Internal Controls Over Selected Financial Operations

Issued Date
September 30, 2020
New York State Liquor Authority


To determine whether the Division of Alcoholic Beverage Control/State Liquor Authority (SLA) has adequate controls over selected financial operations to provide reasonable assurance that State assets and information are appropriately managed and safeguarded. The audit covered the period April 1, 2016 through June 5, 2020.

About the Program

SLA is responsible for promoting the health, welfare, and safety of the people of New York State through issuing licenses and permits for the manufacturing, distribution, and selling of alcoholic beverages. SLA also enforces the Alcoholic Beverage Control Law, including inspecting licensed premises and permit holders. Through an agreement between SLA and the Office of General Services (OGS), OGS’ Business Service Center (BSC) performs many administrative functions on behalf of SLA, such as accounts payable and receivable, procurement, human resources, and payroll. During State fiscal year ending March 31, 2020, SLA generated nearly $67 million in revenue from license and permit fees.

Key Findings

  • SLA has adequate internal controls in the areas of revenues, payroll, procurement and procurement card expenditures, asset management, and travel expenses to ensure assets and information are properly managed and safeguarded.
  • For two employees – one current and one former – SLA did not reconcile six travel card charges totaling $708 for the purchase of train tickets. The former employee left SLA in July 2019 and had two charges for $230 dating back to March 2018 and July 2018; and the current employee had four charges for $508 ranging between four months to one year old as of June 2020.


  • Take steps in coordination with the BSC to ensure timely and accurate receipt of information about outstanding travel card charges.
  • Take appropriate follow-up action on outstanding charges.

Sharon Salembier

State Government Accountability Contact Information:
Audit Manager: Sharon Salembier
Phone: (518) 474-3271; Email: [email protected]
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236