Summary

This operational audit, for the period March 2005 through July 2007, and selected actions taken through March 2008, focused on the distribution of alcoholic beverage license taxes to counties and municipalities by the Department of Business and Professional Regulation (Department), Division of Alcoholic Beverages and Tobacco (Division).  Our audit also included follow-up procedures to determine the current status of finding No. 2 of audit report No. 2007-010, Single Licensing System, which recommended that the Department initiate, as soon as possible, annual reviews of the data integrity, reliability, and security over its Single Licensing System (LicenseEase).  Our audit disclosed the following:

Finding No. 1:   The Division did not have effective controls in place to ensure the accuracy or completeness of the LicenseEase data used in the distribution process.

Finding No. 2:   Adjustments made during the calculation of the amounts to be distributed were not fully documented.

Finding No. 3:   Duties of employees had not been assigned in a manner that reasonably ensured the timely detection of errors, should they occur.

Prior Audit Finding: The Department has yet to complete an annual review of the data integrity, reliability, and security over its Single Licensing System.

The Interim Secretary's response is included in its entirety at the end of this report as Appendix A.