MRA Releases Bulletin on Annual Financial Statement Requirements for 2022

The Michigan Marijuana Regulatory Agency (MRA) recently issued a bulletin to announce the annual financial statement (AFS) requirements for medical facilities and adult-use establishments for fiscal year 2022, pursuant to Section 701 of the Medical Marijuana Facilities Licensing Act (MMFLA) and/or Rule 20 of the Marihuana Licenses rule set – R 420.20

Public Act 119 of 2021, which took effect on December 7, 2021, now requires licensees of medical marijuana facilities file a financial statement every THREE years, or a shorter span as determined by the MRA. Since the amendment only relates to the medical law and the bulletin indicates that the Adult-Use Rule R420.20 remains unchanged, it is unclear whether the Adult-Use marijuana licensee’s will be required to continue to file more frequently, or if they are afforded the longer three year period.

The MRA has indicated that it intends to revise the AFS report forms to allow for the combination of both the Adult-Use license with the Medical license in one report for those years when medical licensees must submit an AFS report.

In the meantime, requirements for the AFS are as follows:

• An AFS for Medical or Adult-Use Licenses will not be required for fiscal year 2022, unless a licensee is required to file a fiscal year 2022 report as a condition of a final order.
• All Licensees must file an AFS for fiscal year 2020 and fiscal year 2021 as per originally issues MRA bulletins. Licensees that failed to file a fiscal year 2020 and/or fiscal year 2021 report as required have been referred for possible disciplinary action.

Further information, regarding the revised requirements of the AFS reporting, is expected to be released by the MRA at a future date.

We at UHY have a dedicated team of accounting professionals that specialize in the cannabis industry. If you have any questions about AFS reports or any other cannabis related accounting topics, please contact us today and stay in touch for further updates on the revised requirements.