A Follow-up Audit Report on the Alcoholic Beverage Commission's Excise Tax Collection Process
Report Number 12-040
The Alcoholic Beverage Commission (Commission) fully implemented 8 (53 percent) of 15 recommendations that auditors selected for follow-up from An Audit Report on the Alcoholic Beverage Commission's Excise Tax Collection Process (State Auditor's Office Report No. 10-010, October 2009). Specifically, of the 15 recommendations selected for follow-up audit work:
- The Commission fully implemented 4 of the 8 recommendations related to its excise tax collection processes.
- The Commission fully implemented 4 of the 7 recommendations related to its information resources.
While the Commission has made progress in implementing the prior audit recommendations, it should continue its efforts to improve processes related to its excise tax reports, training, and information resources. Specifically:
- The Commission did not appropriately review excise tax reports submitted by wholesalers and distributors. The Commission's supervisory reviews were not in compliance with its Excise Tax Report Procedures Manual. In addition, the Commission did not retain supporting invoices for excise tax reports until a supervisor could perform a review.
- The Commission did not develop policies and procedures to document the amount and type of required and recommended training for regional field auditors. In addition, the Commission did not appropriately maintain supporting documentation necessary to validate the training that regional auditors attend or complete.
During review of the implementation status of prior audit recommendations, auditors determined that the Commission's excise tax audit data in its Agency Reporting and Tracking System (ARTS) was incomplete and unreliable. Specifically, data was missing from the audit date field, and the system lacked status updates on audits that had been started but not completed.
Auditors communicated other, less significant issues related to excise tax audits and training documentation to the Commission's management separately in writing.
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