Office of the Legislative Auditor - Financial Audit Division

Report Summary

Minnesota State Lottery

July 1, 1997, through June 30, 2001

Audit Conclusions on Operating Expenses and Employee Payroll

• The Lottery's controls provided reasonable assurance that it adequately safeguarded assets, complied with finance-related legal provisions governing operating expenses and employee payroll, and accurately recorded these expenses in the accounting records.
• For the items tested, the Lottery complied with applicable legal provisions governing employee payroll, procurement, and operating expenses, including statutory limits on operating and advertising costs.

The Minnesota State Lottery (Lottery) was created in June 1989. The director of the Lottery, who is appointed by the Governor, is George R. Andersen. The mission of the Lottery is to provide secure gaming opportunities, while offering fun and entertainment to the public within the guidelines of the Lottery statute. The Lottery sells instant scratch tickets and operates four on-line number games. Beneficiaries of proceeds from the Lottery include the state's General Fund and the Environmental and Natural Resources Trust Fund.

Financial-related audit reports address internal control weaknesses and noncompliance issues noted during our audits of state departments and agencies. The scope of our audit work included operating expenses and employee payroll. Therefore, we emphasize that this was not a complete audit of all programs at the Lottery.