New audit reveals Washington’s cannabis tracking system is ‘yet to be fully realized’

WASHINGTON — Washington remains behind when it comes to tracking cannabis sales from production to smoke shop shelves, according to a new state audit.

According to a press release from Adam Wilson, assistant director of communications for the Washington State Auditor’s Office, the active cannabis tracking system, developed more than a decade ago when voters approved the legalization of recreational marijuana use in the state, doesn’t efficiently track how cannabis is produced, processed or sold. The system helps identify risks of illegal or unsafe practices within the cannabis business from farm to store.

When auditors sought information about LCB, they found that the system’s intention failed, according to the press release. In addition, the system experienced changing hands in leadership and repurposing within the last three years of performance.

The Washington State Liquor and Cannabis Board (LCB) system helps report data from cannabis business licenses but still faces challenges including inaccurate real-time tracking reporting to law enforcement, according to the press release.

The system is also prone to other errors including misplaced decimals in the reported sales price of individual cannabis products. The errors caused the annual sales report for 2022 to be nearly $8 billion when the Department of Revenue estimated sales for the same period to be about $1.3 billion, according to the press release.

The system would also alert licensed cannabis businesses to an error in uploading their data and then not display the data. The issue caused licensees to send LCB a request for a copy of their data to confirm they’ve submitted the correct information.

“A ‘seed-to-sale’ tracking system has been under development for 12 years but has yet to be fully realized,” said State Auditor Pat McCarthy. “This report is an important update for state leaders, who can now engage with the Liquor and Cannabis Board to establish clear goals for ensuring accountability in our modern recreational cannabis system.”

For the full performance audit report, including recommendations to LCB to improve the use of its existing system, click here.

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