Overview
While the Lottery’s cigar-, electronic nicotine delivery system–, and tobacco-related violations log documented information to help the Lottery track the suspension process for its sales agents regarding each violation, we found that not all violations were recorded.
Specifically, the Lottery provided us with a log of 208 cigar-, electronic nicotine delivery system–, and tobacco-related violations for the audit period. However, there were an additional 126 violations transmitted by DOR to the Lottery during the audit period that were not listed in the Lottery’s cigar-, electronic nicotine delivery system–, and tobacco-related violations log.
If the Lottery does not record all cigar-, electronic nicotine delivery system–, and tobacco-related violations in its cigar-, electronic nicotine delivery system–, and tobacco-related violations log, there may be inconsistent suspension processes and sales agents may potentially continue to violate Lottery policies.
Authoritative Guidance
According to Chapter 647 of the Acts of 1989,
Notwithstanding any general or special law to the contrary, the following internal control standards shall define the minimum level of quality acceptable for internal control systems in operation throughout the various state agencies and departments and shall constitute the criteria against which such internal control systems will be evaluated. Internal control systems for the various state agencies and departments of the Commonwealth shall be developed in accordance with internal control guidelines established by the office of the comptroller. . . .
(B) All transactions and other significant events are to be promptly recorded, clearly documented and properly classified.
Reasons for Issue
Lottery officials stated that organizational and staffing changes during this time period hindered recordkeeping. This resulted in a backlog of violations that were not recorded in the log at all. Additionally, the Lottery does not have an agreement with DOR to define each agency’s responsibilities and communication related to sales agent violations.
Recommendations
- The Lottery should develop policies and procedures to ensure that the Lottery’s cigar-, electronic nicotine delivery system–, and tobacco-related violations log is complete, accurate, and up to date.
- The Lottery should collaborate with DOR to establish an agreement to create a centralized transmittal and tracking system that allows the Lottery and DOR access to all DOR suspensions, to ensure timely receipt of cigar-, electronic nicotine delivery system–, and tobacco-related violations and improved program management.
Auditee’s Response
- In a letter dated September 17, 2025, the Lottery notified the DOR that all future DOR tobacco-related suspension notification letters should be sent to a DOR/tobacco-designated Lottery email address. In this same correspondence, the Lottery conveyed its desire to discuss with the DOR the viability of further documenting and clarifying the communication process between the two agencies.
- Additionally, the Lottery has developed and implemented a DOR Tobacco Violations Policy which serves to outline the process by which the Lottery will follow when it receives confirmation from the DOR that a retailer is subject to a cigar, electronic nicotine delivery system or tobacco license suspension or revocation pursuant to [Sections 7B(l)(1), 7E(l)(1), 34 or 35 of Chapter 64C of the General Laws].
Auditor’s Reply
We commend the Lottery’s efforts to establish a designated email address and implement a “DOR Tobacco Violations” policy to improve the DOR suspensions program for cigar-, electronic nicotine delivery system–, and tobacco-related violations. Based on its response, the Lottery is taking measures to address our concerns in this area. We will review progress on this issue as part of our post-audit review process in approximately six months.
| Date published: | November 26, 2025 |
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