(A) Disbursement from the state lottery gross revenue fund. The state lottery gross revenue fund shall be in the custody of the treasurer of state for the use of the state lottery, and moneys shall be disbursed from it on the order of the auditor of state, pursuant to vouchers or invoices signed by the director or the director's designee. The monies in the state lottery gross revenue fund shall be appropriated in the following order, and only for the following purposes:
(1) Payment of prize awards to holders of winning lottery tickets, including prizes awarded in any statewide joint lottery games offered by the commission, provided the total prize disbursements at the end of the fiscal year be of an amount equal to or greater than fifty per cent of lottery tickets sales;
(2) Payment of expenses incurred by the state lottery in the operation and promotion of the state lottery, including but not limited to, costs arising from contracts entered into by the director for promotional, consulting or operational services, salaries of professional, technical, and clerical assistants, and purchases or lease of lottery equipment and materials, and any expenses incurred from the operation of any statewide joint lottery games; and
(3) Transfer into the lottery profits education fund of all net revenues remaining in the state lottery fund, after the payments specified in paragraphs (A)(1) and (A)(2) of this rule.
(B) Other disbursements. Subject to any applicable provisions of law, vouchers authorizing disbursements from any funds in the custody of the treasurer of state for use by the state lottery shall only be made upon the director's own express written authorization. The director may designate individuals with authority to act as the director's signator when the director is unavailable to provide such express written authorization.
(C) Director to adopt procedures. The director shall adopt management orders, regulations or directives providing detailed financial procedures and controls. These shall include, without limitation, the manner in which expenses may be incurred and the manner in which all financial transactions are to be effected and recorded.
(1) The auditor of state shall conduct annual audits of all funds and such other audits as the auditor of state or general assembly considers necessary. In addition, the director shall provide for and conduct such audits or examinations of the operations of the state lottery, the sales representatives and the agents as deemed necessary. The director and the auditor of state may examine all records, files, and other documents of the commission, and such records of agents and sales representatives as pertain to their state lottery activities, for purposes of conducting authorized audits or examinations.
(2) The state lottery commission shall establish an internal audit program before the beginning of each fiscal year, subject to the approval of the auditor of state. At the end of each fiscal year, the commission shall prepare and submit an annual report to the auditor of state for the auditor of state's review and approval, specifying the internal audit work completed by the end of that fiscal year and reporting on compliance with the annual internal audit program. The form and content of the report shall be prescribed by the auditor of state under division (C) of section 117.20 of the Revised Code.
R.C. 119.032 review dates: 03/19/2007 and 06/08/2012
Promulgated Under: 119.03
Statutory Authority: 3770.03
Rule Amplifies: 3770.01, 3770.02, 3770.03, 3770.04, 3770.05, 3770.06, 3770.07, 3770.08
Prior Effective Dates: 7/15/74, 8/12/74, 5/27/93, 12/27/96, 3/25/02, 7/19/02