Mega_Millions_-_AUP_Report_FINAL.pdf

2300 North Field Street, Suite 1000

Dallas, Texas 75201 972-490-1970

Weaver and Tidwell, L.L.P.

CPAs AND ADVISORS | WEAVER.COM

Independent Accountant’s Report

California State Lottery Mr. Nicholas Buchen Chief Financial Officer

We have performed the procedures enumerated below on the Mega Millions accounting and reporting by the California State Lottery (the Lottery), which were agreed to by the Lottery and the Mega Millions Member Lotteries for the period April 8, 2025 – March 31, 2026. The Lottery is responsible for the Mega Millions accounting and reporting.

The Lottery’s management has agreed to and acknowledged that the procedures performed are appropriate for the intended purpose of reporting our findings regarding the results of the procedures performed on the Mega Millions accounting and reporting. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

a. Obtain from the California Lottery the “Draw Activity” for the period April 8, 2025 – March 31, 2026 and attach that as Exhibit I. Prove the mathematical accuracy of the schedule and note any exceptions.

We obtained the Lottery’s “Draw Activity” for the period April 8, 2025 – March 31, 2026, and have attached as Exhibit I. We proved the mathematical accuracy of the schedule noting no exceptions.

b. Randomly select five (5) draw dates from the period April 8, 2025 – March 31, 2026.

We randomly selected the following dates: May 30, 2025; October 17, 2025; December 23, 2025; February 17, 2026 and March 17, 2026.

c. For each draw date selected in step “b” above, compare the total amount of sales as shown on the daily sales report produced by the California Lottery’s gaming system and the total amount of sales shown on the related daily sales report produced by the Internal Control System (“ICS”), with the balance listed in the “sales” column for the respective draw date on the “Draw Activity” report attached as Exhibit I and ensure they are in agreement.

We agreed the total amount of sales shown on the daily sales report produced by the California Lottery’s gaming system and the total amount of sales shown on the related daily sales report produced by the Internal Control System (“ICS”), with the balance listed in the "sales" column for the draw dates selected in step "b" on the "Draw Activity" report attached as Exhibit I without exception.

d. For the amount (if any) listed in the “Cash Options Amount” column of the “Draw Activity” report attached as Exhibit I, obtain and compare the amount to the California Lottery’s cash disbursement subsidiary records which summarize the funds disbursed to the prize winner.

We noted no amount in the “Cash Options Amount” column of the “Draw Activity” report attached as Exhibit I in the current exam period; therefore, the procedure is not applicable.

Chief Financial Officer

e. For each purchase (if any) of investments associated with the jackpot prizes:

1. Review broker confirmations to verify that investments are funded in accordance with allowed investment vehicles per the multi-state rules, regulations or procedures; and

2. Obtain the bid sheets and supporting documentation and verify the investments were purchased through a competitive bidding process involving a minimum of three brokerage firms.

3. Review the California Lottery’s cash disbursement subsidiary records and confirm that the payment to the broker, plus the cash held by the Lottery for the initial cash payment, equals the “Cash Option Payment” on the settlement report applicable to that draw.

4. Obtain the Security Purchase report which lists the results of the security purchase and verify that the information reported to the group is accurate, including the annuity factor for the non-winning bidders.

We noted there were no purchases of investments associated with jackpot prizes during the period from April 8, 2025 – March 31, 2026; therefore, the procedure is not applicable.

We were engaged by the California State Lottery to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Mega Millions accounting and reporting. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the Lottery and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the use of the specified parties and is not intended to be and should not be used by anyone other than those specified parties.

WEAVER AND TIDWELL, L.L.P.

Dallas, Texas September 14, 2026

Exhibit I

Exhibit I- Continued