MN SF3713

Organizations licensed under chapter 349 with gross receipts exceeding $750,000 annually must conduct annual financial audits of lawful gambling activities and funds.

Commissioner may require financial audits of organizations with gross receipts under $750,000 if they fail to timely file tax returns, pay taxes or fees, file fraudulent returns, take corrective actions, or otherwise fail to comply with gambling regulations.

All audits must be performed by independent accountants licensed under chapter 326A, with standards prescribed by the commissioner of revenue consistent with American Institute of Certified Public Accountants standards.

Organizations must perform annual certified inventory and cash counts at fiscal year-end and submit reports to the commissioner within 30 days using commissioner-prescribed forms.

Charitable organizations conducting lawful gambling under chapter 349 must calculate gambling revenue by subtracting prizes actually paid from gross receipts when determining if they meet the $750,000 total revenue threshold requiring an audited financial statement.