A state audit released last week revealed reporting problems involving millions of dollars at the Utah Department of Alcoholic Beverage Control. The problems apparently stem from the installation of a new computer system.
The problems stem from untimely financial reporting but “there is no money missing,” said DABC director Sal Petilos.
The DABC liquor commission requested that State Auditor John Dougall look into the problem when questions about a new computer system arose last year. From July through December 2016, “DABC did not record approximately $216 million in revenue or $118 million in cost of goods,” according to the audit presented to the state liquor commission. The “material inconsistencies” continued into January 2017, according to the audit, “ranging from $26 million to $308 million in various reporting line items.”
The implementation of a new computer system caused the “multi-million dollar errors in the state’s general ledger,” Sean Clayton, with the auditor’s office, told the commission. “Going live” with the new system knowing it was not completely ready while at the same time “discontinuing the use of the old system before complete end-to-end testing” caused the errors, Clayton said.
The situation has become more stable in recent months, auditors said.