It’s time to start preparing for the next cycle of annual financial statement (AFS) reports.
The AFS report is a deep dive into your business that culminates in an agreed-upon procedures report that provides the Cannabis Regulatory Agency (CRA) with information to assist in determining if your licensed operation is in compliance with the various state laws and rule sets. The next cycle of reports will be consolidated, meaning medical and adult-use licenses will be reported together on one report.
The CRA began sending out the licensee assignments to a 3-year reporting cycle for the consolidated AFS. The notice, which indicates which year your next AFS will be due, have been/will be sent to the following contacts in Accela Citizen’s Access portal (ACA):
- registered entity
- person who completed the online form (medical)
- person who completed the online application (adult-use)
Notices are being sent out to entities licensed as of 12/31/2021. Entities licensed in the calendar year of 2022 will be notified in January 2023, according to the CRA.
The chart below provides additional detail regarding the 3-year cycle, due dates, and reporting periods for the consolidated AFS.
In addition, it’s important to note that beginning six months before your consolidated AFS report is due, the contacts on your entity record(s) in ACA will receive a series of notices to alert and remind them of the upcoming due date. The notices will include information regarding the filing requirements for that fiscal year. If you have not already done so, be sure to log into your ACA account and verify (and update if necessary) the contact information of the individuals noted above.
UP NEXT: (Coming soon) Consolidated AFS Survival Guide, postcard mailings, and more social media updates – don’t miss out!
Grapp Lerash is a full-service CPA firm headquartered in Saginaw, Michigan. At Grapp Lerash, we believe this agreed-upon procedures engagement should be so much more than just basic compliance. Our approach focuses on continued process improvement. We believe that in order to be positioned for success, part of the AFS process includes ideas, suggestions, and procedural improvements. The Grapp Lerash team has presented with the CRA on accounting and AFS best practices for online trainings and conferences. We deliver exceptional client service through a solutions-based approach, connecting clients with the right people at the right time. Let’s talk – see how we are accounting, done differently.