Section 281.40  Required Records

a)         Daily Position Record

1)         A daily position record shall be maintained on a daily basis for each commodity.  Postings for each day shall reflect actual changes in inventory for that business day.  The daily position record shall provide for a separate accounting for the following:

A)        Summary stock record showing total bushel amount of grain received, grain loaded out of the warehouse, adjustments, total grain inventory in the warehouse, redeposited grain and total of the grain inventory in the warehouse plus redeposited grain.

B)        Negotiable warehouse receipts obligations, total bushels of receipts issued and total bushels of receipts cancelled.

C)        Non-negotiable warehouse receipts obligations, total bushels of receipts issued and total bushels of receipts cancelled.

D)        Non-receipted storage obligations including total bushel increases and total bushel decreases.

E)         Non-receipted company owned grain.

F)         Inventory bushel adjustments to the daily position record as set forth in subsection (a)(2) below.

2)         Warehousemen may make adjustments to their inventory as long as documentation is available to substantiate the following types of adjustments:

A)        Adjustments to shrink calculations;

B)        Adjustments for error correction;

C)        Adjustments based upon Certified Public Accountant inventories;

D)        Adjustments based upon weighed inventories.

3)         Licensees must maintain a master daily position record combining all locations, inventory and storage obligations in the case of multiple locations.

4)         Actual grain inventories must at all times be in balance with the summary stock quantity as indicated in the daily position record.

b)         Long/Short Position Record

            Each grain dealer shall maintain a master long/short risk position record combining all marketing activity of all locations each business day.  The risk position record shall at a minimum contain the net position, grain owned, grain sold and shipped on price later contracts which have not been priced, open cash purchase contracts including purchase contracts issued and purchase contracts cancelled, all futures purchased or sold, grain in transit not sold, grain owned and stored in other grain warehouses, grain purchased and received on price later contracts which have not been priced, open cash sales contracts including sales contracts issued and sales contracts cancelled, and any options purchased or sold.  The position record shall also contain a comments section.  The grain dealer shall note in the comments section any actions taken to regain a balanced position as required in Section 10-10 of the Code.  Such comments shall at a minimum indicate bushel amounts, name of buyer/seller/broker and approximate times of transactions.

c)         Scale Tickets

1)         Scale tickets shall be pre-numbered by an independent printer or in the case of computer generated scale tickets, numbered consecutively by the computer record-keeping system.

2)         Scale tickets shall be issued in numerical sequence and a copy shall be filed numerically.  All scale tickets must be accounted for.  A separate series of scale tickets shall be used for each location that has scales under the licensee's control over which grain is received.

d)         Cross Reference

            All accounts and records relating to grain operations are to be properly cross-referenced.  An adequate system of cross-reference shall exist beginning at the time of delivery, clearly indicating the current status of the grain and changes in that status, and indicating the final disposition of the grain.

e)         Settlement and/or Receiving Sheets

            Settlement and/or receiving sheets shall either be pre-numbered by an independent printer or in the case of computer generated sheets, numbered consecutively by the computer record-keeping system.  The licensee shall use settlement and/or receiving sheets in numerical sequence and account for all settlement and/or receiving sheets. Settlement and/or receiving sheets shall contain evidence of the method of settlement, such as check number, warehouse receipt number, or other evidence of settlement.  Settlement and/or receiving sheets, both open and closed, shall be filed in a manner to be readily available for examination purposes, such as alphabetical or numerical.  Where price later contracts are used, the settlement/receiving sheets shall clearly indicate the price later contract numbers against which grain is to be applied.

f)          Safeguarding and Retention of Records

            The licensee shall provide a secure place at each licensed location and at the principal office for storage of all records pertaining to the operation of the licensee.  Such records shall be kept current and made available for inspection by Department personnel at the principal office of the licensee and at each licensed location.  Such records shall be retained by the licensee for a period of not less than two years from the closing date of any transaction.