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

PA Dept. of Revenue SGOC Report Website - Try it Out

SGOC News and Information Hub

As mentioned in my previous Blog, SGOC Licensee’s will be required to file Annual or Semi-Annual reports with the PA Dept. of Revenue between January 2, 2014 and February 1, 2014.  Failure to do so will result with no SGOC License being renewed to the Licensee.

Per the PA Department of Revenue’s website (see link below where I list sources I use for my information), Reports will not be available for submission until January 02, 2014.  I suggest you practice entering fake or real reportable data into the website and get a feel for how your information needs to be organized so you can enter it beginning on Jan 2^nd, 2014.  Please note any information entered prior to Jan 2^nd, 2014 date will not be saved.  

Some reportable information you will discover licensees are required to enter into the PA Department of Revenue's  Report website;

     ·         Number of W-2G forms issued
     ·         Total gross winnings reported on W-2G forms
     ·         Gross revenue collected for all games of chance, itemized by week and type of game
     ·         Total small games of chance expenses, itemized by week and type of game
     ·         Total prizes paid, itemized by week and type of game
     ·         Proceeds, itemized by week and type of game, detailing the following:
     ·         Amount of proceeds used for public interest purposes, including details regarding the date(s) distributed, name of recipient(s) and the amount(s) distributed;
     ·         Amount of proceeds used for operational expenses, including details regarding amount used for (these are the 30% allowable 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
                         - Small games of chance license and criminal history record information check fee

·         Gross Amount of proceeds retained for a substantial purchase or project, including the description and completion date

Sienna Database System© users will NOT have to enter their data into the PA Dept. of Revenue website, head over to our website if you would like more information www.myersintsystems.com.

Sources:

https://www.doreservices.state.pa.us/SGOC/Report/Default.aspx

PA Small Games of Chance Reporting Law pushed to 2014

                                                              SGOC News and Information Hub

The PA Small Games Of Chance (SGOC) gaming laws had 2 rounds of changes in 2012.   SGOC record keeping requirements have been in place since 1988 and they are impacted for the first time since then with the changes.  The changes introduced in 2012 now require licensees to also adhere to State Reporting requirements including filing electronically with the PA Department of Revenue. 

Originally the State initial reporting period was to begin January 1, 2013 and the deadline was Feb 1, 2013, however the State recently extended the reporting deadline to Feb 1, 2014 in order to give clubs more time to be ready.  The delay by a year of the reporting deadline applies only to annual and semi-annual reporting Licensees. 

Licensees have and always will be required to maintain SGOC records as outlined in the law. 

As mentioned above, for the first time since 1988 the Record Keeping requirements were also impacted with 2012 law changes with the addition of the 50-50 drawing game as it was added to the list of legal SGOC games.  Of course 50-50 drawings like other legal SGOC games must adhere to specific guidelines.  Additional 30% Expense categories for licensees were also added which also impacts Record keeping as well as the new Reporting requirements that kick in January 2014.
There is a good chance additional law changes will be introduced in 2013. 

You can be certain when the SGOC law changes again, The Sienna Database System© will make changes to keep you up-to-date, compliant and accountable for your SGOC Activity.

Myers Integrated Systems, LLC commentary

The 2012 law changes benefit those licensed to sell SGOC, or has it?  That would depend on who you asked.  Both sides that argue the good and bad of the changes have valid points.  However, if you have ever heard the song made famous by Bobby Fuller Four in 1966 “I Fought the Law” then you know there is only one side that counts.

The LCE says that Clubs have been given the opportunity to use 30% of the net proceeds towards costs to operate the club.  Previously, they were supposed to give 100% of the net proceeds to public interest, so the governing factions feel that the Clubs are coming out ahead as they are allowed to use a portion of the money (30%) they previously were not allowed to use.  

I believe the licensees should be required to do a 60-40 split instead of 70-30.  Some clubs with a large enough member base will  survive with the 70-30 split, but many smaller clubs with a limited number of members may not survive unless it changes to at least 60-40.  If the smaller clubs do not survive then public loses.  I have yet to visit a club that did not give back generously to the public and its members.  Social and Fraternal Clubs throughout Pennsylvania have been a blessing to many communities.  My apologies if I did not mention and/or include Licensees that also give back to their communities.