A simple mathematical error by a government employee has resulted in more than $12 million in lottery grants being handed out incorrectly.
Information provided by the Department of Internal Affairs (DIA) to the Lottery Grants Board - which directs the distribution of lottery funding to organisations around the country - overstated the amount available for the 2013/14 financial year by $12.44 million.
"It's basically a simple mathematical error which obviously we regret," the DIA said.
Manual adjustments made in the financial report were not completed and "in two cases we incorrectly counted two figures", a spokesman said.
"We have systems in place to make sure it doesn't happen again."