CHAPTER 54 LOTTERY TICKETS

INTRODUCTION


1.   Lotteries played in Canada are of three types: passive or
     traditional games which use a pre-printed ticket like the Super Lotto;
     on-line or lotto games which let the player pick a number combination as
     in the 6/49; and instant games (scratch and win). Examples of each are
     available in all provinces, though the specific names will vary because
     lotteries are under provincial jurisdiction. This jurisdiction results
     in certain procedures and controls being imposed by the Lottery
     Corporations.


2.   This chapter defines the minimum requirement for accounting and
     control of lottery tickets.


3.   (Not allocated).


GENERAL


4.   Lottery tickets shall be considered equivalent to cash for
     security reasons. Managers are to ensure that appropriate secure
     facilities are made available to all outlets that sell lottery tickets,
     for the purpose of storage and safe keeping.


5.   Sales of lottery tickets shall be accounted for as sales within
     Department 20.


6.   Shrinkage is not authorized under any circumstances for lottery
     sales, and any overage/shortage shall be handled as a cash
     overage/shortage.


7.   Redemption of winning tickets shall be accounted for as an
     Accounts Receivable and cleared with the next invoice. Note that the
     reduction of cash caused by redemptions is not to effect a reduction in
     sales on the DSR. Instead, Sales shall be credited for the total amount
     and the offsetting account shall be Cash and/or Accounts Receivable.


8.   While the commission on sales is the gross profit from the sales,
     commissions on winning tickets (vendor's redemption fees) are to be
     treated as Miscellaneous Revenues under that outlet. On-line lotteries
     (ie, 6/49) may be exceptions to this rule since the two types of
     commissions may not be easily segregated (refer to para 7(c) of Annex A).


9.   Some Lottery Corporations may require the establishment of a
     separate bank account to permit them to invoice the retailer directly
     and pay themselves. In such cases, authority to establish a separate
     bank account is granted. Monthly bank reconciliations must be performed
     on any such bank account. Expenses such as bank service
     charges/administrative fees shall offset revenues on the Income
     Statement.


10.   Supervised stocktakings on lottery operations shall be conducted
      at least once per month.