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