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Rowan Co. questions ABC board's expenses

By Alex Reed
NewsChannel 36

SALISBURY, N.C. -- The people who control liquor sales in Rowan County are being questioned because of thousands of dollars in questionable receipts.

Receipts from Hooters, board members using ABC funds to purchase alcohol, and large travel expenses are raising suspicions about money problems at Rowan County's ABC board.

"As far as living the good life the credit card receipts show that," said Rowan County Commissioner Tina Hall.

Hall says there's no proof of embezzlement so far, but she's going through hundreds of the board's expenses dating back five years.

"With over $8 million in sales and you're not making more than $300,000, something's wrong," Hall said.

Rowan County ABC turns 3.7 percent of its sales into profit. That ranks in the bottom quarter of the state when it comes to turning a profit. That means the distribution of ABC profits to the local governments is also down during a critical time.

"Rowan County, in these tough economic times, really needs the distribution," said Hall.

From 2004 through 2007 the board gave a total of $35,000 to the local governments. Compare that to the $80,000 in 2002 and you can see why some are concerned.

NewsChannel 36 asked the ABC board about the receipts.

"If you just look at the expenses it's hard to explain. There are no personal expenses that are charged with ABC funds," said Rowan County ABC board member Marny Hendrick.

In fact, Hendrick says the board is doing everything it can to cut costs.

"We opened three new stores and basically only hired two new full-time employees," Hendrick said.

While he says those new stores have increased revenue, they've also increased costs at a time when people aren't spending as much on spirits.

"These days they either quit drinking or they buy a cheaper brand," said Hendrick, who remains confident things will turn around once those new stores are paid off. "We've been through a transition, we feel like the changes that we'’ve made will benefit us in the long terms."

So far in 2009, after these questions started to be raised, the board has distributed $70,000 -- that's up from $25,000 in 2008.

The ABC board is set to give a presentation on their expenses before the Rowan County Commission at their meeting on Monday. That commission has already called to remove all of the ABC board members once because of the money issues, but that failed by one vote.

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