Reimbursements for Cash Shortages

BOOTH Operations	For booth operations and owned premises, complete a separate Worksheet CS-Cash Shortages each month for each site. If there is a cash shortage, check the records to determine what caused an excessive shortage and if any corrective action needs to be taken. Refer to the section on Prevention. Carry forward any positive difference between the shortage limit and actual shortage to offset future excess cash shortages during the fiscal year of July 1 through June 30. If the *cumulative* cash shortages exceed .3% of the gross receipts per site at fiscal year end on June 30, reimburse the gambling account from a nongambling source of funds by July 20. Some are under the misconception that statutes allow theft or mismanagement of funds up to a .3% limit as a cash shortage. This is not true. Minnesota statutes impose a limit on reporting cash shortages as an allowable expense, but they do not provide an allowable limit for the theft or mismanagement of gambling funds. Report the reimbursement on the LG100A, Receipts and Expenses by Site. Because cash shortages are reported as an allowable expense, a reimbursement for excess cash shortages is, in effect, a negative expense.
BAR Operations	For bar operations at leased sites, the lessor is responsible for cash shortages. Any cash shortage at the end of the month is deducted from the monthly rent or reimbursed by the lessor to the organization. Report the reimbursement on the LG100A, Receipts and Expenses by Site. Because cash shortages are reported as an allowable expense, a reimbursement for excess cash shortages is, in effect, a negative expense. Paper pull-tab dispensing device shortages Cash bank—If the shortages are in the cash bank used to redeem winning tickets, then the lessor is responsible. Malfunctions—If the shortages are caused by malfunctions of the machine (when the cash in the machine does not match the number of tickets dispensed), then the organization is responsible.

BOOTH Operations

For booth operations and owned premises, complete a separate Worksheet CS-Cash Shortages each month for each site.

If there is a cash shortage, check the records to determine what caused an excessive shortage and if any corrective action needs to be taken. Refer to the section on Prevention.
Carry forward any positive difference between the shortage limit and actual shortage to offset future excess cash shortages during the fiscal year of July 1 through June 30.
If the cumulative cash shortages exceed .3% of the gross receipts per site at fiscal year end on June 30, reimburse the gambling account from a nongambling source of funds by July 20. Some are under the misconception that statutes allow theft or mismanagement of funds up to a .3% limit as a cash shortage. This is not true. Minnesota statutes impose a limit on reporting cash shortages as an allowable expense, but they do not provide an allowable limit for the theft or mismanagement of gambling funds.
Report the reimbursement on the LG100A, Receipts and Expenses by Site. Because cash shortages are reported as an allowable expense, a reimbursement for excess cash shortages is, in effect, a negative expense.

BAR Operations

For bar operations at leased sites, the lessor is responsible for cash shortages.

Any cash shortage at the end of the month is deducted from the monthly rent or reimbursed by the lessor to the organization. Report the reimbursement on the LG100A, Receipts and Expenses by Site. Because cash shortages are reported as an allowable expense, a reimbursement for excess cash shortages is, in effect, a negative expense.

Paper pull-tab dispensing device shortages

Cash bank—If the shortages are in the cash bank used to redeem winning tickets, then the lessor is responsible.
Malfunctions—If the shortages are caused by malfunctions of the machine (when the cash in the machine does not match the number of tickets dispensed), then the organization is responsible.