New York City Department of Consumer Affairs
New York City Department of Finance

Selected Controls Over Licensing of Cigarette Retailers and Wholesalers (Follow-Up Report)

Cigarette retailers and wholesalers operating in New York City must be licensed by New York State and New York City. In audit report 2003-N-7, we examined selected controls over the licensing process at the New York City Department of Consumer Affairs (DCA, which licenses retailers) and the New York City Department of Finance (DOF, which licenses wholesalers). We identified a number of retailers that were selling cigarettes in New York City without a current license from DCA, including several whose licenses had been suspended or revoked by DCA. We also identified wholesalers that were operating with a City license but no State license. We recommended actions that could be taken by DCA and DOF to identify unlicensed retailers and wholesalers. When we followed up on these matters with the two agencies, we found that DOF had made substantial progress in its efforts to implement our audit recommendations. However, DCA had not implemented most of our recommendations, but had taken alternative corrective actions instead. We assessed these actions and concluded that, while they should be helpful, they were not sufficient by themselves, and DCA still needed to implement our audit recommendations.

For a complete copy of Report 2006-F-32 click here.
For a copy of the 90-day response click here.