RD312 - 2007 Annual Report of the Virginia Department of Alcoholic Beverage Control (ABC)


Executive Summary:
Measures of success as ABC completed Fiscal Year 2007 include a record $607.4 million in annual gross sales. Although slightly below forecast, sales increased by 6.18 percent over the previous fiscal year. In addition, ABC collected over $100 million in excise taxes, over $28 million in wine liter taxes, over $23 million in general sales taxes, over $43 million in malt beverage taxes and more than $94 million in profit transfers for a total of over $290 million in contributions. ABC has contributed over one billion dollars to the Commonwealth in the last five years.

Measures of success also include compliance with Agency Risk Management Internal Control Standards (ARMICS) as the agency is developing stage two of its ARMICS plan. In addition, ABC is supporting the administration.s environmental stewardship initiative by implementing measures such as recycling cardboard in ABC stores and thermostat management throughout its offices and stores.

All state agency performance measures are tied to agency strategic plans, and key objectives are tied to budgets. ABC has 19 measures over four service areas from the Fiscal Year 2006 to 2008 strategic plan posted on the Virginia Performs Web site. For Fiscal Year 2007, ABC achieved its goals of a 91 percent compliance rate for retail alcohol licensees and increasing profit and tax transfers to the General Fund and
localities.

Measures of success in Fiscal Year 2007 include increased efficiency after the completion of a multi-million dollar warehouse automation project. The new system is capable of processing an average of 20,000 cases in a normal shift and meets the demands of ABC stores across the state. In Fiscal Year 2007, ABC opened 15 new stores and relocated three, bringing the statewide total to 327 ABC stores as the fiscal year closed.

During the fiscal year, 94 special agents from the agency.s Bureau of Law Enforcement monitored more than15,000 licensed establishments statewide. ABC special agents conducted 12,406 criminal investigations, made 2,554 arrests and completed 1,305 violation/disciplinary reports for administrative action against licenses. ABC agents take an active role in promoting compliance. Measurement statistics indicate that the number of written warnings and violation reports issued by our special agents are very close to the number of training sessions offered to citizens and licensees.

In Fiscal Year 2007, the Hearings, Appeals and Board Administration Division received 1,386 cases for processing and achieved its goal for the processing average to be under 200 days. The division collected $1,560,100 in civil penalties during the fiscal year.

ABC continues to lead the Commonwealth in alcohol prevention and community education initiatives. The agency provides thousands of dollars in grant funding to enhance community and university coalitions. In Fiscal Year 2007, ABC distributed nearly 200,000 education and prevention pieces throughout the Commonwealth.

ABC remains committed to measuring its success in balancing control, service and revenue, providing excellence and accountability to the citizens of Virginia.