REPORT DIGEST

DEPARTMENT OF THE LOTTERY - STATE
LOTTERY FUND

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  February 2, 2023

FINDINGS THIS AUDIT:  2

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  0 -- 2 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 2 -- 2

FINDINGS LAST AUDIT: 6

Category 1: Findings that are material
weaknesses in internal control and/or
a qualification on compliance with
State laws and regulations (material
noncompliance).
Category 2: Findings that are
significant deficiencies in internal
control and noncompliance with State
laws and regulations.
Category 3: Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

State of Illinois, Office of the
Auditor General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report
contact:
Office of the Auditor General, Iles
Park Plaza, 740 E. Ash Street,
Springfield, IL 62703
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are
also available on the worldwide web at
www.auditor.illinois.gov

INTRODUCTION

This digest covers the financial audit
of the Department of the State
Lottery’s (Department) State Lottery
Fund as of and for the year ended June
30, 2022.

SYNOPSIS

• (21-01) The Department did not
conduct adequate independent internal
control reviews over its service
providers’ System and Organization
Control (SOC) reports.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER SOC REPORT
REVIEWS

The Department of the Lottery
(Department) did not conduct adequate
independent internal control reviews
over its service providers’ System and
Organization Control (SOC) reports.

The Department receives SOC reports
from four different service providers
and performs an independent internal
control review of each SOC report to
determine whether any areas of concern
are noted. In total, the Department
received nine SOC reports during the
fiscal year ended June 30, 2022.

During our testing, we noted three of
nine (33%) SOC reports had qualified
or adverse opinions due to
deficiencies noted by the SOC
auditors. The Department did not
perform an analysis on whether they
could rely on the service providers’
controls due to deficiencies noted in
the SOC reports with qualified or
adverse opinions. Through our
assessment of the types of
deficiencies noted by the SOC
auditors, and the substantive testing
we performed in other areas of our
audit, we were able to rely on the
testing and assurance provided by the
SOC reports. (Finding 1, pages 51-52)

We recommended the Department conduct
adequate reviews over SOC reports to
ensure the reviews capture the
Department’s disposition on the effect
of any modified opinions noted within
the SOC reports.

Department officials accepted our
recommendation.

OTHER FINDINGS

The remaining finding pertains to
inadequate controls over census data.
We will review the Agency’s progress
towards the implementation of our
recommendations in our next financial
audit.

AUDITOR’S OPINION

The auditors stated the financial
statements of the State Lottery Fund
as of and for the year ended June 30,
2022, are fairly stated in all
material respects.

This financial audit was conducted by
Sikich, LLP.

JANE CLARK
Division Director

This report is transmitted in
accordance with Section 3-14 of the
Illinois State Auditing Act.

FRANK J. MAUTINO
Auditor General

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