While the West Jefferson Board of Alcoholic Beverage Control has been celebrating its fifth year anniversary, its annual financial audit has been completed and indicated the board has been in full compliance with federal and state requirements and has paid $77,500 to the town of West Jefferson.
“We’re doing really well so far,” said Tony Lyall, the general manager of the ABC board.
The audit was conducted by Combs, Tennant & Carpenter, P.C. Certified Public Accountants, and examined the boards assets, taxes, contributions, and measured the board’s compliance with legal requirements.
“There were no instances of material matters of noncompliance with federal and state General Statute requirements,” said the audit.
The report also indicated the ABC board has distributed $30,000 to the town of West Jefferson this year alone. The town has collected $77,500 from the ABC board since its inception.
The audit also mentioned the ABC boards fiscal health.
“Net assets are an indicator of the fiscal health of the ABC Board. Assets exceeded liabilities by $478,820 in 2012,” said the report.
According to the report, the largest component of net assets was the investment in capital assets (land, building, furniture and equipment), which comprised 47 percent of the boards total net assets.
By the end of the financial year on June 30, 2012, the ABC Board had an operating revenue of $1,416,761. This was an increase of $46,466 (3.39 percent) from the same period last year.
Also, the boards “working capital increased from $170,038 to $252,690,” said the audit.
N.C. Alcoholic Beverage Control Commission Rule .0902 defines working capital as the total of cash, investments and inventory minus all unsecured liabilities.
“An ABC board shall set its working capital requirements at not less than two weeks’ average gross sales of the last fiscal year nor greater than four months’ average gross sales of the fiscal year,” said the report.
By that standard, the ABC board easily met the minimum amount of working capital, which was $42,114, according to the audit.
The audit also stated how much the ABC board paid in taxes.
- Taxes payable for July 1, 2011 totaled $25,689.
- Taxes collected during the year totaled $309,663.
- Taxes remitted to Department of Revenue totaled $308,626.
- Taxes payable for June 30, 2012 totaled $26,726.
The West Jefferson ABC Board also paid a liquor sales tax of $93,903 and a mixed beverage tax of $11,956.
In addition to the taxes, the board also makes contributions to law enforcement, alcohol education and rehabilitation.
According to the audit, “12 percent of profits were expended for law enforcement and alcohol education in the current year.”
Of that 12 percent, five percent of the boards profits was spent for law enforcement, totaling $3,423, while 7 percent was spent for alcohol education and rehabilitation, totaling $4,792.
On top of that, the ABC board makes a “rehabilitation contribution” to Ashe County’s finance officer.
According to the report, “a bottle charge of one cent on each bottle containing 50 milliliters or less and five cents on each bottle contain more than 50 milliliters is collected and distributed monthly to the county commissioners for alcohol education and rehabilitation.”
The boards total rehabilitation contribution for the year equaled $4,474.
The ABC board’s debt was another topic mentioned in the audit.
The report indicated the ABC board has already paid off its original line of credit, money borrowed to help “get this place up and running,” said Lyall
“On Nov. 26, 2008 the ABC board renewed their commercial line of credit in the amount of $273,639 at a current rate of 3.75 percent interest. The line of credit was originally initiated on Oct. 5, 2007. The ABC board paid off the credit line during the fiscal year ended June 30, 2012,” said the audit.
“With that credit line paid off, the ABC board can focus its attention on paying for the building,” said Lyall.
The ABC board purchased its facility from the county in 2009. Since then, the board has made “monthly payments of $2,166, including interest at a rate of 4.9 percent, with a final payment of the remaining balance due on Aug. 5, 2016,” said the audit.
Lyall said West Jefferson charged the minimum rate because the town“wanted to help us pay off our debt.”
Once the ABC board honors all of its debts, all of the stores profits will go to the town of West Jefferson.
“At that point,” said Lyall, “the town will be really happy with us.”