Copies of this proposed rule are available without cost upon request to: Pamela Haack, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.
Notice of Hearing
Accounting Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Accounting Examining Board in ss.
15.08 (5) (b),
227.11 (2) and
442.087 (3), Stats., and interpreting s.
442.087, Stats., the Accounting Examining Board will hold a public hearing at the time and place indicated below to consider an order to create ch.
Accy 9, relating to peer reviews.
Hearing Date, Time and Location
Date: October 18, 2002
Time: 10:00 a.m.
Location: 1400 East Washington Avenue
Room 180
Madison, Wisconsin
Appearances at the Hearing
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by November 15, 2002 to be included in the record of rule-making proceedings.
Analysis prepared by the Department of Regulation and Licensing
Statute interpreted: s.
442.087, Stats.
Chapter
Accy 9 is created to implement the requirements of s.
442.087, Stats., as created by
2001 Wis. Act 16. After January 1, 2005, the Department of Regulation and Licensing may not renew the license of a certified public accounting firm unless the firm undergoes a peer review at least once every 3 years. The peer review program is to be specified by administrative rules of the Accounting Examining Board (Board) and the person conducting the program is to be approved under rules of the Board. The person conducting the program may not be affiliated with the firm, or members of the firm, undergoing review.
These rules specify the peer review required for renewal of a firm's license and include requirements for the Board to approve one or more persons to conduct the peer reviews. The rules also require approved persons to periodically report to the Board on the effectiveness of the peer reviews conducted and to provide the examining board with a listing of all firms that have undergone peer review conducted by the person.
The rules define the terms “board approved review program," “engagement review," “peer review," “person," and “system review." The commonly used acronyms “SAS," “SSAE," and “SSARS" are also defined in the rule.
The rules require in s.
Accy 9.02 that a firm seeking license renewal shall include a description of at least one approved peer review of the firm that was undergone within 3 years preceding the renewal application. A CPA firm that does not perform attest services as s.
442.001 (1), Stats. is exempt from this requirement.
Board approved peer review programs must report to the Board by December 1 of each even-numbered year, identifying the firms that have undergone peer review within the preceding 36 months and evaluating the effectiveness of the peer reviews. The rule includes approval requirements for reviewers in s.
Accy 9.05. An applicant is licensed to practice as a CPA in this state and have undergone at least one peer review. An applicant must submit evidence that the program meets requirements for performing system reviews, engagement reviews and report reviews established under the “Standards for Performing and Reporting on Peer Reviews" issued by the American Institute of Certified Public Accountants. Paragraphs 25-71 of these standards are attached as an Appendix to the rule and are also available from the Internet at:
http://www.aicpa.org/members/div/practmon/stdstitledl.htm
Fiscal Estimate
1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.
2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.00.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s.
227.114 (1) (a), Stats.
Copies of Rule and Contact Person
Copies of this proposed rule are available without cost upon request to: Pamela Haack, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.
Notice of Hearings
Agriculture, Trade and Consumer Protection
[
CR 02-113]
Rule related to agricultural producer security.
The State of Wisconsin Department of Agriculture, Trade and Consumer Protection announces that it will hold public hearings on a proposed rule
relating to agricultural producer security. This rule implements Wisconsin's new agricultural producer security law, ch.
126 Stats. The department will hold three hearings at the time and places shown below. The department invites the public to attend the hearings and comment on the proposed rule. Following the public hearing, the hearing record will remain open until November 22, 2002 for additional written comments.
You may obtain a free copy of this rule by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Trade and Consumer Protection, 2811 Agriculture Drive, P.O. Box 8911, Madison WI 53708, or by calling (608) 224-4928. Copies will also be available at the hearings.
Hearing impaired persons may request an interpreter for these hearing. Please make reservations for a hearing interpreter by October 4, 2002, by writing to Kevin LeRoy, Division of Trade and Consumer Protection, P.O. Box 8911, Madison, WI 53708-8911, telephone (608) 224-4928. Alternatively, you may contact the Department TDD at (608) 224-5058. Handicap access is available at the hearings.
Hearing Date, Time and Location
Tuesday, October 15, 2002, 10:30 a.m. - 12:30 p.m.
Green Bay State Office Building
200 North Jefferson Street
Room152-A
Green Bay, WI 54301
Handicapped accessible
Thursday October 17, 2002, 10:30 a.m. - 12:30 p.m.
WDATCP Regional Office
3610 Oakwood Hills Parkway
Eau Claire, WI 54701-7754
Handicapped accessible
Tuesday October 22, 10:30 a.m. - 12:30 p.m.
Wisconsin Department of Agriculture, Trade and Consumer Protection
Board Room
2811 Agriculture Drive
Madison, WI 53718
Analysis prepared by the Department of Agriculture, Trade and Consumer Protection
This rule implements Wisconsin's new agricultural producer security law (ch.
126, Stats., created by
2001 Wis. Act 16). The new law is designed to protect agricultural producers against catastrophic financial defaults by grain dealers, grain warehouse keepers, milk contractors and vegetable contractors. The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) administers the new law. This rule amends and repeals current rules, and creates new rules consistent with the new law.
Chapter
126, Stats., regulates “contractors" including grain dealers, grain warehouse keepers, milk contractors and vegetable contractors. Contractors must be licensed by DATCP. In most cases, licensed contractors must contribute to Wisconsin's agricultural producer security fund (“fund"). In some cases, fund participation is voluntary. If a contributing contractor defaults on payments to producers, the fund may partially compensate those producers. Fund contributions are based, in part, on the contractor's financial condition.
Some contractors must file security in addition to, or in lieu of, fund contributions. If the contractor defaults, DATCP may use the security to pay a portion of the producer claims. Security requirements are based on the contractor's financial condition and practices. Contractors who are disqualified from the fund, based on financial condition, must file security with DATCP.
Grain Dealers
General. This rule requires grain dealers to comply with the new law, ch.
126, Stats. This rule supplements the new law, and amends or repeals rules that no longer apply.
Financial Statements; Disclosures. Under ch.
126, Stats., a grain dealer must file annual financial statements with DATCP if the grain dealer does any of the following:
•Annually pays more than $500,000 for producer grain procured in this state.
• Procures any producer grain in this state under deferred payment contracts.
Grain dealers who are not required to file financial statements with DATCP may choose to file voluntarily. For example, grain dealers with favorable financial ratios may file voluntary financial statements to qualify for lower fund assessments. A grain dealer's financial ratios, including the grain dealer's debt to equity ratio, may affect the following:
• The grain dealer's eligibility to participate in the fund.
•The amount that the grain dealer must contribute to the fund.
•Whether or not the grain dealer must file security with DATCP.
Under this rule, a grain dealer's financial statement must disclose and describe all of the following:
•All notes, mortgages or other long-term liabilities that are not due or payable within one year.
•Any of the following items that are counted as assets in the financial statement:
•Any non-trade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.
•Any note or account receivable from a parent organization, a subsidiary, or an affiliate other than an employee.
•Any note or account that has been receivable for more than one year, unless the grain dealer has established an offsetting reserve for uncollectable notes and accounts receivable.
Debt to Equity Ratio; Liability Adjustments. This rule allows grain dealers to make certain liability adjustments when calculating their debt to equity ratio for purposes of ch.
126, Stats. Grain dealers may deduct the following amounts when calculating their liabilities for this purpose:
•Amounts borrowed from a lending institution and deposited with a commodities broker to hedge grain transactions.
•Amounts borrowed from a lending institution to buy grain that has been shipped, if the grain dealer maintains a collectible account receivable on the balance sheet.
•Amounts borrowed from a lending institution to buy grain that is held in inventory and shown as inventory on the balance sheet date.
•Amounts borrowed from a lending institution to buy grain that is held in inventory, if the grain dealer has entered into a contract to sell the grain.
•Amounts borrowed from a lending institution to pay for fertilizer, pesticides, herbicides or seed that the grain dealer holds in inventory on the balance sheet date.
Financial Statement Attachments. Some of the financial disclosures required by ch.
126, Stats., and this rule may be made in notes or attachments to the financial statement. Under this rule, an attachment to a reviewed or audited financial statement must satisfy the following requirements:
• The attachment must be on the letterhead of the certified public accountant who reviewed or audited the financial statement.
•The certified public accountant who reviewed or audited the financial statement must certify, in the attachment, whether the attachment is reviewed or audited.
Security Disclosures to Producers. This rule requires grain dealers to make security disclosures to grain producers, so that producers understand the extent to which grain payments are secured by the agricultural producer security program. This rule specifies the form in which grain dealers must make the disclosures. A grain dealer must make the disclosures to a producer at all the following times:
•When the grain dealer first procures grain from the producer.
•The first time the grain dealer procures grain from the producer in each new license year.
•The first time the grain dealer procures grain from the producer after any change in circumstances that requires a different disclosure (for example, after a grain dealer begins contributing to the fund).
Grain Warehouse Keepers
General. This rule requires grain warehouse keepers to comply with the new law, ch.
126, Stats. This rule supplements the new law, and amends or repeals rules that no longer apply.
Grain Warehouse Licensing. Under ch.
126, Stats., grain warehouse license and fee requirements are based on the grain warehouse capacity. This rule spells out a standard method for calculating grain warehouse capacity, based on the volume of the grain warehouse and a grain “pack factor" specified in this rule.
Under this rule, an applicant for a grain warehouse license must submit a sworn and notarized statement certifying that the information provided in the license application is complete and accurate.
