RFP #R005840 Financial Auditing and Related Services

The California State Lottery is requesting proposals from qualified certified public accountant firms to provide annual financial auditing and related services under RFP #R005840, with proposals due October 16, 2026. The contract term is three years with options for the Lottery to extend up to two additional one-year periods under the same terms, conditions, and pricing at its sole discretion.

The scope covers annual audit-related services pursuant to Government Code 8880.46.5, including examination of the Lottery's statement of net position, statements of revenues and expenses, cash flow statements, related disclosures, internal controls assessment, and compliance with applicable laws and regulations. Audit focus areas include prize liability accounting (including annuitized prize liabilities), investments totaling $522.6 million, capital assets of $172.6 million, pension liabilities of $159.0 million, and other postemployment benefits liabilities of $261.3 million. The audit contractor must be a qualified CPA firm capable of conducting financial examinations in accordance with generally accepted auditing standards.

The Lottery operates eight draw games and Scratchers products across more than 23,000 retail locations statewide, generating approximately $8.9 billion in revenues during fiscal year 2024-25, with total expenses of approximately $1.1 billion and a reported net deficit of $288.4 million. The organization is governed by a five-member Commission appointed by the Governor and administered by a Director appointed by the Governor, with operations headquartered in Sacramento and nine district offices throughout the state. The prior independent audit for the fiscal year ended June 30, 2025, was conducted by Weaver and Tidwell, L.L.P., with an unqualified opinion issued November 21, 2025.

The complete event package contains detailed information regarding scope of work requirements, deliverables, evaluation criteria, and material terms and conditions.