TLDR
- Costa Rica’s Comptroller (CGR) audited the Junta de Protección Social (JPS) and found irregularities in how unsold lottery tickets were managed and destroyed
- Prizes were linked to lottery fractions previously reported as unsold and destroyed, raising fraud concerns
- The audit flagged weak physical security at regional offices, missing signatures on destruction reports, and poor electronic scanning of returned tickets
- The CGR warned these issues posed risks to operational integrity, financial management, and fraud prevention
- JPS acknowledged the findings and is now developing new risk assessments, IT upgrades, and formal procedures to improve traceability and accountability
Costa Rica’s national lottery oversight body is under pressure to fix internal controls after a government audit uncovered problems with how unsold lottery tickets were handled and destroyed.
The Contraloría General de la República, the country’s top auditing authority, published a report detailing multiple issues at the Junta de Protección Social. The findings centered on the management, return, and destruction of unsold lottery tickets.
One of the key discoveries was that prizes had been distributed for lottery fractions that were previously recorded as unsold and destroyed. Authorities said this did not happen often, but the Comptroller warned it revealed serious gaps in institutional controls.
The audit report, labeled “DFOE-BIS-IAD-00001-2026,” was based on a review of JPS protocols and regional office operations. It found that while physical destruction of tickets inside the vault happened on time, proper documentation was lacking.
Specifically, the report pointed to missing signatures that should have supported the destruction process for both consigned and unsold tickets.
Audit Reveals Weak Security and Poor Record-Keeping
Beyond the documentation gaps, the Comptroller flagged weak physical security conditions at JPS regional offices. These offices handle leftover lottery tickets and are part of the return process.
The audit found poor counting procedures at these locations. It also identified problems with the electronic scanning of returned tickets.
Inconsistencies were found in the controls used for unsold lottery receipts. The Comptroller said these combined weaknesses threatened the legal certainty of the destruction process.
The report warned that the issues created risks in three main areas: operational integrity, fraud, and financial management. The lack of traceability made it harder to prevent improper prize payments.
The Comptroller said these problems undermined the administration’s ability to account for what happened to unsold tickets from start to finish.
As a result, the audit introduced several recommendations aimed at closing the gaps.
JPS Responds With Plans for New Procedures and IT Upgrades
The JPS responded publicly to the audit, calling the issues “specific situations” that required protocol changes. The institution did not dispute the findings.
JPS confirmed it needs to develop a formal administrative procedure for cases where prize claims are made on tickets marked as unsold. Currently, no such formal process exists.
The institution said it views external oversight as a way to constantly improve internal controls. JPS leadership framed the findings as an opportunity rather than a failure.
“The JPS considers that even an isolated case is an opportunity to constantly improve and analyze protocols,” the institution said in its response.
Among the steps being taken, JPS said it will conduct a detailed risk assessment of its lottery ticket operations. The institution also plans to upgrade its IT systems to improve traceability and transaction controls.
JPS will reinforce supervisory mechanisms during the lottery return process. Internal scanning, validating, and verifying of unsold tickets will also be improved.
The institution confirmed it is working to formalize a separate administrative procedure for all cases involving attempted prize claims on tickets classified as unsold.
JPS said its goal is to establish proper traceability of the custody process and determine possible liabilities connected to the irregularities found in the audit.
