Lots of people wandering around close to the correct answer...
"Lab grade" ethanol is actually several different grades, with the best-known descriptors being the old Merck ones: Analar, GPR etc. All are about 96% ethanol and 4% water - as meghatronic says, ethanol will absorb water from the atmosphere. It is possible to get less water, but it has to be stored under nitrogen etc. What divides the various grades is the exact amount of various other impurities. This does include methanol, but this is at very low levels (<0.001% IIRC) in every grade.
As a result, lab ethanol is perfectly safe to drink as long as you dilute the stuff. HMRC therefore make every lab that has a licence to possess ethanol account for every drop they use. One of the many annoyances of becoming a GOC was that we were no longer covered by the Home Office exemption, and now we have to fill out a log book every time we take some out of the winchester.
M