Division of Alcoholic Beverage
Control Over Revenue
In order to manufacture, distribute or sell
alcoholic beverages in New
York State, a vendor needs a license or permit from the Division
of Alcoholic Beverage
Control. In addition, if a vendor does not comply with
applicable laws and regulations, it
may be ordered to pay a fine to the Division. We examined the
Division's controls over the
billing, collection and recording of license/permit fee and fine
revenue. We found that,
because of significant weaknesses in these controls, some of the
revenue due the Division may
not be collected and the revenue that is collected is
unnecessarily vulnerable to loss or theft.
For example, revenue often is not recorded immediately upon
receipt to establish
accountability, checks often are not restrictively endorsed to
prevent misappropriation, checks
sometimes are not deposited for several weeks, and the
undeposited checks are not secured.
We made several recommendations for improving the controls over
the Division's fee and fine
For a complete copy of 95-S-77 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.