WAC 230-07-055   Prorating expenses when gambling funds are not kept separate.  When charitable or nonprofit organizations do not keep gambling income separate from all other income of the organization, the amount of net gambling income required to provide functional expenses in the fiscal year under review must be the pro rata portion of net gambling income compared to the total net revenue from all sources. (Example: In the chart below, Organization X has revenue of five thousand dollars. They must calculate the pro rata reduction by adjusting the total by the percentages of support services, program services, and functional expenses.)

Revenue
Fees paid by public									$5,000
Calculation:
Expenses	Unadjusted Amount		% of Total		Pro Rata Reduction Fees Paid by Public ($5,000)		% of Total		Adjusted Amount
Support Service Expense	$35,000		32%		($1,591)		32%		$33,409
Program Service Expense	$75,000		68%		($3,409)		68%		$71,591
Functional Expenses	$110,000		100%		($5,000)		100%		$105,000

[Statutory Authority: RCW 9.46.070. 07-10-032 (Order 609), § 230-07-055, filed 4/24/07, effective 1/1/08.]