FINRA's BrokerCheck

Michigan Marijuana Regulatory Agency Announces Annual Financial Reporting Requirements for Medical Marijuana Licensees

Nearly all medical marijuana licensees in Michigan will need to work with licensed certified public accountants, among other stipulations, as part of required annual financial reporting recently announced by the state marijuana regulatory agency.

More information about these annual requirements, issued by the Michigan Marijuana Regulatory Agency:

  • All medical marijuana licensees initially licensed as of Dec. 31, 2019 must comply, with financial reports for most licensees due by Oct. 31, 2020.

  • The annual financial statement must cover all licenses held by a licensee during the reporting period.

  • For licensees that have multiple licenses, the licensee may report only once to the MRA, although the report must include in its scope all the licenses held by the licensee.

  • The reporting requirements must be performed by an independent, state of Michigan-licensed CPA, who must follow an agreed-upon engagement in accordance with the statements on standards for attestation engagements.

  • The CPA must communicate procedures performed and findings noted in an agreed-upon procedures report format as prescribed by the Association of International Certified Professional Accountants (AICPA). This report is then furnished to the Michigan Marijuana Regulatory Agency by the licensee, by the deadline.

  • The CPA is required to perform procedures on the following:
    • Revenue transactions
    • Disbursement transactions
    • Significant vendors
    • Payroll taxes
    • Equity distributions
    • Licensing agreements
    • Other contracts (management agreements/HR agreements/security agreements)
    • Excise taxes

Rehmann’s Take on the Requirements

With a deadline of Oct. 31, 2020, it’s critical that each licensee engage a CPA as soon as possible. Rehmann has extensive experience performing agreed-upon procedures engagements, as well as serving companies in the cannabis industry. Rehmann’s Cannabis Assurance Services Group can assist by lowering the cost and making sense of the complexity in this reporting.

Please contact Daryl Targosz at 616-975-2835 for more information.

Published in Business Wisdom

Meet The Rehmann Team

Start typing a name ...
Searching for "{{nameQuery}}"...
Start typing an experience ...
Searching for "{{experienceQuery}}"...
Start typing a location ...
Searching for "{{locationQuery}}"...
Or view a list of team members