Why
this is important:
Each year, the Iowa Lottery raises tens of millions of dollars
that enrich life in our state. Lottery proceeds have four
main purposes in Iowa. They provide support for veterans;
help for a variety of significant projects through the state
general fund; backing for the Vision Iowa program; and assistance
to the Iowa Gambling Treatment Program.
In July 2008, a portion of lottery proceeds began to be
dedicated to the Iowa Veterans Trust Fund, where they are
used to support our state's veterans. The profits from two
instant-scratch games and two pull-tab games each year are
directed into the Veterans Trust Fund. The Iowa Lottery
estimates that the games will provide about $2 million to
$3 million in proceeds annually for the Trust Fund. The
Iowa Veterans Trust Fund was created to provide assistance
to qualified veterans to help pay for expenses such as job
training or college tuition assistance; some dental, vision
and hearing assistance; and individual or family counseling
programs.
Since 1992, a majority of lottery profits have been directed
into the state general fund, where they are used to pay
for programs that benefit all Iowans. In the Iowa Lottery's
latest financial year, the lottery raised $57.2 million
in proceeds that were deposited in the state general fund.
Some of the programs that receive money from the general
fund include education, natural resources, health and family
services and public safety. The Governor and Iowa Legislature
allocate money from the general fund based on where they
believe those funds are needed most.
In addition to the commitment to the general fund, lottery
profits are linked to the Vision Iowa program, which was
implemented in 2000 to create tourism destinations in the
state, assist with community attractions, and build and
repair schools. Direct funding for Vision Iowa comes from
gaming revenues. However, as the program was being initiated,
investors indicated there was a need to strengthen the Vision
Iowa bonds by dedicated $20 million annually in lottery
revenues as a backup. Legislation was approved that dedicates
$15 million in lottery revenues to programs for community
attractions in Iowa and another $5 million to Vision Iowa
programs to build and repair schools in gambling revenues
don't reach that amount. Lottery funding will continue to
be linked to Vision Iowa over the 20-year payback period
of the program's bonds.
A portion of Iowa Lottery proceeds also are dedicated each
year to the Iowa Gambling Treatment Program to inform Iowans
about the risks of gambling and provide help to those for
whom gambling has become a problem. Through the years, the
lottery has provided more than $14.5 million in funding
to the Gambling Treatment Program, which administers the
statewide 1-800-BETSOFF helpline.
General Fund transfers, along with proceeds to the Iowa
Veterans Trust Fund and Iowa Gambling Treatment Program,
are the best overall indicator of how the Lottery is performing
and represent the financial support the Lottery gives to
state agencies.
What we're doing about this:
Internal integrity and security is paramount to the Lottery.
Background checks are conducted on all potential employees
and suppliers of major procurements before they can become
members of the Lottery team or do business with the Lottery.
Strict licensing requirements, including background checks,
ensure that only reputable retailers sell Lottery products.
The Lottery's security division conducts retailer reviews
and reports its finding to the Lottery's Board. The on-line
game system integrity is tested daily by an internal control
system. All drawings are monitored and verified by an independent
auditor. All sales reps are required to balance their ticket
inventory on a weekly basis. Periodic performance evaluations
and the resulting reports are also a "must" to
ensure that the Lottery's integrity remains intact. The
Lottery is subject to annual financial audits by the State
Auditor. A major accounting firm conducts an annual performance
audit on the Lottery's on-line game system.
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