ATCP 100.12(4)(a)2. 2. Every note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.

ATCP 100.12 Note Note: “Affiliate” as defined in s. ATCP 100.01 (1) means a person who has significant control or influence. Significant control or influence is a phrase used under generally accepted accounting principals to describe a related party that has sufficient ownership interest to influence the operating and financial policies of an entity.

ATCP 100.12(4)(a)3. 3. Every note or account that has been receivable for more than one year, unless the milk contractor has established an offsetting reserve for uncollectible notes and accounts receivable.

ATCP 100.12(4)(b) (b) A financial statement shall include at least one of the following:

ATCP 100.12(4)(b)1. 1. An allowance for doubtful or uncollectible receivables. The notes to the financial statement shall describe the method used to account for doubtful or uncollectible receivables.

ATCP 100.12(4)(b)2. 2. A summary classifying the age of all notes and accounts receivable.

ATCP 100.12(5) (5) Debt to equity ratio; liability adjustments.

ATCP 100.12(5)(a) (a) Solely for the purpose of calculating a milk contractor’s fund assessment under s. 126.46, Stats., a milk contractor may adjust the milk contractor’s debt to equity ratio under s. 126.44 (8) (c) 2., Stats., by deducting, from liabilities reported in the milk contractor’s financial statement, an amount borrowed from a lending institution in order to hold aged cheese in inventory for the aging period required for that cheese under 21 CFR 133. A milk contractor may not make this adjustment unless all the following apply:

ATCP 100.12(5)(a)1. 1. The milk contractor holds the aged cheese in inventory on the date of the balance sheet.

ATCP 100.12(5)(a)2. 2. The lending institution holds a security interest in the aged cheese, to secure repayment of the amount borrowed.

ATCP 100.12(5)(a)3. 3. The amount of the liability deduction does not exceed the amount owed to the lending institution on the date of the balance sheet, or the value of the aged cheese on the date of the balance sheet, whichever is less.

ATCP 100.12(5)(a)4. 4. The liability deduction and offsetting cheese inventory asset are identified in the financial statement notes or as an attachment to the financial statement.

ATCP 100.12 Note Note: The liability adjustment under this section does not apply to the milk contractor’s debt to equity ratio when used for any purpose under ch. 126, Stats., other than the calculation of fund assessments under s. 126.46, Stats.

ATCP 100.12(5)(b) (b) If aged cheese inventory value as a percentage of total cheese inventory value is greater on the current annual balance sheet date than on the last preceding annual balance sheet date, the liability deduction under par. (a) may not exceed that prior year’s percentage multiplied by the total cheese inventory value on the current annual balance sheet date.

ATCP 100.12(6) (6) Attachments. If information required under this section is provided in an attachment to a reviewed or audited financial statement, the following requirements apply:

ATCP 100.12(6)(a) (a) The attachment shall be prepared on the letterhead of the certified public accountant who reviewed or audited the financial statement.

ATCP 100.12(6)(b) (b) The certified public accountant who reviewed or audited the financial statement shall certify, in the attachment, whether the certified public accountant has reviewed or audited the attachment.

ATCP 100.12 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

ATCP 100.13 ATCP 100.13 Fund assessment temporarily affected by merger or acquisition; partial refund.

ATCP 100.13(1) (1) Partial refund of assessment. The department may refund part of an annual fund assessment paid by a contributing milk contractor under s. ATCP 100.135 if all of the following apply:

ATCP 100.13(1)(a) (a) The milk contractor paid the full amount of the assessment, including any late payment penalties that apply under s. ATCP 100.135 (7) (e).

ATCP 100.13(1)(b) (b) The milk contractor is the surviving entity in a merger under s. 179.77, 180.1101, 183.1201 or 185.61, Stats., or has acquired property pursuant to a sale of assets under s. 180.1202, Stats.

ATCP 100.13(1)(c) (c) The assessment was based on the milk contractor’s financial statement for the fiscal year in which the merger or acquisition under par. (b) took effect.

ATCP 100.13(1)(d) (d) The milk contractor’s financial statement, for the fiscal year in which the merger or acquisition under par. (b) took effect, caused the sum of the milk contractor’s current ratio assessment rate under s. ATCP 100.135 (2) and debt to equity ratio assessment rate under s. ATCP 100.135 (4), to increase by at least 100% compared to the preceding license year.

ATCP 100.13(1)(e) (e) The milk contractor’s annual financial statements, for the fiscal years immediately preceding and immediately following the fiscal year in which the merger or acquisition under par. (b) took effect, show positive equity, a current ratio of at least 1.25 to 1.00 and a debt to equity ratio of no more than 3.0 to 1.0.

ATCP 100.13(1)(f) (f) In the license year immediately following the license year for which the milk contractor paid the assessment, the sum of the milk contractor’s current ratio assessment rate under s. ATCP 100.135 (2) and debt to equity assessment rate under s. ATCP 100.135 (2) declines by at least 50% compared to the license year for which the milk contractor paid the assessment.

ATCP 100.13(1)(g) (g) The milk contractor requests the refund in writing, by May 1 of the milk contractor’s next license year.

ATCP 100.13(2) (2) Refund amount. The amount of the refund under sub. (1) shall equal 75% of the difference between the assessment amount paid by the milk contractor and the assessment amount required of the milk contractor in the next license year.

ATCP 100.13(3) (3) Refund paid as credit against next year’s assessment.