An Audit Report on the Charitable Bingo Operations Division at the Texas Lottery Commission Page: 7 of 26
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According to the Agency, compliance audits and reviews examine
documentation that covers a time period of up to four years, while a game
inspection examines only one bingo event observed on a selected day.
Because the Agency did not focus on performing compliance audits and
reviews during 2009, bingo halls did not receive the level of monitoring that
would help to ensure that they comply with all laws and regulations. The
Agency has developed an audit program that, if used, will evaluate bingo
halls' financial processes and compliance with laws and regulations.
The State Auditor's Office visited five bingo halls and observed at least one
bingo game at each location. Auditors confirmed that the bingo halls
distributed proceeds to charities and remitted the correct amount of prize fees
to the State for the quarter ending December 31, 2009. However, in reviewing
the bingo halls' financial and inventory records, auditors identified issues that
indicate the Agency should increase its compliance audits and reviews at
bingo halls.
At each of the five bingo halls, auditors reviewed financial records for the
quarter ending December 31, 2009. Items that auditors reviewed included
expenditures and supporting documentation, inventories of bingo cards and
pull tab bingo games, and cash deposits. As Table 1 shows, auditors
identified inadequate supporting documentation for expenditures, questionable
expenditures, instances in which bingo cards and/or pull tab bingo games were
missing, and weaknesses in controls over cash.
Monitoring bingo halls' financial information and inventories would provide
additional assurance that bingo halls report accurate information to the
Agency and comply with requirements. Conducting this monitoring also
could potentially increase the bingo halls' distributions to the charities for
which they conduct bingo games. For example, identifying unallowable
expenditures could potentially increase the amount of net proceeds from bingo
games, which would ultimately lead to the bingo halls distributing more funds
to the charities.
Table 1
Inadequate supporting documentation for expenditures. 5
Questionable expenditures. 4
Missing bingo cards and/or pull tab bingo games. 2
Weaknesses in controls over cash. 2
An Audit Report on
The Charitable Bingo Operations Division at the Texas Lottery Commission
SAO Report No. 11-002
September 2010
Page 2
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Texas. Office of the State Auditor. An Audit Report on the Charitable Bingo Operations Division at the Texas Lottery Commission, report, September 2010; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth518128/m1/7/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.