Internal Audit of Instant Ticket Game Closing, Return ... - Texas Lottery

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Texas Lottery Commission Internal Audit Division Instant Ticket Game Closing, Return & Destruction This page left intentionally blank. February 2009 ii IA # 09-013
Texas Lottery Commission Internal Audit Division Instant Ticket Game Closing, Return & Destruction EXECUTIVE SUMMARY The Texas Lottery Commission (TLC) offers over 100 instant ticket games to the licensed retailers for sale to the public each year. TLC monitors the instant ticket games for performance as well as the number of top level prizes remaining to be claimed in each game to determine when a particular game should be closed. In March 2007, the Texas Lottery Commission implemented procedures to initiate the closing of an instant ticket game once all top level prizes have been claimed. This policy was adopted and formalized under Texas Administrative Code §401.302, effective June 2007. Since the implementation of this procedure through October 2008, 41 of 163 games closed (25%) were closed as a result of all top level prizes being claimed 1 . The objective of this audit was to assess the effectiveness of controls for ensuring instant ticket games for which all top level prizes have been claimed are: 1. Closed in accordance with commission policies and procedures, and 2. Tickets are returned and destroyed in accordance with the lottery operator contract and commission policies and procedures. Based on the results of our review and testing, controls provide reasonable assurance that instant ticket games in which all top level prizes have been claimed are closed, and tickets are returned and destroyed in accordance with commission policies and procedures. In addition, we present management recommendations to strengthen the current processes. Internal Audit would like to express our appreciation to the Lottery Operations Division and the Information Resources Department for their cooperation and assistance during this engagement. Their courtesy and responsiveness extended to Internal Audit allowed us to complete our work effectively and efficiently. 1 These numbers represent games in which game closing procedures were initiated during March 28, 2007 – October 31, 2008. February 2009 1 IA # 09-013
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Internal Audit of Instant Ticket Game Closing, Return ... - Texas Lottery

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