16, Column K
and the actual cost of merchandise prizes paddleticket games on Schedule B2. on Form G1, line 8, Column B.
awarded. Do not include the cost of • total net receipts from line 16, Column L
During the month, if all paddleticket cards
printing tickets. on Form G1, line 8, Column C.
of a group are played, the game is closed
• Column C: Enter raffle net receipts. and reported as played on Schedule B2. If you played both tipboards and progres-
Frequently, raffles will extend over two or At the end of the month, each group of pad- sive tipboards, add the totals from both
more months (from the purchase and sale dletickets in play during the month must be Schedules B2 and enter the results on line 8,
of raffle tickets to the awarding of prizes). closed and reported on Schedule B2, even Columns A, B and C.
Report the gross receipts and prizes paid for if all paddletickets have not been played. Keep all played tipboard games and records
the raffle in the month of the drawing. For Report all unplayed paddletickets as unsold for at least 3½ years. Do not open any
raffles with more than one drawing during on Schedule B2. unsold tipboard tickets. Do not open any
the play of the raffle, report gross receipts
Send the barcode label with your tax return seal card or tipboard windows that have not
and prizes paid in the month of the first
when the sealed group of tickets is removed been played or won. All redeemed winning
drawing.
from play. A sealed group of tickets is consid- tickets must be kept with the tipboard flare.
Note: Report on Schedule F, line 15, any ered one play and one entry on Schedule B2.
bank deposits from raffle ticket sales that Line 9
are still in play and are not included on From your Schedules B2 for paddletickets, Pulltabs
Form G1, line 2. enter: From your Schedules B2 for pulltabs, enter:
To report merchandise prize purchases • total gross receipts from line 16, Col- • total gross receipts from line 16, Col-
for raffles still in play that have not been umn J on Form G1, line 3, Column A. umn J on Form G1, line 9, Column A.
reported on Form G1, enter the amount on • total prizes paid from line 16, Column K • total prizes paid from line 16, Column K
Schedule F, line 11c or 11d, depending on on Form G1, line 3, Column B. on Form G1, line 9, Column B.
whether the prizes have been awarded or • total net receipts from line 16, Column L • total net receipts from line 16, Column L
not. on Form G1, line 3, Column C. on Form G1, line 9, Column C.
Prizes reported on Form G1, but not Keep the master flares, paddleticket card Keep all winning, unsold and defective
awarded (calendar raffles) are a liability. stubs, winning paddletickets, unsold pad- pulltabs, along with other pulltab records,
Report on Schedule F, line 20. dletickets, and all other paddleticket records for at least 3½ years. Do not open any
Keep all unsold raffle tickets and unsold for at least 3½ years. unsold or defective pulltabs.
certificates of participation, winning
ticket stubs, raffle log books, inventory Line 5 Line 12
records, and other raffle records for at least Loss carryforward Monthly regulatory fee
3½ years. Organizations must account for If you don’t anticipate any income from If there are no taxes due on line 11, the reg-
all unsold raffle tickets. Any missing raffle bingo, raffles or paddletickets in the near ulatory fee may be accrued (not paid) until
tickets are considered sold and must be future that would offset a loss carryforward the total fee owed is $50 or more. However,
included in gross receipts. The organization reported on line 5, you can stop reporting it the regulatory fee must be paid with the
must pay for the missing raffle tickets from by checking the box. March, June, September and December
returns, even if the total owed is less than
nongambling funds (i.e., organization’s gen- Note: If you have more than one site, see $50.
eral account). Schedule A instructions on page 9.
Tax-exempt raffles. Organizations may Line 14
conduct tax-exempt raffles if the net pro-
Line 7 Tax paid to distributors
Interest and other income Enter the total 1.7 percent gambling tax
ceeds are used exclusively to help reduce
Total the interest earnings, admission listed on paid invoices for pulltabs and tip-
the effects of poverty, homelessness, or dis-
charges, cover charges, and dividends from boards during the month. Do not include
ability for an individual or family. Complete
gambling savings accounts, certificates of amounts from unpaid invoices. Do not
Schedule ER to determine the credit. The
deposit, mutual funds or other investments include any sales tax or freight charges.
credit is nonrefundable and cannot be
of gambling funds. (If you have investments
greater than your tax liability. Contact the
board to determine if a raffle qualifies as tax
in stocks, contact the Gambling Control Line 19
Board.) Enter the amount in Columns A Purchases
exempt.
and C. From your invoices, enter the actual cost
Line 3 Note: If you have more than one site, see of games received through the last day of
Paddletickets Schedule A instructions on page 9. the month whether paid for or not. Include
A paddleticket game is a sealed group of up the amount of state and local sales tax and
to 100 paddleticket cards. Line 8 freight charges listed on the invoices, but do
Tipboards not include the 1.7 percent distributor tax,
Even though each card has its own serial if any. Include the cost of:
From your Schedules B2 for tipboards, enter:
number, use the serial number printed
• total gross receipts from line 16, Col- • bingo paper, bingo-paper packages and
6 umn J on Form G1, line 8, Column A. bingo-paper sheet packets,
Continued
Form G1 (continued)
• linked-bingo paper,
• paddletickets and paddleticket cards, Physical vs. perpetual inventories
• tipboards and tipboard tickets,
• pulltabs, Physical inventory Perpetual inventory
• jar tickets, Taking a physical inventory requires A perpetual inventory is an ongoing
• raffle tickets, counting and recording the gambling record of gambling products from the
• certificates of participation, and products in inventory on the last day of time they are received by the organization
• button raffles (see Button raffles below). the month and verifying the information until they are either played, transferred,
To transfer unplayed games between sites, with the perpetual inventory. returned or destroyed with prior approval.
you must enter a negative line 19 amount When taking a physical inventory, use When purchasing gambling equipment,
for the cost of the game on Schedule A of the following forms available from the you must keep an ongoing tracking system
the site that has the game and a positive line Gambling Control Board: of the equipment. A properly maintained
19 amount on the Schedule A of the site to perpetual inventory system allows you to
which the game is being moved. • For pulltabs, paddletickets and tip-
know what is in your inventory on any day
boards, use Form LG846.
of the month.
Button raffles • For bingo paper, use Form LG903.
The person who maintains the per-
If purchase of a button and raffle ticket • For raffle tickets, use Form LG821.
petual inventory must not be the same
or certificate of participation are needed person who does the physical inventory.
Pulltab, paddleticket, and tipboard
to participate in a raffle, enter the cost of Information in the perpetual inventory
games. For each game in play or in
the button and raffle ticket or certificate records may include, but is not limited to,
unplayed inventory at month’s end, enter
of participation on line 19. All money the following:
the following items on Form LG846:
from sales of both must be reported as
raffle gross receipts on line 2A. • manufacturer ID, • date of the invoice,
• part number, • distributor name,
If purchase of only a raffle ticket or • invoice number,
• name of the game,
certificate of participation is needed to • manufacturer ID,
• serial number, and
enter the raffle, then only the cost of the • part number,
• cost of the game, not including sales tax,
raffle ticket or certificate of participation • game serial number,
the 1.7 percent distributor tax or freight
is entered on line 19. All money from the • actual game cost,
charges.
sale of the raffle tickets or certificates of • date each game was put into play, trans-
participation must be reported as raffle Do not include closed games or games
ferred, returned or destroyed with prior
gross receipts on line 2A. returned for credit.
approval, and
Bingo and raffles. Include the dollar value • date each game was closed.
Line 21 of bingo paper (note if paid for or unpaid)
The Gambling Control Board requires
Ending inventory from Form LG903. Also include the cost
perpetual inventories be recorded on
To determine the amount to enter on of raffle tickets from Form LG821 (note if
forms provided by the board or in a
line 21, you must conduct a physical inven- paid for or unpaid).
format approved by the board.
tory at the end of the last day of the month.
Use the end-of-month physical inventory
• For pulltabs, tipboards, and
Enter the total value of the physical inven- records to verify and compare the accu-
paddletickets, use Form LG844.
tory on line 21 (see Physical vs. perpetual racy of your perpetual inventory. If there
inventories on this page). Do not include are any discrepancies, you will need to • For bingo, use Forms LG900, LG901,
sales tax, the 1.7 percent distributor tax or investigate and correct your inventory. LG902 and/or LG930.
freight charges. • For raffles, use Form LG820.
Line 23
Payroll expenses • worker’s compensation insurance, and Line 26
Enter the total paid during the month for: • FICA tax (both the employer’s share and Accounting and legal
the employee’s share). Include the following gambling-related
• net wages (after all deductions) paid to
expenses:
employees for services related to gam- Do not include compensation paid to
bling, including payments to members employees from the organization’s general • cost for accounting services (e.g., book-
who are not involved with gambling ac- fund or any other account except the gam- keeping, filing and tax-preparation
tivities who perform the annual certified bling account. services including those expenses related
inventories and cash counts, to payroll taxes),
• federal and state income taxes with- Line 25 • costs of the required annual audits and/or
held from employees’ wages for services Advertising certified inventories and cash counts filed
related to gambling, Enter advertising expenses, including with the Department of Revenue, and
• federal unemployment tax (FUTA), printing costs, you paid during the month. • costs for qualifying legal work related to
• Minnesota unemployment compensation Note: If you have more than one site, see gambling.
Schedule A instructions on page 9.
7
tax, Continued
Form G1 (continued)
Line 27 Line 29 • If all amounts are cash short, enter the
Supplies and miscellaneous Rent total on line 33 without parentheses.
Include the following gambling-related Enter the rent expense for the month for the • If amounts are both cash long and cash
expenses: site used for lawful gambling activities from short, add the cash-long and cash-short
Form LG216, Columns G and H. amounts separately, and combine the
• service charges paid to the bank on your
gambling bank accounts, For bar operations, use the rent amount totals. If the result is cash long, enter the
before any reduction for cash shortages. amount on line 33 in parentheses. If the
• cost of miscellaneous office supplies, such
result is cash short, enter the amount
as paper, pencils, pens and envelopes,
including sales tax paid on the items, Line 30 without parentheses.
Utilities If you conduct paddlewheel games with
• printing costs (do not include print- If the organization owns the site where
ing costs for advertising, raffle tickets or chips, you must reconcile the chip count on
lawful gambling is conducted, you may be at least a monthly basis. Include any overage
certificates of participation), able to include costs for certain utilities you or shortage in chip count on line 33 as cash
• linked bingo provider fee, actually paid during the month on line 30. long or short.
• cost of lodging, meals and transportation Veteran and fraternal organizations
to attend lawful gambling seminars and If you conduct bingo and/or raffle activi-
must determine if they are eligible to ties, determine the amount of cash long or
classes authorized by the Department of deduct utility expenses as lawful purpose
Revenue or the Gambling Control Board, short from these activities and include it in
expenditures. your line 33 calculations. Include the totals
and
Contact the Gambling Control Board for from Forms LG909 (line 14) and LG811
• other expenses that cannot be reported (line 12).
instructions.
on another line of Form G1, such as the
cost of storing, shredding or destroying Line 31 Line 34
gambling equipment. Insurance Reimbursement of cash shortages
To figure the amount to enter on line 31: For bar operations under a new lease, enter
Line 28 any reduction in rent for cash shortages
Equipment and repairs 1. Determine the cost of liability insurance
on line 34 in the month the rent check was
Include the following gambling-related paid during the month.
written.
expenses: 2. From your insurance company, deter-
mine what your liability insurance would Complete Worksheet CS, Lawful Gambling
• cost of office furnishings and office Cash Shortage Reimbursement (included
be if you were not conducting gambling.
equipment used for gambling and in this booklet), each month for each site.
gambling-related activities, such as desks, 3. Subtract step 2 from step 1. Cumulative total cash shortages start at zero
chairs, tables, computers, computer 4. Determine the cost of theft insurance in July of each year and end in June of the
software, calculators, vaults and other se- paid during the month to insure gam- following year.
curity containers for cash. Do not include bling equipment and funds from theft,
amounts entered on line 27. If the total cash shortages in June for each
burglary and casualty loss.
site for the year exceed 0.3 percent of gross
If the office furnishings or equipment 5. Add steps 3 and 4, and enter the total on receipts (i.e., Worksheet CS, Column H,
are used for both gambling and nongam- line 31. for June is a negative amount), you must
bling activities, multiply the cost by the reimburse the gambling account from
percentage of time the items are used You must keep documentation from your
insurance agent to verify this deduction. nongambling sources by July 20. Enter the
for gambling. The remaining cost of the amount of reimbursement on line 34. If you
items must be paid for from nongam- reimbursed your gambling account after the
Line 32
bling sources. month you are reporting, also include this
Bond and investigation fees
• cost of gambling devices that have a Include the following gambling-related amount on Schedule F, line 10.
useful life of more than one year, such expenses:
as numbered bingo balls, flash boards, Line 35
• annual investigation fees charged by your Reimbursement of allowable expenses
monitoring systems, scales, pulltab ticket
local governing body in place of a 3 per- If your organization had a negative expense
containers, pulltab dispensing devices
cent tax, and balance on either:
(machines) leased or purchased, bingo
• the cost of a gambling manager’s bond or
hard cards, equipment for selecting bingo • the 24th month of your license period
bond renewal paid during the month.
numbers, paddlewheels, paddlewheel ending June 30, 2009 or earlier, or
tables and chips, Line 33 • the 21st month of your license period
• cost of materials and labor to repair and/ Cash (long) or short starting October 1, 2007 or before,
or store any of the office furnishings, If you did not conduct bingo or raffles, you must deposit the amount into your
office equipment and gambling devices refer to your Schedules B2, Column N. gambling account.
listed above.
• If all amounts are cash long, enter the Mail a copy of Worksheet EC to the
total on line 33 in parentheses. Gambling Control Board with documenta-
tion showing reimbursement of your gam-
8
Continued
Form G1, Schedule A
bling account from a nongambling source • The amount of any reimbursement tion may authorize other members to sign
of funds. Report the reimbursed amount on from manufacturers or distributors for in their absence by passing a motion at a
Form G1, line 35, as a negative amount. If defective games previously reported on monthly membership meeting. The motion,
you need assistance, contact the Gambling Schedule B2 as a loss. Attach supporting second and vote must be documented in the
Control Board. documentation listing the month and meeting minutes and a copy of the minutes
Effective July 1, 2009, expense calculations year the game was reported on Sched- sent to the Department of Revenue.
are no longer tracked and organizations ule B2 along with the barcode data.
If there is an unpaid tax liability for the
whose license periods started August 1, Line 47 period being reported, the CEO, gambling
2007 or later do not need to reimburse for Dollar value of unsold tickets manager, and/or designees that actually sign
negative expenses in their 24th month. Also, the return may be held personally respon-
Enter the total from your Schedules B2 for
organizations whose license periods started sible for the unpaid tax liability.
pulltabs and tipboards (line 16, Column I).
November 1, 2007 or later do not need to
Do not include paddletickets. The CEO and gambling manager are
reimburse for negative expenses in their 21st
or 24th month. expected to sign the tax return. The organi-
Sign the return zation is not allowed to have a designee sign
Although the expense calculations are The following are required to sign Form G1: the return simply as a convenience to the
no longer tracked as of July 1, 2009, the organization.
• the chief executive officer (CEO) of the
Gambling Control Board requires that a
organization, The person who prepared the return must
minimum of 30 percent of gross profits (or
• the gambling manager of the organiza- also sign, date, and enter his or her daytime
gross receipts) are spent on lawful purposes
tion, and phone number and name of the firm.
each fiscal year. Lawful purpose includes all
• the person who prepared the return.
taxes on Form G1, line 15, plus all expendi-
Note: Information on your lawful gambling
tures listed on Form LG1010, Schedule C/D If the CEO or gambling manager are not forms is public information.
(line 43 of Form G1). available to sign the return, the organiza-
Organizations can track their lawful pur-
Schedule A
pose expenditures on the Board’s new Form
LG1012. Organizations will receive a star
rating after the end of each fiscal year indi-
cating their lawful purpose rating based on
the percentage of annual gross profits spent Complete Schedule A, Gambling • the site permit was terminated and you
on lawful purpose expenditures. Contact Receipts and Expenses by Site, only are reporting final expenses, final income,
the Gambling Control Board for more if you have more than one gambling sale of equipment, return of product,
information. transfer of product to another site, etc., or
site or conduct offsite activity.
If you are required to reimburse your gam- • offsite activity is being reported at site
bling account for a negative balance, the Complete Schedule A for each site 999. See below for details.
required reimbursement amount is the nega- before filling out Form G1. The Do not complete more than one Schedule
tive amount on Worksheet EC, Column J. information on all your Schedules A A per site per month. If you complete sepa-
Report the reimbursed amount on Form G1,
will then be summarized on Form rate Schedules B2 for the same site because
line 35 as a negative amount. Deposit the
amount into your gambling account by the G1. you operate a combination site (i.e., sell
from both a booth and a bar operation), you
20th day of the following month.
If you have more than one site, follow the must combine Schedules B2 for reporting
If you reimburse the gambling account in Form G1 instructions to complete Schedule on a single Schedule A or Form G1.
the month following the month you are A for each gambling site. (See the instruc- If you have offsite gambling activity,
reporting, report this as a positive amount tions for lines 5, 7, 25 and 35 on page 10.) report the activity on your monthly return
on Schedule F, line 11e, and provide a brief
explanation. You’ll need your Schedules B2 for each site, using one of the following methods:
and bank and dividend statements. If you • add the offsite activity to Form G1 if you
Note: If you have more than one site, see
conduct bingo or raffles, you’ll need records have only one active site, OR
Schedule A instructions beginning on this
showing receipts and prizes paid. • add the offsite activity to Schedule A for
page.
If you discontinue activity at a site, notify one of your active sites, OR
Line 39 the Gambling Control Board and continue • report the offsite activity on a separate
Approved adjustments to file Schedule A for that site until the Schedule A using site number 999. You
Enter the following: Board notifies you that the site has been may want to choose this option if (1) all
terminated. other active sites are either bar operations
• The amount of any approved adjustment
under new leases, or (2) active sites are
received from the Department of Revenue Do not complete Schedule A for a site for located in cities or counties with local
or the Gambling Control Board during the which you do NOT have a valid premises taxes or requirements that a contribution
month you are reporting. Attach a copy of permit issued by the Gambling Control be made to a city or county-administered
the letter. Board, unless: fund for lawful purpose contributions
• Any amount entered on this month’s Form
(i.e., 10 percent fund). 9
G1, line 5C (enter as a positive number). Continued
Schedule A, B2
Important: If you have only one active
site and choose to do a site 999 Schedule A
to report offsite gambling activity, you must
Schedule B2
also complete a separate Schedule A for
your regular active site. Complete Schedule B2, Report cannot be moved between bar operations
of Barcoded Games, to report all and booths, or vice versa, once they have
Allocating expenses among sites been put into play.
For lines 5, 7, 25 and 35, you may choose to barcoded pulltab, tipboard and
allocate expenses among your sites. paddleticket games you remove Include only games that have been removed
from play or inventory during the from play or inventory by the end of the
If you conduct gambling in a city that month.
assesses a local tax or has a lawful purpose month.
fund to which you are required to donate, See page 14 for instructions on sending bar-
you should allocate the expenses to reflect code labels with your Schedules B2. If you
the actual expenses at each site. Before you put a game into play, be sure have non-barcoded games, call our office
to verify that the serial and part numbers for instructions.
Line 5 on the tickets and the flare barcode are the
Loss carryforward same (see page 13, Defective games). Columns A and B
If last month’s Form G1, line 6C, is a nega- Complete a separate Schedule B2 for each Manufacturer ID and part number
tive number, you may either: (1) enter the type of game (i.e., pulltabs, tipboards, Enter the manufacturer’s ID and the part
entire amount (without parentheses) on number of the game. These numbers are
progressive tipboards, progressive pulltabs,
Schedule A, line 5, for one site only, or (2) printed on the barcode label (see sample
paddletickets). If you conduct tipboards
distribute the amount among all sites. below). Do not enter name of game.
and progressive tipboards, or pulltabs and
Whichever method you choose, you must progressive pulltabs, complete separate
use the same method throughout the year. Schedules B2; then combine the amounts Column C
and report the total on Schedule A or Form Game serial number
Line 7 G1, line 8 or line 9, respectively. Enter the game’s serial number printed on
Interest and dividends the barcode label.
To report interest and dividends on line 7, For each type of game, complete a separate
Schedule B2 for played, destroyed, defective If the serial number on the label is not the
you may either: (1) enter the total interest
and missing games, and games reported as same as the serial number on the individual
and dividends received by the organization
fund losses. If you computer-generate your game tickets, the game is defective. See
on line 7 for one site only, or (2) distribute
the amount among all sites. schedules, list the games by the date they instructions for defective games on page 13.
were removed from play starting with the
Whichever method you choose, you must Column G
earliest date.
use the same method throughout the year. Ideal gross receipts
If you have more than one gambling site, Enter the amount you would receive if all
Line 25 complete a separate Schedule B2 for each tickets were sold. This amount is printed
Advertising site. on the flare, payout slip and distributor’s
To report advertising expenses, you may invoice.
either: (1) enter the entire amount paid for If you operate a combination site (i.e., you
advertising expenses by the organization on have a booth operation and a bar opera- Column H
line 25 for one site only, or (2) distribute the tion at the same site), complete separate Ideal prizes
amount among all sites. Schedules B2 for the booth and the bar Enter the amount that would be paid out if
operation to separate cash shortages. Then, you paid all prizes in the game, including
Whichever method you choose, you must
combine the amounts and report the total any “last sale” prizes. (“Last sale” prize
use the same method throughout the year.
on a single Schedule A or Form G1. Games amounts are printed on a sticker attached
Line 35 by a distributor to the flare.)
Reimbursement of allowable expenses
To report reimbursements for negative B2 instructions continued on page 11.
expense calculations for periods prior to
July 1, 2009, you may either: (1) enter the Sample barcode label
entire reimbursement amount calculated
for the organization on line 35 for one site MFG ID PART # SERIAL #
only, or (2) distribute the amount among
all sites.
1016027
Whichever method you choose, you must
use the same method throughout the year. MR 123-ABC-NP4
Manufacturer ID Part number Serial number
10 (two letters) (may be up to 15 characters) (may be up to eight characters)
Schedule B2 (continued)
Column I Reimbursing the starting bank. If the amount of the jackpot prize is not actu-
Value of unsold tickets cash-in-hand for a game is a negative ally paid out at that time. The deposit for
Enter the value of tickets that were not sold amount, reimburse the starting bank the game is the profit from the game (net
when you removed the game from play. You by writing a check from your gambling receipts) plus the progressive tipboard
must keep all unsold tickets, including defec- account payable to “Cash Game Bank.” jackpot prize contribution. Figure the cash-
tive tickets, for at least 3½ years. Unsold and Record the following information on the in-hand by subtracting the amount of the
defective tickets must remain unopened. check memo line: jackpot contribution from the cash count at
MEMO: Replenish game bank, date removed the end of the game excluding the starting
Column K Mfg. ID, part #, serial # bank (Form LG473) (see Example D).
Value of prizes paid
Enter the total dollar value of redeemed You should replenish starting cash banks
Example D
winning tickets, including: within four business days after the game
is removed from play. Starting banks not 1 . Cash count at end of game
• dollar value of cash prizes. including starting bank . . . . . . . . . . . . . 600 .00
replenished by the end of the month should
• dollar value of merchandise prizes. The 2 . Starting bank . . . . . . . . . . . . . . . . . . . . . 300 .00
be reported as unreimbursed starting banks
cost of the merchandise prize must be the 3 . Deposit (subtract step 2 from step 1) . . 300 .00
on Schedule F, line 6b.
same as the cost listed on the flare. 4 . Contribution to progressive jackpot . . . 100 .00
• dollar value of any “last sale” prize. This Making deposits. Gambling receipts must 5 . Column M: Cash-in-hand
be deposited in the gambling bank account (subtract step 4 from step 3) . . . . . . . . 200 .00
amount is on the distributor invoice and
the sticker that is attached to the flare. within four business days after the game is
removed from play. Column N
For progressive tipboard prizes, report the
dollar value of all cash prizes awarded plus Generally, the amount you deposit for the Cash long or short
the amount contributed to the progressive game is the same as the amount of cash- Subtract Column L from Column M. See
jackpot (Form LG473, Progressive Pulltab or in-hand in Column M (see Games with mer- Example E for examples of how to sub-
Tipboard Audit Record). chandise prizes and Progressive tipboard or tract combinations of negative and positive
pulltab prizes below for exceptions). On the numbers.
You are required to keep all redeemed win- deposit slip, list the amount from each game
ning tickets and prize receipts for at least separately and include: Example E—Column M minus Column L
3½ years.
• manufacturer ID • Subtracting a positive from a positive:
Column L • part number of the game Col . M = 400 Col . L = 500
400 – 500 = (100) cash short
Net receipts • serial number of the game
Col . M = 500 Col . L = 400
If Column K is more than Column J, the • site where the game was played 500 – 400 = 100 cash long
game has negative net receipts (i.e., prizes • Subtracting a positive from a negative:
Games with merchandise prizes. Calculate as if the positive is a negative and add.
paid out exceed the gross receipts for the
Merchandise prizes must be paid for Col . M = (200) Col . L = 300
game). Put parentheses around a negative (200) – 300 = (500) cash short
directly from the gambling bank account.
amount. • Subtracting a negative from a positive:
If the game has merchandise prizes only,
Calculate as if the negative is a positive and add.
Column M figure the cash-in-hand by subtracting the Col . M = 200 Col . L = (300)
Cash-in-hand cost of the prizes from the cash count at the 200 – (300) = 500 cash long
Enter the amount of cash received from the end of the game (i.e., the deposit amount) • Subtracting a negative from a negative:
(see Example C). Calculate as if the second negative is a positive and
game. Do not include cash from the starting add.
cash bank (see Example A). Col . M = (500) Col . L = (200)
Example C (500) – (200) = (300) cash short
Col . M = (200) Col . L = (500)
Example A 1 . Cash count at end of game (200) – (500) = 300 cash long
not including starting bank . . . . . . . . . . 300 .00
1 . Cash count at end of game
including starting bank . . . . . . . . . . . . . . 300 .00 2 . Cost of merchandise prizes . . . . . . . . . . 200 .00
2 . Starting bank . . . . . . . . . . . . . . . . . . . . . . 200 .00 3 . Column M: Cash-in-hand
3 . Column M: Cash-in-hand
(subtract step 2 from step 1) . . . . . . . . . 100 .00 Destroying games
(subtract step 2 from step 1) . . . . . . . . . 100 .00
Unplayed games
If a game has both cash and merchandise Bingo paper and raffle tickets
If the cash-in-hand is a negative amount, prizes, call our office for instructions. If you wish to destroy bingo paper or raffle
put parentheses around the amount (see List each game separately on the deposit tickets, call our office and ask to speak to an
Example B). slip. Also list the amount paid for mer- auditor to arrange for a delivery time.
chandise prizes separately with the barcode Pulltabs, tipboards, paddletickets
Example B information for the game and site permit If you have a pulltab, tipboard or pad-
1 . Cash count at end of game number. dleticket game that you do not want to put
including starting bank . . . . . . . . . . . . . . 100 .00 into play, or a damaged game that cannot be
2 . Starting bank . . . . . . . . . . . . . . . . . . . . . . 200 .00 Progressive tipboard or pulltab prizes.
Each progressive tipboard game played put into play, contact your distributor first
3 . Column M: Cash-in-hand
(subtract step 2 from step 1) . . . . . . . . . (100 .00) makes a contribution to the progressive
jackpot included in Column K, but the 11
Continued
Schedule B2 (continued)
to see if you can get credit for the cost of the Fund losses If the court orders restitution, or if you
game and/or tax paid on the game. Fund losses by questionable means are receive insurance reimbursement, contact
defined as missing cash or inventory our office.
If you cannot get credit for the game,
complete and submit Form G7420, resulting from theft, burglary or unknown
causes. Fund losses can include: How to report fund losses
Request to Destroy Pulltabs, Tipboards and Report games with fund losses on
Paddletickets. If your request is approved, • games that were never played, Schedule B2. Complete a separate fund-loss
you will be directed to either destroy the • games that were partially played but had Schedule B2 for paddleticket, tipboard and
game or send the game to us so we can no receipts deposited, pulltab games. Do not report games with
destroy it. • games that were partially played and had fund losses on the same schedule as played
Report the game on a Schedule B2 some receipts deposited, games.
and check the box for “Destroyed with • missing cash banks, and
• closed games with missing cash. If there are not enough game remnants to
approval.” Complete a separate Schedule B2 do an audit, or if the game has been tam-
for each type of destroyed game (pulltabs, When you discover that a game has a fund pered with, you must report it at its ideal
tipboards or paddletickets). loss, report it to local law enforcement net receipts (i.e., ideal gross receipts minus
Complete Columns A through L entering all officials: ideal prizes).
tickets as 100 percent unsold in Column I. • within 24 hours for a loss from a pulltab Complete Columns A through H of
Reporting the game at 100 percent unsold dispensing device, and Schedule B2 and check the box “Reported as
will produce zero gross receipts in Column J • within five days of the discovery for all fund losses” at the top of the form.
(no combined-receipts tax) and zero net other forms of gambling.
receipts in Column L. You will receive a Column I: Enter the dollar value of tickets
If you do not report the loss to local law not sold at the time of the loss. If reporting
refund of the gambling tax paid for the
enforcement officials within these time the game at ideal net receipts, enter zero.
game when you file Form G7430 with your
frames, the Gambling Control Board will
February return. Column K: Add the dollar values of each
not consider your fund-loss request. You
You will be required to send us the unplayed will be required to reimburse your gambling redeemed winning ticket and enter the total.
game and a copy of the Schedule B2 on account from nongambling sources. If reporting the game at ideal net receipts,
which it was reported. We will certify the enter the amount from Column H.
Within 60 days of discovering the loss, you
Schedule B2 so that you may claim a refund Column M: Count the cash received from
must provide the Gambling Control Board
for the unsold tickets. We will also provide the game. Subtract from the total any
with one of the following:
you with a written receipt that the game was starting cash bank, and enter the result in
received and destroyed. You must keep the 1. Proof that your gambling account was Column M.
receipt in your permanent gambling records reimbursed for the amount of the loss
for at least 3½ years. from a nongambling source of funds. If only some cash is lost or stolen, your cash-
Send a copy of the gambling bank receipt in-hand may be positive (see Example F).
If you destroy unplayed games without
and deposit slip, a copy of the canceled
receiving approval, the game will be treated
nongambling fund check, a copy of the Example F—Fund loss: Some cash lost or stolen
as a missing game. You will need to report
nongambling-source bank account state- 1 . Cash count at end of game
the game on your next monthly return at
ment and the date the loss was reported including starting bank . . . . . . . . . . . . . 300 .00
ideal amounts, pay any tax liability due and
to your members. OR 2 . Starting bank . . . . . . . . . . . . . . . . . . . . . 200 .00
deposit the ideal net receipts into your gam-
2. Request an adjustment to your profit car- 3 . Column M: Cash-in-hand
bling account with funds from a nongam- (subtract step 2 from step 1) . . . . . . . . 100 .00
bling source. ryover by submitting Form LG250, Fund
Loss Request, directly to the Gambling
Played games Control Board. If some or all of the cash is lost or stolen,
Remnants from played games may be including the starting cash bank, your cash-
Do not attach the above information to
destroyed after 3½ years from the time in-hand may be zero (see Example G). For
your tax return or other reports. If the
the games were reported played on your fund losses, any missing starting bank is cal-
board approves the fund loss, you will be
monthly Form G1. Games must be culated separately from the game. You will
notified in writing to adjust your Form G1.
destroyed by shredding, burning, soaking or need to reimburse the starting cash bank
Attach a copy of the board’s approval to
other form of complete destruction. from your gambling account.
your return.
Games destroyed by a If the board denies your request, you will Example G—Fund loss: All cash lost or stolen
catastrophic event be required to reimburse the gambling
1 . Cash count at end of game
If unplayed games, games in play and/or account from nongambling sources. You including starting bank . . . . . . . . . . . . . . . . 0 .00
played game remnants are destroyed by a must reimburse the account within 90 days 2 . Starting bank . . . . . . . . . . . . . . . . . . . . . 200 .00
catastrophic event (e.g., fire, flood, tornado, of the board’s denial and submit proof 3 . Column M: Cash-in-hand
etc.), call our office for instructions. of the reimbursement to the board (see (subtract step 2 from step 1
if zero or less, enter zero) . . . . . . . . . . . . . . 0 .00
above). Until reimbursement of the gam-
bling account has been made or the board
approves your request, you must include the
12 fund loss on Schedule F, line 11a. Continued
Schedule B2 (continued)
Skip Column N: You should not report cash Record the date the game was returned to Contact the distributor about receiving
shorts or longs when reporting fund losses. the distributor in your inventory records. credit for the game. The distributor may
Remember to get a receipt from the dis- want to review the game to verify the defect.
Column O: Fill in date pulled. tributor when the game is picked up. If you give the game to the distributor,
To determine the total fund loss, total Note for multiple serial numbers: Your include an explanation of the defect and a
Columns I through M, and enter the results records should indicate all serial numbers. copy of Schedule B2 if the game was in play.
on Schedule B2, line 16. Then, subtract Be sure to get a signed receipt. The game
the Column M total from the Column L If the game is already in play, remove it will be returned to you and must be kept for
total. Add any missing starting cash bank. from play immediately and contact the at least 3½ years.
The result is your total fund loss. Enter this department to report the defect. (A game
is “in play” if one ticket has been sold to
amount on Schedule F, line 11a.
a player.) Report the game on a separate Missing games
When you report gross receipts for each Schedule B2 for the period checking the You are 100 percent accountable for the
type of game on Form G1, lines 1 though 9 “Defective” box at the top of the schedule. games you purchase. We keep track of pur-
(or Schedule A if you have more than one chased games through monthly distributor
site), include the gross receipts from any Send us the game remnants and a copy of reports of games sold. Games are tracked
fund-loss games. the Schedule B2 so we can destroy the game. by barcode data (manufacturer ID, part
We will certify the Schedule B2 so that number and serial number).
Defective games you will get credit for the unsold tickets Periodically, you may receive a “missing
You may discover defective games before or even though you no longer have posses- game” letter from our office. It will include
after a game has been put into play, or after sion of the game. We will also give you a a list of games you purchased that have
the game is removed from play. Examples of receipt for your records showing that we not been reported on a return as played.
defective games include games with: have destroyed the game. You must keep the You will be asked to report the status of
receipt in your gambling records for at least the games in question (e.g., unplayed,
• mismatched or multiple serial numbers; 3½ years. unopened inventory; played and reported
• defective tickets (e.g., tickets that don’t on Schedule B2 and Form G1; returned to
open, blank tickets, delaminated tickets Defective tickets distributor for credit; missing, etc.). Note:
[face and back separated], tickets with If you discover defective tickets after the
If you return a game to a distributor for
bad die cuts, bad glue or bad printing, game is in play, remove it from play imme-
credit, make sure you get a receipt for the
etc.), diately. (A game is “in play” if one ticket
has been sold to a player.) game.
• incorrect or missing information (e.g.,
Report the game on a Schedule B2 for If you cannot account for a game, you must
incorrect selling prices on tickets or flare,
defective games in the month the defect was report it on Schedule B2 at ideal amounts
flares without Minnesota logo, wrong
detected. Be sure to check the “Defective” (see page 12, How to report fund losses).
flare with the game, etc.), and
box at the top of the form. Check the “Missing” box at the top of the
• prize discrepancies (e.g., extra winners, schedule. You must pay any tax liability due.
not enough winners, prizes that do not Contact the distributor about receiving Deposit the ideal net receipts for the game
match prizes listed on flare, etc.). credit for the game. The distributor may into your gambling account with funds
want to review the game to verify the defect. from a nongambling source (usually the
Mismatched or multiple serial If you give the game to the distributor, organization’s general fund).
numbers include an explanation of the defect and a
A game with mismatched serial numbers copy of Schedule B2 if the game was in play.
is a game in which the serial numbers on Be sure to get a signed receipt. The game Reporting distributor
the sales invoice, barcode labels, flare and will be returned to you and must be kept for credits or refunds
game tickets do not match. at least 3½ years. Credit memos. If you receive a credit from
If you want immediate credit for the tax a distributor, include the amount (cost of
A game with multiple serial numbers is a
on the unsold tickets, ask your distributor game plus sales tax) as a negative amount
game where tickets have two or more dif-
to complete Form G7410. Otherwise, a tax on Form G1, line 19 (or Schedule A if you
ferent serial numbers.
refund will be made on all the unsold tickets have more than one site). Report the gam-
Before you place a game into play, check in February of the following year. bling tax as a negative amount on Form G1,
that the serial numbers on the sales invoice, line 14.
barcode labels (on the box, inside the box Prize discrepancies Refund checks. If you receive a refund
and on the flare) and game tickets match. If you discover a prize discrepancy after the check from a distributor or manufacturer
If they don’t, or if you find multiple serial game is in play, remove it immediately. (A for a defective game previously reported as
numbers, return the game to the distributor game is “in play” if one ticket has been sold a loss on Schedule B2, include the amount
for full credit for the cost of the game and to a player.) Report the game on a Schedule as a positive number on Form G1, line 39.
taxes. B2 for defective games using the actual Attach supporting documentation showing
amount of prizes awarded (this may pro- the month and year the game was reported
You must provide the distributor with a duce negative net receipts).
written statement that the game is defective. on Schedule B2 along with the barcode data.
13
Continued
Schedule B2, F
Sample barcode label sheet
Schedule F
Barcode Label Sheet Complete Schedule F, Gambling
Attach barcode labels to this sheet in the same order as the games are reported on Schedule B2. Federal ID number
Use separate sheets for each type of game reported or game status and each site.
Minnesota tax ID number License number Fund Reconciliation, to determine
Name of gambling site Site permit number Month/year reported Page
of
your gambling fund balance at the
Type of game (check one)
Pulltabs Tipboards Paddletickets
Progressive pulltabs
Progressive tipboards
Game status: These labels are from games (check one)
Played Destroyed Reported as fund losses Defective Missing
Total barcodes
this page end of the month.
Barcode label 1 10 19 To complete Schedule F, you will need:
2 11 20
• bank statements from your gambling
checking and savings accounts, and cer-
3 12 21 tificates of deposit,
• end-of-month account balances (balances
4 13 22
as of the last day of the month you’re
5 14 23
reporting),
• check register, and
6 15 24
• invoices and financial statements for
7 16 25
gambling fund investments (such as
certificates of deposit and mutual funds).
8 17 26 Note: To find out if you’re in compliance
with regulations, contact the Gambling
9 18 27 Control Board.
(Rev. 11/08) If your bank statements do not provide an
end-of-month balance, call the bank to get
that information. If the bank is unwilling to
provide the information, you must deter-
Sending barcode labels When attaching the barcode labels:
mine the end-of-month balance yourself
with Schedule B2 • Make sure each barcode can be read. Do from your bank statements. If you need
There are three barcode labels with each not overlap barcode labels. help, call our office.
game: • Do not cut or shave barcodes.
Line 1
• one label attached to the box, • Do not send in duplicate barcodes. End-of-month account balance
• one label attached to the flare, and • Do not staple, overlap, tape, fold or ar- Enter the end-of-month balance of your
• one label loose inside the box (or loose range the barcodes out of order. gambling checking account from your
under the shrinkwrap). • Do not send in photocopies of the bank statement. If you have more than one
barcodes. checking account, add the balances, and
You must send in the loose barcode label enter the total.
from each game with your monthly return. If there is no loose barcode label in the
Attach the label to the barcode label sheet
game, you must print the manufacturer’s ID Line 2
number, the part number and serial number Deposits in transit
included in this booklet. Place the labels
on the label sheet in the space where you Enter total deposits made during the month
in columns (see sample above) in the
would have placed the loose label. Get the not included on your bank statement.
same order as the games are listed on
information off the label on the game or
Schedule B2. Use separate pages for played, If a deposit is not on your bank state-
flare. Refer to the sample barcode label on
destroyed, defective, fund-loss and missing ment after more than a month, check your
page 10 to identify the information.
games. If you have more than one gambling deposit slips to make sure the deposit was
site, separate the pages by site. Print the information clearly in the same made.
order as it is on the game label and draw a
Arrange the pages by gambling site in the
order of played games, destroyed games,
box around it. Line 4
The label information is read by our Outstanding checks
fund-loss games, defective games and
scanning system and matched with game Enter the total checks issued through the
missing games, and place in the prescribed
information provided by distributors. In last day of the month that are not included
order (see Assembling your return on page
this way, we can track the games and notify on your bank statement.
4).
you of any “missing” games (i.e., games you Include any checks written since you started
purchased that have not been reported on a gambling activities that have not been
monthly return). reported on your bank statements.
Keep the barcode records for at least 3½
14 years. Continued
Schedule F (continued)
If you have checks that have been out- Add the two amounts and enter the total
standing for more than two months, contact on line 8. Do not include any amounts Negative net receipts
the person or company to whom the check included on line 2. games (games played to
was issued to determine if the check was
received and cashed. Line 9 a loss)
Other gambling accounts Negative net receipts means that more
Line 6a Include the following: money was paid out in prizes than was
Cash starting banks (per your books) received from the sale of the tickets
• end-of-month balances from your gam-
The “starting bank” is the money placed in (gross receipts). If your organization
bling savings accounts,
the cash drawer before the start of a game to decides to pull the game with negative
• end-of-month value of any certificates of receipts, for whatever reason (players
make change and pay prizes awarded.
deposit purchased with gambling funds, no longer want to buy tickets from that
You should have separate starting banks for • end-of-month value of any mutual fund game, defective game, etc.), the starting
each game of pulltabs, tipboards and pad- investments of gambling funds, and cash must be reimbursed (replenished).
dletickets put into play. (Separate starting
• end-of-month value of any other invest- The reimbursement of starting banks
banks are not required if you use a cash
ments of gambling funds. is simply exchanging one asset (writing
register or pulltab dispensing device.)
a check from the checking account)
Keep in mind that if you put additional cash Line 10 for another (placing the cash into the
into a game while it is still in play (e.g., by Reimbursement of excess cash starting bank at the site). This exchange
writing a check from the gambling account shortages is not reported as an expenditure on
to cash/start bank) to cover winning tickets, If you reimbursed your gambling account Form G1. For instructions on how to
you have increased your starting cash bank. for excess cash shortages after the last day of reimburse the starting bank, see page 11,
the month you are reporting (or any prior Reimbursing the starting bank.
For line 6a, add the following to the pre- month not reimbursed previously), enter
vious month’s line 6a amount: the amount on this line. Note: For a negative net receipts game
• amounts of any new starting banks, and that has not been reimbursed by month’s
• increases to any existing starting banks. Line 11a end, report the amount of the unreim-
Fund losses bursed starting bank on Schedule F, line
Subtract from the result: Enter the amount of any loss reported as a 6b.
• decreases to any existing starting banks fund loss on Schedule B2 that has not yet
not related to negative net-receipt games. been approved or denied by the Gambling
Control Board, or reimbursed. Do not Line 11e
Line 6b include fund losses that have already been Other additions
Unreimbursed starting banks reimbursed. Enter the total of any other gambling
If you do not reimburse the starting bank assets not included on lines 6 through 11d,
after a negative receipts game (see Negative Line 11b including the following:
net receipts games on this page), enter the Unsold ticket refunds
total unreimbursed amount on line 6b as a Enter as a positive number the amount • Cash prizes awarded for raffles or games
positive number. This amount can be taken from your February Form G7430, line 8. still in play but not reported on Form G1.
from Schedule B2, Column M, for every If your unsold ticket refund exceeds your • Amounts reported on Form G1, line 35,
starting bank unreimbursed by the end of tax liability for February, enter the amount for negative expense calculation reim-
the month. from Form G7430, line 11, on the Schedule bursements for the month not depos-
F for March and each succeeding month ited in the gambling account (from a
Line 6 until you receive your refund check. nongambling source) by the end of the
End-of-month cash balance month.
Line 6 is the actual amount of cash you Line 11c Attach a separate sheet with a detailed
should have after counting all start banks Merchandise prizes awarded for raffles description of any amounts included on
(reconciled for those games in play) at and games still in play but not reported line 11e.
month’s end. on Form G1
Enter the cost of merchandise or meat pur- Line 14
Line 8 chases that were awarded as prizes for raffles Taxes and fees
Cash not deposited or games still in play but not reported on Include taxes and fees from this month’s
First, determine the amount of cash Form G1 or Schedule B2. Form G1, line 13, plus any previously
received from pulltab, tipboard and pad- reported unpaid taxes and fees, including
dleticket sales reported on Schedule B2 for Line 11d accrued unpaid monthly regulatory fees.
the month that was not deposited. Merchandise prizes not awarded Also include any overpayments of gambling
Enter the cost of merchandise or meat pur- taxes that may be used to reduce the taxes
Then, determine the amount of cash
chases not yet awarded as prizes. and fees owed.
received from bingo and raffle ticket sales
reported on Form G1 for the month that
was not deposited.
15
Continued
Schedule F (continued)
Line 16 • any interest income credited to your ac- Compare the payments made for allowable
Linked bingo prize contributions and count that is not reported on this month’s expenses and lawful purpose expenditures
progressive tipboard or pulltab jackpots Form G1. with the amounts reported on Form G1.
Enter the total prizes that have not yet
Attach a detailed description of each item Compare all bank deposits for the period
been paid to a linked bingo provider or not
and amount included in the total. to net receipts reported on Form G1. Trace
yet awarded for progressive tipboard and
all amounts listed on Schedule B2, Column
pulltab games (from Form LG474), but Lines 22–24 M, to the deposits listed on the bank
have been reported as prizes on Form G1 or Gambling fund balance and profit statement.
Schedule B2 (for progressive tipboard and carryover
pulltab games). The amounts on lines 22 and 23 should be Adjust the bank deposits for:
If you discontinue the play of a progres- the same, and line 24 should be zero. If they • payments made for merchandise prizes,
sive tipboard or pulltab game before the are not, check your return and schedules for and
jackpot prize is awarded, call our office for errors, such as: • reimbursement of starting cash banks, if
reporting instructions. • math errors, necessary.
Line 17 • discrepancies due to rounding, Verify the amounts for any partial deposits
Loans • incorrect reporting of inventory, made for games that were in play on the last
Enter the total amount owed at the end of • numbers incorrectly transferred from day of the month.
the month for loans made to the organiza- other forms,
tion’s gambling fund for initial start-up If you cannot find the error and correct it
• games played but not reported, before you file, enter the amount of the dis-
costs or emergency expenditures that, if not
met, would require you to stop gambling. • closed games not audited or audited crepancy on Form G1, line 46, and file your
You must have written records docu- incorrectly, and return by the due date. File an amended
menting these loans. • fund losses not reported or reported return when you find the error.
incorrectly. If you don’t find the error by the time
Note: You must have approval from the
Gambling Control Board to repay these If line 22 is more than line 23, look for: you have your annual audit or review,
loans. have the CPA who conducts the audit/
• deposits or interest earned on all gam-
review help you investigate and resolve the
bling accounts that were not reported as
Line 18 net receipts on Form G1,
discrepancy. Once resolved, work with your
Unpaid games auditor to prepare an amended return for
• expenses reported on Form G1 that were the organization.
Of the amounts entered on Form G1, lines
not actually paid from the gambling ac-
21 and 22, enter the total cost of games If you are unable to resolve the discrepancy
count, and
listed on distributors’ invoices that were through your own efforts or through your
unpaid at the end of the month. Include • expenses reported twice (e.g., reporting
auditor, call our office. We will base any
sales tax and freight charges listed on the the 8.5 percent tax on Form G1, line 11,
final resolution on your organization’s indi-
invoices for the games. Do not include dis- and on Schedule C/D, LG1010).
vidual situation. The resolution may include
tributor/gambling tax. If line 23 is more than line 22, look for: an approved adjustment or may require you
• expenses or bank charges paid from the to reimburse the gambling account from
Line 20 nongambling sources.
Other subtractions gambling account but not reported on
Enter any other amount paid from gam- Form G1, Any discrepancy reported on Schedule F
bling funds that is not included on lines 14 • net receipts reported twice, must be resolved by the end of your annual
through 19, or the amount by which you • credits for overpayment of gambling audit/review. If you are not required to have
reduce the gambling bank account for items taxes that have not been refunded or an audit/review, it must be resolved by the
that cannot be listed on lines 14 through 19. taken on a subsequent return, end of your accounting fiscal year.
Include the following items on line 20: • deposits in transit not accounted for on
the gambling account reconciliation,
• prizes reported on Form G1, but not yet • incorrect reporting of merchandise
awarded (e.g., calendar raffles), prizes,
• deposits to the gambling account for • payments from the gambling account
nongambling activities. You must get ap- that were not for gambling activities,
proval from the Gambling Control Board
to transfer these funds from the gambling • a fund loss that has not been acted upon
account to the general fund, by the Gambling Control Board, and
• games with donated cash prizes that have • underreporting of combined-receipts tax.
not been paid out,
16
Mathematical error notices
When a mathematical error occurs on your The error notice shows the month the error To correct the error, you may need to file
monthly return, we’ll send you an error was made and the line numbers affected on one or more amended returns or simply
notice to help you find the reason for the the return. It also shows the dollar amounts change your tax returns to match the num-
error and correct it. as filed, as corrected and the difference bers as recalculated by the Department of
between the two. Revenue.
It’s important to review the error notice
immediately upon receipt. Don’t just accept The “difference” shown on the error notice If you agree with the error and the changes
the amounts in the “As corrected” column may not be the same as the variance in the department has made, it is important
as being right. Investigate the reasons for your profit carryover. To determine how to make the same changes to your records.
the changes. your profit carryover is affected by changes Do not destroy the original returns; they
shown on the notice, you must review the must still be retained for 3½ years.
Some common reasons for errors include:
recalculated amounts on Form G1, line 44,
If you disagree with an error notice or have
• using an incorrect beginning profit car- and on Schedule F, lines 23 and 24.
questions, call our office. When you call,
ryover or inventory number,
Any notice that starts with changes to Form have the tax return in question, and any
• totaling lines incorrectly, or G1, line 38, means that only the profit car- other returns that may be affected, available
• incorrectly calculating the 8.5 percent tax ryover has been changed in that month. To so you can review the information over the
or combined-receipts tax. determine why this change was made, the phone.
tax returns and mathematical error notices
for prior months must be reviewed.
Sample error notice
11/17/2009
Your Organization
123 Your Street
Your City, MN 55555
License #: 01234
Month corrected: 9/2009
Date return received: 10/21/2009
Location Form Line As filed As corrected Difference
G1 12 12,572 .00 7,440 .59 –5,131 .41
G1 13 12,572 .00 7,440 .59 –5,131 .41
G1 15 13,962 .00 8,830 .59 –5,131 .41
G1 16 12,145 .00 17,276 .41 5,131 .41
G1 37 –584 .00 4,547 .41 5,131 .41
G1 38 41,893 .00 45,129 .64 3,236 .64
G1 40 41,309 .00 49,677 .05 8,368 .05
G1 44 46,351 .00 54,719 .05 8,368 .05
G1 46 0 .00 –8,368 .05 –8,368 .05
F 23 46,351 .00 54,719 .05 8,368 .05
F 24 0 .00 –8,368 .05 –8,368 .05
17
Determining site profitability
It’s important to review your gambling Unreported liabilities Cash shortages
operation periodically to determine • Has the gambling manager ever post- • Are they high?
if it’s profitable. Use Worksheet P, Site poned being paid because there wasn’t • Have you had to reimburse your account
Profitability, to help you determine if an enough money? for excess cash shortages on a regular
individual site is profitable after paying • Do you still owe money to the audi- basis? Note: Do not include reimburse-
taxes and prizes. tor who did last year’s annual audit or ments for excess cash shortages on Work-
When completing the worksheet, don’t review? sheet P. This will produce a false picture
move expenses from one site to another. • Do you owe back rent to the pulltab site for an individual site.
Maintain your allocation of expenses as you or bingo hall? • Would changing from one type of opera-
normally would on your tax return. For • Have you paid gambling expenses out tion to another help solve a cash-shortage
example, if the gambling manager’s salary is of the general fund? This is not allowed; problem?
allocated equally among the sites, continue gambling expenses must be paid out of • Would assigning games to individual sell-
to do that when completing Worksheet P. gambling funds. ers or bartenders work better?
Here are a few things you should consider
when determining profitability. Site expenses Should you expand?
• Does the volume of sales at the site justify Before you decide to expand, take a close
Payout percentage the amount of rent you are paying? look at your payout percentages. A single
If the payout percentage is above the state • Are there certain days or hours when site may be profitable, but adding sites may
average, you should look at ways to reduce pulltab sales at your booth are slow? Con- bring you to an income level where you
it to maximize profits. sider if the booth should be open during would owe combined-receipts tax causing a
slow hours. once profitable site to become unprofitable.
The state average is about 81.8 percent,
but even that is high. Ideally, consider • What type of operation are you conduct- Before expanding to a new site, look at the
having your actual payouts closer to 79 or ing at the site (booth, bar operation, site’s history. To review a site’s Schedule A
80 percent. dispenser)? Would a different type of op- information, call our office. You’ll need the
eration work better? Should your booth name of the previous organization and site
become a bar operation? Should the bar names (both past and present names if they
operation become a booth or dispenser? have changed).
Before you expand, make sure the expan-
sion is worth the additional effort and will
provide additional income.
18
Annual financial audits/reviews and annual
certified physical inventories and cash counts
What’s new The recording of the game cost, the listing and the cash count needs to be reconciled
Annual financial audit and review require- of inventory of bingo paper and raffles and with Schedule F, line 6a (starting banks per
ments have changed effective July 1, 2009. the completion of Parts 2 and 3 may be books).
done by a member involved in the organiza-
For organizations with fiscal years ending
after June 30, 2009:
tion’s gambling operation. Effective for fiscal years
• annual audits are required for organiza-
Form G1CC, Annual Certified Cash Count ending on or prior to
for Games in Play by Site. Use this form to
tions with gross receipts of $500,000 or record the cash count for games in play. Use
June 30, 2009
more, and a separate form for each site. Annual audit
• reviews have been eliminated. If your gross receipts from gambling are
The certified cash count must be con- more than $300,000, you must have an
For organizations with fiscal years ending ducted by either two members, officers or
on or before June 30, 2009, the previous annual financial audit completed by a CPA
employees of the organization who have for your gambling activities, bookkeeping
thresholds and requirements for financial been appointed by the organization’s board
audits and reviews continue to apply. and financial records.
and are not directly involved in the organi-
Note: The standards for performing an audit zation’s gambling operation or by an inde- Review
or review are provided in Minnesota Rule pendent certified public accountant (CPA). If your gross receipts from gambling are
8122. Part 1 must be completed and the form between $150, 000 and $300,000, you must
signed by these two individuals or a CPA. have an annual financial review completed
Effective for fiscal years Observance of the game audits must also by a CPA.
ending after June 30, 2009 be done by these two individuals or a CPA.
Fiscal year
If your gross receipts from gambling The audit of the games and the completion
of Parts 2 and 3 may be done by a member Your annual audit or review period is the
are $500,000 or more, you must have an
involved in the organization’s gambling time period used for filing federal Form
annual audit completed for your gambling
operation. 990 or 990T. The fiscal year may differ from
activities, bookkeeping and financial records
your licensing period.
(Minnesota Rule 8122 continues to apply). Form G1CI, Annual Certified Physical
If your gross receipts from gambling are less Inventory and Cash Count Summary. Use Due date
than $500,000, you are not required to have this form to record the total cost of ending The annual audit or review must be post-
an audit completed and financial reviews inventory and start bank for all sites. This marked by the last day of the sixth month
have been eliminated. summarization of the physical inventory following the end of your fiscal year. Email
and cash count must be completed and or mail it to the department.
Annual certified physical inventory signed by the gambling manager and the
and cash count CEO. Requesting a filing extension
Every organization, regardless of the If the audit or review cannot be completed
amount of gross receipts, is required to con- Fiscal year by the due date, the organization’s CEO,
duct an annual certified physical inventory Your fiscal year is the time period used for gambling manager or accountant hired to
and cash count at the end of its fiscal year. filing federal Form 990 or 990T. It may perform the audit or review may request an
This must be taken on the last day of the differ from your licensing period. extension.
organization’s fiscal year at the close of busi-
ness or the first day of the new fiscal year Due date Certified physical inventory and
before the start of business. The organization has 30 days from its fiscal cash count (required for annual
year end to submit the necessary reporting audit)
The following forms must be used: forms to the Department of Revenue. A certified physical inventory and cash
Form G1INV, Annual Certified Physical count of all sites must be taken within 30
Requesting an extension days of the balance-sheet date or the date
Inventory by Site. Use this form to record
If the certified physical inventory and cash the auditor was engaged to perform the
the site inventory of games in play and
count cannot be completed by the due date, audit, whichever is later. The inventory
unplayed games. Use a separate form for
the organization’s CEO, gambling manager and cash count must be completed by two
each site.
or accountant hired to perform the certi- members, officers or employees of the orga-
The certified physical inventory must be fied physical inventory and cash count may nization appointed by the organization’s
conducted by either two members, officers request an extension via email, fax or mail. board or by a CPA hired to complete the
or employees of the organization who have annual audit. The certified physical inven-
If an extension is granted, it will be allowed
been appointed by the organization’s board tory must be submitted to Revenue within
to the last day of the following month —
and are not directly involved in the organi- 30 days from the time it was taken; the cash
the certified physical inventory and cash
zation’s gambling operation or by an inde- count must be recognized on the financial
count must be taken at month’s end as the
pendent certified public accountant (CPA). statements.
physical inventory needs to be reconciled
Part 1 must be completed and the form 19
with Form G1, line 21 (ending inventory)
signed by these two individuals or a CPA.
Mail Station 3350, St . Paul, MN 55146-3350
20
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