Audit flags Baltimore City Liquor Board over violations

Publication Date: 2024-09-18

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A state audit reveals some issues within Baltimore City's Liquor Board. In 2023 the board issued 1,138 alcoholic beverage and adult entertainment licenses, raking in $2.7 million recently as fiscal year 2022. The recent audit found the board often failed to retain inspection reports. At one point auditors discovered the board hadn't kept documentation of reviews since December 2020. This led to questions whether accurate information was being entered into the board's inspection database. Auditors decided to randomly select 30 inspections recorded in the database, finding that only two didn't have original records reflecting the information.

Another concern raised by auditors was the lack of annual inspections at licensed establishments. According to the audit, 270 locations were allowed to operate in 2023 without being inspected. These inspections are conducted to confirm licensed establishments are purchasing alcohol from a distributor, and following City Health Department Standards, such as clean and operable kitchens and bathrooms. While state law doesn't specify of often inspections should occur, the board aims for at least one inspection at each location annually.

The audit also flagged the board for failing to follow its own policy requiring employees to file annual Financial Disclosure and Conflicts of Interest questionnaires. As recently as November 7, 2023, there were 20 employees and 3 commissioners on the board who didn't turn in questionnaires between fiscal years 2020 through 2022. The Policy is meant to ensure employees and commissioners do not have direct or indirect occupation, business, or investment interest at places overseen by the liquor board.

This was the state's fourth liquor board audit. Previously other violations were found, but they've since been corrected. Some prior infractions include failures to follow-up on inspection violations or complaints received through 311. Board Chairman Albert Matricciani Jr. responded to the findings in a written letter to auditors. 'The BLLC reconstituted its operating policies and procedures, restructured personnel within its inspection and administrative divisions, and instituted management practices to increase transparency and compliance with the law and internal Standard Operating Procedures.' Matricciani added COVID-19 played a role in the board's inability to find solutions to some of the concerns raised in the audit.

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