PRINCESS ANNE — COVID-19 with its lockdowns and restrictions on entertainment proved to be a boon for the county’s three dispensaries as the Somerset County Liquor Control Board reported its highest net profit ever for the fiscal year that ended April 30.

While sales increased 21.6% to $2.7 million the net profit more than doubled to close at $305,066. The proceeds distributed to Somerset County were $254,510 with Crisfield and Princess Anne each due $25,278.

Andrew Haynie, a CPA and partner with PKS & Company who audited the liquor board’s books, said, "We always pointed to 2018 as the banner year" when net profit was nearly $157,000 but 2021 "blew that out of the water."

He said only a small amount of additional overhead was required to manage the sales increase and that led to net profit rising 113%.

"There was lots of alcohol purchases during the pandemic," he said.

Mr. Haynie, members of the liquor board and Scott Tawes who manages the board’s financials reported to the County Commissioners on Aug. 3 with a check in hand. Mr. Tawes said residents unable to go out to bars and restaurants used that money to buy additional or higher quality liquor to consume at home.

Mr. Tawes also said some products were limited in their availability during the height of the pandemic, and to compensate the stores would buy what they could when sellers had it, leading to an inventory that right now is "way overstocked."

Sales to the public slowed when bars and restaurants opened, with individuals spending their money not just on alcohol but now split between food and drink dining out. While that is leading to more bar purchasing, those sales are discounted for a smaller profit margin. Mr. Haynie said the audit shows discounts were down significantly last year.

"Sales are still ahead of 2019 but they’re not anywhere close to what we had last year," Mr. Tawes said. "The stores are doing well, but you’re not going to have this kind a year next year. We can just about guarantee that."

The Princess Anne store at $1.08 million in sales showed a net profit of $151,230 despite UMES being virtual after spring break last year and only a limited number of students returning to campus in the fall and spring. It is the store’s largest customer.

The dispensary at U.S. 13 and Dividing Creek Road north of Pocomoke City sold $988,269 which was a 23% increase yielding a profit of $102,845. The smallest store is in Crisfield. It had a $100,000 increase in sales posted at $628,499 for FY21. Its net profit was $50,991.

Mr. Haynie gave the financial statements an unmodified opinion and they required no material adjustments. The government audit was also "a clean report," he said. In addition to profits from the stores, the county collects rent from the stores it owns at Pocomoke and now the one in Princess Anne after the county purchased it from the Duer family in 2019.

One black eye from last year still to resolve is the alleged embezzlement by the manager of the Pocomoke store who was charged in August with felony theft and theft scheme. It was alleged she did not make deposits or keep tabs on inventory and the State Police Criminal Enforcement Division during its investigation cited $35,570 in cash and $13,500 in missing inventory from the start of the fiscal year which was May 1, 2020.

When board members and their accountant confronted her last summer about missing cash, Cynthia Vanfossen returned some $17,888 which was then deposited. She is scheduled for trial Sept. 7 in Somerset County Circuit Court. An insurance claim has been filed.

Mr. Tawes said internal controls kept this "from getting out of control." Both he and liquor board Chair Robert Hogg said it’s hard to keep good employees and turnover has been an issue. Often employees work alone and it may be tempting to not ring up a sale or give away a bottle.

"The biggest issue we have is with staff," Mr. Hogg said. "No matter how hard we try, we always need better employees." He credited board member Cindy Knopp for spending a lot of time in the stores which currently lack a general manager. The third board member is John French.