1. LCBO Audit & Winery Reporting
The LCBO has a Memorandum of Understanding (MOU) with the Alcohol and Gaming Commission of Ontario (AGCO) to provide audit services with respect to licenced Ontario wineries.
The LCBO also has a Memorandum of Agreement (MOA) with Vintners Quality Alliance Ontario (VQAO) that includes the provision of audit services with respect to member wineries.

2. Winery Audit Required Information
Current and accurate inventory of packaged goods and offsite warehouse inventory (if applicable)
Current and accurate inventory of bulk wine and tank records showing volume, variety and vintage
Supporting ledgers used to prepare the J10s (source documentation) for all sales channels
Blending and bottling/packaging records
Production records including Grape Growers of Ontario Grower Summary report, weigh slips, and grading (brix) information
VQAO transfer forms, invoices and supporting documentation (i.e. bill of lading) for all bulk sales and/or bulk purchases
Documentation to support any loss or disposals of wine

3. Winery Audit Execution – 5 Step Approach
Reconcile Inventory
Setting the current inventory on hand (inventory to be provided by winery)
Recording inventory volume increases since the last audit (production/purchases)
Recording inventory volume decreases since the last audit (sales/disposals)
Reconcile Sales
Reviewing supporting sales documentation since last audit (ledgers, POS reports)
Reviewing the pricing of available products to ensure compliance with the LCA
AGCO Testing
Ensuring compliance with Wine Content and Labeling Act (WCLA)
Ensuring compliance with the Winery Retail Store Information Guide
Ensuring AGCO authorizations and licenses are appropriate and valid
VQAO Testing
Ensuring compliance with certain aspects of the VQA Act (Reg. 405 and 406)
Reviewing VQA approvals and transfers to ensure they were accurately reported
Reviewing VQA sales to ensure they were accurately reported
LCBO Testing
Ensuring compliance with certain aspects of the Liquor Control Act
Ensuring accurate calculation and remittance of fees, deposits and levies
Ensuring LCBO authorizations (Direct Delivery and Offsite Warehouse) are valid 1 2 3 4 5

4. Winery Audit Validation – Review Results
Investigate large or unusual inventory variances
Verify current on-hand and offsite inventory figures
Verify new production, inventory purchases, sales and disposals
Review compliance with AGCO and VQAO regulations
Verify the information from the prior audit to ensure accuracy

5. Winery Audit Reporting - Stakeholders
AGCO Report
VQAO Report
Winery Report
LCBO Report
LCBO Audit
Once the audit has been reviewed and validated with the winery, the results must be communicated to the respective stakeholders.
A list of stakeholders is shown on this slide.

6. Winery Reporting Template aka The J10

7. Winery Reporting Template
Sources
Winery Reporting Template

8. Winery Reporting Template
Sources
Winery Reporting Template

9. Winery Reporting Template
Sources
Winery Reporting Template

10. Winery Reporting Template
Sources
Winery Reporting Template

11. Winery Reporting Template
Sources
Winery Reporting Template

12. Winery Reporting Template
Sources
Winery Reporting Template

13. Winery Reporting Template
Sources
Winery Reporting Template

14. Winery Reporting Template
Sources
Winery Reporting Template
Remittance Summary
Winery Name
Reporting Month
LCBO Remittances:
$ Amount
VQA Sales Report
$0.00
NON-VQA Sales Report
Ontario Winery Duty Free Sales Report
LCB J10: Refundable Container Deposits
Total LCBO Payment
Other Remittances:
Vintners Quality Alliance Ontario Product Sales Report

15. Winery Reporting Template
Sources
Winery Reporting Template

16. Winery Audit Contacts and Resources
Peter Harris Auditor, Internal Audit Services, LCBO T:   E:
Jason Quan
Manager, Financial & Economic Analysis
T: (416) E:
Vincent Caron
Sr. Policy Advisor, Corporate Affairs
T: (416) E:
Doing Business with LCBO (Trade Resources Online)
All questions related to AGCO or VQA rules and regulations should be directed to the respective stakeholders.
LCBO audit related questions should be directed to the Auditor. Winery reporting or Corporate Affairs questions should be directed to those departments.