An Audit Report on the Charitable Bingo Operations Division at the Texas Lottery Commission Page: 13 of 26
26 p.View a full description of this report.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
For 6 of the 43 conductors tested, Agency policies and procedures require
the Agency to document that the charity was in good standing with the
Office of the Secretary of State. However, 2 (33 percent) of those 6 files
did not include that documentation.
Forty of the 43 conductors tested were required by Agency policies and
procedures to include a playing schedule with their application. However,
3 (8 percent) of those 40 did not have this in the file during this audit.
Completed checklists in these three files indicated that the game schedules
existed at the time the Agency approved the three licenses.
The Agency ensured compliance with certain requirements in the Bingo
Enabling Act, but it did not have a process to monitor compliance with a
statutory rent requirement.
Based on an analysis of lessor and conductor license information in ACBS,
auditors confirmed that the Agency ensured compliance with certain
requirements in the Bingo Enabling Act. Specifically, the Agency ensured
compliance with:
Texas Occupations Code, Section 2001.402 (c), which requires that no
more than seven licensed authorized organizations may conduct bingo at
the same premises.
Texas Occupations Code, Section 2001.432 (b), which states that a
licensed authorized organization may not be a member of more than one
"unit." Texas Occupations Code, Section 2001.431(1), defines a "unit" as
"two or more licensed authorized organizations that conduct bingo at the
same location joining together to share revenues, authorized expenses, and
inventory related to bingo operations."
However, the Agency did not have a process to monitor compliance with
Texas Occupations Code, Section 2001.406(a), which states:
The rent charged by a licensed commercial lessor to a
licensed authorized organization to conduct bingo may
not exceed $600 for each bingo occasion conducted on
the lessor's premises unless the organization subleases
the premises to one or more other licensed authorized
organizations to conduct bingo, in which event the rent
charged by the licensed commercial lessor may not
exceed $600 for each day.
Auditors identified one instance in which a lessor reported charging $15,200
for rent for one occasion for the quarter ending March 31, 2008. After
auditors brought this to the Agency's attention, the Agency contacted that
lessor. According to the Agency, the lessor submitted an amended quarterly
report that indicated the lessor charged an appropriate amount for rent.
An Audit Report on
The Charitable Bingo Operations Division at the Texas Lottery Commission
SAO Report No. 11-002
September 2010
Page 8
Upcoming Pages
Here’s what’s next.
Search Inside
This report can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Report.
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/m1/13/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.