A new audit of Michigan’s Liquor Control Commission is raising eyebrows in the state government. The report found that the agency was unable to account for a significant portion of its inventory, as much as 30% in one warehouse.
“This is concerning,” said Rep. John Roth, R-Interlochen. “Probably the most concerning thing is we’re just hearing about it now.”
The report found that the MLCC lost track of nearly a million dollars in alcohol in 2022, a finding that’s spurring discussion among lawmakers about oversight in the state government.
The report found several issues with the Commission, including a lack of proper oversight of distributors and both negative and excessive inventory records of various products.
But the most striking finding is that the commission was unable to account for over 62,000 bottles of various products in 2022, totaling nearly $1 million.
Lawmakers say they’re not happy with the report and are calling for greater oversight within state agencies.
“When a department makes a mistake, they just have to come out and be honest. Hey, we made a mistake,” Roth said. “Can we figure out why we made that mistake? Can we work on something else? That’s the biggest thing. When we don’t hear anything and the Auditor General has to find out, that’s sad.”
In the report, the Commission acknowledged that changes needed to be made.
The report comes as the Office of the Auditor General faces a significant proposed budget cut. In Gov. Gretchen Whitmer’s annual budget recommendation, the agency’s funding would be cut by about $8.3 million.
The governor’s office and Democratic leadership have said the current figure is just a placeholder and that proper funding will be distributed as the final budget is crafted in the coming months. But Republican lawmakers have made it clear they see the proposal as an effort to stifle the work of the watchdog agency.
“That really seems retaliatory to me,” said Rep. Tom Kunse, R-Clare. “Yes, it’s just a placeholder. No, it’s not binding. But this is what you want. If it’s not what you want it you wouldn’t have proposed it.”
Kunse said that the solution to issues in the government should be more oversight, not less.
Lawmakers also acknowledged that the budget process was just beginning and there could be plenty of time for changes.
