ATCP 100.01(7) (7) “Procure producer milk in this state” has the meaning given in s. 126.40 (12), Stats.

ATCP 100.01(8) (8) “Producer agent” has the meaning given in s. 126.40 (13), Stats.

ATCP 100.01(9) (9) “Producer milk” has the meaning given in s. 126.40 (14), Stats. “Producer milk” includes producer-owned dairy products that a producer agent manufactures from raw producer milk.

ATCP 100.01(10) (10) “Reviewed financial statement” has the meaning given in s. 126.01 (20), Stats.

ATCP 100.01 History History: Cr. Register, February, 1991, No. 422, eff. 5-1-91; renum. from Ag 8.01 and am. (5), (9) (a) and (17), cr. (18m), Register, November, 1992, No. 443, eff. 12-1-92; cr. (18d) and (19m) r. and recr. (19) (c), am. (20) (b), Register, March, 1994, No. 459, eff. 4-1-94; CR 02-113: r. and recr. Register April 2003 No. 568, eff. 5-1-03; CR 05-068: renum. (1) to be (1m), cr. (1), (2m), (4g), (4m), (4p) and (4r) Register April 2006 No. 604, eff. 5-1-06; CR 07-073: r. (4g), am. (4r), cr. (5m) Register December 2008 No. 636, eff. 1-1-09.

subch. II of ch. ATCP 100 Subchapter II — Financial Standards and Security

Subch. II of ch. ATCP 100 Note Note: This subchapter is adopted under authority of ss. 93.07 (1), 126.49, 126.51 and 126.81, Stats., and interprets ch. 126, Stats. The Wisconsin department of agriculture, trade and consumer protection may enforce this subchapter under subch. VIII of ch. 126, Stats.

ATCP 100.10 ATCP 100.10 Financial standards and security; general. A milk contractor shall comply with applicable requirements under ch. 126, Stats.

ATCP 100.10 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

ATCP 100.12 ATCP 100.12 Financial statement.

ATCP 100.12(1) (1) General. A milk contractor’s financial statement, filed under s. 126.44, Stats., shall comply with this section and s. 126.44, Stats.

ATCP 100.12(2) (2) Liability disclosures. A financial statement shall include a detailed description of all notes, mortgages and other long-term liabilities not due or payable within one year. The description shall be included in the financial statement notes or as an attachment to the financial statement. The description shall indicate the nature of the liabilities, the due dates, and the payment terms.

ATCP 100.12(3) (3) Liability classification. A financial statement shall classify, as current liabilities, notes payable that do not have a specific due date.

ATCP 100.12(4) (4) Asset disclosures.

ATCP 100.12(4)(a) (a) A financial statement shall specifically identify and explain, either in the financial statement notes or as an attachment to the financial statement, the following assets:

ATCP 100.12(4)(a)1. 1. Every 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.

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.