Over the years, CREC Compliance and its principals have secured hundreds of operating cannabis licenses in all available verticals.
As these companies become operational they frequently face regulatory audits by local and state administrators. No doubt these companies frequently provide valuable tax revenues and so at some level the regulators have no interest in shutting them down.
However, these administrators are certainly not geared to find things right with operations, but rather things that are wrong. When this occurs it can place licenses at risk, operators at risk and also subject operations to substantial fines. Let’s take a moment to go over an example of how an Outsourced Chief Compliance Officer (CCO) would support your business operations.
Example of Regulatory Audit
Below is an example of a regulatory audit from the city of Santa Ana. As you can see, it’s comprehensive and touches on a number of issues outside a municipality’s typical jurisdiction (for example 280E compliance). There is often an extensive list of city requirements, systems & processes, financial information and tax compliance documentation to provide.
Audit Preparation Support
The key to a successful audit is advance preparation. This preparation allows companies to immediately respond to audit inquiries in an organized fashion. We find that when we quickly respond, with an organized response, regulators frequently quickly pass the audit and move on. It is when the response is delayed, unorganized, or haphazard that companies get into trouble.
When you have a CCO available, you will have a more immediate response, that will keep your business in good standing with the municipality.
An Outsourced CCO Will Organize, Document, and Respond to Audits
Our Compliance division has now deployed services intended to organize compliance, document compliance and if necessary quickly respond to audit inquiries.
We do this in two ways:
- We conduct an immediate review of your entire operations from a compliance standpoint and provide a written report summarizing our findings and providing recommendations, if needed;
- We then support your entire compliance needs, providing an entire team with years of experience to monitor and adjust compliance actions as the marketplace demands.
The key is third party certification that operations comply with regulatory requirements, which provides not just credibility in responding to audits, but also insulates management in the event there are allegations of wrongful conduct.
Outsourced Chief Compliance Officer Services
How Can We Help Support Your Operations?: