Internal Audit Unit Mission
The mission of the Racing and Charitable Gaming (RCG) Division's Internal Audit Unit (IAU) is to assist the commission in the administration of its regulatory responsibilities under RSA 284 relating to live horse and simulcast racing, and RSA 287 D and E, relating to games of chance and bingo lucky 7 respectively. In fulfilling this mission, IAU's objective is to ensure that all RCG licensees are in compliance with the RCG rules and regulations and the statutory financial obligations to the state and charitable organizations are met.
The Audit Process
The IAU conducts audits using the following three phases:
An entrance conference is scheduled with the licensee to communicate the preliminary audit process and seek licensee's input regarding risk and audit scope. Interviews are conducted with selected personnel of the audited entity focusing on the various audit areas. The purpose of the interviews is to document what operational and accounting procedures are used and why. IAU performs a preliminary analysis of the licensee's financial transactions including, but not limited, to cash receipts and disbursements. Based on the entrance conference, preliminary interviews, and preliminary analysis, IAU designs audit procedures to address each identified audit risk.
When adequate internal controls are identified, IAU will perform walk-through tests to confirm that the tasks are performed as described. When weaknesses in internal controls are identified IAU will make appropriate internal control recommendations as part of the audit report. Detailed audit procedures will be performed with a primary focus on testing for compliance with RCG rules and regulations, including fulfillment of the licensee's financial obligations to the state and charitable organizations. IAU will promptly notify licensees of any audit concerns to allow the licensee an opportunity to provide insight regarding the respective issue. All of the audit findings and recommendations are discussed with the licensee management responsible for implementing the recommendations.
Upon completion of fieldwork, a draft of the audit report is prepared and provided to the licensee. Shortly thereafter an exit conference is scheduled with the licensee to discuss the audit and the report.
Licensee's input regarding the background, findings, and recommendations is considered in drafting the audit report. After the exit conference licensee is asked to formally respond in writing to any findings and recommendations. Licensee's response is incorporated into the report and a final audit report is issued to all required parties.
Suggested Games of Chance Forms
New Hampshire Lottery Commission, Racing and Charitable Gaming Division
14 Integra Drive | Concord, NH 03301
(603) 271-3391 | (603) 271-1160