Lottery before Audit committee UPDATE | Arkansas Blog

Friday, November 12, 2010

Lottery before Audit committee UPDATE

Posted By on Fri, Nov 12, 2010 at 9:10 AM

Legislative Audit presented its review of the Arkansas Lottery Commission this morning.

The full report is here. Among some technical accounting issues are mentions of the mess that was made of establishing a policy on overtime; what audit believes to be excessive retirement contributions to director Ernie Passailaigue (they were made on a bonus multiplier of his salary rather than only base pay as law required); some excessive travel reimbursements (hotel rooms in excess of the maximum rate without prior approval, for example); inadequate travel expense documentation; and questions about internal controls, including a lack of explanation for how $3.3 million paid to a vendor of gambling games was calculated.

In the year ending June 30, the lottery had about $370 million in cash flow. After payments to winners and expenses, the net was $84 million.

UPDATE: Ernie P. was greeted by lots of press questions following the meeting.

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