s 352.379 L72MLOA 2003 FinancialStatementsand IndependentAuditors'Report Montana StateLottery June30,2003and2002 D3C-C3 PreparedUnderContractWith: MONTANALEGISLATIVEBRANCH,AUDITDIVISION POBox201705,HelenaMT59620-1705 MONTANASTATELIBRARY 3 0864 1002 4597 9 FinancialStatementsand Independentauditors'Report MontanaStateLottery June30,2003and2002 GALUSHA HIGGINSX^ GALUSPW P.O.Box1699 Helena,Montana 59624-1699 (406)442-5520 FAX(406)443-1017 MontanaStateLottery June30.2003and2002 Contents TransmittalLetterfromtheOffice OFTheLegislativeAuditor 1 CommissionmembersandadministrativeOfficials 2 IntroductionANDBackground 3 Independentauditors'Report 4-5 Management'sDiscussionANDANALYSIS 6-10 FinancialStatements: StatementsofNetAssets 11 StatementsofRevenues,Expensesand ChangesinFundNetAssets 12-13 StatementsofCashFlows 14 NotestotheFinancialStatements 15-23 ReportonComplianceandonInternalControl OverFinancialReportingBasedonanaudit OfFinancialStatementsPerformedinaccordance v^iTHGovernmentAUDITINGStandards 24-25 LEGISLATIVE AUDIT DIVISION DeputyLegislativeAuditors: ScottA.Seacat,LegislativeAuditor /ll^^!jt?fs«**^^\ •'™Pellegrini,PerformanceAudit JohnW.Northey,LegalCounsel r^Sf^^^^^j ^"'''Hunthausen,ISAudit&Operations JamesGillett.Financial-ComplianceAudit October2003 TheLegislativeAuditCommittee oftheMontanaStateLegislature: Enclosedisthereportonthefinancial-complianceauditoftheMontanaStateLotteryforthefiscalyear endedJune30,2003. TheauditwasconductedbyGalusha,Higgins,andGalusha,PC,underacontractbetweenthefirmand ouroffice. Therearenorecommendationsinthisreport. Jtespectfullysubmititt^tSJU, ScottA.Seacat LegislativeAuditor 03C-02 Room160.StateCapitol.POBox201705 HelenaMT59620-1705 Phone(406)444-3122 FAX(406)444-9784 [email protected] MontanaStateLottery CommissionMembersandAdministrativeOfficials June30,2003 COMMISSIONMEMBERS RESIDENCE RobertCrippen,Chairperson Butte DonaldSterhan Billings CliffordBrophy Columbus TomKeegan Helena BettyWilkins Missoula ADMINISTRATIVEOFFICIALS GeraldJ.LaChere,MontanaStateLotteryDirector L.JohnOnstad,MontanaStateLotteryDirectorofSecurity