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How should the Annual Financial Statement report be compiled for a licensee who has multiple licenses?

How should the Annual Financial Statement report be compiled for a licensee who has multiple licenses?

Schedules are provided for each procedure and must be duplicated as indicated in the AFS requirements/instructions. Please note:

  • The schedules for procedure 1, procedures 5-8, and procedure 10 are to be used by all license types, and the procedures are to be conducted collectively on all licenses to be reported so that only one schedule is completed.
  • The schedule for procedure 2 should be duplicated for each license to be reported, except for stacked Grower Class C licenses at a single location, which should be conducted collectively so that only one schedule is completed for the stacked Class C location.
  • The schedules for procedures 3 and 4 should be duplicated for each license to be reported, except for licenses of the same type, which should be conducted collectively so that only one schedule is completed for that license type.
  • The schedule for procedures 9 and 11 should be duplicated for each microbusiness or retail establishment licenses to be reported.

Example #1:

A licensee holds the following adult-use licenses:

  • Processor - Issued 4/25/2020
  • Grower Class C 1 - Issued 7/20/2020 - Location 1
  • Grower Class C 2 - Issued 7/20/2020 - Location 1
  • Grower Class C 3 - Issued 8/17/2020 - Location 2
  • Retail Establishment - Issued 4/09/2021

The processor license was the first license issued on 4/25/2020. Based on the reporting period chart, one AFS report is due for Fiscal Year 2021 the reporting period for April 1, 2020 - March 31, 2021 and is due September 30, 2021.  The license for the retail establishment was not held during the reporting period so it will not be reported within this report.  The AFS report should be compiled as follows:

Procedure Sheet

Licenses Covered

P1 Questionnaire

All

P2 Schedule of Revenue - AU-G, AU-P

Grower Class C 1 & Grower Class C 2

P2 Schedule of Revenue - AU-G, AU-P

Grower Class C 3

P2 Schedule of Revenue - AU-G, AU-P

Processor

P2 Schedule of Total Revenue

All

P3 Schedule of Disbursements

Grower Class C 1, Grower Class C 2, Grower Class C 3

P3 Schedule of Disbursements

Processor

P4 Schedule of Vendors

Grower Class C 1, Grower Class C 2, Grower Class C 3

P4 Schedule of Vendors

Processor

P5 Schedule of Payroll Tax

All

P6 Schedule of Distributions

All

P7 Schedule of Licensing Agreements

All

P8 Schedule of Outsourced Services

All

P9 Schedule of Excise Tax

None

P10 Schedule of 1099 Independent Contractors

All

P11 Schedule of Sales Tax

None

 Example #2:

A licensee holds the following adult-use licenses:

  • Grower Class C 1- Issued 11/20/2019 - Location 1
  • Processor - Issued 1/10/2020
  • Retail Establishment 1 - Issued 2/22/2020
  • Retail Establishment 2 - Issued 10/30/2020
  • Grower Class C 2 - 4/14/2021- Location 2
  • Grower Class C 3- 10/09/2021- Location 1

The first license, grower Class C 1, was issued on 11/20/2019.  Based on the reporting period chart, two AFS reports are due for Fiscal Year 2021.

The first AFS report should cover the reporting period for November 1, 2019 - September 30, 2020 and is due June 30, 2021.  The licenses for the retail establishment 2, grower Class C 2, and grower Class C 3 were not held during the reporting period so they will not be included within this report.  The AFS report should be compiled as follows:

Procedure Sheet

Licenses Covered

P1 Questionnaire

All

P2 Schedule of Revenue - AU-G, AU-P

Grower Class C 1

P2 Schedule of Revenue - AU-G, AU-P

Processor

P2 Schedule of Revenue - AU-R

Retail Establishment 1

P2 Schedule of Total Revenue

All

P3 Schedule of Disbursements

Grower Class C 1

P3 Schedule of Disbursements

Processor

P3 Schedule of Disbursements

Retail Establishment 1

P4 Schedule of Vendors

Grower Class C 1

P4 Schedule of Vendors

Processor

P4 Schedule of Vendors

Retail Establishment 1

P5 Schedule of Payroll Tax

All

P6 Schedule of Distributions

All

P7 Schedule of Licensing Agreements

All

P8 Schedule of Outsourced Services

All

P9 Schedule of Excise Tax

Retail Establishment 1

P10 Schedule of 1099 Independent Contractors

All

P11 Schedule of Sales Tax

Retail Establishment 1

The second AFS report should cover the reporting period for October 1, 2020 - September 30, 2021 and is due March 31, 2021.  The grower Class C 3 license (issued 10/09/2021) would not be included in the second AFS report because the license was not held during the reporting period.   The second AFS report should be compiled as follows:

Procedure Sheet

Licenses Covered

P1 Questionnaire

All

P2 Schedule of Revenue - AU-G, AU-P

Grower Class C 1

P2 Schedule of Revenue - AU-G, AU-P

Grower Class C 2

P2 Schedule of Revenue - AU-G, AU-P

Processor

P2 Schedule of Revenue - AU-R

Retail Establishment 1

P2 Schedule of Revenue - AU-R

Retail Establishment 2

P2 Schedule of Total Revenue

All

P3 Schedule of Disbursements

Grower Class C 1 & Grower Class C 2

P3 Schedule of Disbursements

Processor

P3 Schedule of Disbursements

Retail Establishment 1 & Retail Establishment 2

P4 Schedule of Vendors

Grower Class C 1 & Grower Class C 2

P4 Schedule of Vendors

Processor

P4 Schedule of Vendors

Retail Establishment 1 & Retail Establishment 2

P5 Schedule of Payroll Tax

All

P6 Schedule of Distributions

All

P7 Schedule of Licensing Agreements

All

P8 Schedule of Outsourced Services

All

P9 Schedule of Excise Tax

Retail Establishment 1 & Retail Establishment 2

P10 Schedule of 1099 Independent Contractors

All

P11 Schedule of Sales Tax

Retail Establishment 1 & Retail Establishment 2