Audit: Lottery didn't collect damages from vendor

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RALEIGH, N.C. (AP) — A report from the state auditor's office says the North Carolina Education Lottery violated state law because it failed to collect damages from its primary vendor and allowed the company to accumulate and carry a balance for several years.

The report released Wednesday shows that from May 2006 through June 2011, the lottery assessed liquidated damages totaling $460,804. According to the report, the lottery collected just 60 percent of the total in the form of goods and services from GTECH.

The action violates the state's Cash Management Policy regarding the collection and deposit of funds owed to the state.

A statement from the lottery said all assessed liquidated damages have been spent for goods and services and that all the damages were tracked to ensure the value was received.

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