CR 2000-009 Gambling Permit For The Hopkins Elks Lodge 2221
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January 11, 2000
Council Report 2000-09
CHARITABLE GAMBLING PREMISES PERMIT APPLICATION FOR
THE HOPKINS ELKS LODGE 2221
Staff recommends approval of the following motion: Move that the Hopkins City Council
adoPt Resolutions 2000-05, approvinq the charitable qamblinq premises permit for the
Hopkins Elks Lodqe 2221, located at 30 - 8th Ave S.
Adoption of this resolution will allow the Hopkins Elks to continue to run the existing
charitable gambling activities at the Elks Club.
Overview
· The Hopkins Elks Lodge has requested a renewal of their gambling license and
premises permit. They conduct charitable gambling at the Elks Club location only.
Primary Issues to Consider
· Does this organization meet the criteria of the City's gambling policy?
Yes
e
· Has the organization conducted its past gambling operations in accordance with
state and local laws?
Yes
Supporting Documents
. Resolutions 2000-05
· Legislative Policy 4-A, Lawful Gambling
. Financial Statement and Independent Auditor's Report, Years ending March 31,
1998 and 1997
. List of donations made by the Elks
· Gambling License Application available in the City Clerk's office
e
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2000-05
RESOLUTION APPROVING A GAMBLING PREMISES
LICENSE RENEWAL FOR THE HOPKINS ELKS LODGE, AT
30 _8TH AVENUE SOUTH
WHEREAS, the Hopkins Elks Lodge 2221 has been an integral part of
the Hopkins Community, and
WHEREAS, the Hopkins Elks Lodge 2221 has applied for a gambling
license to conduct lawful gambling in 2000 and 2001, and
WHEREAS, the Hopkins Elks Lodge 2221 has conducted gambling
activities in accordance with state law and Hopkins City Policy,
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NOW, THEREFORE, be it hereby resolved that the City Council of the
City of Hopkins, Minnesota, approves the Hopkins Elks Lodge 2221 Premises
Permit Renewal application for The Hopkins American Legion Hall at 30 - 8th
Avenue South.
Adopted by the City Council of the City of Hopkins, Minnesota, this 18th day
of January, 2000.
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
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Chapter 4
Page 1 0[6
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LEGISLATIVE POLICY MANUAL
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CHAPTER IV
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POLICY 4-A
LAWFUL GAMBLING
1. PURPOSE
1.01 The purpose of this policy is to establish rules and procedures for lawful gambling in the
City of Hopkins.
2. REGULATIONS
2.01 Except as otherwise enumerated herein, the prOVISIOns of Minnesota Statute Chapter 349
relating to the definition of tenns, licensing and restrictions of gambling are adopted and madc a pm1
of the statement of policy promulgated by the City of Hopkins as if set out in full
2.02 An applicant for a license shall be a registered Minnesota nonprofit corporation or an
organization which is designated as exempt from the payment of income taxes by the Intemal
Revenue Code and whose principal location or office is within the City of Hopkins.
2.03 The organization defined in Section 2.02 must be engaged in its activities for the benefit of the
community within the City of Hopkins for at least five years on a perpetual, continuous,
unintenupted basis and have at least 30 active voting members.
2.04 Gambling allowed by the city shall be canied on only within premises owned, occupied or
leased by the organization except such activities pem1issible under M.S. 349.166.
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Chapter 4
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2.05 No application for a premises permit will be approved for any organization to conduct gambhng
on any premises other than the premises of an on-sale liquor licensee or the premises of a fraternal,
veterans or other non- profit organization. In order for a fraternal, veterans, or other non- profit
organization to conduct gambling on their premises, such premises must have been continuously
owned and occupied for a period of at least five years. No application for premises pern1it shall be
approved for any organization for a site established for the primary purpose of conducting gambling.
This section shall not apply to any organization which is exempt fTom the requirement for a gambling
license according to M.S. 349.166.
2.06 A Class A license will only be approved for an organization that is licensed pursuant to
Minnesota Statute, section 349.16, and that conducts gambling on premises that it owns and operates.
2.07 More than one organization, as defined in Section 2.02, may conduct gambling within a single
owned, occupied or leased premise. More than one organization may jointly conduct a lawful
gambling game at one location. However, two or more organizations shall not separately conduct the
same game at the same time at one location.
2.08 The operation of gambling devices and the conduct of bingo and raffles licensed or approved
pursuant to the authority granted to the City of Hopkins shall be carried on under the'supervision of a
gambling manager designated by the organization. The gambling manager shall be responsible for the
operation of the gambling activity and the receipts and profits generated from the operation.
2.09 The gambling manager shall be an active member of the organization issued the license and
shall qualify under state law.
2.10 Organizations seeking approval for a premises permit, that are not currently conducting
gambling in the City, must provide the City, in addition to the application f01111S, a copy of the
minutes of a general membership meeting, where a quorum was present, wherein the organization
approved a motion authorizing the gambling activities.
2.11 Pmiicipants in raffles, paddlewheels, pull tabs and tip boards shall be restricted to individuals
who have attained the legal drinking age. This restriction only applies to premises where liquor, wine,
beer or 3.2 beer is served. Where intoxicating beverages are not served the age shall be eighteen.
2.12 Organizations wishing to renew a gambling license must provide the City with a financial audit
of its lawful gambling activities and funds for the previous two years. The audit(s) must be perfonned
by an independent accountant licensed by the state of Minnesota.
2.13 In addition, such organizations must provide the City with infonnation on all expenditures of
lawful gambling funds during the previous two years. Such info1111ation must include at a minimum
the name of the recipient, the amount of the expenditure or contribution, and a brief description of
how the expenditure or contribution meets the definition of "lawful purposes" as defined in M.S.
349.12. The City reserves the right to require additional documentation from licensed organizations,
or organizations seeking licenses, as it deems necessary.
2.14 A fee of $100.00 shall be charged to all organizations submitting a Premises Permit Application
or Applications for approval by the City.
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
LICENSE NUMBER B-00365
MINNESOTA ID NO. 9099423
REGULATORY BASIS
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR'S REPORT
For the Fiscal Years Ended March 31, 1998 and 1997
DANIEL A. NELSON, LPA
9361 Pend Avenue Soutb
Bloomington, MN 55431
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #B-00365)
TABLE OF CONTENTS
PAGE
Letter requesting 30 day extension to file
1
Independent Auditor's Report
2
Statement of Assets, Liabilities and Profit Carryover -
Regulatory Basis
March 31, 1998 and 1997
3
Statement of Revenues, Expenses and Changes in
Profit Carry-Over - Regulatory Basis
and Supplementary Information
For the Years Ended March 31, 1998 and 1997
4-5
. Notes to Financial Statements
and Supplementary Wormation 6-7
Independent Auditor's Report on
Supplementary Information 8
,- Reconciliation of Games Used - Regulatory Basis
."
F or the Years Ended March 31, 1998 and 1997 9
Analysis of Maximum Allowable Expenses as a
Percentage of Gross Profit - Regulatory Basis
F or the Years Ended March 31, 19978 and 1997 10-11
Reconciliation of Profit Carry-Over - Regulatory Basis
and Supplementary Information
For the Years Ended March 31, 1998 and 1997 12 - 13
Regulatory Checklist Questionaire and Report 14 - 15
. Management Letter 16
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September 27, 1998
Emily Klooz, Revenue Auditor
Minnesota Department of Revenue
Special Taxes Division
Lawful Gambling Tax Unit
Mail Station 3350
S1. Paul, MN 55146-3350
RE: Hopkins Elks Lodge No. 2221
License No. B-Q0365
Annual Gambling Audit
Year End 3/31/98
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Dear Emily,
We are requesting an extension of time until October 31, 1998 to file the Annual Gambling Audit for year
ending 3/31/98.
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Thank you for your consideration to OUT request
Sincerely,
y~a,;7/~
Daniel A. Nelson, LP A
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(1)
Daniel A. Nelson
Licensed Public Accountant
INDEPENDENT AUDITOR'S REPORT
BOARD OF DIRECTORS
HOPKINS ELKS LODGE NO. 2221
Hopkins, Minnesota
I have audited the accompanying statement of assets, liabilities and fund balance, regulatory basis
of the lawful gambling fund of Hopkins Elks Lodge No. 2221 as of March 31, 1998 and 1997, and
the related statements of revenues, expenses and changes in profit carry-over, regulatory basis for
the years then ended. These financial statements are the responsibility of the Organization's
management. My responsibility is to express an opinion on these financial statements based on
my audits.
I conducted my audits in accordance with generally accepted auditing standards. Those standards
require that I plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. I believe my audits provide a
reasonable basis for my opinion.
As described in Note 1, these financial statements were also prepared in conformity with the
accounting practices prescribed or permitted by the Department of Revenue of the State of
Minnesota "regulatory basis," which is a comprehensive basis of accounting other than generally
accepted accounting principles.
In my opinion, the financial statements referred to above present fairly, in all material respects, the
assets, liabilities and fund balance of the Lawful Gambling Fund of Hopkins Elks Lodge No. 2221
as of March 31, 1998 and 1997, and the results of its operations and changes in its profit carry_
over for the year then endtxl on the basis of accounting as described in Note 1.
This report is intended solely for the information and use of the Board of Directors, members and
management of the lawful gambling fund of Hopkins Elks Lodge No. 2221 and for filing with the
Department of Revenue of the State of Minnesota and should not be used for any other purpose.
Respectfully,
~a~
Daniel A. Nelson,
Licensed Public Accountant
Bloomington, Minnesota
November 24, 1998
9361 Penn Avenue South · Bloomington, Minnesota 55431 . (612) 884-0337
(2)
LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License # B-00365)
. Statement of Assets, Liabilities and Fund Balance
REGULATORY BASIS
March 31, 1998 and 1997
ASSETS
Year Ended Year Ended
3/31/98 3/31/97
CURRENT ASSETS:
CASH:
Cash on Hand - Site Banks 2,100.00 1,700.00
Cash in Bank - Checking 6,361.94 14,011.26
Total Cash 8,461.94 15,711.26
INVENTORIES:
Inventory 978.24 3,811.46
Total Inventories 978.24 3,811.46
Total Current Assets 9,440.18 19,522.72
OTIlER ASSETS:
Reimbursement for excess cash short -88.61 0.00
2% Tax Refund - G-7430 2,453.88 1,117.00
Total Other Assets 2,365.27 1,117.00
. Total Assets 11,805.45 20,639.72
LIABILITIES
CURRENT LIABILITIES
Accrued State Taxes 0.00 0.00
Loans 12,000.00 23,000.00
Total Current Liabilities 12,000.00 23,000.00
Total Liabilities 12,000.00 23,000.00
FUND BALANCE
Profit Carryover Beginning of Year -3,464.25 -1,377.73
Expenses in Excess of Revenues Year Ending 3,168.02 -2,086.52
Profit Canyover -296.23 -3,464.25
Variance 101.68 1,103.97
Fund Balance End of Year -194.55 -2,360.28
Total Liabilities and Fund Balances 11,805.45 20,639.72
(See accompanying Notes to Financial Statements)
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(3)
LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License B-00365)
Statements of Revenues~ Expenses and Changes in Profit Carryover
. REGULATORY BASIS
For the Years Ended March 31, 1998 and 1997
Year Ended 3/31/9! Year Ended 3/31/97
Amount 0/0 Amount %
REVENUES
Pull-Tab Receipts 638,769.00 97.55% 515,912.00 98.35%
Bingo Receipts 2,287.00 0.35% 0.00 0.00%
Raffle Receipts 10,000.00 1.53% 0.00 0.00%
Tipboard Receipts 3,780.00 0.58% 8,664.00 1.65%
Interest Income 0.00 0.00% 10.00 0.00%
Revenues Collected 654,836.00 100.00% 524,586.00 100.00%
COST OF REVENUES
Pull-Tab Prizes 541,579.00 82.70% 433,030.00 82.55%
Bingo Prizes 1,155.00 0.18% 0.00 0.00%
Raffle Prizes 6,249.00 0.95% 0.00 0.00%
Tipboard Prizes 0.00 0.00% 4,260.00 0.81%
Cost of Revenues 548,983.00 83.84% 437.290.00 83.36%
GROSS PROFIT 105,853.00 16.16% 87,296.00 16.64%
ALLOW ABLE EXPENSES 56,127.23 8.57% 49,194.11 9.38%
.. REVENUES IN EXCESS OF
ALLOW ABLE EXPENSES 49,725.77 7.59% 38,101.89 7.26%
APPROVED ADmSlMENT 0.00 0.00% 0.00 0.00%
LAWFUL PURPOSE EXPENDITURES
.. Gambling Taxes:
~.. State Combined Receipts Tax 2,337.01 0.36% 1,304.01 0.25%
..:.;
State Ideal Gambling Taxes 14,149.59 2.16% 14,016.82 2.67%
State Ten Percent Tax 488.30 0.07% 1.00 0.00%
Federal Gambling Taxes 0.00 0.00% 0.00 0.00%
Total Gambling Taxes 16,974.90 2.59% 15,321.83 2.92%
Audit Fees 964.91 0.15% 774.00 0.15%
Program Expenditures' 28,617.94 4.37% 24,092.58 4.59%
Total Lawful Purpose Expenditures 46,557.75 7.1I% 40,188.41 7.66%
REVENUES IN EXCESS OF EXPENSES
BEFORE INCOME TAXES 3,168.02 0.48% -2.086.52 ..().40%
INCOME TAXES 0.00 0.00% 0.00 0.00%
Revenues in Excess of Expenses 3,168.02 0.48% 0.00 0.00%
Expenses in Excess of Revenues 0.00 0.00% -2,086.52 -0.40%
-. Profit Cany-over - Beginning of year -3,464.25 -1,377.73
ProfitCany-ov~-EndofY~ -296.23 -3,464.25
(See accompanying Notes to Financial Statements)
(4)
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
License No. 84)0365
Lawful Purpose Expenditures
For the Year Ended March 31, 1998
Elks Veterans Memorial Bldg Fund 1,830.00
Scholarship Fund 3,810.00
Youth Organizations 11,159.88
Federal Taxes 0.00
Property Taxes 12,935.06
Annual Audit - (112) 964.91
2% Tax refund - Form G-7430 -1,117.00
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Total Lawful Pwpose Expenditures 29,582.85
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(5)
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NOTE 1
NOTE 2
NOTE 3
LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #~365)
NOTES TO FINANCIAL STATEMENTS
March 31, 1998 and 1997
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
Nature of Or~anization
Beginning several years ago, the Organization commenced lawful gambling and currently has (1)
pulltab operation site within the City of Hopkins to increase its program services and thereby better
serve its members and the citizens of the Stale of Minnesota. Revenues in excess of allowable
expenses generated by the Lawful Gambling Fund can only be used for lawful pwpose
expenditures as defined by Minnesota Statues.
Basis of Presentation
Regulatory basis of accounting is the basis of accoWlting prescribed by the State of Minnesota,
which is a comprehensive basis of accounting other than generally accepted accounting principles.
Regulatory basis of accounting differs from the accrual method of accounting in that under the
regulatory method, all liabilities other than the cost of games and the monthly state receipts tax are
expensed when paid. In addition, under the accrual method, state gambling taxes collected upon
purchase of the game are prepaid upon purchase and expensed during the period the game is used.
Under the regulatory method., these state gambling taxes are expensed when paid.
Gross Receipts
Gross receipts represent amoWlts collected from customers net of bingo coupons and discounts,
StMtinJ:( Game Banks
Starting game banks consist of imprest amounts, which are used to fund open play of games in
progress.
Inventories
Inventories consist of the vendor costs of the games purchased. State gambling taxes and state sales
taxes paid upon purchase of the games are not included in inventories. On March 31, 1998 and 1997,
inventories of games totaled $978.24 and $3,811.46, respectively.
COMMITMENTS
The Organization owns the building, which houses its lawful gambling pull-tab booth within the City
of Hopkins. The Gambling operation pays no rent for the space.
INCOME TAXES
The Organization is exempt from stale and federal income taxes, however, the Organization is
required to pay state and federal income taxes on unrelated business income. Under the regulatory
method, income taxes are expensed when paid.
(6)
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HOPKINS ELKS LODGE NO. 2221
NOTES CONT'D (page 2)
NOTE 4
NOTE 5
NOTE 6
END
RESULTS OF GAME TESTING
Subsequent to year-end, the Organization's independent auditor's selected eleven pull-tab games to be
tested as part of their audit The exceptions of their testing, as reported to the Organization, are as
follows:
Game Serial No.
2832706
2619048
832413
2699830
370037
2699734
4400 12
6653310
450020
540104
710183
Type of Game
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Pull-Tabs
Amount as Reported on
Gamblin~ Tax Return
455.00
621.00
642.00
492.00
546.00
532.00
555.00
646.00
621.00
463.00
642.00
LISTING OF GAMBLING CONDUCTED BY ORGANIZATION
Amount as Tested
455.00
621.00
642.00
492.00
546.00
532.00
555.00
646.00
621.00
463.00
642.00
Pull-tabs, Bingo, Tipboanls and Raffles were the only fonn of gambling conducted by the
Organization during the year ended March 31, 1998.
IDEAL TAX REFUND
In February, the Organization applied for a refund of its ideal tax paid on unsold pull-tab tickets for
the prior calendar year. As of March 31, 1998, the amount to be expended from this refund was
$2,453.88.
(7)
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INDEPENDENT AUDITOR'S REPORT ON
ADDmONAL INFORMATION
Board of Directors and Members
Hopkins Elks Lodge No. 2221
Hopkins,~nnesota
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Our report on our audits of the basic financial statements of the Lawful Gambling Fund of
Hopkins Elks Lodge No. 2221 for the year ended March 31, 1998 and 1997 appears on
page 2. Those audits were made for the purpose offorming an opinion on the basic
financial statements taken as a whole. The supplementary information on pages 9 through
13 is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and accordingly, we express no
opinion on it.
D~af/l~
Daniel A. Nelson,
Licensed Public Accountant
Bloomington, Minnesota
November 24, 1998
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(8)
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #B-00365)
(Minnesota ill No. 9099423)
RECONCILIA nON OF GAMES USED
REGULATORY BASIS
FOR THE YEAR ENDED MARCH 31, 1998 and 1997
3/31/98 3/31/97
NUMBER NUMBER
AMOUNT OF GAMES AMOUNT OF GAMES
PULL- TABS
Cost of Games Used
Beginning Inventories 3,393.46 80 944.43 22
Purchases 10,750.94 242 12,170.98 291
Subtotal 14,144.40 322 13,115.41 313
Less: Ending Inventories 873.24 21 3,393.46 80
Total Cost of Games Used 13,271.16 301 9,721.95 233
Reconciliation of Games Used
Games Used Per Books Above 30J 233
Games Used and Reported Per Gross
Revenues by Month 298 234
.. Difference or Possible Unreported Games 3 -1
NUMBER NUMBER
TIPBOARDS AMOUNT OF GAMES AMOUNT OF GAMES
Cost of Games Used
Beginning Inventories 418.00 88 0.00 0
..
.- L' Purchases 460.08 144 1,707.00 372
Subtotal 878.08 232 1,707.00 372
Less: Ending Inventories 105.00 35 418.00 88
Total Cost of Games Used 773.08 197 1,289.00 284
Reconciliation of Games Used
Games Used Per Books Above 197 284
Games Used and Reported Per Gross
Revenues by Month 126 284
Games Destroyed and Reported on B-2's 71 0
Total Games Reported on B-2 Schedules 197 284
Difference or Possible Unreported Games 0.00 0.00
-.
(9)
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #B-O(365)
ANALYSIS OF MAXIMUM ALLOWABLE EXPENSES
AS A PERCENTAGE OF GROSS PROFIT
REGULATORY BASIS
FOR THE YEARS ENDED MARCH 31J 1998 AND 1997
1998 1997
Gross Profit 105,853.00 87,296.00
Allowable Expenses
Cost of Games Used 14,044.23 1l,914.88
Compensation and Payroll Taxes 31,252.22 31,715.72
Accounting and Legal Services 1,684.91 1,214.00
Advertising 0.00 0.00
Bank Charges & Supplies 2,753.95 1,691.47
Gambling Equipment and Repairs 3,534.09 1,385.04
Investigative Fee 0.00 0.00
. License Renewals 900.00 200.00
Penalty & Interest 0.00 0.00
Rent 0.00 0.00
Utilities 0.00 0.00
Reimbursement of Excessive Cash Shortages ~161.17 0.00
Cash Shortages 2,1l9.00 1,073.00
Total Allowable Expenses 56,127.23 49,194.11
Maximum Allowable Expenses by Minnesota
State Statutes 57,741.60 43,648.00
Excess of Maximum Allowable Expenses in Excess
of Allowable Expenses - Current Year 1,614.37 w5,546.11
Beginning Cumulative Maximum Expenses in
Excess of Allowable Expenses 56,492.50 62,038.61
Ending Cumulative Maximum Allowable Expenses
in Excess of Allowable Expenses 58,106.87 56,492.50
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(10)
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(12)
G-l Schedule F
Organization Name
'-opkins Elks Lodge No. 2221
Gambling Fund Reconciliation
license Number
Month and year reported
B-00365
3/31/98
Your gambling checking account
1) End.of-month bank balance
from bank statements 1
.z}...iotaj.cheCki;:;g.;;;colint-............--................--............................---.-..............-......-.--..--...-...-.-....-.--...-..-..-..............--...........-...-.--..
_.....?~~.~..~~.!.~~.~~...............................................-.................-.........................-.-..-.....-...-....---.........-....-...-.---.....-.-.............................._.......~.
.~)...~.~~..~!.~.~.!..~.':!~.3.......................................................................................................................-...-.-.............._........._......._._.......................................~.
4) Total of checks
outstanding 4
.s)'.suiii:act.iine.4.iT,o"rTi.iine.3":..ThiS.jS.....-...-............................................................................-.........--........-..............-...-..........................................-.......
the reconciled bank balance. 5
u_......~............~..............n......u._...............+..............~U.n..._.._.....u..................u.____.._.._..__.................u.....-.............................---.-.......-.............--.............-.-.---..............--.--......
Additions: other gambling funds not included in your checking account
.~)...!.~~.~~~..t.~..~~~.~~~~.~.~~...................................................................................................._............................_..._............__..._~ 2,100.00
7) Dollar amount of your
ending inventory 7 978.24
.8i...C~;h..i;;ceiiied..bUi.~t............................................m...............................................................................................................................m
deposited during the month. 8 0.60
.9)...Totili"ofirTiouiits.in.iiiE.iaiiings..........m..........................................................................................................m........................................
and investment accounts 9 0.00
.1(ij.Am;;-~nt.of..requiri!d..re;iiib.;or..........................._...............................m..............................................................................-............-......
excess cash short (line 34 G-1 ) 10 ~8.6 1
.)~:.:.;j;~;;;;~:.-~~=~~~~~-~~~-~=~~~=~~-~====~=~~~=~~=~~:~:~; 2~."
12) Add lines 6 through 11 12
.13}.Add.iiM..!5'ii;;(j.ii;;.12:..ihlS.j;;................m..............................................................................................................................................................................
........~~~..l;I.~~~!!~.!il..!~.':'.~.~!..~~~..~.~~:.............................................................m..........................................................................................................................J.~.
Subtractions: unpaid obligations and receipts from games not closed
<
"
14) Total ortax listed on line 13 of all
forms G-1that remains unpaid 14
.15j.Toiaj"~;;;;:ipt;.d;p;;~ed..i;.om...................................................................................................................................................................
games still in play at end of mo. 15
.1S.j.Totiik;;;iiS.p;iy;;t;ie."irOiTi.any................................................m...............................................................-................................................
source at end of month. 16
12,000.00
0.00
0.00
....hnn..n...~........u......n.......n.............................u.._.....................n......~.nn....n.....................................nu........................n.................................................
17) Total COGS unpaid including
sales tax at end of the month.
17
0.00
u....+.....Un.~.........P................................n.............................Uh.........._...................u..........._._...............n...u~................n.............h...........................................
.~~2.!.?!~!.~r..~~~~.~~~.~~!!~~.~....._............._.._...............................mm...........m........................................................................................~.~
0.00
19) Add lines 14 through 18 19
.......n.u.................................................................n.............h.......................................................n...................................u...............................h...............................................n..
Reconciliation
20) Subtract line 19 from line 13
This is the gambling fund balance 20
.2.1rAm;:,.Ljnt.;;f.y;;ur.prof~..carr;.o:;;;..........._...................._..._m....................................................................................................................................................
(from line 44 of this month's G-1) 21
.. fI' ......j.ii.jirte.20..iS.;.iine.21.;;.ove"iiig;..........................m.._..................................................................................................-......................................................22.
If line 20 is < line 21 " Shortage 22
................................................................................................................................................n..........................................h.......................................................................................
SchF398.x1s 11124198
(13)
8,391.28
133.00
8.624.28
2,262.3.4
6,361.94
5,0443.61
11.80U5
12,000.00
-194.65
-296.23
101.68
.
.
.
To the Board of Directors
Hopkins Elks Lodge No. 2221
Hopkins, Minnesota
We have audited the financial statements of the Lawful Gambling Fund of Hopkins Elks
Lodge No. 2221 as of and for the year ended March 31, 1998, and have issued our report
thereon dated November 24, 1998.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
Compliance with laws and regulations applicable to the Gambling Fund is the
responsibility of Hopkins Elks Lodge No. 2221 management. As part of obtaining
reasonable assurance about whether the financial statements are free of material
misstatement, we completed the Regulatory Checklist Questionnaire, which is attached to
this report. However, the objective of our audit of the financial statements was not to
provide an opinion on overall compliance with such provisions. Accordingly, we do not
express such an opinion.
This report is intended for the information of the Board of Directors, management and the
Minnesota Department of Revenue. However, this report is a matter of public record and
its distribution is not limited.
D~a<~
Daniel A. Nelson,
Licensed Public Accountant
Bloomington, Minnesota
November 24, 1998
(14)
.
REGULATORY CHECKLIST QUESTIONNAIRE
Minnesota Rule 8122.0550 Subp. 6B
Name of Organization:
HOPKINS ELKS LODGE NO. 2221
Organization License Number:
Date of Audit or Review:
B..{I0365
November 10, 1998
INSTRUCTIONS: Based on the information obtained during the course of the audit, respond to the following
nine statements for the period being audited. If there was not sufficient information available during the audit to
respond to a statement, circle "N/A" for that statement.
1. The organization conducted gambling only at sites for which it had
obtained a premises permit or a one-day off-site permit.
2. The organization had a licensed gambling manager at all times gambling
was conducted.
.
3.
A lessor, a member of a lessor's immediate family, or an employee of a
lessor was not a gambling manager of the organization.
4. The organization's gambling manager was bonded for an amount of at
least $10,000.00.
l--:"'-
5. Checks for the expenditure of gross profits from gambling were signed by
at least two active members of the organization who have been authorized
to sign checks.
6. The organization did not pre-sign gambling account checks.
7. The organization did not use signature stamps to sign gambling account checks.
8. If the organization has terminated all gambling activity a termination plan has
been filed with the Gambling Control Board.
9. The organization has paid aU rent for the lease of premises in accordance with
its lease agreements.
~.
(15)
Yes, No or N/A
1 Yes
2 Yes
3 Yes
4 Yes
5 Yes
6 Yes
7 Yes
8 N/A
9 Yes
.
Board of Directors
Hopkins Elks Lodge No. 2221
Daniel A. Nelson
Licensed Public Accountant
Re: Management letter for Annual
Gambling Audit of March 31, 1998
Dear Board Members:
At the conclusion of an audit, it is our customary practice to prepare a detailed SUIllIIlaI)' of findings, comments,
reportable conditions and recommendations based upon our audit of the financial statements. This letter is based
upon all infonnation made available to us through the last day offieldwork, November 24, 1998.
One function of an audit is to analyze and evaluate the internal accounting and management controls of the entity
under audit. A simple definition of internal controls would entail the system of controls in an entity, which
provide protection against financial statement misstatement and reduction of the risk of defalcations, theft or
diversion of assets of the organization. Whatever the business or profit status of an entity, it is essential that
management consider the relevance of good internal controls as they pertain to the organization.
The simplest method of maximizing internal controls is to be sure that the same employee handles as few
overlapping functions as possible. In small organizations, this often is not possible, given budget limitations for
hiring sufficient staff. Our analysis, to the extent possible, reflects our understanding that hiring new employees is
not a consideration, which would or could be made at this time.
The following are some observations that came to our attention where improvements could be made.
Inventory:
Invoices must be included in the month of purchase, not in the month when the invoice is paid. Invoice #53935
dated 5/14/97 was reported in June 1997. Invoice #55108, dated 6/24/97 was reported in July 1997. Invoice
#55986 dated 7/23/97 was reported in August 1997.
..:: ..
~~.-;
Game Reporting:
Some games were removed from play in April and May 1997 and were reported in the respective following
months. All games must be reported on the B-2's with the actual date removed from play. It was observed that the
last 10 months of the year ending 3/31198 were in compliance.
Game Deposits:
Game deposits are now being made within one or two days, well within the required 4 business days.
General:
In general, other than the items mentioned above, we noted no matters involving the internal control structure and
its operation that we consider being material weaknesses. Also we would like to commend the new Gambling
Manager for the fine job he is doing and bringing the game reporting and deposits into compliance.
This report is intended solely fOf the information and uses of the Board of Directors, Members, Management and
others within the organization and the Department of Revenue of the State of Minnesota.
Thank: you for the opportunity to be of service to the Hopkins Elks Lodge No. 2221
D~a~
Daniel A. Nelson
Licensed Public Accountant
Bloomington, Minnesota
November 24, 1998
9361 Penn Avenue South · Bloomington, Minnesota 55431 . (612) 884-0337
(16)
.
Charitable and Lodge Contributions from Gaming During 1998
Real Estate Tax
$9,931.46
Elks Youth Camp
$6,634.00
$500.00 Scholarship $3,000.00
Erin Hibelink
Brian Connolly
Amanda Rendim
Annalise Nelson
Anthony Lukken
April Duffy
Raspberry Days $1,223.00
Hopkins Center For Arts $1,000.00
. Hopkins Kids Fishing $1,000.00
Teenager of the Month $800.00
Elks National Foundation $700.00
Boy Scouts $500.00
School Patrol $400.00
Hopkins Little League $350.00
Hopkins Fire Dept Open House $150.00
Girls Basketball $125.00
Hopkins Family Resource $100.00
Alice Smith School $50.00
$26,263.46
.
,
1999 Charitable And Lodge Contributions From Gaming
.
Real Estate Taxes
$10,727.00
· MN Elks Youth Camp
$6,822.00
$3,117.00
· Raspberry Weekend Events
Five $500.00 Scholarships
$2,500.00
$1,590.00
· Hopkins Community Christmas Tree
and Lighting
· Hopkins Fire Dept Saw and Open House
Allied Charities Membership & Conv.
$1,231.00
$1,167.00
· Teenager of Month Scholarships
$1,100.00
Elks World War II Memorial Fund
$700.00
· Hopkins Schools -Senior Class Party,
Hoop Shoot, KCurran, Glen Lake, A Smith,
Tanglen, Girls Hockey, Girls B-Ball, Summer Act.
$615.00
.
Elks Nat'l Fund Scholarship
$610.00
American Legion Vets Prints
$595.00
Boy Scouts
$500.00
MN Special Olympics
$400.00
· ST Patrick's Community Celebration
$350.00
· Hopkins Area Family Resource Center
$300.00
Elks Soccer Shoot
$300.00
MN Council Compulsive Gambling
$250.00
Muscular Dystrophy
$150.00
Courage Center
$100.00
M N Zoo
$100.00
· Chapel View Christmas Tree
$40.00
$33,264.00
.
· Direct Benefits To Hopkins Community $15,165.00