Management’s Discussion and Analysis The following Management Discussion and Analysis (MD&A) allows Idaho Lottery (Lottery) management to provide users of the financial statements with an analysis of the agency’s financial activities based upon currently known facts, decisions and conditions. Please read it in conjunction with the Idaho Lottery Financial Statements that follow this section. A key focus of the MD&A is the discussion of the current-year results in comparison with the prior year. While the accompanying financial statements present the financial position of the Idaho Lottery as of June 30, 2012 and 2011, and financial activity for the years then ended, the MD&A also includes this information for the year ended June 30, 2010, in order to allow for a broader comparison. OVERVIEW OF THE ACCOMPANYING FINANCIAL STATEMENTS These required statements offer short and long-term financial information about the Idaho Lottery. • The Statements of Net Assets provides information about the nature and amounts of investments in resources (assets) and obligations (liabilities) at the close of fiscal year 2012 and 2011. • The Statements of Revenues, Expenses and Changes in Fund Net Assets, measures the success of the Lottery’s operations for fiscal year 2012 and 2011 and the resulting increase or decrease in net assets. • The Statements of Cash Flows. The primary purpose of this statement is to provide information about the Lottery’s cash receipts and cash payments during the fiscal year 2012 and 2011. The statement reports cash receipts, cash payments and net changes in cash resulting from operations, investing and financial activities and provides answers to such questions as where cash originated from and where it went during the fiscal years. The Idaho Lottery is structured as a single enterprise fund with revenues recognized when earned, not when received. Expenses are recognized when incurred, not when paid. Capital assets are capitalized and depreciated over their useful lives. The notes to the financial statement contain, among other information, a description of the Idaho Lottery’s significant accounting policies. The accompanying notes are an integral part of the financial statements. The reader should refer to the financial statements and the accompanying notes for information on the individual components of the Statements of Net Assets. The following analysis is intended to highlight selective changes between 2012 and 2011 and 2011 and 2010.
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