Annual Financial Statement Requirements for Michigan Cannabis Businesses: Fiscal Year 2025 Update

The Cannabis Regulatory Agency (CRA) has released important information regarding Annual Financial Statement (AFS) requirements for medical facilities and adult-use establishments in Michigan for Fiscal Year 2025 (FY25). This update outlines key points that cannabis business owners and operators should know to ensure compliance with state regulations.

AFS Report Details

The AFS report for FY25 must cover all medical facility licenses and adult-use establishment licenses held by the licensee during the reporting period. Key aspects of the report include:

• An agreed-upon procedures engagement conducted by an independent Certified Public Accountant (CPA)
• The CPA must be licensed or authorized to practice in Michigan
• The report must be performed in accordance with statements on standards for attestation engagements
• Findings must be communicated using the official AFS report form provided by the CRA
• The report must be submitted as an Excel document

CPA Requirements and Submission Process

CPA Qualifications:

• The CPA and CPA firm must be actively licensed and registered in Peer Review before completing the AFS Report
• Licensees should verify CPA qualifications before engagement

Submission Process:

• The completed AFS report and AFS Contact Authorization Form must be submitted online through the Accela Citizens Access Portal (ACA)
• Reports should be submitted well in advance of the due date to allow time for corrections if needed
• Incomplete reports will be returned and may not be considered as filed by the due date

Important Dates and Notifications

Licensees can verify their next AFS due date online through ACA. The CRA will send email reminders from CRA-AFS@michigan.gov six months before the required AFS report is due. These notices will specify the following:

• The due date
• Reporting period
• Licenses to be included in the AFS report

Exemptions and Additional Information

Certain licenses are exempt from FY25 reporting requirements, including:

• Marijuana event organizer licenses
• Designated consumption establishment licenses
• Marijuana educational research licenses

For more information on AFS requirements, refer to MCL 333.27701 and Michigan Admin Code, R 420.20. Questions can be directed to CRA-AFS@michigan.gov or by calling 517-284-8599.

By staying informed and compliant with these AFS requirements, cannabis businesses in Michigan can ensure they meet their financial reporting obligations and maintain good standing with the Cannabis Regulatory Agency.

Assistance for Your AFS Reporting Needs

Yeo & Yeo is proud to meet all the requirements set by the CRA for performing AFS reports. Our firm possesses extensive industry knowledge and specialized expertise in CRA requirements, making us an ideal partner for your cannabis business’s financial reporting needs. If you have received a notice announcing your required AFS, we encourage you to contact us. Our experienced cannabis CPAs and advisors are ready to assist you in navigating the complexities of AFS reporting and ensuring full compliance with CRA regulations.