§ 14-309.11. Accounting and use of proceeds. - North Carolina Statutes

§ 14‑309.11.  Accountingand use of proceeds.

(a)        All funds receivedin connection with a bingo game shall be placed in a separate bank account. Nofunds may be disbursed from this account except the exempt organization mayexpend proceeds for prizes, advertising, utilities, and the purchase ofsupplies and equipment used [in conducting the raffle and] in playing bingo,taxes and license fees related to bingo and the payment of compensation asauthorized by G.S. 14‑309.7(c) and for the purposes set forth below forthe remaining proceeds. Such payments shall be made by consecutively numberedchecks. Any proceeds available in the account after payment of the aboveexpenses shall inure to the exempt organization to be used for religious,charitable, civic, scientific, testing, public safety, literary, or educationalpurposes or for purchasing, constructing, maintaining, operating or usingequipment or land or a building or improvements thereto owned by and for theexempt organization and used for civic purposes or made available by the exemptorganization for use by the general public from time to time, or to fosteramateur sports competition, or for the prevention of cruelty to children oranimals, provided that no proceeds shall be used or expended for social functionsfor the members of the exempt organization.

(b)        An audit of theaccount required by subsection (a) of this section shall be prepared annuallyfor the period of January 1 through December 31 or otherwise as directed by theDepartment of Crime Control and Public Safety and shall be filed with theDepartment of Crime Control and Public Safety and the local law‑enforcementagency at a time directed by the Department of Crime Control and Public Safety.The audit shall be prepared on a form approved by the Department of CrimeControl and Public Safety and shall include the following information:

(1)        The number of bingogames conducted or sponsored by the exempt organization;

(2)        The location anddate at which each bingo game was conducted and the prize awarded;

(3)        The gross receiptsof each bingo game;

(4)        The cost or amountof any prize given at each bingo game;

(5)        The amount paid inprizes at each session;

(6)        The net return tothe exempt organization; and

(7)        The disbursementsfrom the separate account and the purpose of those disbursements, including thedate of each transaction and the name and address of each payee.

(c)        Any person whoshall willfully furnish, supply, or otherwise give false information in anyaudit or statement filed pursuant to this section shall be guilty of a Class 2misdemeanor.

(d)        All books, papers,records and documents relevant to determining whether an organization has actedor is acting in compliance with this section shall be open to inspection by thelaw‑enforcement agency or its designee, or the district attorney or hisdesignee, or the Department of Crime Control and Public Safety at reasonabletimes and during reasonable hours. (1983, c. 896, s. 3; 1983 (Reg. Sess., 1984), c. 1107,ss. 2, 3, 9; 1987, c. 866, s. 3; 1987 (Reg. Sess., 1988), c. 1001, s. 1; 1993,c. 539, s. 213; 1994, Ex. Sess., c. 24, s. 14(c); 1997‑443, s.11A.118(a); 2002‑159, ss. 4(a), (b).)