SF 1552

Subd. 6.

Financial statements.

(a) Except as allowed in paragraph (c), a grain buyer
licensed under this chapter must annually submit to the commissioner a financial statement
prepared new text begin by a third-party independent accountant or certified public accountant new text end in accordance
with deleted text begin generally accepted accounting principlesdeleted text end new text begin national or international accounting standardsnew text end .
The annual financial statement required under this subdivision must also:

(1) includedeleted text begin ,deleted text end but not be limited to the following:

(i) a balance sheet;

(ii) a statement of income (profit and loss);

(iii) a statement of retained earnings;

(iv) a statement of deleted text begin changes in financial positiondeleted text end new text begin cash flownew text end ; and

(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the
grain buyer;

(2) be accompanied by a deleted text begin compilationdeleted text end report of the financial statement that is prepared
by a grain commission firm or a management firm approved by the commissioner or by an
independent public accountant, in accordance with standards established by the American
Institute of Certified Public Accountantsnew text begin or similar international standardsnew text end ;

deleted text begin (3) be accompanied by a certification by the chief executive officer or the chief executive
officer's designee of the licensee, and where applicable, all members of the governing board
of directors under penalty of perjury, that the financial statement accurately reflects the
financial condition of the licensee for the period specified in the statement;
deleted text end

deleted text begin (4) for grain buyers purchasing under $7,500,000 of grain annually, be reviewed by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants, and must show that the financial statements are free from
material misstatements; and
deleted text end

deleted text begin (5)deleted text end new text begin (3)new text end for grain buyers purchasing $7,500,000 or more of grain annually, be audited new text begin or
reviewed new text end by a certified public accountant in accordance with standards established by the
American Institute of Certified Public Accountants deleted text begin anddeleted text end new text begin or similar international standards.
An auditnew text end must include an opinion statement from the certified public accountantdeleted text begin .deleted text end new text begin performing
the audit; and
new text end

new text begin (4) for grain buyers purchasing $20,000,000 or more of grain annually, be audited by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants or similar international standards. The audit must include
an opinion statement from the certified public accountant performing the audit.
new text end

(b) Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. All
financial statements filed with the commissioner are private or nonpublic data as provided
in section 13.02.

(c) A grain buyer who purchases grain immediately upon delivery solely with cashdeleted text begin ; a
certified check; a cashier's check; or a postal, bank, or express money orderdeleted text end new text begin , as defined in
section 223.16, subdivision 2a, paragraph (b),new text end is exempt from this subdivision if the grain
buyer's gross annual purchases are $1,000,000 or less.

new text begin (d) For a grain buyer that qualifies for the exemption in paragraph (c), the commissioner
retains the right to require the grain buyer to provide the commissioner with financial
reporting based on inspections, any report of nonpayment, or other documentation related
to violations of this chapter, chapter 232, or Minnesota Rules, chapter 1562.
new text end

new text begin (e) To ensure compliance with this chapter, the commissioner must annually review
financial statements submitted under paragraph (a).
new text end

deleted text begin (d)deleted text end new text begin (f)new text end The commissioner shall annually provide information on a person's fiduciary
duties to each licensee. deleted text begin To the extent practicable, the commissioner must direct each licensee
deleted text end deleted text begin to provide this information to all persons required to certify the licensee's financial statement
under paragraph (a), clause (3).
deleted text end

new text begin (g) The commissioner may require a grain buyer to provide additional financial statements
or financial reporting, including audited financial statements.
new text end