ANNEX A ON-LINE TICKET SALES CONTROL (ie. lotto 6/49)

ANNEX A ON-LINE TICKET SALES CONTROL (ie. lotto 6/49)
RESPONSIBILITIES OF STORE PERSONNEL

1. Sell tickets and code to department 20 on the cash register.

2. At the end of the working day obtain a terminal Sales Report from the lottery terminal. Using this report, complete the On-Line portion of the Lottery Daily Recap (LDR) form (Annex C) which is to be completed in duplicate. Attach the terminal Sales Report to the LDR. Both the terminal Sales Report and the LDR shall be submitted to the NPFAO as supporting documentation to the DSR.

3. Voids are reflected on the terminal Sales Report. All individual void slips obtained from the terminal shall be attached to the LDR. Note that there are no refunds on tickets. A ticket is cancelled/voided.

4. Weekly, or as required by the Lottery Corporation, invoices shall be obtained from the lottery terminal. This shall be done prior to opening for business on that particular day. Enter the invoice at cost and retail value on the weekly Invoice Register. Note that for the sample invoice in 9(c) below, the cost value is (71 + 1,879 + 33 -

107. 24) which is equal to $1, 875.76. The retail value is (71 + 1,879 + 33) which is equal to $1,983.00. Invoices shall be submitted to NPF accounts with the Invoice Register and the RAR.

5. Whenever a ticket is validated but not redeemed (ie. the amount won is over the vendors redemption limit), assist the winner in completing the claim as instructed by the Lottery Corporation.
RESPONSIBILITIES OF NPF ACCOUNTS PERSONNEL

6. On a daily basis, the NPFAO shall:
a. Verify that the void documentation (ie. void slips) has been submitted and that it agrees with the total on the terminal Sales Report;
b. Verify that the information on the terminal Sales Report agrees with the On-Line Portion of the LDR; and
c. record the amount of On-Line redemptions from the LDR as a debit to the account "Accounts Receivable - On-Line Lottery".

7. When an invoice is submitted, the NPFAO shall:
a. Verify the DSR for the previous day. Note that invoices are obtained at the close of business the previous day. Therefore, before the invoice figures are used for the following calculations, the DSR must be verified;
b. Ensure that:
(1) The "old balance" equals "amount due" on the previous invoice,
(2) Aany adjustments are valid and reconcilable; and
c. Consider the following as an example of an On-Line Invoice and take bookkeeping action as described herein.
INVOICE #3477 JUN 1 89 OLD BAL 857.95 ADJST 0.00 PAID 857.95 NEW BAL 0.00 6/39 71.00 6/49 1,789.00 PICK 3 33.00 VOIDS 0.00 REDEM 404.60 COMM 107.24 S/C .50 NET 1,471.66
DUE 1,471.66
Bookkeeping action:
DR Purchases 1,875.76 DR Expense Service/Charge .50
CR Bank 1,471.66 CR Accounts Receivable - On-Line Lottery 404.60
NOTES

1. The figure for Purchases is the selling price of the tickets purchased minus the commission (71 + 1,879 + 33 - 107.24).

2. For some On-Line lotteries the commission for tickets sold cannot be distinguished from the commission received for redemptions. In these cases, all commissions will be apparent as the gross profit from the sales. Otherwise, the commission received for redemptions is to be accounted for separately through a "Miscellaneous revenue - lottery" account.

3. For the Super 7 lottery game, prizes of free tickets are awarded through the 6/49 terminal. Normally, the daily recap obtained from the terminal will show the number of free tickets awarded, but there will be no charge, and no sale. There is therefore, no bookkeeping action. Should the Lottery Corporation give credits on the invoice instead, these free tickets should be accounted for as a debit to Accounts Receivable On-Line Lottery, and a credit to purchases. The RAR should be adjusted accordingly.

4. Lottery Corporations automatically reduce the lottery bank account by the amount indicated as "due".

5. Bookkeeping action for sales will be initiated from the DSR as per normal and will consist of sales in the form of cash plus redemptions (Accounts Receivable).

8. Obtain a print-out of the lottery bank account and examine the closing balance. Effect a transfer to the CBA Ottawa if warranted, or initiate a cheque to increase the balance in the bank.
MONTHLY

9. At month-end, balance the On-Line lottery sales, purchases, revenue, expense and accounts receivable accounts. Remember that in some cases, commissions from sales and redemptions will appear as the department's gross profit margin and will thus not require any separate revenue accounts.