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.
Example of Inspection Notice
Audit Preparation Support
The key to a successful audit is advance preparation, allowing licensees to immediately respond to audit inquiries in an organized fashion. We find that when we respond quickly and in an organized manner, regulators frequently quickly pass the audit and move on. It is when the response is delayed, unorganized, or haphazard that companies get into trouble.
CREC Compliance provides third-party regulatory compliance management to ensure licensees stay in good standing with the municipality and state.
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 implement a regulatory response plan to support your compliance needs, providing an entire team with years of experience to monitor and adjust compliance actions as the marketplace demands. License tracking and renewals, SOP updates, quarterly audits and remediation plans, certification statements of compliance and audit/inspection “panic-button” response plans are just a handful of the many ways a CREC CCO will help keep your business safe from regulatory threats to your operations.
Our CCO services work as a standalone for businesses without dedicated compliance resource, but also, as a supplemental support for businesses with compliance personnel.
The key is our third-party certification, that licensee operations are compliant with regulatory requirements, which provides not just credibility in responding to audits, it insulates management in the event there are allegations of wrongful conduct.
It All Starts with A Compliance Audit
CREC Compliance understands that every cannabis business has unique needs, and an initial audit of your licenses can show what vulnerabilities exist.
CCO Services enable licensed cannabis operators to focus on their operations with confidence that their business is safe from damages arising out of compliance violations.
Our team becomes your team, for businesses with or without existing compliance personnel.
How Can We Help Support Your Operations?: