# Title 99 — State Gaming Commission

## Article 99-01.3 — Games of Chance

## Chapter 99-01.3-03 — Accounting Rules

and Reconciliation
### § 99-01.3-03-01. Accounting records and system of internal control.

1. An organization shall retain purchase invoices, receipts, accounting and bank records,
including receipts documenting eligible uses and solicitations for net proceeds, for three years
from the end of the quarter in which the activity was reported on a tax return, unless otherwise
provided by rule.
2. A governing board of the organization shall establish a written system of internal control,
comprised of accounting and administrative controls. An organization may not permit any
unauthorized person as determined by the governing board from reviewing this system. If the
attorney general determines that a system of internal control is inadequate, an organization
shall address the inadequacy. This subsection does not apply to an organization that only
conducts a calcutta, raffle, sports pool, paddlewheel described by subsection 1 of section
99-01.3-11-01, or poker, or is involved only in conducting no more than two events during a
fiscal year of July first through June thirtieth and each event lasts no more than fourteen
calendar days.
3. Accounting controls must include procedures and records that achieve these objectives:
a. Transactions are executed as authorized by management;
b. Gaming activity is properly recorded;
c. Access to cash, games, and other assets is permitted as authorized by management;
and
d. Assets recorded on records are periodically compared to actual assets and any
differences are resolved.
4. Administrative controls must describe the interrelationship of employee functions and their
division of responsibilities.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1,
2006; July 1, 2010; July 1, 2018.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1

### § 99-01.3-03-02. Gaming account.

1. An organization shall maintain all gaming accounts at financial institutions located in North
Dakota. These accounts must be used for depositing gaming funds and transferring net
proceeds to a trust account, except as provided by subsection 3. All gaming prizes paid for by
check, including cash and merchandise, must be paid from the gaming account. Transfers
must be made by the last day of the quarter following the quarter in which the net proceeds
were earned. The transfer date is the date the funds actually are received in the trust fund.
The amount transferred must be for an amount equal to or greater than the adjusted gross
proceeds, less gaming taxes, and less the greater of actual or allowable gaming expenses for
the quarter. The gaming account may be used for payment of expenses. An organization may
transfer funds to its general account for payment of expenses. If an organization is not
required to maintain a trust account, a disbursement of net proceeds to an eligible use must
be payable to the ultimate use or recipient. A payment may be made by electronic transfer.
2. Interest earned is other income. A service fee is an expense.
3. Organizations shall reimburse the gaming account as required by section 99-01.3-03-05 and
may deposit raffle nongaming funds, bingo dauber receipts, fees from players who use bingo
card marking devices, and prizes paid by an insurance company to an organization for
payment to a player. Any additional deposit of nongaming funds into a gaming account must
be communicated to the attorney general within five business days of the deposit.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1,
2006; July 1, 2010; July 1, 2012; April 1, 2016; July 1, 2018.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1, 53-06.1-11
### § 99-01.3-03-03. Trust account.

1. An organization shall maintain all trust accounts at financial institutions located in North
Dakota. If an organization only conducts a calcutta, raffle, sports pool, paddlewheel described
by subsection 1 of section 99-01.3-11-01, or poker or a combination of these games, or is
involved in conducting no more than two events during a fiscal year and each event lasts no
more than fourteen calendar days, an organization is not required to maintain a separate trust
account and may use the gaming account for the disbursement of eligible uses. Trust
accounts are used only to disburse net proceeds to eligible uses and must receive only funds
from a gaming account, except to reimburse the account as required by section 99-01.3-03-05
and as provided by subsections 5 and 13 of section 99-01.3-14-01. Interest earned and
service fees incurred by trust checking and savings accounts must be reported as
adjustments to the trust account on a tax return. A transfer of net proceeds to another trust
account or to a closely related organization is not a disbursement of net proceeds. Net
proceeds cannot be pledged as collateral for any loan.
2. An organization shall disburse net proceeds within a reasonable time period.
3. An organization may not transfer funds from a trust account to any other bank account, except
for transferring funds to another trust account or to reimburse its general account for
compensation that qualifies as an eligible use. A reimbursement must be documented by a
supporting schedule. If a disbursement of net proceeds is for an expense item that includes
both nongaming (an eligible use) and gaming functions, only the nongaming eligible use
portion can be paid with trust account money. The organization shall maintain complete,
accurate, and current documentation detailing the proration of the expense between
nongaming and gaming. A disbursement must be payable directly to the ultimate use or
recipient. However, an organization may make a payment directly to a credit card company for

charges on a credit card provided that an organization can identify purchases that qualify as
an eligible use from other purchases. A payment may be made by electronic transfer.
4. If an organization invests net proceeds in a certificate of deposit, bond, stock, mutual fund, or
other marketable securities, all income earned, including interest, dividends, and capital gains,
must be reported each quarter as a positive adjustment on a tax return and be disbursed to an
eligible use. If the net effect of the investment in marketable securities results in an actual
loss, the organization may not deduct the loss on a tax return. A service fee is an adjustment
to the account's balance.
5. For reporting purposes, an organization may elect to report the gain in market value of the
accounts outlined in subsection 4. Adjustments can be made for decreases in market value;
however, such decreases cannot reduce the account's value below its adjusted basis. Electing
to report securities at market value must be consistently applied each quarter.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1,
2006; July 1, 2010; April 1, 2016; July 1, 2018; January 1, 2023.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1, 53-06.1-06
### § 99-01.3-03-04. Restrictions and requirements.

1. An organization is allowed an expense limit according to subsection 2 of North Dakota
Century Code section 53-06.1-11. The allowable expense amount may be used for any
purpose that does not violate the gaming law or rules.
2. An organization may not base an employee's compensation on a participatory percentage of
gross proceeds, adjusted gross proceeds, or net proceeds. An organization may pay a fixed
bonus through an incentive program.
3. An organization may not pay or reimburse, nor may a lessor accept a payment or
reimbursement from an organization, for any media advertising done by the lessor or any
other person that is related to games at a site unless the organization's share of this expense
is prorated to the benefit the organization receives and the media advertising is voluntary by
the organization.
4. An organization may not pay or reimburse a lessor or share in the cost, nor may a lessor
accept a payment, reimbursement, or sharing of the cost from an organization, of any sign
advertising related to games at a site unless the sign is not owned by the lessor. If a lessor
rents an advertising sign from a vendor, the organization's share of this expense must be
prorated to the benefit the organization receives and the sign advertising is voluntary to the
organization.
5. A player's uncollectible check is an expense. If an organization establishes a policy to reduce
a player's cash prize by the amount of the player's uncollectible check and award the player
the difference, if any, the organization shall post or make available to players that policy.
6. If a door prize is awarded as a promotion of games, the cost of the door prize is an expense.
7. A net cash short is an expense and a net cash long is other income for a quarter.
8. Only an unopened pull tab, including unplayed electronic pull tabs, unopened set of stapled jar
tickets, or set of banded jar tickets that has the band intact may be accounted for as unsold or
defective when a game is reported on a tax return. An organization shall account for any
single unsold or defective jar ticket at a proportional selling price of a stapled set of jar tickets.
9. If foreign currency is exchanged into United States currency, any loss is an expense.

10. The attorney general shall determine whether a theft of an organization's gaming funds can be
deducted from gross proceeds and adjusted gross proceeds on its tax return and notify the
organization. The attorney general shall consider whether the organization:
a. Immediately reported the theft to a local law enforcement agency and the attorney
general;
b. Has documentation that substantiates the theft amount;
c. Had physical security of the funds;
d. Has an adequate system of internal control; and
e. Incurred an identifiable theft.
11. If an organization rents out gaming equipment, the income is nongaming income.
12. All accounting records must be completed and initialed or signed with permanent ink. All
signatures and initials on accounting records attesting to the information recorded must be
handwritten and may not be digital images or computer generated. The use of correction fluid
or correction tape to make changes to accounting records is prohibited. Changes must be
made with a single strikethrough of the original amount, writing the correct amount, and
initialed by the individual making the change.
13. An organization shall maintain a register of all individuals who initial or sign a record or report,
including outside service providers who provide auditing, accounting, and bookkeeping
services. Any financial institution or bar employee who provides drop box cash count services
is not required to be included on the register; however, the financial institution or bar employee
shall legibly sign their full name on the daily report when providing drop box cash count
services. The register must include each individual's name and the initials or signature as the
individual normally writes them on a record or report. The initials or signature of an individual
on a record or report attests that to the individual's best knowledge the information is true and
correct.
14. The fees charged to players to enter a twenty-one tournament and the prizes awarded, must
be reported as other income on a tax return.
15. For computing prizes on a tax return, a merchandise prize and a gift certificate are valued at
an organization's actual cost, including sales tax, and a donated prize is valued at zero.
16. An organization shall own and possess, have a contract to acquire, or be able to obtain a
prize being offered for a game. A winning player may not be required to first pay for or buy
something to receive a prize. However, an organization does not need to register or title an
automobile or similar item.
17. If a prize winner is ineligible to receive a merchandise prize, the organization may convert the
prize to a cash prize or other merchandise prize of at least equal value, provided that the
conversion of a raffle prize does not exceed the limits outlined in North Dakota Century Code
section 53-06.1-10.1.
18. If a gaming prize is not claimed by the winning player and has previously been reported on a
tax return, an organization shall amend the applicable tax returns to account for the
unredeemed prize.
19. When a deal of pull tabs, club special, tip board, seal board, raffle board, prize board,
sports-pool board, calcutta board, or a series of paddlewheel ticket cards is placed in play, an
employee shall compare the game serial number on the pull tab, board, or card to the serial

number on the state gaming stamp. If the two serial numbers are different, an employee shall
immediately notify the distributor.
20. If an organization pays a fee to an insurance company to insure a contingency cash or
merchandise prize for bingo or a raffle, the fee is an expense. If the insurance company pays
or provides a prize to a winning player, it is not reported as a prize on a tax return.
21. If an organization temporarily releases its site authorization to allow another organization to
conduct gaming at a site, the primary site holder shall provide the temporary organization with
a signed statement of site release, include the duration which it is valid, and provide a copy to
the attorney general's office at least fourteen days prior to the site release.
22. If an organization does not intend to reapply for a license for the next fiscal year, its license is
revoked or suspended for a period of more than six months, or its license application is
denied, and it has net proceeds that are not disbursed, the organization shall file an action
plan with the attorney general. The plan must be filed within thirty days of the expiration of the
license or when the license is relinquished, revoked, suspended, or the license application is
denied, and include a planned timetable for disbursing all the net proceeds and anticipated
uses.
If the action plan is not timely filed, net proceeds must be disbursed within ninety days of the
expiration of the license or when the license is relinquished, revoked, suspended, or the
license application is denied. The disbursement must be reported to the attorney general.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; July 1,
2010; July 1, 2012; April 1, 2016; July 1, 2018; January 1, 2023.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1, 53-06.1-06, 53-06.1-11
### § 99-01.3-03-05. Reconciliation of net proceeds and trust account carryovers.

If an organization's gaming account check register balance is less than its net proceeds carryover
balance or its trust account check register balance is less than its trust account carryover balance, or
both, as reported on the tax return for the quarter ended December thirty-first, the organization shall
deposit the amount of the difference in the respective account by January thirty-first or an extended
date approved by the attorney general. The source of the deposit must be nongaming funds. An
organization shall provide the attorney general with evidence of the deposit.
History: Effective May 1, 1998; amended effective July 1, 2000.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1
### § 99-01.3-03-06. Gross proceeds, IOUs, documenting cash and chip banks.

1. Gross proceeds for a game must be separately maintained while the game is conducted. An
organization shall use a separate cash bank for each game. However, for electronic pull-tab
device activity, the organization shall use one cash bank for all electronic pull-tab games
conducted at the site by the same manufacturer. The cash banks for twenty-one and
paddlewheel activity described by subsection 2 of section 99-01.3-11-01, may be combined
and the cash banks for pull-tab games at a site may be combined, if approved by the attorney
general. If an employee needs to establish or replenish a cash bank by withdrawing funds
from the gaming account, the employee shall execute a withdrawal by check or other
withdrawal method and reference the site, specific game's name, other game type, or the
combined cash bank. If a cash bank needs replenishment and another specific game or other
game type's cash bank, cash reserve bank, or other funds from nongaming sources are used,
an IOU form must be used to record the loan and payback. An IOU form must include:

a. The source and destination of the funds;
b. For a club special, prize board, tip board, seal board, raffle board, sports-pool board,
series of paddlewheel ticket cards, and punchboard, the game's gaming stamp number;
c. Amount and date of loan and repayment; and
d. Initials of a cashier or an employee for each transaction.
2. An organization shall document each bingo session's and each game's daily starting and
ending cash on hand, including a cash reserve bank. Unless there is only one employee on
duty when a site opens or closes, two persons shall participate in the cash count in the
presence of each other. After completing and documenting the cash count, both persons shall
initial the record.
3. An organization shall document the daily starting and ending chip banks for casino and betting
chips, including on the date of a poker occasion, an organization's no-value poker chips. The
chip banks for twenty-one, and paddlewheel activity described by subsection 2 of section
99-01.3-11-01, may be combined. Unless there is only one employee on duty when a site
opens or closes, two persons shall participate in the count of the chips in the presence of each
other and record the count by denomination of chip or total quantity of no-value chips. After
completing and documenting the chip count, both persons shall initial the record.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1,
2006; July 1, 2012; April 1, 2016; July 1, 2018; January 1, 2023.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1
### § 99-01.3-03-07. Prize register.

For a bingo session, raffle drawing, sports-pool board, calcutta board, paddlewheel excluding the
use of a table, and twenty-one or poker tournament, an employee shall legibly print this information on
a prize register or similar document when a prize is issued to a player:
1. Name of the site;
2. Game type:
a. Bingo - Date of the session and game number.
b. Raffles - Date of the drawing, winning ticket number, gaming stamp number (if
applicable), and initials of two employees who conducted the drawing unless the initials
are on another document.
c. Sports pools - Date of the sports event, winning score, and gaming stamp number.
d. Twenty-one or poker tournament - Date of the tournament.
e. Calcutta - Date of the sports event and gaming stamp number.
f. Paddlewheel excluding the use of a table - Date of the event, card number, winning ticket
number, and gaming stamp number;
3. Amount of a cash prize or a description, cost, and retail price of a merchandise prize;
4. Full name of player and for a bingo prize exceeding one hundred dollars, signature of player;
5. Total amount of cash and cost of merchandise prizes awarded; and

6. Initials of preparer.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; April 1,
2016; July 1, 2018.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1
### § 99-01.3-03-08. Record of win.

1. An employee shall prepare a record of win if a player wins a last sale prize, a seal prize, a
cash prize greater than five hundred dollars, a merchandise prize that has a retail price
exceeding five hundred dollars, or a donated merchandise prize with a fair market value
exceeding five hundred dollars, or wins a cash prize but receives a partial payout of the prize
in cash and the remainder by check. If a pull tab has two or more winning prize patterns, the
requirement is based on the value of each prize pattern. A record of win must be completed
for the total prize even if a player splits the prize with another person. The record may be a
check drawn from the gaming account, a receipt, or the flare of a sports-pool board, calcutta
board, club special, tip board, prize board, punchboard, seal board, raffle board, or winning
bingo card. A bar employee shall print this information on a receipt or an employee shall print
this information on a check, receipt, flare, or card unless it is already provided:
a. Name of the site;
b. Game type and, by game type:
(1) Bingo - Date of the session, game number, cash prize amount or description of a
merchandise prize and retail price, and date of prize payout if different from the date
of the session.
(2) Raffles - Date of the drawing, winning ticket number, gaming stamp number (if
applicable), cash prize amount or description of a merchandise prize and retail
price, and date of prize payout if different from the date of the drawing.
(3) Pull tabs and prize boards, including a dispensing device, punchboards, club
special, tip board, and seal board - Name of the game, cash prize amount or
description of a merchandise prize and retail price, date of activity, and gaming
stamp number. For a game with a last sale prize or a seal prize, the gaming stamp
number must correspond with the respective deal's flare.
(4) Sports pools - Date of the event, cash prize amount, date of prize payout, and
gaming stamp number.
(5) Twenty-one or poker tournament - Date of the tournament, cash prize amount, or for
twenty-one tournaments only, description of a merchandise prize and retail price.
(6) Calcuttas - Date of the event, cash prize amount, date of prize payout, and gaming
stamp number;
c. A player's full name and address:
(1) If the player is present but not personally known by a bar employee or an employee,
this information must be recorded from a pictured driver's license or tribal,
government, or military identification;
(2) If the player is present but does not have one of these pictured identifications, a bar
employee or an employee shall record the player's full name from another form of
identification or mail the prize to the player; or

(3) If the player is not present, verification of this information is not required and the
prize must be mailed; and
d. Initial of a bar employee or an employee.
2. After a record of win is completed at a site, a player shall sign and date it. However, this rule
does not apply to a prize mailed to a player.
3. Unless a prize is for a last sale prize feature, a bar employee or an employee shall print, in ink,
the check or receipt number on a pull tab or punchboard punch.
4. A player who has actually won a prize shall claim the prize. A bar employee or employee may
not falsify or permit a player to falsify a record of win or enable a player to conspire with
another person to have the other person claim a prize. If a bar employee or employee
determines that a player has falsified or attempted to falsify a record of win before the prize
payout, the bar employee or employee shall deny the player the prize and notify the attorney
general and local law enforcement agency.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1,
2006; July 1, 2010; April 1, 2016; July 1, 2018; January 1, 2023.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1, 53-06.1-11
### § 99-01.3-03-09. Inventory records of games, paper bingo cards, tickets, cash banks, and

chips and reconciliation.
1. An organization shall maintain master and site inventory records of all deals and games that
have a state gaming stamp affixed to their flares. The master records must include the sales
invoice number, date received, name of game, dates of issuance to and received from a site,
site name, date deal was placed, date game (that the deal was played as part of) was closed,
and quarter the deal was reported on the tax return, by gaming stamp number. The site
records must include the gaming stamp number, date received, date placed, and date game
(that the deal was played as part of) was closed, by site and name of game. If an organization
has only one site where inventory is stored, it may combine the master and site inventory
records. Annually an organization shall reconcile its inventory records of all deals and games
that have a state gaming stamp affixed to their flares that are recorded as being in play and in
inventory as unplayed to the items that are actually in play and in inventory. This includes all
games and deals that have not been reported on a tax return. A person who does not have
sole access, shall count these items that are actually in play and in inventory, compare this
count to the inventory records, and resolve any difference.
2. An organization shall maintain master and site inventory records of paper bingo cards. The
master records must include for each primary color and type of card, the sales invoice
number, date received, number of cards bought, serial number, dates of issuance to a site,
site name, and quantity of cards issued to the site, or include information prescribed by a
method approved by the attorney general. If an organization has only one site where inventory
is stored, it may combine the master and site inventory records. The site records for each
series must include site name, primary color and type of card, serial number, quantity
received, date received, and quantity issued and returned for each session, or include
information prescribed by a method approved by the attorney general. Annually an
organization shall reconcile its inventory records of paper bingo cards that are recorded as
being in inventory to the cards that are actually in inventory. A person who does not have sole
access, shall count these items that are actually in inventory, compare this count to the
inventory records, and resolve any difference.

3. An organization shall maintain master and site inventory records of rolls of tickets. The master
records must include for each ticket roll the color of the roll, date received, beginning ticket
number, ending ticket number, number of tickets bought, date of issuance to a site, and site
name, or include information prescribed by a method approved by the attorney general. If an
organization has only one site where inventory is stored, it may combine the master and site
inventory records. The site records must include site name, color of roll, beginning ticket
number, ending ticket number, quantity received, date received, and quantity issued and
returned for each session or event, or include information prescribed by a method approved
by the attorney general. Annually an organization shall reconcile its inventory of tickets. This
reconciliation must include verification of the starting ticket number and total number of
remaining tickets that are recorded as being at the home office and site to the tickets that are
actually on hand. A person who does not have sole access, shall count the tickets at the home
office and site, compare this count to the inventory records, and resolve any difference.
4. An organization shall maintain a master record of ideal cash bank amounts and account for
permanent increases or decreases. For each cash bank, the record must include the site,
game type, game identifier, and amount. When a cash bank is started or when the ideal
amount is permanently increased or decreased, the date, check number, amount, source or
destination of the funds, and updated ideal cash bank amount must be recorded. Annually an
organization shall reconcile its master cash bank records to the actual cash banks. A person
who does not have sole access, shall count the cash banks, compare the count to the current
ideal cash bank amount recorded on the record, and resolve any difference.
5. An organization shall maintain casino and betting chip master and site inventory records. The
records must include the dates chips are acquired, transferred to, and received from a site
and running totals, by value of chip. Annually an organization shall reconcile its inventory of
chips that are recorded as being at the home office and site to the chips that are actually in
inventory. If an organization has only one site where inventory is stored, it may combine the
master and site inventory records. A person who does not have sole access, shall count the
chips in inventory at the home office and site, compare this count to the inventory records, and
resolve any difference.
6. The count and reconciliation must be done by a person who does not have sole access to
deals, games, paper bingo cards, rolls of tickets, cash banks (and who does not have sole
signatory authority of the gaming account), or chips. It must be documented, including the
name and title of the person who does the count and reconciliation, date and procedure
performed, result, corrective action taken, and initials of that person.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1,
2006; July 1, 2010; July 1, 2012; April 1, 2016; July 1, 2018; January 1, 2023.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1
### § 99-01.3-03-10. Bank deposit and audit.

1. The cash profit, less a documented increase or plus the decrease in the starting cash on hand
for the next gaming activity, plus cash and merchandise prizes paid by check and cost of coins
for a prize board, must be deposited in the gaming account by the third banking day following
the day of a bingo session or electronic quick shot bingo session; club special, prize board, tip
board, seal board, or punchboard is removed from play; sports-pool game; calcutta event;
raffle board event, poker occasion; day's or interim period's pull tab and prize board, and
twenty-one or paddlewheel activity. However, the receipts for a raffle, calendar or master
sports-pool board, or paddlewheel described by subsection 1 of section 99-01.3-11-01 must
be deposited in the gaming account by the third banking day following receipt of the cash by
the person responsible for the activity.

2. For a day's pull tab activity, bingo session, electronic quick shot bingo session, raffle drawing,
poker occasion, twenty-one and paddlewheel activity, and interim period's pull-tab activity
involving a dispensing device, a deposit slip must reference a site, name of the game, game
type, name of manufacturer, date of activity, and deposit amount. For an interim period deposit
for electronic pull-tab activity, the deposit slip must reference a site, game type, date of
activity, and deposit amount. The deposit amount for twenty-one and paddlewheel activity
described by subsection 2 of section 99-01.3-11-01, may be combined. For a club special,
prize board, prize board involving a dispensing device, tip board, seal board, punchboard, and
series of paddlewheel ticket cards, a deposit slip must reference a site, game type, date
removed from play or date of activity, deposit amount, and gaming stamp number. For a
sports-pool board, raffle board, or calcutta board, a deposit slip must reference a site, date of
the event or auction, deposit amount, and gaming stamp number. For all game types, an
employee who prepares a deposit shall initial the bank deposit slip. If another employee
makes the bank deposit and has access to the cash, the employee shall also initial the bank
deposit slip.
3. If a deposit slip is prepared for more than one game or game type, the deposit slip or
supporting schedule must include the information required by subsection 2 for each game or
game type. A supporting schedule must reconcile to a validated bank deposit receipt.
4. For a bank deposit, a person shall record the amount to be deposited on the game's
accounting record and retain a copy of the bank deposit slip and any supporting schedule.
This person shall forward the accounting record, copy of the bank deposit slip, and any
supporting schedule to a bookkeeper. A second person shall take custody of the bank deposit
funds and the original of the bank deposit slip and take them to a financial institution or
arrange for the funds to be deposited. If, before the bank deposit is made, the custody of bank
deposit funds is transferred from a person to another person, face-to-face, and the cash is
accessible to be counted, both persons shall participate in a count of the cash in the presence
of each other and resolve any difference. After completing and documenting the cash count,
both persons shall initial and date the original of the bank deposit slip. The person who makes
the bank deposit shall forward the validated bank deposit receipt to a bookkeeper. A validated
bank deposit receipt, copy of the bank deposit slip, and any supporting schedule must be
included with the accounting records. An organization shall comply with this rule unless it uses
another bank deposit procedure which has proper accounting control.
5. If an employee prepares or has custody of a bank deposit which is not scheduled to be
immediately deposited, the employee shall safeguard the funds.
6. An employee who did not have access to the cash to be deposited shall, within a reasonable
time, verify that the amount recorded on a daily or interim accounting record to be deposited
was actually deposited according to a bank statement. The employee shall document the
verification by initialing the accounting record and dating it. If more than one deposit amount is
recorded on an accounting record, the employee shall initial the record for each verified
deposit amount and date the record.
7. A closed game or daily activity must be audited, within a reasonable time, by a person who did
not conduct the game, have sole access to the games in play, and who did not have sole
access to the total receipts or cash profit for the game's or day's activity. This person may not
have sole signatory authority of the gaming account or sole electronic access to the gaming
account other than to view account information and may not make electronic deposits,
withdrawals, or transfers into or out of the account. This person may not audit a closed game
or daily activity that was conducted by a common household member, spouse, child, parent,
brother, or sister of the audit person. A drop box cash count team member may not be the
person responsible for auditing the twenty-one or paddlewheel with a table activity. A person
who audits a closed game or daily activity shall verify the number and value of unsold

chances, gross proceeds, number and value of prizes, adjusted gross proceeds, and cash
profit. If the audit reveals an irregularity, the person shall notify the appropriate organization
representative.
History: Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1,
2006; July 1, 2010; July 1, 2012; April 1, 2016; July 1, 2018; January 1, 2023.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1
### § 99-01.3-03-11. Audit.

Repealed effective July 1, 2000.
### § 99-01.3-03-12. Tax return.

1. An organization that has an active license shall file a tax return each quarter. Closely
connected organizations shall file a consolidated tax return. A tax return and payment of tax
for a quarter must be postmarked or hand-delivered by the last day of the month following the
end of the quarter. However, if the last day of the month is a Saturday, Sunday, or holiday, the
due date is the first following business day. An extension for filing a tax return may be granted
for good cause, with approval of the attorney general, by filing a written request explaining the
reason. A request must be postmarked or hand-delivered by the due date of a tax return.
2. An incomplete tax return will not be considered timely filed unless it is correctly completed and
returned by the due date or an approved extended date. A tax return is incomplete if
information is missing or misrepresented, it is not properly signed, instructions are not
followed, current schedules are not used, or required documentation is not provided.
3. An organization shall file a quarterly tax return on its original due date, even though payment
of the entire tax due cannot be paid, to minimize the interest and penalty assessed. An
explanation, including the anticipated payment date, must accompany a tax return received
from an organization to be considered for an installment pay plan. The attorney general may
for good cause allow an organization to make installment payments of delinquent tax, interest,
and penalty.
History: Effective May 1, 1998; amended effective July 1, 2004.
General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1, 53-06.1-12
