99G.40 - AUDITS AND REPORTS -- LOTTERY FUND.
99G.40 AUDITS AND REPORTS -- LOTTERY FUND.
1. To ensure the financial integrity of the lottery, the
authority shall do all of the following:
a. Submit quarterly and annual reports to the governor, state
auditor, and the general assembly disclosing the total lottery
revenues, prize disbursements, and other expenses of the authority
during the reporting period. The fourth quarter report shall be
included in the annual report made pursuant to this section. The
annual report shall include a complete statement of lottery revenues,
prize disbursements, and other expenses, and recommendations for
changes in the law that the chief executive officer deems necessary
or desirable. The annual report shall be submitted within one
hundred twenty days after the close of the fiscal year. The chief
executive officer shall report immediately to the governor, the
treasurer of state, and the general assembly any matters that require
immediate changes in the law in order to prevent abuses or evasions
of this chapter or rules adopted or to rectify undesirable conditions
in connection with the administration or operation of the lottery.
b. Maintain weekly or more frequent records of lottery
transactions, including the distribution of tickets or shares to
retailers, revenues received, claims for prizes, prizes paid, prizes
forfeited, and other financial transactions of the authority.
c. The authority shall deposit in the lottery fund created in
subsection 2 any moneys received by retailers from the sale of
tickets or shares less the amount of any compensation due the
retailers. The chief executive officer may require licensees to file
with the authority reports of receipts and transactions in the sale
of tickets or shares. The reports shall be in the form and contain
the information the chief executive officer requires.
2. A lottery fund is created in the office of the treasurer of
state and shall exist as the recipient fund for authority receipts.
The fund consists of all revenues received from the sale of lottery
tickets or shares and all other moneys lawfully credited or
transferred to the fund. The chief executive officer shall certify
quarterly that portion of the fund that has been transferred to the
general fund of the state under this chapter and shall cause that
portion to be transferred to the general fund of the state. However,
upon the request of the chief executive officer and subject to the
approval by the treasurer of state, an amount sufficient to cover the
foreseeable administrative expenses of the lottery for a period of
twenty-one days may be retained from the lottery fund. Prior to the
quarterly transfer to the general fund of the state, the chief
executive officer may direct that lottery revenue shall be deposited
in the lottery fund and in interest-bearing accounts designated by
the treasurer of state. Interest or earnings paid on the deposits or
investments is considered lottery revenue and shall be transferred to
the general fund of the state in the same manner as other lottery
revenue.
3. The chief executive officer shall certify before the last day
of the month following each quarter that portion of the lottery fund
resulting from the previous quarter's sales to be transferred to the
general fund of the state.
4. For informational purposes only, the chief executive officer
shall submit to the department of management by October 1 of each
year a proposed operating budget for the authority for the succeeding
fiscal year. This budget proposal shall also be accompanied by an
estimate of the net proceeds to be deposited into the general fund
during the succeeding fiscal year. This budget shall be on forms
prescribed by the department of management. A copy of the
information required to be submitted to the department of management
pursuant to this subsection shall be submitted to the legislative
government oversight committees and the legislative services agency
by October 1 of each year.
5. The authority shall adopt the same fiscal year as that used by
state government and shall be audited annually by the auditor of
state or a certified public accounting firm appointed by the auditor.
The auditor of state or a designee conducting an audit under this
chapter shall have access and authority to examine any and all
records of licensees necessary to determine compliance with this
chapter and the rules adopted pursuant to this chapter. The cost of
audits and examinations conducted by the auditor of state or a
designee shall be paid for by the authority. Section History: Recent Form
2003 Acts, ch 178, §93, 121; 2003 Acts, ch 179, §109, 142; 2004
Acts, ch 1009, §1
Referred to in § 99G.39