Taylor Releases Ohio Lottery Commission Performance Audit

Tuesday, August 31, 2010

Cuyahoga County - Auditor of State Mary Taylor today released the performance audit of the Ohio Lottery Commission.  The audit identifies potential savings of more than $2 million annually, and includes several recommendations that could help increase the profitability of the Ohio Lottery.
“The Ohio Lottery is a multi-billion dollar enterprise,” Taylor said. “I am pleased my office was able to work with Lottery officials to develop recommendations that will help ensure the Lottery’s continued success and enhance its important support for education in our state.”
The performance audit released today examines the Lottery Commission in areas of agency governance, organization, financial management and lottery operations.  In addition to identifying areas for improvement, the report commends the commission for the successful conversion of the lottery’s gaming system to a new vendor, as well as a high level of employee engagement.   
Recommendations outlined in the report, including some audit proposals the Lottery Commission is already taking action on, offer ways to reduce costs and increase the overall profitability of the Ohio Lottery.
Some of the performance audit recommendations include:

  • Consider reducing the number of regional Lottery offices by two and eliminating positions associated with closed offices for an estimated annual cost savings of $633,000
  • Consider eliminating staff in various other areas of commission operations for an estimated annual cost savings of $1,376,000
  • Consider studying the potential impact the emergence of casinos will have on lottery sales
  • Implementing leading business practices in planning and strategic management.
The report also illustrates how the Lottery Commission could potentially benefit from a restructuring process under specific parameters outlined by the Ohio General Assembly.
Performance audits report on the efficiency and effectiveness of government operations through peer comparisons and benchmarking to industry standards.  A performance audit is a valuable tool for agencies seeking to improve operations, identify cost savings and make better use of existing resources.
Since taking office, Taylor has released 99 performance audits outlining 3119 recommendations for improvements.  Those recommendations, if fully implemented, could result in potential cost savings of more than $155 million annually.
A copy of the complete audit is available online.
The Ohio Auditor of State’s office is a leader in the government accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditors Association.

Chris Abbruzzese
(614) 644-1111