251.370 Licensees using paper documents or electronic documents -- Business records required -- Retention schedule -- Accounting functions -- Financial statements -- Administrative regulations. (1) A licensee using paper scale tickets, settlement sheets, or purchase contracts shall comply with the following requirements: (a) Documents shall be pre-numbered sequentially; and (b) Settlement sheet information shall be cross-referenced with scale tickets. (2) A licensee using electronic scale tickets, settlement sheets, purchase contracts, or other documents shall conform to the formats and procedures required by the department. (3) A licensee shall provide, and make available to the department or the board, a complete and accurate set of business records, including: (a) Records of all transactions, including records and accounts of all grains received and withdrawn or delivered; (b) Records, filed in numerical order, of all scale tickets, warehouse receipts, and settlement sheets that have been issued, voiced, or lost; and (c) Copies of contracts for the sale or storage of grain. (4) A licensee shall retain its business records for a minimum of four (4) years. (5) A licensed grain warehouse operator shall retain copies, either digitally or on paper, of warehouse receipts or other documents evidencing ownership of any grain, or any liability of the grain warehouse operator, so long as such documents evidence a valid ownership interest or debt. A licensee shall retain copies of such documents for a period of not less than four (4) years from the date when the ownership interest or debt was extinguished. (6) A licensee’s accounting functions shall be performed in conformity with generally accepted accounting principles. (7) A licensee’s business records shall accurately identify any liens or encumbrances on grain that is held or owned by the licensee. (8) A licensee shall provide to the department at least once annually, and upon request, an audited financial statement that is certified by the licensee, its owner, or other officer to be an accurate reflection of the licensee’s financial condition, except when exempted by KRS 251.440(5). (9) The board, in conjunction with the department, shall have authority to promulgate administrative regulations setting forth additional recordkeeping requirements for licensees. Effective: August 1, 2019 History: Created 2019 Ky. Acts ch. 88, sec. 10, effective August 1, 2019.