Grain Warehouse Audit


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What the Program Does For You

Warehouse Audit, a program within the Commodity Inspection Division of the Washington State Department of Agriculture, licenses and regulates public grain storage warehouse operators and grain dealers for the protection of producers and depositors. Warehouse operators and grain dealers are required to be licensed and bonded. Routine audits are performed to determine if licensees are in compliance with state laws.

The Compliance examination (audit) process consists of:

  • Determining the amounts of outstanding storage obligations;
  • Determining the dollar amounts owed to depositors;
  • Determining that commodities in storage are fully insured for losses caused by fire and wind;
  • Determining that commodities are stored properly to maintain their quality; and
  • To determine by a physical inventory that there is a sufficient amount of a commodity to cover the outstanding storage obligations for that commodity.

A minimum of one (1) compliance examination is performed during the license period. The license period begins each July 1st and expires on June 30th.

The program investigates all written complaints of violations and filed claims to determine their validity and the dollar amounts of those claims.

 

Definitions

WAREHOUSE: Any elevator, mill, sub-terminal warehouse, terminal warehouse, country warehouse, or other structure in which commodities are received from the public for storage, handling, conditioning, or shipment for compensation.

GRAIN DEALER: Any person whose place of business is located in Washington State who solicits, contracts for, or obtains from a producer; title, possession, or control of a commodity for purposes of resale; or any person who solicits, contracts for or obtains from a Washington producer; title, possession, or control of a commodity for purposes of resale.

DEPOSITOR: Any person who deposits a commodity with a Washington State license for storage, handling, or conditioning, or any person who is the owner or legal holder of a warehouse receipt or other evidence of deposit, or a producer whose commodity has been sold to a grain dealer whose place of business is located in Washington State or a Washington producer whose commodity is sold to a grain dealer who is located outside Washington State.

PRODUCER: Any person who is the owner, tenant, or operator of land and is entitled to receive proceeds from the sale of the commodity produced on that land.