Division of Alcoholic Beverage Control

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 revenue.

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.