I utilize another company to handle a type of service necessary for the operation of my licensed entity. We do not have a written agreement or contract. Do I still need to report this on Schedule of Expenditures – Service Vendors?

Yes. This procedure requires the licensee to report all agreements that provide services necessary for the operation of the licensee. For the purposes of this procedure, service vendors could include an outside party used to perform services and/or create goods that were traditionally performed or created in-house by the company’s own employees and staff. Examples include but are not limited to consulting services, human resource management, supply chain management, accounting, customer services and/or support, marketing, bud trimming services, security, legal services, electricity, water, gas, sewer, garbage, telephone, internet, etc. If there is no written agreement or contract, the CPA will utilize invoices or any other written documentation to report the agreement to provide services in Part 1 of the procedure. Actual disbursements for those services will be reported in Part 2 of the procedure according to the selection of sample size instructions.