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Winery Audit Process Overview

Winery Audit Process Overview. Presented by LCBO Store & Winery Audit Department VQA Workshops Prince Edward County – Friday January 17, 2014 Lake Erie North Shore – Thursday January 23, 2014 Niagara Peninsula – Friday January 31, 2014. Agenda. Preparing for the audit The audit process

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Winery Audit Process Overview

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  1. Winery Audit Process Overview Presented by LCBO Store & Winery Audit Department VQA Workshops Prince Edward County – Friday January 17, 2014 Lake Erie North Shore – Thursday January 23, 2014 Niagara Peninsula – Friday January 31, 2014

  2. Agenda • Preparing for the audit • The audit process • Pre visit • Visit • Typical deficiencies and follow up • Question and answer period

  3. Preparing for the Audit • Current tank records with volume, variety and vintage • Current inventory of cased goods and off-site warehouse inventory • J10s since last audit and ledgers to support sales data • VQAO Sales Reports, Direct Delivery VQA and non-VQA, Duty Free • Volume of sales and promotional use for the part month up to the day of the audit • Blending and bottling records and disposals • Grape Growers of Ontario reports, weigh bills

  4. Preparing for the Audit Key People: • Winemaker/Owner/Manager in regard to bottling, blending and volumes of bulk wine through harvest or purchase • Bookkeeper in regard to sales information and also in deciphering of said information • Retail Staff in regard to stock locations, recording of promotional inventory and general winery information

  5. The Audit Process – Pre-visit • Review inventory from last audit • Review stage of production from last audit • Review transfers, disposals and other correspondence • Retrieve sales data reported to LCBO • Retrieve data for VQA applications since the last audit

  6. The Audit Process - Visit

  7. Summary of Allowances • 5% for first 6 months (October 1 to March 31) • 1 ½% for next 6 months (April 1 to September 30) • 3% thereafter • Prorated based on timing of audit visit

  8. LCBO Audit Criteria • Direct Delivery invoicing and fees • Container Deposit remittances • Collection of Special Occasion levies and remittances • Offsite warehouse authorization • Pricing verification

  9. AGCO Audit Criteria • Compliance with Wine Content and Labeling Act • Import records and blending requirements • Production recovery • General record keeping requirements under WCLA and Liquor Licence Act • Compliance with Winery Retail Store Authorization • Made Policy • Rules for wineries located outside DVA • On-site retail store • Non-Grape winery rules

  10. Audit Process - Visit Supporting Documents • J10’s • VQAO Applications • VQAO transfer forms • Sales documentation • GGO harvest information • Weigh Bills • Brix Reading • SetGo forms • Winemakers notes, tank records, daybook, etc.

  11. VQA Audit Program • Requirements for the identification of geographical indication prescribed in Table 2 of the Rules • Viticultural and Oenological requirements outlined in Table 2 of the Rules • Minimum brix level requirements as set out in Appendix A of the Rules • Requirements for vintage dating set out in Section 3 of the Rules

  12. Grape Growers of OntarioP.O BOX 100, VINELAND STATION, ON L0R 2E0 Phone 905.688.0990 Fax 905.688.3211 www.grapegrowersofontario.com Growers by ProcessorReport Year: 2013 Report Generated On: 03-Jan-2014

  13. VQA Audit Program • Miscellaneous requirements set out in Section 6 of the Rules including: • Addition of water • Fortifying wine • Chaptalization • Sweetness descriptions, sugar levels, acid levels • Production Recoveries • Information from Wine Transfer Form • Use of terms, descriptions and designations within the winery’s on-site retail store

  14. VQA Audit Program • Reported litres sold of each VQA product listed on the Vintners Quality Alliance Product Sales Report and corresponding VQA literage fees • Other observations related to VQA Act

  15. Common Deficiencies • Inaccurate reporting of sales volume/ literage fees • Inaccurate information or lack of VQA transfer form • Inaccurate label content compared to approved application • Non-VQA products using VQA descriptors • Bottling deficiencies • No records or incomplete records available • More than approved volume on application • More than one year after approval granted

  16. Common Deficiencies • Unable to verify blending requirements for VQA approvals • Wine makers records are not available/provided • Blending records do not match applications/approvals • Blending records are kept or unclear • Inaccurate sales reporting or missing documentation

  17. LCBO Contacts Niagara • Sheila Gayman • Peter Harris LENS • Jeff Dunlop PEC • Trish Moulds • Lorne Martin GTA and Other • Michael Roberts • Mark Silva • Audit Project Managers • Dianne Scharf • Michael Lyck • Department Manager • Chad McGregor

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