Arkansas Lottery Commission hires finance director away from company to be internal auditor

LITTLE ROCK, Ark. — The Arkansas Lottery Commission has chosen the finance director at a Little Rock-based company to be the commission's new internal auditor, a position left vacant after the predecessor questioned the validity of a vendor's contract.

Commissioners voted Friday to hire Donald Matthew Brown as the replacement for Michael Hyde. Brown was hired away from Windstream Corp., where he had worked as finance director since May and in another capacity since 2008, the Arkansas Democrat-Gazette (http://bit.ly/Lqe5km) reported.

The commission also interviewed Carol Snay, former finance director for the Little Rock airport, for the auditor position.

Shortly before he resigned last month, several members of the commission had become exasperated with Hyde for questioning the legality of a contract with scratch-off ticket vendor Scientific Games International.

The contract was never approved through the proper channels, Hyde said, and an amendment made it less advantageous to the lottery.

He estimated that the amendment, approved by former Director Ernie Passailaigue in 2009 without prompt board approval, has cost the state $7.29 million more than was in the initial deal that the commission and the Legislative Oversight Committee approved.

The commission voted to confirm the contract's validity and on Monday approved a revision to the contract in which the lottery will pay a smaller percentage of scratch-off ticket sales to the company. Scientific Games International also agreed to pay the state lottery $2 million in cash.

Hyde resigned May 11, but his resignation isn't effective until June 29, lottery commission spokeswoman Julie Baldridge said. Hyde has used accrued leave time since submitting the resignation, she said.

His annual salary at the lottery was $120,870.

Commission Chairman Ben Pickard said Brown will start as soon as possible. He was offered a $110,000 salary, Pickard said.

The commission liked Brown's background, commissioner Dianne Lamberth said.

http://www.therepublic.com/view/story/947908bc474543799c091e18f54b853b/AR--Arkansas-Lottery-Internal-Auditor





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