§ 5-24.11. Profits to be kept in separate funds or accounts: Reporting: Cash expenditure prohibitions: Audits: Forms.

(a)

With respect to organizations exempt from the payment of the Bank and Corporation Tax by subsection (d) of Section 23701 of the Revenue and Taxation Code of the State, all profits derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Such profits shall be used only for charitable purposes.

(b)

With respect to all other organizations authorized to conduct bingo games pursuant to this chapter, all proceeds derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Such proceeds shall be used only for charitable purposes, except as follows:

(1)

Such proceeds may be used for prizes; and

(2)

A portion of the proceeds, not to exceed twenty (20%) percent of the proceeds before deductions for prizes, or Two Thousand and no/100ths ($2,000.00) Dollars per month, whichever is less, may be used for bingo license fees, the rental of property, overhead, including the purchase of bingo equipment, administrative expenses, security equipment and security personnel.

(c)

Each organization licensed to conduct bingo games pursuant to this chapter shall file a bimonthly report with the City Clerk. Such reports shall be filed on or before the tenth (10th) day following the end of even calendar months (February, April, June, August, October, and December) for the prior two (2) month period to be reported. Such reports shall contain the following information:

(1)

The beginning and closing balances of the Special Fund Account;

(2)

The date any bingo games were played;

(3)

The number of bingo games played for each date;

(4)

The number of players for each date;

(5)

The amount of fees or moneys collected for each date;

(6)

The total moneys and/or prizes awarded for each date, which would include the dollar value of the prizes;

(7)

The total amount of the expenses paid, other than for prizes. All such expenditures of Twenty-Five and no/100ths ($25.00) Dollars or more shall be itemized, and the permittee shall retain receipts of all expenditures and have such receipts available for examination upon request; and

(8)

The names and addresses of the operators and staff conducting the bingo games.

(d)

No expenditure exceeding Two Hundred Fifty and no/100ths ($250.00) Dollars from the Special Fund Account may be made in cash, but shall be made by a check or other instrument in writing showing the payee and the date of payment.

(e)

The City, by and through its authorized officers, shall have the right to examine and audit the records of the permittee as they relate to the required information, and the permittee shall make such records available to the City upon reasonable notice.

(f)

The Department of General Services, in cooperation with other departments of the City, is hereby authorized to promulgate official forms and provide copies of such forms to permitted organizations for the purposes of complying with the reporting requirements of this chapter.

(§ 1, Ord. 786, eff. January 7, 1993, as amended by § 4, Ord. 884, eff. April 3, 1997)