Auditor orders probe of state lottery performance

CLEVELAND (AP) — The state auditor has ordered a performance audit of the Ohio Lottery over the uncertainties of gambling revenue, but the lottery has balked at the idea and asked that the proposal be reconsidered.

“The proposed audit does not seem reasonable, necessary or a wise investment of public funds,” Lottery Executive Director Kathleen Burke said in a letter mailed Saturday to Ohio Auditor Mary Taylor and released by the lottery Monday.

“Accordingly, I respectfully ask that you reconsider your position on conducting this additional audit,” Burke said.

Chris Abbruzzese, Taylor’s spokesman, said the auditor’s office was moving ahead with the audit plans. “We will be more than happy to further explain and answer any questions the director may have concerning the independent, professional standards-based performance audit we are going to conduct at the lottery,” he said.

Abbruzzese said a performance audit can provide guidance on improving agency efficiency, which is important in the current economy as state government tries to close an $850 million budget hole. “These are unusual budgetary times in state government where you have to look for any and all efficiencies you can,” he said.

The auditor’s office has no other performance audits currently planned, Abbruzzese said.

Taylor had said the uncertain nature of gambling revenue — along with new legislation that allows for casinos in four Ohio cities — creates an “environment of heightened risk.” She informed the lottery of the performance audit last week. It is separate from annual checks of financial statements.

“This additional audit of lottery operations is in the public interest,” Taylor told the lottery in a Nov. 16 letter, especially since the state has considered increasing its reliance on gaming revenues to balance the state government budget.

The estimated $118,000 cost of the audit would be paid by the lottery.

The auditor’s office has proposed beginning the audit this month, finishing the field work by March and having the audit and any recommendations ready for public release in June.

Burke said the lottery wouldn’t have enough time under the schedule to assess the demands that the audit might make on the lottery staff.

The Plain Dealer reports that it will be the first such audit initiated by Taylor against the wishes of an agency not in financial trouble.

Burke said she discussed such an audit with Taylor’s staff. But she felt advice on improving agency performance might be more useful if it came from a source with experience on gambling issues.