The Marijuana Regulatory Agency (MRA), in a bulletin issued on June 3, 2020, announced the new Annual Financial Statements (AFS) report required for the fiscal year 2020, pursuant to Section 701 of the Medical Marihuana Facilities Licensing Act. The AFS report form, as published on the MRA website, contains the required procedures and schedules for fiscal year 2020 and instructions in order to complete the report properly.
The requirements for this AFS report are as follows:
- The AFS report is an agreed-upon procedures engagement that must be completed by an independent CPA licensed in the state of Michigan, in accordance with the statements on standards for attestation engagements.
- The CPA is required to communicate their findings in the report, no other report will be accepted, and the licensee is required to file the report with MRA.
- Licensees that were initially licensed as of December 31, 2019, MUST file the AFS report, which also must cover ALL licenses held by the licensee at any time during the reporting period.
- Reports must be received by the MRA by the applicable due date, October 31, 2020, except for those initially licensed during the 4th quarter for whom the due date is January 31, 2021. Those filing a late report will be forwarded to the MRA Enforcement Division for possible disciplinary action.
- Licensees initially licensed between August 1, 2018 and December 31, 2018 will be required to file two reports to get their reporting requirements up to date.
This AFS report is extremely important for licensees. An independent CPA able to issue attestation opinions must complete this report. We have a dedicated team of industry specific professionals who can complete the necessary procedures and report, as well as help companies sort through the financial red tape to ensure your business is compliant. Call us today to get started on your AFS report at 248 355 1040.