Michigan Laws 285.69 – Application for license or renewal; financial statement
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 285.69
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of agriculture. See Michigan Laws 285.62
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Grain dealer: means a person engaged in the business of receiving, buying, exchanging, selling, or storing farm produce in this state. See Michigan Laws 285.62
- License: means a license issued by the department to a grain dealer in the manner provided under this act. See Michigan Laws 285.62
- Licensee: means a grain dealer licensed under this act. See Michigan Laws 285.62
- reviewed: means performing inquiry and analytical procedures that provide an accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statement for it to conform with generally accepted accounting principles. See Michigan Laws 285.62
(1) A grain dealer shall include with an application for a license or renewal a financial statement for the grain dealer’s most recent completed fiscal year. The financial statement shall be a reviewed or audited financial statement, prepared by a certified public accountant in accordance with generally accepted accounting principles. The end of the grain dealer’s most recent completed fiscal year shall be within 6 months of the expiration date of the grain dealer’s current license. The financial statement shall include at least all of the following:
(a) An accountant’s report, a balance sheet, an income statement, and notes and disclosures.
(b) A statement of the grain dealer’s allowable net assets for purposes of section 3.
(c) A statement from the certified public accountant that he or she acknowledges that the department is relying on the financial statement in determining whether the grain dealer meets the allowable net asset requirement under section 3(3).
(2) If a financial statement described in subsection (1) discloses that the grain dealer during the preceding fiscal year had a current asset to current liability ratio of less than 1 to 1, the licensee shall include with the application a plan and timetable to increase the current asset to current liability ratio to 1 to 1 or more.
(3) If a financial statement described in subsection (1) is a financial statement of the licensee’s parent corporation or a consolidated financial statement of the licensee and its parent corporation, the application shall include a declaration of liability signed by an authorized representative of the parent corporation, by which the parent corporation assumes all financial obligations incurred by the licensee during the term of the license.