AnnuAl rEPort - Vermont Lottery

INDEPENDENT AUDITOR’S REPORTVERMONT LOTTERY COMMISSIONANNUAL REPORTFISCAL YEAR 2008MudgettJennett &Krogh-Wisner, P.C.Certified Public Accountants #435The CommissionersVermont Lottery CommissionINDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON ANAUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDSWe have audited the basic financial statements of the Vermont Lottery Commission (the Lottery) as of and for the yearended June 30, 2008, and have issued our report thereon dated October 6, 2008. We conducted our audit in accordancewith auditing standards generally accepted in the United States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the United States.Internal Control Over Financial ReportingIn planning and performing our audit, we considered the Vermont Lottery Commission’s internal control over financialreporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of the Vermont Lottery Commission’sinternal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Lottery’sinternal control over financial reporting.A control deficiency exists when the design or operation of a control does not allow management or employees, in thenormal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significantdeficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Lottery’s ability toinitiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accountingprinciples such that there is more than a remote likelihood that a misstatement of the Lottery’s financial statements that ismore than inconsequential will not be prevented or detected by the entity’s internal control.A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than aremote likelihood that a material misstatement of the financial statements will not be prevented or detected by theLottery’s internal control.Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraphof this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies ormaterial weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to bematerial weaknesses, as defined above.Compliance and Other MattersAs part of obtaining reasonable assurance about whether the Lottery’s financial statements are free of materialmisstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grantagreements, noncompliance with which could have a direct and material effect on the determination of financial statementamounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and,accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or othermatters that are required to be reported under Government Auditing Standards.This report is intended solely for the information and use of the Lottery, management and the State of Vermont and is notintended to be and should not be used by anyone other than those specified parties.Montpelier, VermontOctober 6, 200826141 Main Street • P.O. Box 937, Montpelier, Vermont 05601 • Phone (802) 229-9193