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Internal Controls for Minnesota Cannabis Operators
Cash-intensive, high-value, tightly regulated. Controls are not optional in this industry.
Cannabis businesses combine every classic fraud risk factor: currency on hand, portable high-value product, rapid growth and thin administrative staffing.
We write practical control procedures, train the team on them and test them as part of the monthly close.
The controls that matter most
Small operators cannot achieve textbook segregation of duties, and pretending otherwise produces a binder nobody follows. We design compensating controls that a ten-person business can actually run.
- Dual-custody cash counts, sealed bags and vault access logging
- Approval limits for discounts, voids, refunds and inventory adjustments
- Owner review procedures that substitute for full segregation of duties
- Vendor setup and payment authorization controls
- Physical security coordination with regulatory requirements
- Periodic surprise counts and independent exception review
Testing, not just writing
A control that is never tested is a suggestion. We sample transactions each month, report exceptions to ownership and track remediation.
That record has value beyond fraud prevention — it is exactly what a lender, an insurer or an acquirer asks for during diligence.
When something goes wrong
If a loss occurs, we help quantify it, preserve documentation, and coordinate with counsel and insurers. We also fix the control gap that allowed it, which is the part operators most often skip.
Frequently asked questions
We only have a few employees. Is a control program realistic?
Yes, scaled appropriately. Owner-performed review controls, dual custody at the cash points and independent monthly reconciliation cover most of the risk in a small operation.
Do controls help with state compliance?
Substantially. Inventory adjustment approval and reconciliation procedures serve both the financial statements and your track-and-trace obligations.
How long does a control review take?
Typically three to four weeks: walkthroughs, documentation, a written recommendation set and a prioritized remediation plan.
Close the gaps before they cost you
A control assessment surfaces the handful of weaknesses that account for most of the exposure.