RD378 - 2008 Annual Report of the Virginia Department of Alcoholic Beverage Control (ABC)


Executive Summary:
ABC completed Fiscal Year 2008 with a record $641.2 million in annual gross sales. Although slightly below forecast, sales increased by 5.3 percent over the previous fiscal year. In addition, ABC collected over $100 million in excise taxes, over $29 million in wine liter taxes, over $24 million in general sales taxes, over $44 million in malt beverage taxes and more than $103 million in profit transfers for a total of over $307 million in transfers. ABC has contributed over one billion dollars to the Commonwealth in the last five years.

The General Assembly passed legislation allowing for the expansion of Sunday sales, adding 36 stores to the 95 stores already open from 1 to 6 p.m. on Sundays. Sunday sales began in 2004 when legislation allowed it in designated areas, based on population. A total of 131 of Virginia’s 332 stores are open on Sunday.

Statewide community involvement through the newly established Community Advisory Council allows for the exchange of information about services available and community needs. Council meetings are held in all four regions in the state. To comply with the Agency Risk Management Internal Control Standards, or ARMICS, ABC identified and provided extensive documentation of eight fiscal processes deemed critical to the agency. The Internal Audit Division developed and tested the internal controls over these processes.

ABC continues to enhance its “going green” efforts in response to the administration’s Environmental Stewardship initiative. ABC has been recycling the 70,000 warehouse pallets for the past five years, and shrink-wrap recycling was added more recently. ABC recycles approximately 11 tons of shrink-wrap and 308 tons of cardboard annually.

During the fiscal year, 100 special agents from the agency’s Bureau of Law Enforcement monitored more than 15,000 licensed establishments statewide. ABC special agents conducted 13,068 criminal investigations, made 2,924 arrests and completed 1,185 violation/disciplinary reports for administrative action against licenses. ABC agents take an active role in promoting compliance. They trained 1,472 participants in the Responsible Sellers and Servers: Virginia’s Program (RSVP) statewide this fiscal year.

In Fiscal Year 2008, the Hearings, Appeals and Board Administration Division received 1,345 cases for processing and achieved its goal for the processing average to be under 200 days. The division collected $1,468,500 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 2008, ABC distributed nearly 300,000 education and prevention pieces throughout the Commonwealth.

Education/prevention efforts include two new initiatives. The agency has received state and national awards for implementing its innovative Alcohol and Aging initiative designed to alert older adults and their caregivers about the effects of alcohol on the older population. In addition, partnerships with military bases in the state include efforts to promote alcohol responsibility and education about Virginia ABC laws.

ABC remains committed to balancing control, service and revenue, while providing excellence and accountability to the citizens of Virginia.