1207 QUARTERLY STATEMENTS AND ANNUAL REPORTS OF RESTAURANTS AND HOTELS

1207.1 Within thirty (30) days after the end of each quarter, the holder of a Retailer's license Class CR, CH, DR, or DH shall file with the Board a statement of expenditures and receipts by the licensed establishment during that quarter containing the following:

1. (a) The total amount of receipts for the sale of alcoholic beverages and food;
2. (b) Of that total, the amount received for the sale of alcoholic beverages and the amount received for the sale of food, and the percentages of the total receipts represented by the respective amounts;
3. (c) Total expenditures for alcoholic beverages and food;
4. (d) Of that total, the amount expended for alcoholic beverages and the amount expended for food, and the percentages of the total expenditures represented by the respective amounts;
5. (e) A statement indicating the method used to compute the amounts and percentages; and
6. (f) An affidavit executed by an individual licensee, partner of an applicant partnership, or the appropriate officer of an applicant corporation, attesting to the truth of the quarterly statement.

1207.2 The amounts reported for the sale of alcoholic beverages and food shall represent reasonable prices appropriate to the licensee's establishment.

1207.3 For purposes of this section, each licensee shall report under "alcoholic beverages" any non-alcoholic liquid or solid served as part of the contents of an alcoholic beverage.

1207.4 In computing the amounts received and expended for alcoholic beverages and for food, a licensee shall exclude all amounts received for taxes and gratuities in conjunction with these transactions, and all amounts, including surcharges, related to the obtaining and providing of entertainment or other goods and services at the licensed establishment.

1207.5 Each holder of a Retailer's license Class CR, CH, DR, or DH shall also submit to the Board an annual report attesting to the correctness of the quarterly statements submitted during the preceding year.

1207.6 Each annual report shall be filed within sixty (60) days from the end of the annual period that is the subject of the report.

1207.7 A licensee may submit, together with the first annual report submitted to the Board, adjustments to the quarterly statements filed for the preceding one-year period. Thereafter, no adjustments shall be permitted to the quarterly statements filed with the Board without the prior permission of the Board.

1207.8 The annual accounting period, for purposes of the annual report, shall correspond to each of the three (3) years for which a license is issued.

1207.9 The making of a false statement on a quarterly statement or annual report, with the knowledge of the license holder, shall constitute grounds on which the Board may deny the renewal of the license, or subsequently revoke the license, when the renewal of the license is based wholly or in part on the contents of the false statement.

1207.10 A Retailer's license Class CR, CH, DR, or DH shall be responsible for ensuring that it maintains for three (3) years sufficient documentation to allow the Board to verify the accuracy of the information contained on the licensee's submitted quarterly reports. Failure of the licensee to maintain sufficient documentation to allow the Board to verify the accuracy of the information contained on the licensee's submitted quarterly reports shall be a violation of this subsection.

SOURCE: Final Rulemaking published at 35 DCR 4947 (June 24, 1988); as amended by Final Rulemaking published at 51 DCR 4309 (April 30, 2004); as amended by Section 303 of the Omnibus Alcoholic Beverage Amendment Act of 2004, effective September 30, 2004 (51 DCR 6525 (July 2, 2004)); as amended by Final Rulemaking published at 55 DCR 12991 (December 26, 2008); as amended by Final Rulemaking published at 64 DCR 1357 (February 10, 2017).