Office of the Chief Financial Officer
Executive Summary for Closed Reports
Report No. OIO-10-1-14-DCLB: Final Report on the Follow-up Audit of Top Ten Lottery Risks at the DCLB, dated July 8, 2010.
Chief Risk Officer’s Risk Assessment
This report specifically includes an assessment of risk by defining the Top Ten risks at the District of Columbia Lottery Board (DCLB). The Chief Risk Officer accepts all identified risks as meeting the criteria for High risk classification.
OIO provided ten recommendations, and all ten were implemented strengthening internal controls.
- DCLB has implemented its Standard Operating Procedures (SOPs) with a new Complaints Coding System for handling, documenting, and tracking complaints. DCLB tracks and monitors the disposition of all complaints, including complaints of misleading prizes advertisement.
- Although DCLB disagrees with the specifics of writing a SOP when intelligence about an agent’s financial difficulties is noted, the Charitable Games & Licensing Department has implemented a SOP for license renewal inspections, which address agents with possible financial difficulties.
- DCLB has instituted an SOP on Complaints of Winnings Not Paid.
- DCLB has developed a Root-cause Analysis SOP for gaming software errors.
- DCLB has SOPs for dealing with errors of drawing procedures.
- The current IntraLot contract contains liquidated damage measurement procedures.
- DCLB expanded the scope of SAS-70 review to include tests of internal controls that mitigate the potential of unclaimed prizes fraud.
- DCLB has implemented SOPs for investigating repeat winners with the same personal identification information.
- No separate SAS-70 for Scratch tickets. DCLB mitigates the issue via the Security Division’s chain of custody review with the vendor.
- DCLB has developed an SOP that identifies incidents of lost wagers.
To view the full report, click Audit of Top Ten Lottery Risks at DCLB full report.