AnnuAl rEPort - Vermont Lottery

VERMONT LOTTERY COMMISSIONANNUAL REPORTFISCAL YEAR 2008NOTES TO FINANCIAL STATEMENTSJune 30, 2008 and 20078. Accounts payable:The Lottery’s accounts payable consisted of the following at June 30:2008 2007Tri-State $ 184,105 $ 189,125MUSL 140,758 146,014Vendors 199,693 292,462$ 524,556 $ 627,6019. Due to winners:Presented below is a summary of requirements to maturity for long-term installment prizes due to winners awarded as ofJune 30, 2008, and payable through the year 2024:Principal Interest TotalCurrent portion:Fiscal year -2009 $ 487,209 $ 46,791 $ 534,000Long-term:Fiscal year -2010 373,868 56,132 430,0002011 185,272 44,728 230,0002012 183,452 46,548 230,0002013 182,273 47,727 230,0002014 181,748 48,252 230,0002015-2019 426,489 223,511 650,0002020-2024 153,729 206,271 360,000Total long-term portion 1,686,831 673,169 2,360,000Total requirements to maturity $2,174,040 $ 719,960 $2,894,000Due to winners represents annual payments owed to jackpot winners and is fully funded by investments in U.S.Government Treasury Strips and annuities that mature on a schedule coinciding with the installments (see Note 4).10. Prize expense and reserve for future and unclaimed prizes:By law, the Lottery must pay a minimum of 50% of gross revenue to participants in the form of prizes. Prize expenseis calculated on the basis of total sales multiplied by an approved prize payout percentage. The reserve for future andunclaimed prizes is increased by the prize expense as calculated and reduced by the dollar value of prizes actually paidout. Unclaimed prizes from online games can be used for special prizes, to supplement regular prizes or in the case ofinstant games can be transferred to the State of Vermont Education Fund for State and local funding of public education.23