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SALT LAKE CITY — The state alcohol department overcharged customers nearly $1,200 because it incorrectly marked up the price on seven items, a new state audit shows.
The Utah Legislature required the state Department of Alcoholic Beverage Control to mark up its approximately 25,000 products to 88 percent from 86 percent last July. During that process, the price of the items was entered wrong in the DABC computer system.
State auditors found the seven products involved in nine sales resulted in a $186 loss to the department, while 28 sales resulted in customers — all businesses — being overcharged $1,161. Most of those products were special orders.
"That's something we try to ensure doesn't occur," said Sal Petilos, DABC executive director. The department intends to refund the overpayments, he said.
The department now has a computer program to flag items that have an incorrect markup percentage and that applies the correct formula to help ensure the right price when entering new products and price changes into the system.
Auditors noted that the report, by its nature, focuses on exceptions, weaknesses and problems.
"I didn't find anything overly alarming in this report," said Neal Berube, a member of the seven-person commission that oversees the agency.
The audit reviewed financial reconciliations and controls, liquor purchases and access to the DABC computer system.
Auditors found that the department failed to transfer $4.6 million in revenue to the state school lunch and public safety programs as the law requires in November 2017. The department corrected the error after auditors discovered it.
