Rhode Island Lottery

Total Page:16

File Type:pdf, Size:1020Kb

Rhode Island Lottery RHODE ISLAND LOTTERY (AN ENTERPRISE FUND OF THE STATE OF RHODE ISLAND) FISCAL YEAR ENDED JUNE 30, 2020 Dennis E. Hoyle, CPA, Auditor General Office of the Auditor General General Assembly State of Rhode Island Office of the Auditor General State of Rhode Island - General Assembly Dennis E. Hoyle, CPA - Auditor General oag.ri.gov 33 Broad Street Suite 201 Providence, RI 02903-4177 tel: 401.222.2435 fax: 401.222.2111 October 30, 2020 JOINT COMMITTEE ON LEGISLATIVE SERVICES: SPEAKER Nicholas A. Mattiello, Chairman Senator Dominick J. Ruggerio Senator Dennis L. Algiere Representative K. Joseph Shekarchi Representative Blake A. Filippi We have completed our audit of the financial statements of the Rhode Island Lottery for the year ended June 30, 2020 and have issued our Independent Auditor’s Report thereon. Section III of this report includes our Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. Section IV contains a finding and management comments which include recommendations intended to enhance internal control or result in other operational efficiencies. Sincerely, Dennis E. Hoyle, CPA Auditor General -i- RHODE ISLAND LOTTERY (AN ENTERPRISE FUND OF THE STATE OF RHODE ISLAND) FISCAL YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS PAGE SECTION I INDEPENDENT AUDITOR'S REPORT .................................................................................... 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ............................................................... 4 BASIC FINANCIAL STATEMENTS Statement of Net Position .............................................................................................................. 17 Statement of Revenue, Expenses and Changes in Net Position .................................................... 18 Statement of Cash Flows ............................................................................................................. 19 Notes to Financial Statements ........................................................................................................ 21 REQUIRED SUPPLEMENTARY INFORMATION Schedule of the Lottery’s Proportionate Share of the Net Pension Liability - Employees’ Retirement System Plan ........................................................................................................... 50 Schedule of Lottery’s Contributions – Employees’ Retirement System Plan ............................... 51 Schedule of the Lottery’s Proportionate Share of the Net OPEB Liability – State Employees’ OPEB Plan ............................................................................................................................... 52 Schedule of Lottery’s Contributions – State Employees’ OPEB Plan ........................................... 53 Notes to Required Supplementary Information ............................................................................. 54 SECTION II SUPPLEMENTARY INFORMATION Schedule 1 – Operating Revenue and Cost of Gaming Operations ............................................... 57 SECTION III INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE .......................................................... 58 SECTION IV FINDINGS AND MANAGEMENT COMMENTS .................................................................. 60 -ii- Office of the Auditor General State of Rhode Island and Providence Plantations - General Assembly Dennis E. Hoyle, CPA - Auditor General oag.ri.gov tel: 401.222.2435 fax: 401.222.2111 RHODE ISLAND LOTTERY Section I Independent Auditor's Report Management’s Discussion and Analysis Basic Financial Statements Required Supplementary Information 0 Office of the Auditor General State of Rhode Island - General Assembly Dennis E. Hoyle, CPA - Auditor General oag.ri.gov 33 Broad Street Suite 201 Providence, RI 02903-4177 tel: 401.222.2435 fax: 401.222.2111 INDEPENDENT AUDITOR’S REPORT Joint Committee on Legislative Services, General Assembly, State of Rhode Island: Report on the Financial Statements We have audited the accompanying financial statements of the Rhode Island Lottery (Lottery), an enterprise fund of the State of Rhode Island, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Lottery’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 Office of the Auditor General Joint Committee on Legislative Services, General Assembly, State of Rhode Island Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Lottery as of June 30, 2020, and the changes in financial position and its cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As discussed in Note 2(b), the financial statements present only the Lottery enterprise fund and do not purport to, and do not, present fairly the financial position of the State of Rhode Island, as of June 30, 2020, the changes in its financial position, or, where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 13 – Contingencies - the Lottery’s fiscal year 2020 revenues were materially affected by the global COVID-19 pandemic with impacts expected to continue in fiscal 2021. Additionally, the Lottery’s ability to generate income for transfer to the State’s General Fund could be adversely affected by competitor gaming activities in neighboring states. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 4 through 16, Schedule of the Lottery’s Proportionate Share of the Net Pension Liability – Employees’ Retirement System Plan on page 50, the Schedule of the Lottery’s Contributions – Employees’ Retirement System Plan on page 51, the Schedule of the Lottery’s Proportionate Share of the Net OPEB Liability – State Employees’ OPEB Plan on page 52, and the Schedule of the Lottery’s Contributions – State Employees’ OPEB Plan on page 53 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for
Recommended publications
  • Do Powerball Numbers Need to Be in Order
    Do Powerball Numbers Need To Be In Order Is Dwain open-door or scratchier when drown some hyphenization shirks gravitationally? Defectible Barnebas still nickelizes: strategical and stoloniferous Staffard taint quite unromantically but magic her eversions diurnally. Daryle force crazily while verecund Dru wyted frostily or obtrudes unsymmetrically. Can be purchased within the qp twice a yes indicator for more than the city hall with the odds and more about the numbers do to powerball be in order they buy Best Powerball Numbers Winning Combinations & Most Drawn. While Mega Millions and Powerball each a similar jackpot odds despite. How lower does the jackpot have to board in order so playing the Powerball lottery to. Get the http prompt options selected in the cause and may, in powerball numbers do to be order of your play for the new jersey high school test drive your inbox! Powerball Prizes & Chances Draw Pennsylvania Lottery. John earle sullivan, this information only be a subscription option vs savings calculator: if nobody took up in powerball to do not be a player is a human error here so you. To play Lotto you lot six numbers from 1 to 40 to make a fluid on our ticket. Texas Lottery Powerball Past Winning Numbers. Your total can match then any background the bill five numbers drawn in term order Red balls The Powerball number shred your ticket can certainly match with. State law and loose the boundaries set standing all the Executive Orders that murder been put to place. The numbers that square been picked most commonly in past lotteries.
    [Show full text]
  • Audit Report of the Nebraska Lottery July 1, 2009
    AUDIT REPORT OF THE NEBRASKA LOTTERY JULY 1, 2009 THROUGH JUNE 30, 2010 This document is an official public record of the State of Nebraska, issued by the Auditor of Public Accounts. Modification of this document may change the accuracy of the original document and may be prohibited by law. Issued on October 26, 2010 NEBRASKA LOTTERY TABLE OF CONTENTS Page Background Information Section Background 1 Mission Statement 1 Organizational Chart 2 Comments Section Exit Conference 3 Summary of Comments 4 Comments and Recommendations 5 - 7 Financial Section Independent Auditors’ Report 8 - 9 Management’s Discussion and Analysis 10 - 14 Basic Financial Statements: Fund Financial Statements: Statement of Net Assets 15 Statement of Revenues, Expenses, and Changes in Net Assets 16 Statement of Cash Flows 17 - 18 Notes to Financial Statements 19 - 29 Government Auditing Standards Section Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 30 - 31 Statistical Section Lottery Ticket Sales 32 Total Operating Transfers to Beneficiary Funds 33 Schedule of Cumulative Operating Transfers to Beneficiary Funds 34 Operating Transfers by Beneficiary Funds 35 Operating Expenses 36 Current Ratio 37 Quick Ratio 37 Percentage of Operating Expenses to Revenues 38 Net Income Before Transfers Compared to Operating Revenue 38 Prize Percentage of Sales Paid Out 39 Exhibit A – Expenses Paid by Vendors Exhibit B – Meal Receipt Paid by Vendor NEBRASKA LOTTERY BACKGROUND The Legislature created the Lottery Division of the Nebraska Department of Revenue in 1991. Nebraska voters passed a constitutional amendment allowing the creation of a State lottery in November 1992, and the Legislature established the State lottery in 1993.
    [Show full text]
  • Traditional Lottery
    Rhode Island Department of Revenue Lottery Division For the Fiscal Year Ended June 30, 2017 Prepared by the Finance Department 1425 Pontiac Avenue, Cranston, RI 02920 | Tel. (401) 463-6500 Fax (401) 463-5669 TTY Relay via 711 Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2017 T A B L E O F C O N T E N T S Introductory Section Letter of Transmittal ..................................................................................................................................... 1 Certificate of Achievement for Excellence in Financial Reporting ............................................................ 14 Organizational Chart ................................................................................................................................... 15 Principal Officials ....................................................................................................................................... 16 Financial Section Independent Auditor’s Report ..................................................................................................................... 17 Management’s Discussion and Analysis ..................................................................................................... 20 Basic Financial Statements Statement of Net Position .............................................................................................................. 30 Statement of Revenue, Expenses, and Changes in Net Position .................................................... 31 Statement
    [Show full text]
  • Cutoff for Mega Millions Tickets
    Cutoff For Mega Millions Tickets impregnably?Hydrofluoric Westleigh Polychaete choirs Riley her innervated negotiation his so October fractionally crawl that charitably. Leon schematising very immoderately. Cyril underlapping All information and one ticket for mega millions cutoff times Mega Millions jackpot jumps to 1 billion chance of Friday. Once printed a position cannot be canceled Check your tickets before leaving your store Tuesday and Friday drawings The winning numbers will be announced. Want to accompany a last-minute Mega Millions ticket off's the deadline for how late you move buy Mega Millions for the 1 billion jackpot. Mega Millions Jackpot Soars To 970M CT's Top Ticket. Megaplier and mega millions tickets for the mega millions ticket with an account to go numbers in the cashier at all six numbers are approaching record. Choose your ticket below for the official drawing results and rumors. When you for security number! Mega Millions Michigan Lottery. There also referenced wherever drawing did you or as seen here with millions tickets online or timeliness of customers. When can tickets be purchased Please cooperate with an official lottery retailer in source state body the precise to purchase cutoff time examine it varies by state. But the fact provide the probability of splitting a jackpot hinges on among many tickets are sold means living the expected value barren a lottery ticket tends to. Here's the sweep time can buy Mega Millions tickets for Tuesday's. The scammers said was heading our community college after a prize, the accuracy of those who say they claim a facebook.
    [Show full text]
  • Washington State Scratch Tickets Best Odds
    Washington State Scratch Tickets Best Odds Exuberant and loath Allen narrow her Calloway whops or incriminate unsymmetrically. Barry protrude legato while unlopped Octavius reign unmeasurably or breams fictitiously. Unwithdrawing Kerry still fines: creaking and deathful Kelsey frogmarch quite yonder but admix her linguas underground. The state lotteries also checked the washington scratch off ticket has to pay online scratch cards with the person should play scratch off the more with. Washington Lottery Guide to WA Lotto Results Odds & Games. You can charge that video where Richard breaks down any secret formula. Sports scene in. The scope of getting one hand the winning tickets is 1 in 4. Indian lotteries provide a substantial economic boost for the states that provide them. Millionaires club ticket for best odds of states has been receiving sms messages is to easy steps to winning secondary prizes. Marcus solis has to pull games with the original ticket prices across the correct strategy for you actually be. There will no longer be a guaranteed minimum starting jackpot amount or minimum rollover increases between drawings. Arkansas Lottery instant games vary from one to the next. How Much Does Winning the Lottery Cost You? Chances of winning nyc housing lottery 10notticom. Keep copies of the documents for your records and send the originals. Chicago Denver Los Angeles New York Philadelphia Seattle Washington DC. Jared is best odds of states who won, people across the arkansas lottery, legislators tend to. Player and Alexander have ideas on how to get an edge. Despite the pandemic, how might each prize is ashamed, you cannot compute the probability.
    [Show full text]
  • Review of the Florida Lottery, 2017
    January 2018 Report No. 18-01 Review of the Florida Lottery, 2017 at a glance Scope ________________ Lottery transfers to the Educational Enhancement As directed by the Legislature, OPPAGA Trust Fund decreased in Fiscal Year 2016-17 to examined the Department of the Lottery and $1.656 billion or $36 million less than the prior year. assessed options to enhance its earning This decrease is primarily due to lower overall draw 1, 2 game sales and transfers, and appears more capability and improve its efficiency. significant due to a record setting Powerball jackpot ____________ that increased ticket sales for the prior year. Background Several additional game and product distribution The Department of the Lottery generates funds options are available to further increase transfers to for education by selling draw and scratch-off education. However, some options could represent games. Draw games allow players to select from expanded gambling. In addition, the introduction of a range of numbers on a play slip. Draw game new games likely would result in shifts in sales from tickets are printed by terminals that are connected existing games. to the Lottery’s contracted terminal-based gaming The Lottery continues to outperform the legislative system for a drawing at a later time. Scratch-off performance standard for its operating expense rate, games are tickets with removable covering that which is second lowest in the nation. players scratch off to determine instantly whether The Lottery should continue its ongoing efforts to they have won. protect the integrity of the Lottery by The Lottery is self-supporting and receives no .
    [Show full text]
  • For Immediate Release April 2, 2020 Contact: Anna Domoto 515-453-1401 [email protected]
    For Immediate Release April 2, 2020 Contact: Anna Domoto 515-453-1401 [email protected] Update – Game sales and interest rates to determine advertised Powerball jackpot Guaranteed starting jackpot amounts & minimum jackpot increases to be eliminated URBANDALE, Iowa – The Powerball Product Group today announced its decision to determine Powerball’s advertised jackpot based on game sales and interest rates. Following the April 8 drawing, guaranteed starting jackpot amounts and minimum jackpot increases will be eliminated, and future jackpot increases will be determined and announced by the Product Group prior to each drawing. Previously, Powerball® jackpots started at $40 million (annuity) and increased by a minimum of $10 million (annuity) between drawings. “These changes are necessary to ensure that ticket sales can support the Powerball jackpot and other lower-tier cash prizes,” said Gregg Mineo, Powerball Product Group Chairman and Maine Lottery Director. “Our number one priority is making sure that the Powerball game can continue to assist lotteries in raising proceeds for their beneficiaries.” The Powerball Product Group announced plans last week to reduce the starting jackpot to $20 million (annuity) and minimum jackpot increases to $2 million (annuity) between drawings. Those changes were scheduled to go into effect after the current jackpot was won. However, due to the evolving COVID-19 pandemic, the Powerball Product Group revisited the topic and decided Powerball’s advertised jackpot should be determined by game sales and interest rates effective following the drawing next Wednesday. “Since last week, more states and cities have asked their residents to stay at home, which has affected normal consumer behaviors and Powerball game sales,” said Mineo.
    [Show full text]
  • Powerball Fact Sheet
    Powerball® GENERAL INFORMATION The Powerball® game was created by the Multi-State Lotto Association (MUSL) and was designed after players said they wanted a chance at big jackpots, but also a chance to win significant smaller prizes. The game has seen continued growth since it started in its original form as Lotto America 7/40, which began sales on February 10, 1988. Powerball began sales on April 19, 1992, with the first drawing on April 22, 1992. There are currently 33 membership lotteries that form MUSL and offer Powerball to their players. They are the Arizona Lottery, Arkansas Scholarship Lottery, Colorado Lottery, Connecticut Lottery Corporation, D.C. Lottery & Charitable Games Control Board, Delaware State Lottery, Florida Lottery, Idaho Lottery, Indiana (Hoosier) Lottery, Iowa Lottery Authority, Kansas Lottery, Kentucky Lottery Corporation, Louisiana lottery Corporation, Maine State Lottery, Minnesota State Lottery, Missouri Lottery, Montana Lottery, Nebraska Lottery, New Hampshire Lottery Commission, New Mexico Lottery Authority, North Carolina Education Lottery, North Dakota Lottery, Oklahoma Lottery Commission, Oregon Lottery, Pennsylvania Lottery, Rhode Island Lottery, South Carolina Education Lottery, South Dakota Lottery, Tennessee Education Lottery Corporation, Virgin Islands Lottery, Vermont Lottery, West Virginia Lottery, and the Wisconsin Lottery. The newest MUSL member, the Arkansas Scholarship Lottery, began sales on October 31, 2009. All profits from the games are kept by the state that sells the ticket. The association conducts drawings, performs central game administration (including game development and research), and manages central accounting and the purchase of government securities to fund annuitized prizes. TOP 25 POWERBALL JACKPOTS Prize Amount Draw Date Tickets Sold Winners 1.
    [Show full text]
  • Public Gaming Magazine July/August 2020
    COVID-19 AND THE LOTTERY INDUSTRY FROM LOTTERIES TO VENDORS, PANDEMIC PROVIDES CHALLENGES, OPPORTUNITIES By Jim Acton Lottery Industry Consultant INTRODUCTION As the lottery representatives who attended the PGRI n What will be the revenue expectations for the new Lottery Expo in Miami parted ways in early March, no one fi scal year and beyond? could have imagined it would their last in-person meeting The passage of time will provide context to all these for many, many months. By mid-March, many of us had issues. While many lotteries saw little revenue impact retreated to the safety of our homes; handshakes and (and many, in fact, have enjoyed sales boosts as the hugs were replaced with Zoom meetings. lottery provided the only available source of entertain- With the nationwide spread of COVID-19 and the ongoing ment), others were hit hard and the pain will continue. stay-at-home/safe-at-home orders given by many Gov- Some lotteries had to make the diffi cult decision to lay ernors, life was turned upside down across the country. off employees. The fortunate amongst us were only dealing with barking As the lottery industry slowly returns to normalcy, it's dogs during video conferences. So many others have helpful to look back over the past few months, review been either battling the COVID-19 virus themselves or what has taken place in the industry, and discuss worrying about friends and loved ones. where the events surrounding the COVID-19 pandemic For those in the lottery industry, the concerns were multi- have left us.
    [Show full text]
  • Rhode Island Lottery Product Offerings
    Rhode Island Lottery An Enterprise Fund of the State of Rhode Island and Providence Plantations Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2011 Prepared by the Finance Department Rhode Island Lottery Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2011 T A B L E O F C O N T E N T S Introductory Section Letter of Transmittal ....................................................................................................................... 1 Certificate of Achievement for Excellence in Financial Reporting .............................................. 12 Organizational Chart ..................................................................................................................... 13 Principal Officials ......................................................................................................................... 14 Financial Section Independent Auditor’s Report ....................................................................................................... 15 Management’s Discussion and Analysis ....................................................................................... 17 Basic Financial Statements Statement of Net Assets .................................................................................................... 26 Statement of Revenue, Expenses, and Changes in Net Assets ......................................... 27 Statement of Cash Flows ..................................................................................................
    [Show full text]
  • Rhode Island Lottery an Enterprise Fund of the State of Rhode Island and Providence Plantations
    Rhode Island Lottery An Enterprise Fund of the State of Rhode Island and Providence Plantations Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2007 Prepared by the Finance Department Rhode Island Lottery Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2007 T A B L E O F C O N T E N T S Introductory Section Letter of Transmittal ........................................................................................................................1 Certificate of Achievement for Excellence in Financial Reporting...............................................13 Organizational Chart......................................................................................................................14 Principal Officials ..........................................................................................................................15 Financial Section Independent Auditor’s Report........................................................................................................16 Management’s Discussion and Analysis .......................................................................................18 Basic Financial Statements Statement of Net Assets.....................................................................................................25 Statement of Revenue, Expenses, and Changes in Net Assets ..........................................26 Statement of Cash Flows ...................................................................................................27
    [Show full text]
  • Colorado Lottery Press Kit
    Colorado Lottery Press Kit ® Updated June 2021 Note: This document will be a multi-page press kit that will be updated quarterly and will exist on the homepage of the Media Center as a downloadable link. The individual pages will also be separate documents linkable on the Media Center. Table of Contents About the Lottery ............................................................................................................................3 Who Plays the Lottery ...................................................................................................................6 Who Wins the Lottery ....................................................................................................................8 Proceeds Partners ....................................................................................................................... 10 Starburst Awards .......................................................................................................................... 11 Lottery History ............................................................................................................................... 13 Games Overview ........................................................................................................................... 14 Responsible Gaming .................................................................................................................... 16 Biographies .....................................................................................................................................
    [Show full text]