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Grain License Financial Requirements
Grain license holders must submit financial statements to the MDA once per licensing year with a deadline of June 30th each year.
Financial statements must be prepared in accordance with generally accepted accounting principles (GAAP) and include the following:
- a balance sheet
- a statement of income (profit and loss)
- a statement of retained earnings
- a statement of changes in financial position or cash flow position
- a statement of the dollar amount of grain purchased in the previous fiscal year of the grain buyer. (This is not typically included in standard financials, please work with your certified public accountant to ensure your financials meet this requirement.)
- a report of the financial statement that is prepared by a certified public accountant or in accordance with standards established by the American Institute of Certified Public Accountants.
- a certification that the financial statement accurately reflects the financial condition of the licensee for the period specified in the statement.
Review vs. Audit
Financials must be either reviewed or audited depending on the amount of grain you purchase annually.
- $7.5 million or more: The financial statements must be audited by a certified public accountant.
- Less than $7.5 million: The financial statements must be reviewed by a certified public accountant.
Exemption
You may be exempt from financials if you meet ALL THREE of the following criteria:
- You purchase less than $1 million in grain each year and
- You pay for all grain with cash (bills and coins); a certified check; a cashier's check; or a postal, bank, or express money order. This DOES NOT include regular checks, ACH, or wire payments and
- You pay immediately after delivery.
If you meet all three of these criteria, please contact our office for an exemption form. Exemptions are not automatic they must be submitted to our office at application or annually at renewal. MDA inspectors will also verify that all exemption requirements are being followed during annual inspection.
Failure to submit financials without an exemption form on file or submitting incomplete financials or financials that do not meet statutory guidelines will result in legal enforcement which may include monetary fines or an order to cease and desist all licensed grain operations.
