The Ohio Lottery was established pursuant to the Ohio Constitution, Article XV, Section 6, which reads in pertinent part as follows: The General Assembly may authorize an agency of the state to conduct lotteries, to sell rights to participate therein, and to award prizes by chance to participants, provided that the entire net proceeds of any such lottery are paid into a fund of the state treasury that shall consist solely of such proceeds and shall be used solely for the support of elementary, secondary, vocational, and special education programs as determined in appropriations made by the General Assembly.

Pursuant to Ohio Revised Code Section 3770.06 (B), the Director of Budget and Management Certifies the transfers to the Lottery Profits for Education Fund.

Accounting Systems and Policy
The Ohio Lottery Commission operates three enterprise funds, which are administered in accordance with generally accepted accounting principles. The Lottery manages the following funds:

Operating Fund -- Revenues for this fund are provided primarily from ticket sales. Expenses of this fund represent primarily prize expenses, operating expenses and payments to the State education system.

Deferred Prizes Trust Fund -- Revenues for this fund are provided through cash transfers from the Lottery Operating Fund for the purpose of providing investment principal for funding long-term prize obligations.

Budgetary Control
Budgetary control for all state agencies is maintained through legislative appropriations and the executive branch allotment. The appropriation and the amount expended for the Lottery Operating Fund and Deferred Prizes Fund are monitored by the Ohio Office of Budget and Management. The Finance Division monitors all accounts in conjunction with the State of Ohio Central Accounting System.

Integrity
Since the Lottery manages a valuable ticket inventory and controls the disbursement of prizes, the following steps have been taken to ensure that operations remain honest and secure:

• Hiring specialized security and law enforcement staff.
• Maintaining secure Lottery facilities.
• Performing background checks on retailers, contractors and Lottery employees.
• Printing Lottery tickets with special paper, inks, dyes and security codes.
• Establishing and executing detailed procedures for all game drawings.
• Contracting with the Auditor of State as an independent witness to further ensure the integrity of our drawings and the Cash Explosion® Double Play game show.