Audit finds more problems with Texas Lottery
Wednesday, July 12, 2006 posted 04:30 AM EDT
AUSTIN — Months after Texas Lottery officials were chastised for inflating Texas Lotto jackpot estimates in a scandal that cost the executive director his job, the agency did it again at least three more times, according a state auditor report released today.
The audit found a "significant number of instances in which agency management did not comply with policies and procedures to review or approve documentation related to jackpot estimations, jackpot prize payment calculations and transfers to the Foundation School Fund."
On the inflated jackpots, the audit verified four instances between May 2003 and June 2005 in which lottery officials admitted they had advertised a jackpot that staffers knew projected sales couldn't pay.
But auditors found three more instances from November to March in which jackpots exceeded the agency's "high-end" estimated sales.
Winners likely wouldn't have been impacted on those occasions because, as the report notes, they occurred after commissioners agreed to guarantee winners the higher of either the advertised jackpot or percentage of actual sales.
"Failure to accurately advertise Lotto Texas jackpot amounts may contribute to a lack of public confidence in the Lotto Texas game and the Texas Lottery Commission," auditors wrote.
In two other instances between May 2003 and June 2005, auditors wrote they could not determine whether jackpot estimates were inflated because the agency didn't prepare one of the estimates and the other worksheet was missing.
Another lottery audit, focusing on the agency's human resources department, found "significant weaknesses" in employee relations, including a lack of a grievance policy, inconsistent disciplinary actions and inadequate documentation of terminations.
The human resources audit echoed many of the concerns expressed by lottery employees who claimed they were wrongly terminated in spite of positive job performance evaluations.
Auditors found that many employees don't trust management, feel intimidated and "fear that they may experience retaliation if they raise significant issues, concerns, or complaints." The audit recommended adoption of a grievance policy and create an employee ombudsman position that reports directly to the executive director.
A lottery spokesman declined to immediately comment.
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