CR 98-13 Gambling License Renewal App for the Hopkins Elks Lodge 2221January 15, 1998 Council Report 98 -013
Staff recommends approval of the following motion: Move to adopt Resolution 98-
04, approving the gambling license premises permit for the Hopkins Elks Lodge
2221.
Adoption of this resolution will allow the Hopkins Elks Lodge to continue operating
lawful gambling in the City of Hopkins.
Overview
The Hopkins Elks Lodge has submitted an application for renewal of their premises
permit. The State of Minnesota issues the permit with approval from the City of
Hopkins. The premise to be permitted is owned by the Elks and is located at 30 —
8 Avenue South. Although the permit that is being requested is a Class A permit,
no bingo is conducted on the premises at this time.
Primary Issues to Consider
• Does the Hopkins Elks Lodge 2221 meet the criteria of the Hopkins
Legislative Policy 4 -A, Lawful Gambling?
Yes
• Has the organization conducted its operations according to State Statue
and Local Municipal Ordinances?
Yes
Supporting Documents
■
#it4 A
Ob- rmaier, City Clerk
GAMBLING LICENSE RENEWAL APPLICATION
FOR THE HOPKINS ELKS LODGE 2221
• Resolution 98 -04
• Legislative Policy 4 -A, Lawful Gambling
• Financial Statement and Independent Auditor's Report, Years ending
March 31, 1997 and 1996
• Schedule of Lawful Purpose Expenditures showing all charitable
contributions
• PremiA Permit application is available in the City Clerk's Office
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 98 -04
RESOLUTION APPROVING THE GAMBLING LICENSE
PREMISES PERMIT FOR THE HOPKINS ELKS LODGE 2221
WHEREAS, the Hopkins Elks have been and integral part of the Hopkins
Community and;
WHEREAS, the Hopkins Elks have applied for a gambling license to conduct
lawful gambling in 1998 and 1999 and;
WHEREAS, the Hopkins Elks have conducted gambling activities in
accordance with state law and Hopkins city policy,
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby approves the Hopkins Elks Premises Permit Renewal application.
Adopted by the City Council of the City of Hopkins this 20th day of, January,
1998.
ATTEST:
Terry Obermaier, City Clerk
By
Charles D. Redepenning, Mayor
1. PURPOSE
2. REGULATIONS
POLICY 4 -A
LAWFUL GAMBLING
1.01 The purpose of this policy is to establish rules and procedures for lawful gambling in the
City of Hopkins.
2.01 Except as otherwise enumerated herein, the provisions of Minnesota Statute Chapter 349
relating to the definition of terms, licensing and restrictions of gambling are adopted and
made a part 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
Internal 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, uninterrupted basis and have at least 30 active voting members.
2.04 Gambling allowed by the city shall be carried on only within premises owned, occupied
or leased by the organization except such activities permissible under M.S. 349.166.
2.05 No application for a premises permit will be approved for any organization to conduct
gambling 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 permit 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 from 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.
Legislative Policy Manual -- Chapter 4 -A 1
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 forms, 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 Participants 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 performed by an independent accountant licensed by the state of Minnesota.
2.13 In addition, such organizations must provide the City with information on all
expenditures of lawful gambling funds during the previous two years. Such information
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.
Established 11/19/85 by Resolution 85 -3218
Revised 4/19/94
Revised 12/16/97
City of Hopkins
Legislative Policy Manual -- Chapter 4 -A 2
GMA v4.58 SCHEDULE C/D - LG1O10 LG1010C /D
5:29 PM Lawful Purpose Expenditures 01/05/98
GENERAL INFORMATION
1. Organization Name: Hopkins Elks License No: 800365
2. Classified 501(c)(3)? Yes
5. If this Schedule 0/0 part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
Membership For Code
Approval Date of Check A -7 Only
Date Check Number Check Made Out To TRCA A -Code Male Female
12/09/95 01/04/96
12/09/95 01/06)96
12/09/95 01/08/96
12/09/95 01/23/96
12/09/95 01/23/96
12/09/95 01/25/96
12/09/95 01/25/96
* ** NONE * **
2760 Champion Sports
2761 Special Olypics
2764 Hopkins Youth Baseball
2772 Bloomington Jewery
2771 Rory iamansky . 51, 4I Qent r - ( /'fa"
2774 Jodi Lebow C4i( 5c4.djaKj.40
2773 Matt Nelson
9. Total Schedule C Lawful Purpose Expenditures 2685.50
10. 2% tax credit /refund from line 8 of form G-7430 0.00
11. Subtract line 10 from line 9 2685.50
(Enter on line 41 of Monthly Summary & Tax Return G-1.)
12. SCHEDULE D: Board- Approved Expenditures
3. Month and Year: January 1996 4. Page 01 of 01 pages
6. Is this an amended 7. If no schedule C/D expenditures
Schedule C /0? No were made circle: n/a
1'
25 -R -7
25-A -7
25 -A -7
25 -A-7
25-A-5
25 -A-5
25 -A -5
13. Total Schedule 0 Board-Approved Expenditures 0.00
(Enter on line 42 of Monthly Summary & Tax Return 0 -1.)
Amount
148.50
350.00
1000.00
87.00
100.00
500.00
500.00
Membership For Code Board
Approval Date of Check 83 -A7 ONLY Approval
Date Check Number Check Made Out To TRCA 8 Code Male Female Amount Date
14. SIGNATURES: I declare that this Schedule C/D is correct and complete to the best of my knowledge and belief.
Chief Executive Officer: Date: _J /
Gambling Manager: Date: __J
Mail to: Gambling Control Board, Suite 300 South, 1711 West County Road B, Roseville, MN 55113
:-! 5 .Ef0111 - SCHEDdC
• .; AM 11Pf): Morpose Esposiffatos 03/09/96
■.1%":21*!' ::!' Lip -in Hint:at:on Aht»: Mot!. awl Year Page
1 of1ias 52:As Fobraary 1916 1 of 1
Lavfni Date
ek2ck Monbor Ch.fck No 6hh T) Arm! of Check 1 . 3 3Fe Prief Expendikup Description Approved
)2/13116 ' 2780 Robert McLeod 1 2E-A-5 SthdoaL Cr Month Scholarshipv 01/22/96
EH I 1,1)c unlit ins hoe 14 Of your forn 0-1,.. 3362.09
100.00 SubTotal -- This Page
0.00 SuilJtal Aay Previous Pages
100.10 TAal -- To Tax Retura or Next Schedule C Page
GMA v4.58 SCHEDULE C/D - LG1010 LG1010C /D
4:35 PM Lawful Purpose Expenditures 01/05/98
GENERAL INFORMATION
1. Organization Name: Hopkins Elks
2. Classified 501(c)(3)? Yes 3. Month and Year: April 1996
5. If this Schedule C/D part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
03/25/96 04/05/96
03/25/96 04/05/96
03/25/96 04/05/96
03/25/96 04/05/96
03/25/96 04/23/96
03/25/96 04/29(96
03/25/96 04/29/96
03/25/96 04/30/96
12. SCHEDULE D: Board-Approved Expenditures
Gambling Manager:
License No: 800365
4. Page 01 of 01 pages
6. Is this an amended 7. If no schedule C/D expenditures
Schedule C /D? No were made circle: n/a
Membership For Code
Approval Date of Check A -7 Only
Date Check Number Check Made Out To TRCA A -Code Male Female,
2792 Greg Larson & Assoc
2793 Katherine Curren Carnival
2794 Dan Shariro le °f hio
2795 Debra Maisel $ /e4t `` r /'
2799 Hopkins Youth Baseball
2804 Minn Elks Association
2805 Minn Elks Youth Camp
2806 Glen Lake Carnival
25 - A-5
25 -4 -7
25-4 -5
25 -A -5
25 -4 -7
25 -4 -7
25 -A -7
25 -A -7
•
Mail to: Gambling Control Board, Suite 300 South, 1711 'Hest County Road B, Roseville, MN 55113
Amount
43.48
50.00
100.00
100.00
1000.00
3190.00
695.00
50.00
9. Total Schedule C Lawful Purpose Expenditures 5228.48
10. 2% tax credit /refund from line 8 of form G-7430 0.00
11. Subtract line 10 from line 9 5228.48
(Enter on line 41 of Monthly Summary & Tax Return G-1.)
Membership For Code Board
Approval Date of Check B3 -A7 ONLY Approval
Date Check Number Check Made Out To TRCA B Code Male Female Amount Date
fit NONE t ;t
13. Total Schedule D Board- Approved Expenditures 0,00
(Enter on line 42 of Monthly Summary & Tax Return G -1.)
14. SIGNATURES: I declare that this Schedule C/0 is correct and complete to the best of my knowledge and belief.
Chief Executive Officer: Date: _ ____/_
Date: J /
1RA v4.S5
6:51 PR
Organization License:
800365
Pill in the amount from line 14 of yonr tor; 0 -I... $1,857.04
SCREOdC
G-1 SCHEDULE C 06/19/96
Lawful Purpose Expenditures
WW1 and Tear Page
Organization Hale:
Hopkins Elks Ray 1996 l of 1
Lawful Date
Date of Check
Check Number Check Katie Out To Amount of Check Purpose 8[ief Expenditure Oescriplion Approve
05111196 2809 Henn. County Tres. 6941.66 25 -5 -9 First Halt Property Tat 04122196
05/22/96 2811 How Sports 260.00 25-5 -1 Bikes For School Patrol 04122/96
06171196 2814 Robin flern
100.00 25-1-5 Student Of Month Schorship ' 04122/96
1701.66 Subtotal -- This Page
0.00 Subtotal -- Any Previous Pages
7301.66 Total -- To Tat Return or Heat Schedule C Page
19125196 2842 Kelly N. Naeurko
09125196 2842 Garth harried
Fill in the aunt fro!' line 14 of your fore 0 -1... 51,524.07
SCIIEU4C
A 94.56 G -1 SCIIEDU1i C 10114/96
16 PN Lawful Purpose Expenditures
Mouth and Year Page
rganisatton License: Organisation Mane: 1 of 1
1400'.165 Hopkins Elks Septeober 1990
Lawful Date
ate of Check
Check Huber Check Na4e Out To Auonnt of Check Purpose Orief Expenditure DescstpLlon Ap4rove
500.00 25 -A -5 Scholarship 09109/96
10011.00 25 -A -5 Scholarship 09/09196
1500.00 Subtotal -- This Page
0.00 Subtotal -- hny Previous Pages
1500.00 Total -- To Tax Return or Red Schedule C Page.
ENA i4.S6 G -1 SCHECULE C SCHEDdG
1:47 PM
Organization License:
800365
Lavfai Purpose Erpendicnres fl/l7 /96
Organization Mane: Mouth and Tear Page
Hopkins Elks October 1996 1 of 1
Date of Check Lavfal Date
Check limber Check Made Oat To Aunt of Check Purpose Brief Expenditure Description *proud
10/14/96 2841 Henn County Treasure 6990.66 25-A -9 Property Tat 1/2 Half 09/23/96
10/22/96 2852 Theresa A. Schatz 500.00 25 -4 -5 Scholarship 09/23/96
10/24/96 2854 Melanie Kelly 100.00 25 4-5 Student Of bath Scholarship 09/23/96
10/28/96 2855 Sandra 9eishns 500.00 25 -A -S Scholarship 09/23/96
8090.66 Subtotal -- This Page
0.00 Edictal — Any Prelim Pages
8090.66 total -- to Tar 8etarn or 8ett.Schedule C Page
Fill in the asooat frog lice 14 of your fora C -1... $1.493.31
;MA v4.56 11-1 SCHEDULE C
7: 28 PM Lawful Purpose Expenditures
Fill is the asouat free line 14 of your fors G -L.. 11,469.12
410.00 Subtotal -- This Page
0.00 Subtotal -- Any Previous Pages
410.00 Total -- To Tax Return or Rext Schedule C Page
SCRIM
12/09/96
ersaaitatioa License: Organization Male: • Month and Year Page
800365 Hopkins Elks Raeder 1996 1 of 1
Ste of Check Lawful Date
Check Busher Check Made Out To Aaount of Check Purpose Brief Expenditure Description Approved
11/02/96 2858 Elks Rational Foundation 240.00 25 -A -5 Rational Scholarships 10/27/96
11/21/96 2861 9aaie Malikowski 100.00 25 -A -5 Student Of Routh Scholarship 10/27/96
11/26/96 2866 Elks Rational Scholarship 70.00 25 -A -5 Rational Schoiarships 10/27/96
GHA v4,56 G-I SCHEDULE C SCHEDdC
1:17 PH Lawful Purpose Expenditures 01/15/91
Organization License: Organization Name: Honth and Year Page
800365 Hopkins Elks December 1996 1 of 1
Date of Check Lawful Date
Check Number Check Hade Out To Amount of Check Purpose Brief Expenditure Description Approved
12/08/96 2868 Nelson & Associates 774.00 25 -A -12 One Half Annual Audit 12/02/96
12/19/96 2871 Viking Council -Boy Scouts 500.00 25 -A -7 Donation 12/02/96
12/19/96 2872 Pam Tsai 100.00 25 -A -5 Student Of Honth Scholarship 12/02/96
Fill in the amount from line 14 of your for G -1... 41.568.72
1374.00 Subtotal -- This Page
0.00 Subtotal -- Any Previous Pages
1374.00 Total -- To Tax Return or Next Schedule C Page
OA v4.56 G-1 SCHEDULE C • SCHEOdC
2:54 PN Lawful Purpose Expenditures 02/15/97
•anisation License: Organisation Name: Month and Year Page
800365 Hopkins Elks January 1997 1 of 1
Date of Check Lawful Date
Check Number Check Made Out To Amount of Check Purpose Brief Expenditure Description Approved
01/08/97 2878 Thirty Bakery 24.56 25 -A -7 Cookies For Hoop Shot Childeren 12/09/96
1
01/10/97 2881 Minn. Throphies 64.22 25 -A -7 Trophies For Hoop Shot Childeren 12/09/96
01/13/97 2882 Efnm. Special Olympics 300.00 25 -A -7 Donation 12/09/96
01/13/97 2883 Juvenile Diabetic Foundation 100.00 25 -11-1 Donation 12/09/96
01/17/97 2887 Lauren Dockin 100.00 25 -4-5 Student Of Month Scholarship 12/09/96
01/27/97 2887 Minn Elks Youth Camp 650.00 25 -A -7 Youth Camp Equipment 12/09/96
5 1/97 2892 Elks Natioal Foundation 120.00 25 -A -5 National Scholarships 12/09/96
1358.78 Subtotal -- This Page
0.00 Subtotal -- Any Previous Pages
1358.72 Total -- To Tax Return or Next Schedule C Page
Fill in the amount from line 14 of your form G -1... .11,812.46 -r
GNA v4,57 SCHEDULE C/D - LG10I0 LGIOIOC /D
12:58 PH Lawful Purpose Expenditures 03/17/97
GENERAL INFORMATION
1. Organisation Name: Hopkins Elks License Ho: B00365
2. Classified 501(c((3(? Yes 3. Month and Year: February 1997 4. Page 01 of 01 pages
5. If this Schedule C/D part 6. Is this an amended 7. If no schedule C/D expenditures
of your termination plan? ]lo Schedule C /D? No were made circle: n/a
8. SCHEDULE C: Lawful Purpose Expenditures
Membership For Code
Approval Date of Check A -7 Only
Date Check Number Check Made Out To TRCA A -Code Hale Female
01/20/97 02/17/97
01/20/97 02/20/97 2898 Arthur Kanter .s{v 1 ` 4144
9. Total Schedule C Lawful Purpose Expenditures 150.00
10. 2% tax credit /refund from line 8 of for G -7430 1117.00
11. Subtract line 10 from line 9 - 967.00
(Enter on line 41 of Monthly Summary & Tax Return G -1.(
12. SCHEDULE D: Board - Approved Expenditures
Membership For Code Board
Approval Date of Check 113 47 ONLY Approval
Date Check Number Check Made Out To TRCA B Code Kale Female Amount Date
** NONE *$*
2896 Hopkins High School Graduation Party 25 -A -1
13. Total Schedule D.Board-Approved Expenditures 0.00
(Enter on line 42 of Monthly Summary & Tax Return G -1.(
14. SIGNATURES: I declare that this Sched le C/D iscorrd complete to the best of ay knowledge and belief.
Date: 3 /. /7 / ?7
Gambling Manager: Date: _? /7.2 / 477
Chief Executive Officer:
25 -A -5
Nail to: Gambling Control Board, Suite 300 South, 1711 Nest County Road 8, Roseville, HN 55113
Amount
50.00
100.00
GMA v4.58 SCHEDULE CID - LG1010 LG1010C /0
0 5:26 PM Lawful Purpose Expenditures 01/05/98
GENERAL INFORMATION
1. Organization Name: Hopkins Elks
2. Classified 501(c)(3)? Yes 3. Month and Year: March 1997
5. If this Schedule C/D part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
License No: 800365
4. Page 01 of 01 pages
6, Is this an amended 7. If no schedule C/D expenditures
Schedule C /D? No were made circle: n/a
Membership For Coda '
Approval Date of Check A -7 Only
Date Check Number Check Made Out To TRCA A-Code Male Female Amount
03/10/97 03/20/97 2905 Sill Wade acid- of' ' '.4k 25 -A-5 100.00
03/10/97 03/22/97 2906 Babe Ruth Baseball 25-A-1 350.00
03/10/97 03/22(97 2907 Elks National Foundation 25-A -1 120.00
Scholarships
9. Total Schedule C Lawful Purpose Expenditures 570.00
10. 2% tax credit /refund from line 8 of form G -7430 0.00
11, Subtract line 10 from line 9 570,00
(Enter on line 41 of Monthly Summary & Tax Return G -1.)
12. SCHEDULE D: Board- Approved Expenditures
Membership For Code Board
Approval Date of Check 83 -A7 ONLY Approval
Date Check Number Check Made Out To TRCA B Code Male Female Amount Date
xa* NONE z **
13, Total Schedule D Board-Approved Expenditures 0.00
(Enter on line 42 of Monthly Summary & Tax Return G -1.)
14. SIGNATURES: I declare that this Schedule C/D is correct and complete to the best oP my knowledge and belief.
Chief Executive Officer: _ __ _______ _ Date: _ / ______/__
Gambling Manager: Date: ___J_ J
Mail to: Gambling Control Board, Suite 300 South, 1711 West County Road 8, Roseville, MN 55113
CNA v4,57
5:22 IX
GENERAL INFORMATION
1. Organisation Name: Hopkins Elks
2. Classified 501(c((31? Yes
5. If this Schedule C/9 part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
Membership
Approval Date of Check
Date Check Number Check Dade Out To
03/24/97 04/13/97
03/24/97 04/17/97
03/24/97 04/28/97
• rat NONE tit
SCHEDULE C/D - LC1010
Lawful Purpose Expenditures
3. Konth aad Year: April 1997
6. Is this an amended
Schedule C /D? No
2911 Katherine Curren Stem School
2915 Tiffany Fahnhorst S1t.. {, 25 -A -5
2916 Kinn Elks Youth Camp
12. SCHEDULE 0: Board - Approved Expenditures
For Code
A-7 Only
TRCA A -Code Dale Female
Membership For Code
Approval Date of Check 83 -A7 ONLY
Date Check Number Check Made Out To TRCA B Code Kale Female
13. Total Schedule 0 Board-Approved Expenditures 0.00
(Enter on line 42 of Konthly Summary & Tax Return G-1.1
L01010C /D
05/19/97
License No: 1100365
4. Page 01 of 01 pages
7. If no schedule C/0 expenditures
were node circle: a/a
Amount
25 -A -1 50.00
100.00
25 -A -1 704,00
9. Total Schedule C Lawful Purpose Expenditures 854.00
10. 2% tax credit /refund from line 8 of form 0 -7430 0.00
11. Subtract line 10 from line 9 854.00
(Enter on line 41 of Ronthly Summary A Tat Return G-1.1
Board
Approval
Amount Date
14. SIGNATURES: I declare that this Schedule C/D is correct and complete to the best of ay knowledge and belief.
Chief Execative Otficer: Date: / /
Gambling Manager: _ Date:
v
Nail to: Canbling Control Board, Suite 300 Sonth, 1711 West County Road 8, Roseville, MN 55113
RNA v4,57 SCHEDULE C/D - L01010
11:37 AN Lawful Purpose Expenditures
11 111INERAL INFORMATION
1. Organization Name: Hopkins Elks
2, Classified 501(c)(3)? Yes
5. If this Schedule C/D part
of your termination plan? Ho
8, SCHEDULE C: Lawful Purpose Expenditures
Membership
Approval Date of Check
Date Check Number Check Made Out To
04/28/97 05/03/97
04/28/97 05/03/97
04128/97 05/0907
04128/97 05/17/97
04/28/97 05/19/97
04/28/97 05/19/97
04/28/97 05/27/97
3, bath and Year: May 1997
6. Is this an amended
Schedule C /D? No
2917 Glen Lake School Carnival
2918 Camp Fire Boys & Girls
2919 Hennepin County Treasure
2924 Now Sports
2926 Minn Elks Youth Camp
2927 Hopkins Little League
2928 Baia Peterson SAt, -& 91
For Code
A -7 Only
TRCA A-Code Male Female
25 -A -7 x x
25 -A -7 x x
25 -A -9 x x
25 -A -7 x z
25 -1 -7 1 x
25 -A -7
25 -A -5 1
9. Total Schedule C Lawful Purpose Expenditures 10806.41
10. 2% tax credit /refund from line 8 of form C -7430 0,00
II. Subtract line 10 from line 9 10806.41
(Eater on line 41 of Moathly hoary & Tax Return 0 -1.1
12, SCHEDULE D: Board - Approved Expenditures
Neabership For Code
Approval Date of Check B3 -A7 ONLY
Date Check Number Check Made Oat To TRCA 8 Code Dale Fesale
ota NONE mwi
License No: 800365
4. Page 01 of 01 pages
7. If no schedule C/D expenditures
sere made circle: n/a
13. Total Schedule D Board - Approved Expenditures 0.00
(Enter on line 42 of Monthly bleary & Tax Return 0 -1.)
Lg1010C /D
06/19/97
Amount
50.00
45.00
6467.53
383,88
3410,00
350.00
100.00
Board
Approval
Amount Date
14. SIGNATURES: l declare that this Schedule C/D is correct and complete to the best of ay knowledge and belief,
Chief Executive Officer: Date: / /_
Gambling Manager: Date: Gl /7
Nail to: Gambling Control Board, Suite 300 South, 1711 Rest County Road 8, Roseville, NH 55113
CNA v4.57 SCHEDULE C/D - LG1010 6010100 /D
10:08 AN Lawful Purpose Expenditures 07/15/97
GENERAL INFORMATION
1, Organisation Name: Hopkins Elks
2. Classified 501(c((3(? Yes
5, It this Schedule C/D part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
t1
Membership
Approval Date of Check
Date Check Humber Check Nade Out To
06/23/97 06/01/97
06/23/97 06/19/97
06/23/97 06/19/97
06/23/97 06/24197
06/23/97 06/30/97
2939 Nicole Kaiser
2943 Teens Alone
12. SCHEDULE 0: Board - Approved Expenditures
Chief Executive Officer:
Gambling Manager:
3. Month and Year: June 1997
6. Is this an anended
Schedule C /D? No
2930 Child's Place Theater
2934 Mina Elks Youth Camp
2936 Minn Elks Youth Camp
9. Total Schedule 0 Lawful Purpose Expenditures
10. 2X tax credit /refund from line 8 of tore 0 -7430
11. Subtract line 10 from line 9
(Enter on line 41 of Monthly Summary A Tax Return 0 -1.3
e SEA-'
License No: 800365
4. Page 01 of 01 pages
7. If no schedule C/0 expenditures
were made circle: n/a
For Code
A -7 Only
TRCA A -Code Dale Fenale
25 -A -7 x x
x 25-A-7 x x
25 -A -7 x x
25 -1-5 x. x
25 -A -7 x x
Membership For Code
Approval Date of Check 83-A7 ORGY
Date Check Rasher Check Dade Oat To TRCA 8 Code Kale Female
Nail to: ranbling Control Board, Suite 300 South, 1711 Best County Road B, Roseville, NN 55113
Amount
500.00
1117.00
310.00
500.00
25.00
2452,00
1117.00
1335.00
Board
Approval
Anoint Date
ttt NONE we$
13. Total Schedule 0 Board - Approved Expenditures 0,00
(Enter on line 42 of Monthly Sunup A Tax Return 0-1.)
14. SIGNATURES: 1 declare that this Schedule C/D is correct and complete to the best of ny knowledge and belief.
Date: __/__/
Date: 7 f/4' 1 e7
i4,57 SCHEDULE C/D - L01010
/4 PN Lawful Purpose Expenditures
. AL INFORMATION
rganixation Name: Hopkins Elks
2. Classified 501(c)(3)? Yes
5. If this Schedule 0/0 part
of your tereination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
6. Is this an amended
Schedule C /D? No
Xenbership
Approval Date of Check
Date Check Number Check Made Out To
06/23/97 07/14/97
06/23/97 07/31/97
06/23/97 07/31/97
SCHEDULE D: Board - Approved Expenditures
ttt RUNE ttt
3, Konth and Year: duly 1997
2946 Optimist- Friends Of Youth
2953 Elks Veterans Nemorial Building Fund
2954 Fam. Res. Ct,- Rids Back To School
For Code
A -7 Only
TRCA A -Code Kale Female
9. Total Schedule C Lawful Purpose Expenditures 1530.00
10. 2X tax credit /refund Iron line 8 of form 0 -7430 0.00
11. Subtract line 10 tree line 9 1530,00
(Enter on line 41 of Monthly Summary & Tax Return 0 -1.)
Membership For Code
Approval Date of Check B3-A7 ONLY
Date Check Number Check Made Out To TRCA B Code Bale Fesale
13. Total Schedule 0 Board - Approved Expenditures 0.00
(Enter on line 42 of Monthly Summary 1 Tax Return G -1.)
14. SIGNATURES: 1 declare that th' chedule C/ is correct and complete to the best of ny knowledge and belief.
Chief Executive Officer: — 4'
Gambling Manager:
%� -i Date: g' /19
—9 l 97
1( ""-""a Date: .�lql
License Ho: 800365
4. Page 01 of 01 pages
7. It no schedule C/0 expenditures
were made circle: n/a
25 -A -7
25 -A -1 x
25 - - x x
Mail to: Gambling Control Board, Suite 300 South, 1711 Rest County Road 8, Roseville, MN 55113
L01010C /D
08/18/97
Amount
100.00
1330.00
100.00
Board
Approval
Amount Date
GHA v4.58
1:16 PH
GENERAL INFORNA[ION
1. Organization (lame: Hopkins Elks license go: 800365
2. Classified 501(c)(3)? Yes
5, If this Schedule C/0 part
of your termination plan? No
8, SCHEDULE C: lawful Purpose Expenditures
Membership For Code
Approval Date of Check A-7 Only
Date Check Number Check Made Out lo [RCA A-Code Hale Female
01/28/97 08/25/91 2962 Corin Nelson Univ -fll- Norris
9. total Schedule C Lawful Purpose Expenditures 500.00
10. 28 tax credit /refund from line 8 of form G-7430 0.00
11. Subtract line 10 from line 9 500.00
(Enter on line 41 of Monthly Summary & lax Return G -1.)
12. SCHEDULE 0: Board-Approved Expenditures
femhership For Code Board
Approval Date of Check 83-A1 ONLY Approval
Date Check Humber Check Made Out to IRCA 8 Code Male Female Amount Date
tit NONE 444
13. Total Schedule 0 Board - Approved Expenditures 0.00
(Enter on line 42 of Monthly Summary & lax Return G -I.)
14. SIGNATURES: I declare I hedule C s correct and complete to the best of my knowledge and belief.
Chief Executive Officer: , 6
c; . : T
Gambling Hanager:
SCHEDULE C/O - 101010
lawful Purpose Expenditures
3. Month and Year: August 1997 4. Page 01 of 01 pages
6. Is this an amended 7. if no schedule C/0 expenditures
Schedule C /0? No were made circle: Oa
Nail to: Gambling Control Board, Suite 300 South, 1111 Nest County Road 0, Roseville, HA 55113
161010c1D
09/
Avant
25 A-5 500.00
Date: i /ZSi CZ
Date: ! /o Q2 _
•
4.58 SCHEDULE C/0 - L01010
LG1010C /D
,9 PM Lawful Purpose Expenditures 10/10/97
*RAI INFORMATION
1. Organization Name: Hopkins Elks
2. Classified 501(c)(3)? Yes
5. If this Schedule C/D part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
Membership For Code
Approval Date of Check A -7 Only
Date Check Number Check Made Out To 1RCA A-Code Male Female
08/25/97 09/05/97
08/28/97 09/05/97
08/25/97 09/22/97
# ** NONE * **
Chief Executive Officer:
Gambling Manager:
3. Month and Year: September 1997
6. Is this an amended 7. If no schedule C/D expenditures
Schedule C /D? No were made circle: n/a
2965 Hopkins Center Arts
2964 B. Crowley/St-Cloud 51.0
2972 N. Golan 8 Carleton Coll
12. SCHEDULE D: Board-Approved Expenditures
License Ho: 800365
4. Page 01 of 01 pages
A 7
A-5
A-5
9. Total Schedule C Lawful Purpose Expenditures 1250.00
10. 2% tax credit /refund from line 8 of form G -7430 0.00
11. Subtract line 10 from line 9 1250.00
(Enter on line 41 of Monthly Summary 8 Tax Return G -1.)
Membership For Code Board
Approval Date of Check 83 -A7 ONLY Approval
Date Check Number Check Made Out To TRCA B Code Male Female Amount Date
13. Total Schedule D Board- Approved Expenditures 0.00
(Enter on line 42 of Monthly Summary & Tax Return G-1.)
Mail to: Gambling Control Board, Suite 300 South, 1111 West County Road B, Roseville, MN 55113
Amount
250.00
500.00
500.00
14. SIGNATURES: I declare that this Schedule CO is correct and complete to the best of my knowledge and belief.
Date: J _J
Date:A..._J2.1J17
GMA v4.58 SCHEDULE CID - LG1010 LG1OIOC /0
8:05 PM Lawful Purpose Expenditures 11/11/97
GENERAL INFORMATION
1. Organization Name: Hopkins Elks License No: 800365
2. Classified 501(c)(3)? Yes
5. If this Schedule C/D part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
09/22/97 10/03(97 2974 C.densen -Lewis & Clark College
09/22/91 10/13/97 2978 Henn.Co.Treas,
09/22/97 10/22/97 2984 Robyn 8adiner S41..14 j I1ti,
Gambling Manager:
3. Month and Year: October 1997 4. Page 01 of 01 pages
6. Is this an amended 7. If no schedule C/D expenditures
Schedule C /D? No were made circle: n/a
Membership For Code
Approval Date of Check A -7 Only
Date Check Number Check Made Out To IRCA A-Code Male Female
A-5
A-9
A -5
Chief Executive Officer:
9. Total Schedule C Lawful Puipuse Expenditures 7067.53
10, 25 tax credit /refund from line 8 of form G -7430 0.00
11. Subtract line 10 from line 9 7067.53
(Enter on line 41 of Monthly Summary & Tax Return G-1.)
12. SCHEDULE D: Board-Approved Expenditures
Membership For Code Board
Approval Date of Check 83 -A1 ONLY Approval
Date Check Number Check Made Out To TRCA B Code Male Female Amount Date
* ** NONE * **
13. Total Schedule D Board - Approved Expenditures 0.00
(Enter an line 42 of Monthly Summary & Tax Return G-1.)
14. SIGNATURES: I declare that this Schedule C/0 is correct and complete to the best of my knowledge and belief.
Date: J J
Date: /0 ///9/
Mail to: Gambling Control Board, Suite 300 South, 1711 West County Road 0, Roseville, MN 55113
Amount
500.00
6467.53
100.00
Av4.58 SCHEDULE C/D - LG1010 LG1010C /D
:19 PM Lawful Purpose Expenditures 12/09/97
GENERAL INFORMATION
1. Organization Name: Hopkins Elks
2. Classified 501(c)(3)? Yes
5. If this Schedule C/0 part
of your termination plan? Ho
8. SCHEDULE C: Lawful Purpose Expenditures
Membership For Code
Approval Date of: Check r , A-7 Only
Date Check Number Check Made Out To TRCA A-Cade Male Female
10/27/97 11/18/97 2995 Viet Ly Nguyen
9. Total Schedule C Lawful Purpose Expenditures
10. 2% tax credit /refund from line 8 of form G-7430
11. Subtract line 10 from line 9
(Enter on line 41 of Monthly Summary & Tax Return G-1.)
12. SCHEDULE D: Board-Approved Expenditures
•
3. Month and Year: November 1997
6. Is this an amended
Schedule C /D? No
License Ho: 800365
4. Page 01 of 0t pages
7. If no schedule C/D expenditures
were made circle: n/a
A-5
Membership For Code Board
Approval Date of Check 83-A7 ONLY .;,Approval
Date Check Number Check Made Out To TRCA B Code Male Female Amount Date'
*** NONE ttt
.13. Total Schedule D Board- Approved Expenditures 2 0.007
(Enter on line 42 of Monthly Summary & Tax Return G -1.)
' 14. SIGNATURES: I declare that this S edule d to the best of my knowledge and belief.'
Chief Executive Officer;
utt 3 — sz-/
Gambling Manager: Date:422j p: :.,J
• 7
Mail to: Gambling Control Board, Suite 300 South, 1711 West County Road 8, Roseville, MN 55113
GMA v4.58 SCHEDULE C/D - LG1010 LG101OC /D
• 6:31 PM Lawful Purpose Expenditures 01/07/98
GENERAL INFORMATION
1. Organization Name: Hopkins Elks
2. Classified 501(c)(3)? Yes 3. Month and Year: December 1997
5. If this Schedule C/D part
of your termination plan? No
8. SCHEDULE C: Lawful Purpose Expenditures
6. Is this an amended
Schedule C /D? No
Membership For Code
Approval Date of Check A-7 Only
Date Check Number Check Made Out To TRCA A -Code Male Female
08/25/97 12/04/97 3000 Hopkins Center Arts
11/24/97 12/04/91 2999 Daniel A. Nelson LPA
11/24/97 12/09/97 3005 Ann Eisenberg
11/24/97 12/15/97 3011 Viking Council Boy Scouts
11/24/97 12/26/97 3020 Hopkins High Senior Party
11/24/91 12/26/97 . 3021 MN Council on Comp. Gambling
11/24/91 12/26/97 3022 MN Zoo Foundation
11/24/97 12/26/97 3019 Hopkins - Minnetonka Babe Ruth
9. Total Schedule C Lawful Purpose Expenditures
10. 2% tax credit /refund from line 8 of form G-7430
11. Subtract line 10 from line 9
(Enter on line 41 of Monthly Summary & Tax Return G-1.)
12,. SCHEDULE 0: Board - Approved Expenditures
Membership For Code `,
Approval Date of Check B3-A7 ONLY
Date Check Number Check Made Out To TRCA 8 Code Male Female
ttt HOME ttt
13. Total Schedule 0 Board-Approved Expenditures
(Enter on line 42 of Monthly Summary & Tax Return G-1.)
A -1
A -12
A-5
A-7
A-7
A-1
A-1
A-7
14. SIGNATURES: I declare that this Schedule C/D is correct and complete to the best of my knowledge and belief.
Chief Executive Officer: Date;
License No: 800365
4. Page 01 of 01 pages
7. If no schedule C/D expenditures
were.made circle: n/a
Gambling Manager: gi ""__ Date:
Mail to; Gambling Control Board, Suite 300 South, 1711 Nest County Road 8, Roseville, MN 55113
Amount
250.00
964.91
300.00
100.00
,,'500.00
50.00
100
Board of Directors
Hopkins Elks Lodge No. 2221
Re: Management letter for Annual
Gambling Audit of March 31,1997
Dear Board Members:
Daniel A. Nelson
Licensed Public Accountant
At the conclusion of an audit, it is our customary practice to prepare a detailed summary of findings, continents,
reportable conditions and recommendations based upon our audit of the financial statements. This letter is based
upon all information made available to us through the last day of fieldwork, March 31, 1997.
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:
Invoice #52464, dated 3/25/97, was not included in inventory. Also tiie tipboard ending inventory was off by 18
games. All invoices dated from April 1 through March 31" [oust be included in that fiscal year.
Game Reporting:
Some games the date removed does not agree with the reported date on B -2. All games must be reported on the
B -2's with the date removed. Also, some serial numbers were off, which were due to input errors.
Game Deposits:
Dates of deposits are generally more than 4 banking days after games are removed from play. All deposits must be
made within four banking days after removal from play.
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 gambling manager
for the fine job he is doing.
This report is intended solely for 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.
Daniel A. Nelson
Licensed Public Accountant
Bloomington, Minnesota
October 23, 1997
9361 Penn Avenue South • Bloomington, Minnesota 55431 • (612) 884 -0337
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, 1997 and 1996
DANIEL A NELSON, LPA
9361 Penn Avenue South
Bloomington, MN 55431
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #13- 00365)
TABLE OF CONTENTS
Letter requesting 30 day extension to file
Independent Auditor's Report 2
Statement of Assets, Liabilities and Profit Carryover -
Regulatory Basis
March 31, 1997 and 1996
Statement of Revenues, Expenses and Changes in
Profit Carry-Over - Regulatory Basis
and Supplementary Information
For the Years Ended March 31, 1997 and 1996
Notes to Financial Statements 6 & 7
Independent Auditor's Report on
Supplementary Information 8
Reconciliation of Games Used - Regulatory Basis
For the Years Ended March 31, 1997 and 1996 9
Analysis of Maximum Allowable Expenses as a
Percentage of Gross Profit - Regulatory Basis
For the Years Ended March 31, 1997 and 1996
PAGE
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4 &5
10
Reconciliation of Profit Carry-Over - Regulatory Basis
For the Years Ended March 31, 1997 and 1996 11
Regulatory Checklist Questionaire and Report 12 & 13
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September 26, 1997
Kara Pahl, Revenue Auditor
Minnesota Department of Revenue
Special Taxes Division
Lawful Gambling Tax Unit
Mail Station 3350
St. Paul, MN 55146 -3350
Dear Kara,
Daniel A. Nelson
Licensed Public Accountant
RE: HOPKINS ELKS LODGE NO. 2221
License No. B -00365
Annual Gambling Audit
Year End 3/31/97
This is a request for additional time to file the Annual Lawful Gambling Audit. The due date for the
Audit is 9/30/97. We are asking for a one -month extension ; 10/31/97,
Thank you in advance for your consideration to our request.
Sincerely,
Daniel A. Nelson, LPA
DAN:me
9361 Penn Avenue South • Bloomington, Minnesota 55431 • (612) 884 -0337
(1)
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Daniel A. Nelson
Licensed Public Accountant
October 23, 1997
INDEPENDENT AUDITOR'S REPORT
BOARD OF DIRECTORS
HOPKINS ELKS LODGE NO. 2221
Hopkins, Minnesota
1
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, 1997 and 1996, 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 fmancial 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.
1 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, 1997 and 1996, and the results of its operations and changes in its profit carry-
over for the year then ended, 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
1 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,
1 a dirr,
Daniel A. Nelson,
Licensed Public Accountant
9361 Penn Avenue South • Bloomington, Minnesota 55431 • (612) 884-0337
(2)
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CURRENT ASSETS:
CASH:
Cash on Hand - Site Banks
Cash in Bank - Checking
Total Cash
INVENTORIES
Inventory 3,811.46 944.00
Total Inventories 3,811.46 944.00
Total Current Assets 19,522.72 6,597.00
OTHER. ASSETS:
2% Tax Refund - G -7430
Total Other Assets
Total Assets
LAWFUL GAMBLING FUND Or
HOPKINS ELKS LODGE NO. L221
(License # B-1M 365)
Statement of Assets, Liabilities and Fund Balance
REGULATOR W BASIS
March 31, 1997 and 1996
ASSETS
LIABILITIES
CURRENT LIABILITIES
Accrued State Taxes 0.00 0.00
Loans 23,000.00 8,000.00
Total Current Liabilities 23,000.00 8,000.00
Total Liabilities
Total Liabilities and Fund Balances
FUND BA' ANCE
(See accompanying Notes to Financial Statements)
(3)
Year Endcd Year Ended
3/31 "'7 3/31/96
1,700.00
14,011, ?6
15,711.:6
1,117.00
1,117.00
700.00
4,953.00
5,653.00
0.00
0.00
20,639.72 6,597.00
23,000,00 8,000.00
Profit Carryover Beginning of Year - 1,377.73 3,291.00
Expenses in Excess of Revenues Year Ending - 2,086.52 - 4,669.00
Profit Carryover - 3,464.25 - 1,378.00
Variance 1,103.97 -25.00
Fund Balance End of Year - 2,360.28 - 1,403.00
20,639.72 6,597.00
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LAWFUL GAI4IBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License B- 00365)
Statements of Revenues, Expenses and Changes in Profit Carry over
REGULATORY BASIS
For the Years Ended March 31, 1997 and 1996
Year Ended 3/31/97 Year Ended 3/31/96
Amount % Amount VD
REVENUES
Pull -Tab Receipts 515,912.00 98.35% 570,307.50 99.29%
Tipboard Receipts 8,664.00 1.65% 4,000.00 0.70%
Interest Income 10.00 0.00% 51.30 0.01%
Revenues Collected 524,586.00 100.00% 574,358.80 100.00%
COST OF REVENUES
Pull -Tab Prizes 433,030.00 82.55% 480,736.00 83.70%
Tipboard Prizes 4,260.00 0.81% 2,100.00 0.37%
Cost of Revenues 437,290.00 83.36% 482,836.00 84.07%
GROSS PROFIT 87,296.00 16.64% 91,522.80 15.93%
ALLOWABLE EXPENSES 49,194.11 9.38% 52,812.84 9.20%
REVENUES IN EXCESS OF
ALLOWABLE EXPENSES 38,101.89 7.26% 38,709.96 6.74%
APPROVED ADJUSTMENT 0.00 0,00% 0.00 0.00%
LAWFUL PURPOSE EXPENDITURES
Gambling Taxes:
State Combined Receipts Tax
State Ideal Gambling Taxes
State Ten Percent Tax
Federal Gambling Taxes
Total Gambling Taxes
Audit Fees
Program Expenditures
Total Lawful Purpose Expenditures
(See accompanying Notes to Financial Statements)
1,304.01
14,016.82
1.00
0.00
15,321.83
774.00
24,092.58
40,188.41
(4)
0.25%
2.67%
0.00%
0.00%
2.92%
0.15%
4.59%
7.66%
1,716.08
12,310.04
195.13
0.00
14,221.25
750.00
28,407.92
43,379.17
0.30%
2.14%
0.03%
0.00%
2.48%
0.13%
4.95%
7.55%
EXPENSES IN EXCESS OF REVENUES
BEFORE INCOME TAXES - 2,086.52 -0.40% - 4,669.21 -0.81%
INCOME TAXES 0.00 0.00% 0.00 0.00%
Expenses in Excess of Revenues - 2,086.52 - 0.40% - 4,669.21 -0.81%
Profit Carry- over - Beginning of year - 1,377.73 3,636.53
Variance 1,103.97 - 345.05
Profit Carry-over - End of Year - 2,360.28 - 1,377.73
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
License No. D - 00365
Lawful Purpose Eapeutlitures
For the Year Ended March 31, 1997
Scholarship Fund 3,993.48
Youth Organizations 7,283.78
Federal Taxes 0.00
Property Taxes 13,932.32
Annual Audit - (U2) 774.00
2% Tax refund - Fonn G -7430 - 1,117.00
Total Lawful Purpose Expenditures 24,866.58
(5)
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #B- 00365)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 and 1996
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
Nature of Organization
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 State of Minnesota. Revenues in excess of allowable
expenses generated by the Lawful Gambling Fund can only be used for lawful purpose
expenditures as defined by Minnesota Statues.
Basis of Presentation
Regulatory basis of accounting is the basis of accounting 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 amounts collected from customers net of bingo coupons and discounts.
Starting 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, 1997 and 1996,
inventories of games totaled $3,811.46 and $944.43, respectively.
NOTE 2 COMMITMENTS
The Organization owns the building that houses its lawful gambling pull -tab booth within the City
of Hopkins. The Gambling operation pays no rent for the space.
NOTE 3 INCOME TAXES
The Organization is exempt from state 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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NOTES CONT'D (Page 2)
NOTE 4 RESULTS OF GAME TESTING
END
Subsequent to year -end, the Organization's independent auditor's selected thirteen 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.
707166
465009
1738984
190032
020013
535290
440102
540079
530203
2452645
7100722
260299
830076
NOTE 6 IDEAL TAX REFUND
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
Pull -Tabs
Pull -Tabs
(7)
Amount as Reported on
Gambling Tax Return
639.00
260.00
235.00
359.00
343.00
353.00
577.00
145.00
619.00
369.00
474.00
644.00
505,00
NOTE 5 LISTING OF GAMBLING CONDUCTED BY ORGANIZATION
Amount as Tested
639,00
260.00
235.00
359,00
343.00
353.00
577.00
145.00
619.00
369.00
474.00
644.00
505.00
Pull -tabs and Tipboards was the only form of gambling conducted by the Organization during the
year ended March 31, 1997.
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, 1997, the amount to be expended from this refund was
$ 1,117.00.
•
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LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #11- 00365)
(Minnesota ID No. 9099423)
RECONCILIATION OF GAMES USED
REGULATORY BASIS
FOR THE YEAR ENDED MARCH 31,1997 AND 1996
3/31(97 3/31196
NUMBER NUMBER
AMOUNT ()F GAMES AMOUNT OF GAMES
PULL -TABS
Cost of Games Used
Beginning Inventories 944.43 22 1,888.24 42
Purchases 12,170. ^8 291 9,886.96 231
Subtotal 13,115.41 313 11,775.20 273
Less: Ending Inventories 3,393.46 80 944.43 22
Total Cost of Games Used 9,721.95 233 10,830.77 251
Reconciliation of Games Used
Games Used Per Books Above 233 251
Games Used and Reported Per Gross
Revenues by Month 234 250
Difference or Possible Unreported Gaines -1 1
NUMBER NUMBER
AMOUN C OF GAMES AMOUNT OF GAMES
TIPBOARDS
Cost of Games Used
Beginning Inventories 0.00 0 0.00 0
Purchases 1,707.00 372 0.00 0
Subtotal 1,707.00 372 0.00 0
Less. Ending Inventories 418.00 88 0.00 0
Total Cost of Games Used 1,289.00 284 0.00 0
Reconciliation of Games Used
Games Used Per Books Above 284 0
Games Used and Reported Per Gross
Revenues by Month 284 0
Difference or Possible Unreported Gaines 0 0
(9)
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Board of Directors and Members
Hopkins Elks Lodge No. 2221
Hopkins, Minnesota
INDEPENDENT AUDITOR'S REPORT ON
ADDITIONAL INFORMATION
Our report on our audits of the basic financial statements of the Lawful Gambling Fund
of Hopkins Elks Lodge No. 2221 for 1997 and 1996 appears on page 2. Those audits
were made for the purpose of forming an opinion on the basic financial statements taken
as a whole. The supplementary information on pages 9 through 11 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.
Bloomington, Minnesota
October 22, 1997
(8)
DANIEL A NELSON, LPA
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Gross Profit
LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #B- 00365)
ANALYSIS OF MAXIMUM ALLOWABLE EXPENSES
AS A PERCENTAGE OF GROSS PROFIT
REGULATORY BASIS
FOR THE YEARS ENDED MARCH 31, 1997 AND 1996
Allowable Expenses
Cost of Games Used
Compensation and Payroll Taxes
Accounting and Legal Services
Advertising
Bank Charges & Supplies
Gambling Equipment and Repairs
Investigative Fee
License Renewals
Penalty & Interest
Rent
Utilities
Reimbursement of Negative Expenses
Cash Shortages
Total Allowable Expenses
Maximum Allowable Expenses by Minnesota
State Statutes
Excess of Maximum Allowable Expenses in Excess
of Allowable Expenses - Current Year
Beginning Cumulative Maximum Expenses in
Excess of Allowable Expenses
Ending Cumulative Maximum Allowable Expenses
in Excess of Allowable Expenses
(10)
1997 1996
87,296.00 91,522.80
11,914.88
31,715.72
1,214.00
0.00
1,691.47
1,385.04
0.00
200.00
0.00
0.00
0.00
0.00
1,073.00
11,273.64
36,188.41
1,200.00
0.00
1,964.11
314.18
0.00
700.00
0.00
0.00
0.00
0.00
1,172.50
49,194.11 52,812.84
43,648.00 45,761.40
- 5,546.11 - 7,051.44
62,038.61 69,088.61
56,492.50 62,038.61
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Profit Carryover from Financial Statements
Profit Carryover from Tax Report
Variance from Balance
LAWFUL GAMBLING FUND OF
HOPKINS ELKS LODGE NO. 2221
(License #B- 00365)
RECONCILIATION OF PROFIT CARRYOVER
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31,1997 AND 1996
1997 1996
ADDITIONS:
Cash in gambling bank accounts 14,011.26 4,953.00
Cash in starting banks 1,700.00 700.00
Ending inventory 3,811.46 944.00
Cash receipts not deposited from games
closed and reported on schedules B 0.00 0.00
Other 1,117.00 0.00
TOTAL ADDITIONS 20,639.72 6,597.00
SUBTRACTIONS:
Tax to be paid to department of revenue 0.00 0.00
Net cash receipts from games in play and
unreported at month end 0.00 0.00
Net loans included in bank statement
balance above 23,000.00 8,000.00
Unpaid invoices included in ending inventory 0.00 0.00
Unpaid invoices included in cost of goods sold 0.00 0.00
Other 0.00 0.00
TOTAL SUBTRACTIONS 23,000.00 8,000.00
- 2,360.28
- 3,464.25
1,103.97
- 1,403.00
- 1,378.00
-25.00
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to
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To the Board of Directors
Hopkins Elks Lodge No. 2221
We have audited the financial statements of the Lawful Gambling Fund of the Hopkins
Elks Lodge No. 2221 as of and for the year ended March 31, 1997, and have issued our
report thereon dated October 22, 1997.
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 the 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.
Bloomington, Minnesota
October 22, 1997
(12)
DANIEL A. NELSON, LPA
Yes, No or N/A
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Yes
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Yes
3
Yes
4
Yes
5
Yes
6
Yes
7
Yes
8
N/A
9
Yes
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Name of Organization: HOPKINS ELKS LODGE NO. 2222!
Organization License Number: B - 00365
REGULATORY CHECKLIST QUESTIONNAIRE
Minnesota Rule 8122.0550 Subp. 613
Date of Audit or Review: September 30, 1997
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 inunediate 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.
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 all rent for the lease of premises in accordance with
its lease agreements.
(13)