New Mexico Lottery Authority

The meeting will cover security and operations, including revised external policies for online games, quicksters games, instant games, and the repeal of MUSL policy and rules for lucky numbers bingo. The finance audit will include the FY 2019 consolidated revised annual budget, financial statements, and a retailer compensation plan policy. The CEO will give a general update. Legislative matters will be discussed, followed by an executive closed session for personnel matters, including the CEO's annual review.

The meeting agenda includes discussions and actions on the FY 2018 Consolidated Original Annual Budget, financial statements, disposal of obsolete property, the FY 2018 Internal Audit Plan, a Lottery Bucks Compliance Audit, an advertising RFP, CEO evaluation/contract, board officer elections, and committee appointments.

The committee reviewed the FY 2017 financial audit, noting a $37.8 million return to the Legislative Lottery Scholarship fund, which was $8.5 million less than the previous year. The audit process, timeline, and standards were discussed. Financial statements were presented, showing decreased instant and drawing sales compared to the previous year. Operating expenses were analyzed, and the impact of the 30% statutory return mandate on maximizing revenue was discussed. July 2017 financial statements were also reviewed, highlighting the return of $3.1 million to the scholarship fund and sales data for various lottery games. A banking resolution regarding a line of credit with Wells Fargo Bank was also addressed.

The committee reviewed the Claims Engagement Audit Report, which assessed Claims Center procedures and offered recommendations for process improvement. A GP Accounting Software Access Engagement Phase 1 Audit Report was also reviewed, highlighting a preliminary assessment of segregation of duties within the Microsoft Dynamics GP accounting software and the need for further analysis. The committee discussed the FY 2022 Financial Audit Services RFP process, including the selection of a new vendor and the formation of an evaluation committee. Staff adjustments, including cost-of-living increases and salary range updates, were reported. The committee reviewed and recommended approval of the FY 2022 Consolidated Revised Annual Budget to the full Board.

The meeting included reports from the Finance and Audit Committee, covering internal and external audits, and recommendations for the RFP evaluation committee. Staff adjustments, including cost-of-living increases and salary grade range adjustments, were reported. Financial statements were reviewed, highlighting transfers to the Lottery Tuition Fund and discussing the impact of inflation on sales. The FY 2022 Consolidated Revised Annual Budget was approved. The Security and Operations Committee minutes were accepted as information only. The Open Meetings Resolution was adopted. The CEO's update covered new lottery games, the addition of a Monday night drawing for Lotto America, international sales of Powerball, and the rollout of new vending machines.