Welcome Guest
Log In | Register )
You last visited December 4, 2016, 11:27 pm
All times shown are
Eastern Time (GMT-5:00)

'Prize closet' for Illinois Lottery employees discovered

Illinois LotteryIllinois Lottery: 'Prize closet' for Illinois Lottery employees discovered

The Illinois Lottery solicited donations of MP3 players, airline ticket vouchers, video game systems and other goodies from radio and television stations it advertised with, then used the items to create a "prize closet" for lottery employees, a state audit revealed on Wednesday.

"During this engagement it came to our attention that the Lottery has operated a 'prize closet' dating back to 1989 and possibly longer," said Auditor General William Holland's report.

According to the audit, a letter soliciting "prize closet" donations in fall 2003 stated that the goods would "be utilized as incentives to create excitement and rewards within the Lottery's team of dedicated employees."

Those donations continued through Dec. 4, 2004, when the director of the Department of Revenue, which oversees the state Lottery, decided to end the practice, the audit said.

That was almost a year after the state deleted an administrative code provision allowing for employee incentive pay, making it illegal to distribute state property as incentives to Lottery staff members.

The provision was repealed on Jan. 22, 2004, according to the audit.

In that 11-month period, employees did not receive any incentives, but there was some distribution to retailers, Revenue spokeswoman Geraldine Conrad said.

According to the audit, more than 1,000 "prize closet" items were received in all, and the Lottery failed to monitor those goods properly.

"In eight instances, the Department could not provide evidence reflecting who the ultimate recipient was," the audit reported.

The Department of Revenue noted that those eight items were "of nominal value" (one CD, five DVDs and two VHS tapes) and that they are believed to have been distributed as part of a sales clerk incentive program. The particular retail locations to which they were distributed could not be identified, however.

While a perpetual inventory was maintained on items in the prize closet, the goods were not valued, tagged as state property, recorded in the Department of Revenue's inventory records, or identified in state property reports as required by law, the audit found.

Conrad said the Lottery had stopped soliciting or receiving goods in conjunction with its advertising media buys, and had returned all remaining "prize closet" items.

"All gifts in the cabinet were returned and none have been distributed since last year," she said.

In response to the audit, the department also agreed to seek a legal opinion as to the appropriateness of such practices and what guidelines would need to be followed if the incentive program were resumed.

"The department's general counsel is reviewing what criteria might be appropriate," Conrad said.

News-Gazette

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

6 comments. Last comment 12 years ago by LOTTOMIKE.
Page 1 of 1
LOTTOMIKE's avatar - cash money.jpg
Tennessee
United States
Member #7853
October 15, 2004
11338 Posts
Offline
Posted: May 6, 2005, 8:38 pm - IP Logged


wow i wonder if they have any skeletons in their closet.....lol

    Todd's avatar - Cylon 2.gif
    Chief Bottle Washer
    New Jersey
    United States
    Member #1
    May 31, 2000
    23260 Posts
    Offline
    Posted: May 6, 2005, 9:10 pm - IP Logged

     Good one!

    I was wondering who would make the first comment here.

     

    Check the State Lottery Report Card
    What grade did your lottery earn?

     

    Sign the Petition for True Lottery Drawings
    Help eliminate computerized drawings!

      LOTTOMIKE's avatar - cash money.jpg
      Tennessee
      United States
      Member #7853
      October 15, 2004
      11338 Posts
      Offline
      Posted: May 6, 2005, 9:18 pm - IP Logged



       Good one!

      I was wondering who would make the first comment here.




      the news is my favorite section.....i always keep up with whats happening in the lottery.always something interesting to read here.

        Rick G's avatar - avatar 1766.jpg
        FEMA Region V Camp #21
        United States
        Member #520
        July 27, 2002
        5699 Posts
        Offline
        Posted: May 8, 2005, 2:12 pm - IP Logged

        Illinois thrives on "hidden closets".

        As long as they keep the draws honest and ball-driven, I can live with their sales "incentives".

        Posted 4/6:  IL Pick 3 midday and evening until they hit:  555, 347 (str8).


          Todd's avatar - Cylon 2.gif
          Chief Bottle Washer
          New Jersey
          United States
          Member #1
          May 31, 2000
          23260 Posts
          Offline
          Posted: May 8, 2005, 7:43 pm - IP Logged

          Funny and true, Rick G.

           

          Check the State Lottery Report Card
          What grade did your lottery earn?

           

          Sign the Petition for True Lottery Drawings
          Help eliminate computerized drawings!

            LOTTOMIKE's avatar - cash money.jpg
            Tennessee
            United States
            Member #7853
            October 15, 2004
            11338 Posts
            Offline
            Posted: May 9, 2005, 6:50 am - IP Logged

            i wonder if tennessee has a "prize closet"