The Statement of Financial Requirements, issued by the then Secretary of State for Culture, Olympics, Media and Sport to the Olympic Lottery Distributor established a financial framework within which their Lottery distribution activities are to be conducted. The Accounting Officer of the OLDF seeks annual assurances from the Olympic Lottery Distributor’s Accounting Officer that adequate financial management systems and controls for the efficient, effective and equitable distribution of Lottery monies are in place. In particular, that the Accounting Officer of OLD is satisfied that the body has: complied with its current Lottery financial directions; put adequate internal and external audit
arrangements in place; established adequate arrangements for detecting and responding to inefficiency, conflict of interest and fraud and for minimising losses of Lottery grant, and maintains risk assessment and control procedures and risk registers.
The accounting officer of the OLDF obtains independent confirmation of the reliability of the assurances provided by the Accounting Officer of the Olympic Lottery Distributor on the adequacy of the distributor’s systems from the work of the DCMS Government Olympic Executive and the department’s internal auditors.
For 2010-11 the fund was maintained under the control and management of the Secretary of State for DCMS. Monies not immediately required for distribution are invested by the Commissioners for the Reduction of the National Debt (CRND), in accordance with Investment Directions issued by HM Treasury (under section 32 of the National Lottery etc. Act 1993).
Sound management of the OLDF plays a pivotal role in managing the flow of funds between Camelot and the Olympic Lottery Distributor. In managing the fund, the department works closely with the National Lottery Commission (NLC) which regulates the Lottery and ensures, among other things, that the operator makes the correct payments to the OLDF. The Cabinet Office confirmed on 24 September 2010 that the National Lottery commission and the Gambling Commission will be merged as part of the government’s review of public bodies. Work is on-going towards achieving this, but the date for this has yet to be announced.
The OLDF produces an annual account separately to that for the NLDF. These accounts provide the primary accounting statements and notes required by the Horserace Betting and Olympic Lottery Act 2004, and under the Accounts Direction given by HM Treasury. The Act requires that the accounts are examined and certified by the Comptroller and Auditor General and laid, together with his report thereon, before each House of Parliament.
The investment strategy for the OLDF seeks to balance liquidity risks and interest rate risks over the life of the Olympics project. The investment strategy for the fund is informed by the department’s review of the Olympic Lottery Distributor’s forward commitment profile. During the period of these accounts, the funds invested by CRND have been wholly in cash instruments, primarily to avoid liquidity risks as the OLD was expected to need to make payments to the Olympic Delivery Authority at short notice.