Arkansas Department of Finance and Administration Office of the Arkansas Lottery Debt Set-Off and Retailer Losses November 2018

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3 Term Contracts for Goods and Services November 1 through November 30, 2018 No term contracts were entered into by the Arkansas Department of Finance and Administration during the month of November 2018.

4 Debt Set-Off and Retailer Losses November Debt Set-Off Collections: a. Arkansas Department of Finance and Administration $11, b. Arkansas Office of Child Support Enforcement - Child Support $1, Total Debt Set-Off: $12, Retailer Losses: $0.00

5 ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION OFFICE OF THE ARKANSAS LOTTERY RETAIL SALES BY COUNTY November 1 through November 30, 2018 COUNTY CASH 3 CASH 4 FAST PLAY INSTANT SETTLEMENTS LUCKY FOR LIFE MEGA MILLIONS NATURAL STATE JACKPOT POWERBALL TOTAL SALES FOR COUNTY ARKANSAS $9, $6, $11, $435, $2, $17, $6, $19, $507, ASHLEY $12, $12, $8, $131, $ $7, $2, $10, $187, BAXTER $2, $1, $12, $357, $5, $21, $13, $29, $444, BENTON $7, $3, $21, $1,069, $12, $93, $26, $122, $1,357, BOONE $2, $1, $27, $432, $1, $15, $6, $22, $509, BRADLEY $1, $2, $5, $153, $ $4, $1, $5, $175, CALHOUN $4, $ $3, $54, $ $1, $ $2, $68, CARROLL $ $ $5, $235, $1, $10, $4, $13, $270, CHICOT $7, $5, $2, $172, $4, $30, $7, $39, $269, CLARK $1, $1, $19, $300, $1, $12, $6, $14, $357, CLAY $ $98.00 $2, $112, $ $3, $1, $5, $126, CLEBURNE $1, $ $13, $241, $2, $16, $8, $19, $302, CLEVELAND $ $ $ $50, $ $1, $1, $2, $58, COLUMBIA $14, $6, $14, $254, $2, $8, $4, $11, $317, CONWAY $4, $1, $12, $364, $1, $15, $7, $18, $426, CRAIGHEAD $12, $6, $47, $1,367, $5, $45, $19, $56, $1,561, CRAWFORD $1, $ $8, $320, $3, $28, $15, $35, $413, CRITTENDEN $19, $11, $9, $534, $5, $37, $12, $48, $679, CROSS $3, $2, $9, $234, $ $6, $3, $8, $270, DALLAS $1, $1, $3, $134, $ $5, $2, $6, $155, DESHA $2, $1, $4, $160, $1, $9, $3, $11, $195, DREW $2, $1, $8, $212, $2, $12, $4, $14, $257, FAULKNER $10, $5, $59, $1,120, $8, $60, $31, $73, $1,370, FRANKLIN $ $94.50 $8, $174, $2, $10, $3, $12, $213, FULTON $ $ $2, $70, $ $2, $1, $3, $81, GARLAND $8, $5, $38, $861, $10, $74, $44, $86, $1,131, GRANT $ $ $11, $133, $1, $9, $4, $10, $173, GREENE $1, $ $31, $580, $3, $21, $7, $27, $674, HEMPSTEAD $43, $12, $15, $322, $1, $9, $3, $11, $420, HOT SPRING $1, $ $10, $284, $2, $16, $6, $19, $342, Page 1 of 3

6 ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION OFFICE OF THE ARKANSAS LOTTERY RETAIL SALES BY COUNTY November 1 through November 30, 2018 COUNTY CASH 3 CASH 4 FAST PLAY INSTANT SETTLEMENTS LUCKY FOR LIFE MEGA MILLIONS NATURAL STATE JACKPOT POWERBALL TOTAL SALES FOR COUNTY HOWARD $19, $7, $9, $190, $1, $6, $2, $7, $244, INDEPENDENCE $3, $1, $47, $556, $2, $22, $10, $27, $671, IZARD $ $41.50 $7, $63, $ $4, $3, $5, $84, JACKSON $15, $7, $23, $307, $1, $10, $5, $12, $384, JEFFERSON $41, $31, $41, $1,325, $9, $56, $26, $64, $1,596, JOHNSON $ $ $6, $231, $1, $11, $4, $13, $271, LAFAYETTE $6, $1, $3, $63, $ $2, $ $2, $81, LAWRENCE $1, $ $8, $209, $ $7, $2, $9, $239, LEE $2, $5, $4, $63, $ $3, $1, $3, $85, LINCOLN $ $ $4, $96, $ $4, $2, $5, $115, LITTLE RIVER $4, $2, $2, $80, $ $6, $1, $5, $103, LOGAN $1, $ $7, $178, $1, $10, $4, $13, $217, LONOKE $10, $4, $30, $783, $6, $43, $20, $50, $949, MADISON $34.00 $80.00 $ $66, $ $5, $1, $7, $83, MARION $2, $ $10, $188, $2, $7, $6, $9, $228, MILLER $22, $9, $20, $467, $4, $19, $5, $21, $569, MISSISSIPPI $39, $16, $11, $539, $1, $15, $4, $20, $649, MONROE $3, $2, $5, $143, $ $7, $3, $8, $174, MONTGOMERY $85.00 $ $3, $19, $ $2, $1, $3, $30, NEVADA $1, $1, $3, $176, $ $4, $1, $5, $196, NEWTON $54.00 $30.00 $7, $50, $ $2, $ $2, $64, OUACHITA $11, $4, $28, $530, $1, $13, $5, $16, $612, PERRY $ $ $2, $87, $ $4, $1, $4, $102, PHILLIPS $9, $5, $8, $179, $2, $20, $5, $25, $256, PIKE $ $82.00 $8, $103, $ $5, $2, $6, $127, POINSETT $6, $1, $18, $444, $1, $11, $6, $14, $504, POLK $ $38.00 $8, $111, $1, $9, $4, $12, $148, POPE $5, $2, $17, $715, $5, $37, $16, $44, $844, PRAIRIE $2, $1, $7, $175, $ $6, $1, $6, $202, PULASKI $105, $85, $233, $5,787, $51, $291, $133, $330, $7,018, RANDOLPH $ $ $6, $122, $1, $5, $2, $7, $146, Page 2 of 3

7 ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION OFFICE OF THE ARKANSAS LOTTERY RETAIL SALES BY COUNTY November 1 through November 30, 2018 COUNTY CASH 3 CASH 4 FAST PLAY INSTANT SETTLEMENTS LUCKY FOR LIFE MEGA MILLIONS NATURAL STATE JACKPOT POWERBALL TOTAL SALES FOR COUNTY SAINT FRANCIS $16, $10, $7, $276, $2, $13, $4, $16, $347, SALINE $13, $6, $120, $963, $11, $62, $31, $71, $1,280, SCOTT $95.00 $23.00 $5, $79, $ $4, $1, $6, $98, SEARCY $45.00 $ $1, $76, $ $3, $1, $5, $91, SEBASTIAN $10, $5, $14, $742, $10, $71, $29, $92, $977, SEVIER $1, $ $2, $103, $ $6, $1, $6, $123, SHARP $ $ $12, $221, $1, $9, $5, $12, $264, STONE $ $ $4, $102, $1, $5, $3, $6, $124, UNION $48, $23, $24, $728, $3, $23, $7, $29, $890, VAN BUREN $1, $ $5, $141, $1, $8, $3, $10, $172, WASHINGTON $9, $6, $20, $1,219, $14, $93, $33, $119, $1,516, WHITE $5, $3, $45, $909, $5, $39, $20, $45, $1,075, WOODRUFF $2, $2, $1, $95, $ $4, $1, $5, $114, YELL $ $ $9, $197, $1, $9, $5, $11, $235, GRAND TOTALS *Cash 3 *Cash 4 *Fast Play *Instant *Lucky for *Mega Millions *Natural State *Powerball *Total Sales Settlements Life Jackpot $615, $355, $1,304, $30,801, $252, $1,630, $704, $1,975, $37,641, *Estimates Page 3 of 3

8 Total Number of Active Retailers November 2018 There were 1,928 active retailers as of November 30, 2018.

9 Statement of Net Position November 30, 2018 ASSETS Current assets: Cash and cash equivalents $ 7,185, Restricted assets: Cash and cash equivalents 73,004, Accounts receivable 12,503, Prepaid items 123, Total current assets 92,816, Non-current assets: Restricted assets: Cash and cash equivalents 20,766, Deposits with Multi-State Lottery Association 2,560, Capital assets (Net of accumulated depreciation) 401, Total non-current assets 23,728, Total assets 116,545, Deferred outflows of resources: Related to pension 1,671, Total assets and deferred outflows of resources $ 118,217, LIABILITIES Current liabilities: Accounts payable $ 1,456, Prizes payable 19,852, Accrued and other liabilities 2,788, Due to other funds of the State 797, Due to Education Trust Account 30,344, Due to Workforce Challenge Trust Account 38,099, Compensated absences 333, OPEB Obligation 105, Unearned revenue 335, Total current liabilities 94,115, Long-Term liabilities: Net other post employment benefits 3,459, Net pension liability 5,110, Total long-term liabilities 8,569, Total liabilities 102,684, Deferred inflows of resources: Related to pension 466, Related to OPEB 147, Total deferred inflows of resources 613, Total liabilities and deferred inflows of resources 103,298, NET POSITION Net position: Invested in capital assets 401, Restricted for: Scholarship shortfall reserve 20,000, Retailer fidelity reserve 196, Retailer bond reserve 670, Deposits with Multi-State Lottery Association 2,560, Unclaimed prizes reserve 4,460, Unrestricted (deficit) (13,370,239.81) Total net position 14,919, Total liabilities, deferred inflows of resources and net position $ 118,217, UNAUDITED PRELIMINARY DRAFT

10 Statement of Revenues, Expenses and Change in Net Position For Five Months Ended November 30, 2018 Current month Year to date Operating revenues: Instant ticket sales $ 30,843, $ 160,505, Online ticket sales 6,806, ,385, Retailer application, fidelity, bond and service fees 49, , Other revenue Total operating revenues 37,700, ,230, Operating expenses: Instant game prizes 21,578, ,376, Online game prizes 3,584, ,183, Retailer commissions 2,117, ,933, Gaming contract costs 1,641, ,101, Compensation and benefits 421, ,127, Marketing, advertising and promotions 499, ,873, General and administrative expenses 362, ,296, Services provided by Arkansas Department of Higher Education 38, , Services provided by Arkansas Legislative Audit 23, , Legal and professional services Depreciation 10, , Total operating expenses 30,276, ,246, Operating income (1) 7,423, ,983, Non-operating revenue: Interest income 200, , Income before transfers 7,624, ,938, Transfers to: Education Trust Account (2) (6,821,411.01) (37,106,529.27) Change in net position $ 802, ,832, Total net position - beginning 11,086, Total net position - ending $ 14,919, ) Includes all GAAP related accounting items including unclaimed prizes. 2) Reflects adjustment of sales and prizes expense to a modified cash basis and does not include unclaimed prizes. UNAUDITED PRELIMINARY DRAFT

11 Statement of Revenues and Expenses Budget Comparisons For Five Months Ended November 30, 2018 CM Actual % CM Budget % CM Variance YTD Actual % YTD Budget % YTD Variance Operating revenues: Instant games $ 30,843, $ 30,461, $ 382, $ 160,505, $ 157,687, $ 2,818, Online games 6,806, ,810, (3,615.00) 52,385, ,169, ,216, Retailer fees 49, , (9,070.00) 339, , (41,440.84) Other revenue - - 1, (1,000.00) , (5,000.00) 0.00% Total operating revenues 37,700, ,331, , ,230, ,242, ,988, Operating expenses: Instant game prizes 21,578, ,793, (214,724.49) 114,376, ,889, ,487, Online game prizes 3,584, ,651, (66,456.56) 27,183, ,322, ,861, Retailer commissions 2,117, ,102, , ,933, ,825, ,108, Gaming contract costs 1,641, ,536, , ,101, ,536, , Compensation & benefits 421, , (25,910.04) 2,127, ,265, (137,427.20) Marketing, advertising & promotions 499, , (99,948.53) 3,873, ,130, , General and administrative expenses 362, , (5,769.27) 2,296, ,842, , Services provided by other agencies 61, , (1,667.00) 305, , (13,335.00) Legal and professional service (171.22) , (1,832.77) Depreciation 10, , (5,528.91) 47, , (25,303.98) Total operating expenses 30,276, ,575, (298,642.13) 173,246, ,203, ,043, Operating income 7,423, ,755, , ,983, ,038, ,945, Non-operating revenue: Interest income 200, , , , , , Income before transfers $ 7,624, $ 6,848, $ 775, $ 40,938, $ 32,680, $ 8,258, UNAUDITED PRELIMINARY DRAFT

12 Net Proceeds Transfer to Ed Trust Computation Modified Cash Basis For Five Months Ended November 30, 2018 Year to date Operating revenues: Instant ticket (Settlements) $ 159,889, Online ticket sales 52,385, Retailer application, fidelity and service fees 339, Other revenue 0.00 Total operating revenues 212,614, Operating expenses: Instant game prizes (Settlements) 113,630, Online game prizes 27,183, Retailer commissions 11,933, Gaming contract costs 11,101, Compensation and benefits 2,127, Marketing, advertising and promotions 3,873, General and administrative expenses 2,296, Services provided by ADHE 189, Services provided by Legislative Audit Agency 116, Legal and professional services Current year capital asset cost 104, Total operating expenses 172,557, Change in net proceeds from operations 40,056, Non-operating revenue: Interest income 955, Other non-operating income 0.00 EDUCATION TRUST FUNDING-Current Year (30,285,118.26) Less Act 1180 Unclaimed Prizes (3,460,456.56) Less current year Fidelity Reserve Fees (13,663.38) restricted reserves Less current year Bond Reserve Fees (96,500.00) restricted reserves Add back Write Off Retailer Bad Debt 9, Less current year MUSL Reserves (394,692.45) see (17) and (19)(A)&(B) Add OPEB expense in Comp and Benefits 51, NET PROCEEDS EARNED-Current Month $ 6,821, Transfer Interest Total Academic Challenge Scholarship Trust $ 28,369, $ 1,975, $ 30,344, July 2017 funding - 8/15/17 $ 6,610, $ 50, $ 6,661, August 2017 funding - 9/15/17 $ 8,850, $ 62, $ 8,912, September 2017 funding - 10/15/17 $ 6,688, $ 66, $ 6,755, Transfer from ADHE (final 2017 Adj) -10/15/17 $ (120,270.21) $ - $ (120,270.21) Transfer to ADHE 10/6/17 $ (35,000,000.00) $ - $ (35,000,000.00) October 2017 funding - 11/15/17 $ 5,619, $ 47, $ 5,667, Transfer to ADHE 11/21/17 $ (3,500,000.00) $ (3,500,000.00) November 2017 funding - 12/15/17 $ 6,648, $ 43, $ 6,691, Transfer to Workforce Challenge Trust 12/1/17 $ (14,157,060.23) $ (14,157,060.23) December 2017 funding - 1/15/18 $ 6,555, $ 28, $ 6,583, January 2018 funding - 2/15/18 $ 8,181, $ 49, $ 8,230, Transfer to ADHE 2/9/18 $ (30,000,000.00) $ - $ (30,000,000.00) February 2018 funding - 3/15/18 $ 5,923, $ 24, $ 5,947, March 2018 funding - 4/15/18 $ 7,920, $ 24, $ 7,945, Transfer to ADHE 4/9/18 $ (15,000,000.00) $ - $ (15,000,000.00) April 2018 funding - 5/15/18 $ 7,171, $ 21, $ 7,192, May 2018 funding - 6/15/18 $ 8,010, $ 27, $ 8,037, June 2018 funding - 7/15/18 $ 13,323, $ 40, $ 13,364, July 2018 funding - 8/15/18 $ 4,998, $ 67, $ 5,066, Aug 2018 funding - 9/15/18 $ 6,094, $ 81, $ 6,175, Sept 2018 funding - 10/15/18 $ 7,699, $ 83, $ 7,783, Transfer from ADHE (final 2018 Adj) -10/10/18 $ (146,112.01) $ - $ (146,112.01) Transfer to ADHE 10/10/18 $ (35,000,000.00) $ - $ (35,000,000.00) Transfer excess net proceeds to Workforce Trust Fund 10/16/18 $ (8,344,929.36) $ - $ (8,344,929.36) Oct 2018 funding - 11/15/18 $ 11,195, $ 63, $ 11,259, Transfer to ADHE 11/30/18 $ (3,000,000.00) $ (3,000,000.00) Nov 2018 funding - 12/15/18 $ 6,774, $ 47, $ 6,821, Transfer Total Workforce Challenge Scholarship Trust $ 38,099, $ 38,099, FY 2017 Excess Net Proceeds transferred from Edu Trust 12/1/17 $ 14,157, $ 14,157, ADHE Refund from FY /30/17 $ 4,887, $ 4,887, ADHE Refund from FY /6/18 $ 11,710, $ 11,710, Transfer excess net proceeds to Workforce Trust Fund 10/16/18 $ 8,344, $ 8,344, Transfer to ADHE for 2018 fall funding11/7/18 $ (1,000,000.00) (1,000,000.00) UNAUDITED PRELIMINARY DRAFT

13 Unclaimed Prizes November 30, 2018 Monthly Year to Date Reserve Balance July 1, 2018 $1,000, Unclaimed lottery prize money: $ 953, ,460, Expenditures from unclaimed lottery prize money: 3. Reserved for future prizes, promotions or reserves: 953, ,460, Less Deposits to net lottery proceeds from unclaimed Lottery prize money: Reserve Balance November 30, 2018 $4,460,456.56

14 ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION OFFICE OF THE ARKANSAS LOTTERY OFFICE OF THE ARKANSAS LOTTERY MINORITY AND FEMALE OWNED DIVERSITY COMPLIANCE REPORT November 1 through November 30, 2018 Vendors Goods or Services Diversity Classification November 2018 FY 2019 Total Allegra Print & Imaging Advertising/Public Relations FOB $5, Goddess Products Office Furniture/Supplies CMBE $ $1, Government Supply Services Office Furniture/Supplies MBE $ $4, Party Prints Advertising/Public Relations CMBE $1, Trivia Marketing Advertising/Public Relations WBE $11, Totals $ $24, INTRALOT MINORITY AND FEMALE-OWNED DIVERSITY COMPLIANCE REPORT November 1 through November 30, 2018 Vendors Goods or Services Diversity Classification November 2018 FY 2019 Total J Kelly Referrals and Information Services Call Center/Information Services CMBE $8, $38, Totals $8, $46, SCIENTIFIC GAMES MINORITY AND FEMALE-OWNED DIVERSITY COMPLIANCE REPORT November 1 through November 30, 2018 Vendors Goods or Services Diversity Classification November 2018 FY 2019 Total Expedited Transportation Services Transportation Services DBE $2, $15, Ingage, LLC Fulfillment Services and Prizes WBE $53, $329, Premier Staffing Employment Agency MBE $6, Pure Cleaning Services Janitorial Services MBE $2, Totals $56, $354,060.37

15 Demographics November 2018 Gender 53% 47% Female Male Race 5% 21% 74% Black Caucasian Other Minorities Gender: Total Number of Employees as of November 2018: 66 Race: Females 31 Black 14 Female -- 8 Male - 6 Males 35 Caucasian 49 Female Male Other 3 Female -- 0 Male -- 3

16 Department of Finance and Administration Internal Audit Arkansas Legislative Council Lottery Oversight Subcommittee Monthly Report No issues or problems resulting from internal audits have been reported for the reporting period.

17 DFA/ Instant & Fast Play Games November 2018 Sales for the following instant games began November 6, No ending dates have been determined for these games. $1 BETTY BOOP 1 $2 Payday Multiplier $3 Word Games $5 $100,000 Triple Win $10 $200,000 Cash Vault HD 1 BETTY BOOP is a licensed property game. There are no additional costs for this game. Sales for the following Fast Play games began November 5, No ending dates have been determined for these games. $1 Holiday Cash $1 Candy Cane Cash