State auditors report accounting lapses at Department of Alcoholic Beverage Services; DABS says controls are being reinstated

State auditors tell committee of nine audit findings; DABS says it is implementing fixes

The Office of the State Auditor presented an audit update on Oct. 14, 2025, that identified nine findings at the Department of Alcoholic Beverage Services and consolidated them into three principal areas: missing liquor store deposits, accounting and oversight of type‑5 package agent revenue and earmarks, and unresolved accounting system issues affecting inventory and transmittal between the agency’s ERP and the state system.

Auditor overview and principal findings

Auditor representatives described the first grouping of findings as related to missing cash deposits at liquor stores. Auditor Jordan told the committee the audit identified roughly $118,000 in missing liquor store cash deposits covering fiscal years 2021–2024. The auditors said the missing funds persisted in part because bank reconciliations were not being performed for a period of time; once reconciliations resumed the discrepancy was discovered and referred to the Attorney General’s Office for potential criminal investigation.

The second finding group concerned the accounting and oversight of…