Performance Audit – Fiscal Years Ended June 30, 2021 and 2022

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Report Summary

Background

The Delaware Office of Auditor of Accounts (AOA) conducted a performance audit of the Office of the Alcohol Beverage Control Commissioner (OABCC) as required by 4 Del. C §313. This was the first time that the OABCC has been audited.

OABCC is headed by Commissioner Jacqueline Paradee Mette, Esquire. The Office of the Alcoholic Beverage Control Commissioner was a division under Delaware Department of Safety & Homeland Security (DSHS) until June 30, 2023. DSHS was responsible for all fiscal oversight of OABCC including policies and procedures, financial reporting, and other administrative tasks. As of fiscal year 2024, OABCC became a division under the Delaware Department of State. OABCC uses the state accounting system (FSF) and the Salesforce licensing system.

The Commissioner establishes rules and regulations to control the manufacture, importation, distribution, sale, and dispensing of alcohol in Delaware to protect public safety and the interests of consumers while not unduly restricting the alcoholic beverage industry. The OABCC considers applications for liquor licenses and requests for modifications to licensed establishments, performs inspections and grants renewals of liquor licenses. The Commissioner is authorized to conduct public hearings on applications for liquor licenses when there is sufficient public interest in the application, or if the Commissioner believes a public hearing is warranted.

The Commissioner is also authorized to adjudicate violations brought by the Division of Alcohol and Tobacco Enforcement against licensed establishments alleged to have violated the Delaware Liquor Control Act or the Commissioner’s Rules. Sanctions and penalties against licensed establishments that are found to be in violation of state law or regulations can include a reprimand, fine, suspension, or revocation of a license.

The State Auditor is authorized under 29 Del. C., §2906 to conduct performance audits.

Key Information and Findings

This was the first time that the OABCC was audited. Even though there were some areas for growth as noted in our concerns below, the operations were not affected by the items noted.

During the performance audit, the following areas of concern were noted:

• Supporting documentation maintenance
• Documenting policies and procedures
• Reporting compliance with Delaware Code related to financial activity