RALEIGH, N.C. — Poor contract management and too much warehouse space cost the state nearly $14 million over 13 years, according to a state audit of Alcoholic Beverage Control Commission operations released Thursday.
The ABC Commission repeatedly allowed annual contract price increases above what the contract itself allowed, leadership thought someone else was monitoring the contract and the commission paid hundreds of thousands of dollars a year for a 200,000-square-foot warehouse in Clayton that was largely empty, even during the busy holiday season, the audit found.
“The Commission did not explain why it repeatedly approved price increases that exceeded the maximum allowed amounts,” State Auditor Beth Wood’s office wrote. “But the Commission offered that it had little to no resources dedicated to monitoring the contract.”
The state has contracted with LB&B Associates Inc., which is based in Maryland, since 2004 to handle liquor warehousing and distribution. In fiscal 2017, the contract totaled $8.3 million, and it has cost the state more than $80 million over its life, the auditor’s office said.Continue reading...