SGOC Accountability for your 70-30 time running out

If any SGOC Licensee has not yet accounted for your 70-30 from last year, the Bureau gave you until the end of this month to ensure you have accounted for the 70% Donations & 30% Operational Proceeds.   This is only because the Bureau is giving you some leeway in reconciling your numbers from last year, they were good enough to give you 30 extra days to ensure you accounted for the money.  When I spoke with the Bureau, they stressed that the monies should have been used by 12/31/2012 but they were giving licensees a 30 day leeway.  The leeway time given was in synch with the original deadline to electronically file with the PA Department of Revenue.  As you know the requirement to file electronically with the PA Department of Revenue has been pushed to Feb 1, 2014.

This past year is the first time the State permitted clubs to use ANY of the money.   If you did not use all of 30% money you were permitted to use in 2012, you can ‘carry proceeds forward to 2013’ if you have a project or purchase that the money will be funding. 

If you carry any of the 30% forward you must notify  the Department of Revenue that funds are being retained for a substantial purchase or project and you will  need to include a description of the purchase or project, the cost and the anticipated date of the purchase or project.   

** Approved “operational expenses”:

– Real property taxes.
– Utility and fuel costs.
– Heating and air conditioning equipment or repair costs.
– Water and sewer costs.
– Property or liability insurance costs.
– Mortgage payments.
– Interior and exterior repair costs, including repair to
   parking lots.
– New facility construction costs.
– Entertainment equipment, including television, video                                                                                                                               
  and electronic games.
– SGOC licensing fee and background check fees.
[SGOCA §103]

I confirmed with the Bureau that you can apply common sense and logic to your operational expenses.

For instance:

-You can apply the cost for your trash pickup to the Water and Sewer Costs category as long as you add in the note that the payment was for trash pickup (if it is not already obvious by the payee’s name)

-You can apply the cost for sidewalk salt to Interior and exterior repair costs
Etc..

Keep in mind the Bureau’s main goal is having the Licensee’s be Accountable.   If you enter something that does not make sense to you, it will not make sense to the Bureau, so use common sense when entering your operational expenses.

 

Sources:

**http://www.lce.state.pa.us/portal/server.pt/community/hide_-_liquor_control_enforcement/5900/small_games_of_chance_schedules/501941
Reference the Explanation of SGOC Schedules.pdf