BuSiNeSS PlAN - California Lottery

The CSL not only employsinternal auditing staff, butcontracts with the StateController’s Office andindependent auditing firmsto further ensure theintegrity of all operationsand transactionsAdditionally, the Security and Law Enforcement Division works to ensureour players have a total winning experience. In a recent case, Bob Sehestedof Camarillo took his winning ticket to a retail clerk who cashed the ticketfor $4. The clerk subsequently tried to claim Mr. Sehested’s winnings ashis own. CSL law enforcement personnel routinely investigate large claimsto ensure the rightful owner is paid. When questioned in this case, theclerk could not identify when or where the ticket was purchased or whetherhe had used his own numbers or used the “quick pick” feature to pickrandom numbers. Lottery Security and Law Enforcement personnel actedquickly, and with the help of the retailer and the local media, they wereable to provide security camera footage of the actual winner to the publicin an effort to track down the true winner. Luckily, Mr. Sehested heardabout this on the news and went to the CSL’s website wondering if a friendor relative was the winner. Mr. Sehested identified himself as the personin the video on the CSL’s website and subsequently claimed his $530,858prize with great appreciation to those who had worked so hard to locatehim. With the help of the Ventura County Sheriff’s Department, the VenturaCounty District Attorney’s Office and the CSL’s Security and LawEnforcement Division, the clerk is now serving a 5 year prison sentence.In addition, the CSL’s Security and Law Enforcement Division conductsinternal and external criminal, civil, and administrative investigations,establishes the security systems and procedures for our games, andtrains retailers in loss prevention. The CSL believes it is important for thepublic to know that behind every ticket we sell there is a team of dedicatedpeace officers and civilian staff who ensure its security and integrity.2.3 Audits and ComplianceThe CSL maintains a meticulous and comprehensive audit program. TheCSL not only employs internal auditing staff, but contracts with the StateController’s Office and independent auditing firms to further ensure theintegrity of all operations and transactions.The CSL’s independent auditing firm performs annual financial audits ofour financial statements and works with the Finance and AdministrationDivision to complete quarterly reviews of various accounts. The CSL isproud to have had 21 years of unqualified opinions. In addition, an auditingfirm witnesses and reviews every lottery draw to ensure accurate completionof the draw procedures, including the verification of technology systems,draw machinery and draw items such as lotto balls.Every two years, the CSL utilizes an independent auditing firm to conducta comprehensive study and evaluation of all aspects of security in theoperation of the CSL. This security study addresses CSL personnel,– 24 –California Lottery 2007–2010 Business Plan