An Audit Report on the Charitable Bingo Operations Division at the Texas Lottery Commission Page: 11 of 26
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Chapter 2
The Agency Has Policies and Procedures to Help Ensure That It
Licenses Only Qualified Entities to Conduct Bingo Games, But It
Should Ensure That Its Licensing Files Are Complete
The Agency has policies and procedures to help ensure that it licenses only
qualified entities to conduct bingo games. Auditors tested licenses that the
Agency issued to lessors and conductors during calendar years 2007,
Conductors and Lessors 2008, and 2009 (see text box for definitions of lessors and conductors).
"A lessor is an individual who is During those years, the Agency complied with the Bingo Enabling Act
licensed to lease premises for the and the majority of its policies and procedures for the lessors that
"A conductor is a licensed auditors tested. It also complied with the Bingo Enabling Act and
authorized organization that holds a policies and procedures for the majority of the conductors that auditors
license to conduct bingo." tested.
Source: 2009 Annual Report,
Charitable Bingo Operations Division,
Texas Lottery Commission. Auditors also verified that the Agency ensures that bingo licensees
remit the correct amount of license fees to the State. For lessors, the
amount of license fees remitted is based on gross rentals; for conductors, the
amount of license fees remitted is based on gross receipts.
The Agency should ensure that its licensing files for lessors are complete.
The Agency complied with the Bingo Enabling Act and the majority of its
policies and procedures for licensing the lessors that auditors tested. Auditors
tested 30 lessor files (those files covered 34 licenses because some lessors
have licenses for multiple bingo halls), and all 30 files included:
- Completed background checks, as required by the Bingo Enabling Act.
- Documentation stating that the applicant did not have a lessor license
revoked in the last year, as required by the Bingo Enabling Act.
- An application that was completed and signed by the lessor, as required by
Agency policies and procedures.
A completed Agency checklist signed by the preparer (an Agency
employee) and the reviewer (a second Agency employee), as required by
Agency policies and procedures.
However, the Agency's lessor licensing files were not always complete.
Specifically:
For 28 of the 34 lessor licenses tested, the Agency's policies and
procedures required the files to include a game schedule with the
application. However, 2 (7 percent) of those 28 files did not have this
schedule in the file during this audit. Completed checklists in those two
An Audit Report on
The Charitable Bingo Operations Division at the Texas Lottery Commission
SAO Report No. 11-002
September 2010
Page 6
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Texas. Office of the State Auditor. An Audit Report on the Charitable Bingo Operations Division at the Texas Lottery Commission, report, September 2010; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth518128/m1/11/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.