|Financial Audit Division Report 06-25
|Released September 28, 2006
The Minnesota State Lottery’s financial management controls provided reasonable assurance that it operated within legal spending limits established in Minnesota Statutes, adequately safeguarded cash held outside the state treasury, and accurately recorded its financial activities in the accounting records. However, we have four findings related to internal controls and legal compliance.
The Minnesota State Lottery was created in June 1989. The current executive director of the Lottery is Clint Harris, who was appointed by Governor Tim Pawlenty in October 2004. Lottery proceeds benefit the state’s General Fund and the Environmental and Natural Resources Trust Fund. For fiscal year 2005, the Lottery’s administrative operating costs totaled $22.6 million.
The Office of the Legislative Auditor issued a February 2004 program evaluation report that was critical of Lottery operations. As a result, the Lottery ended questionable sponsorships and promotions, terminated certain contracts, and reduced administrative personnel and space. In July 2004, the Lottery issued a formal report showing resolution of each audit concern.