The bill SF 1552 modifies financial reporting requirements for grain buyers in Minnesota. It amends Minnesota Statutes 2024, section 223.17, subdivision 6, establishing new requirements for financial statements that grain buyers must submit annually to the commissioner.

Key Provisions:

1. Annual Financial Statements – Grain buyers must submit annual financial statements prepared, reviewed, or audited by an independent accountant or CPA, in accordance with generally accepted accounting principles (GAAP) or similar international standards.

2. Statement Requirements – The financial statement must include:

   • Balance sheet
   • Statement of income (profit and loss)
   • Statement of retained earnings
   • Statement of cash flow
   • Statement of the dollar amount of grain purchased in the previous fiscal year

3. Additional Certifications and Reports:

   • Statements must be accompanied by a compilation report prepared by an approved firm or independent accountant.
   • The CEO or governing board members must certify the accuracy of the financial statement under penalty of perjury.

4. Review and Audit Requirements Based on Purchase Volume:

   • Under $7.5 million in annual grain purchases – Financial statements must be reviewed by a CPA to ensure they are free from material misstatements.
   • $7.5 million or more in annual grain purchases – Financial statements must be reviewed or audited by a CPA.
   • $17.5 million or more in annual grain purchases – Financial statements must be audited, with an opinion statement from the CPA.

5. Exemption for Small Cash Buyers:

   • Grain buyers purchasing $1 million or less annually and paying immediately upon delivery with cash, certified check, cashier’s check, or money order are exempt from the reporting requirement.
   • However, the commissioner can require reporting if there are concerns about compliance, nonpayment reports, or violations.

6. Regulatory Oversight:

   • The commissioner must annually review submitted financial statements.
   • The commissioner provides grain buyers with information on fiduciary duties.
   • The commissioner may request additional financial reporting, including audits, if necessary.

Purpose of the Bill:

The bill enhances financial transparency and accountability among grain buyers by ensuring that their financial conditions are regularly reviewed. It introduces stricter audit and review requirements based on the volume of grain transactions, aiming to reduce financial risks in the agriculture sector.

Would you like any further clarification on specific aspects of this legislation?