Section 3.05 - Reporting and Record Keeping(1)Reports.(a)Financial Report. A separate financial report form as specified by the Commission must be filed for each day for which the Licensed Organization is authorized to conduct Beano games, regardless of whether or not the Licensed Organization actually conducts Beano games on that day. This form must be complete in all respects when filed. Failure to adequately complete and file said form within ten days of the authorized day for which said report is required to be filed may result in suspension or revocation of the license to conduct Beano. Control sheets and other such records or forms used by the Licensed Organization to gather and support the information required to be reported must be retained by the Licensed Organization and be kept available for inspection at reasonable times by the Director.(b) Any organization who does not conduct Beano for two consecutive occasions must notify the Commission in writing prior to resuming operations. Financial Reports must be filed for the authorized day in accordance with 961 CMR 3.05(1)(a).(c)Annual Reports. 1.Required. Every Licensed Organization must file an annual report with the Commission before January 31st of each year, in such form as the Director prescribes, setting forth all monies expended for Lawful Purposes during the preceding calendar year. A copy of this report must be filed with the Local Licensing Authority. This report shall be a public record.2.Penalty for Failure to File. Any Licensed Organization which does not file the reports required in 961 CMR 3.05(1)(a) and (c) may be required to show cause b e fore the Commission why its license to conduct Beano should not be revoked.(2)Records. (a)Record Keeping. Accurate records and books shall be kept by each Licensed Organization in a manner prescribed by the Director showing in detail the amount and source of Gross Receipts and the expenses incurred.(b)Access to Records. The Commission, the Local Licensing Authority or their duly authorized agents or representatives shall at all times have access to all books and records of any Licensed Organization, including, but not limited to, originals, for the purpose of examining and checking them.(c)Period for Retention of Records. All records, books of account, bank statements, invoices and all other papers incidental to the operation of Beano games by the Licensed Organization shall be retained and available for inspection by the Commission or its duly authorized representatives for a period of three years from the close of the calendar year to which the records apply.(3)Bank Accounts. (a) Each Licensed Organization shall establish a separate Special Beano Bank Account. Proceeds from Beano shall be kept in the Special Beano Bank Account which shall be in the form of a checking account. Allreceipts from each Beano Occasion less the amount awarded as cash prizes for that Occasion shall be deposited in this special Beano account no later than the next business day following the date of the Beano Occasion. Money shall be withdrawn from this "Special Beano Account" for only the following purposes:1. Payment of expenses in accordance with 961 CMR 3.05(4);2. Disbursement from Net Proceeds for a Lawful Purpose as defined in 961 CMR 3.00.3. Transfer to one or more interest bearing accounts pending disbursement under 961 CMR 3.05(3)(a)2. Any transfer from any interest bearing account can only be back into the "Special Beano Account" established by 961 CMR 3.05(3). Except as authorized by the Director in writing, the total of funds held in interest bearing accounts plus the total of unexpended Net Proceeds in the "Special Beano Account" shall not exceed $50,000.(b) Checks drawn on the Special Beano Bank Account shall be preprinted and consecutively numbered. The heading of each check shall contain the following information: 1. The title of the account along with the Licensed Organization's five digit identification number issued by the Commission on the first line;2. The name of the Licensed Organization on the second line; and3. The address of the Licensed Organization on the third and fourth lines.(c) The commingling of any funds derived from the operation of Beano with any other funds of the Licensed Organization is prohibited.(d) In the event a Licensed Organization desires to terminate its license to conduct Beano it must, prior to termination, distribute all Net Proceeds pursuant to 961 CMR 3.05(3)(a). In the event a Licensed Organization fails to renew its license to conduct Beano it must, no later than 90 days following the expiration date of said license, distribute all Net Proceeds pursuant to 961 CMR 3.05(3)(a)1.(e) Each licensed organization may retain the services of a police officer of the city or town where the occasion is conducted who may be in attendance from the time sale of cards or beano opportunities commences until N et Proceeds have been secured by deposit or otherwise. The police officer may be compensated under 961 CMR 3.05(4)(a) at a rate not to exceed the rate currently prevailing for such services in said city or town.(4)Expenses. (a)Payment of Expenses. Money for reasonable and necessary expenses ordinarily incidental to the conduct of Beano games may be paid from the Gross Receipts only by checks having preprinted consecutive numbers drawn on the special Beano bank account established pursuant to 961 CMR 3.05(3). Said checks must be made payable to the specific person or corporation providing the goods or rendering the service which gives rise to the expense item and at no time may checks be payable to cash.(b)Nature of Expenses. Only those expenses which are reasonable and necessary and ordinarily incidental to the conduct of Beano games as provided for in the Beano Law may be paid from Gross Receipts or otherwise.