The state auditor’s office issued this news release today:
Today, State Auditor Leslie Merritt released a performance audit on the North Carolina Education Lottery initiated by a request from the North Carolina Legislative Black Caucus. The audit identified significant performance management weaknesses by finding that the Lottery has no documented revenue forecasting methodology, no strategic plan, no ongoing market research, and no full-cost accounting of promotional events.
?Mapping out the proper strategy is essential to any successful business venture, and if North Carolina is going to be in the business of selling lottery tickets, the taxpayers should know that the Lottery has a roadmap to success,? said State Auditor Leslie Merritt.
The audit was initiated by the Caucus? Economic Development Committee in June 2007. The purpose of this audit was to evaluate the Lottery?s management practices in comparison to accepted best practices and lotteries in other states. In addition, the audit made recommendations based on the findings so management can take appropriate corrective action. Those recommendations include establishing a strategic plan with documented goals, documenting its revenue forecasting methodology, and establishing ongoing operational and market research.
?In 2005 the Lottery?s management was balancing proper business strategy with the urgent mandate to raise a large amount of education money in a little time,? said Auditor Merritt. ?Management clearly needs the safety net that the Lottery Oversight Committee was meant to provide,? concluded Auditor Merritt.
