RMCC'S COMPLIANCE FUNDAMENTALS

After assisting and working closely with many operators in various areas of the industry, we have seen all the best ways to approach the multifaceted task of staying compliant. The most successful operations started with a positive mindset. Operators who reached out to us as soon as they heard about the new track and trace system coming to their state and who were proactive instead of resistant usually had the most successful transitions into the regulatory framework.

They had the time and resources at their disposal, so they learned along the way - without having to learn from hard mistakes or deal with time-consuming data messes! They asked the right questions and had time to prepare for the upcoming changes. Having that extra support helped them feel more confident in their knowledge of the new system. Ensuring operation managers and team leaders are treating this transition with positivity is truly important, as they will lead the team by example. If your entire team feels ready for the traceability platform, it won’t seem like such a daunting task.

your compliance team and their skill sets and strengths also make a huge difference.

Having a team of problem solvers, and not problem makers, will set you up for long term success. You want compliance team members who have the emotional intelligence to deliver complex data clearly, handle feedback with tact, and listen effectively. You don’t want them seen as the “police” of your organization, you want them to be trusted guides as you navigate the ever-changing rules and regulations expected of you.

This team, and more importantly, your seed-to-sale administrator will need to create standard operating procedures (SOP’s) that will act as the “playbook” for your organization when it comes to entering and verifying data entry into your traceability platform. The follow-through of these SOP’s are crucial to the success of your operation, as they should be used to train new hires and re-educate existing employees on new or updated processes, to ensure everyone is operating on the same page. You must update these SOP’s to reflect your day-to-day procedures and protocols to always stay in compliance with state, local, and in the future, federal regulations.

we have seen many companies struggle to keep up to date with all the governing agencies they have to report to.

With the added inspections from the Department of Health, the Fire Department, Department of Labor, your state regulatory agencies, and of course tax auditors, you have more to keep track of than ever before! Plus, those records are required to be stored in easily accessible files for the next 5-7 years depending on what state you operate in. Making sure you have the labor bandwidth to keep up with all of these agencies and their regulations is imperative to staying on top of upcoming changes. Your compliance team will ensure that any new requirements are handled correctly and communicated to the team effectively. If new packaging and labeling requirements come down the pipeline, and your team isn’t made aware, you could be liable for replacing outdated labels sent to partners, or face fines if an inspector catches the mistake. This can be an even more serious infraction if an auditor finds data entry mistakes within your track and trace system, which could then turn into an investigation that involves suspending all license activities until the discrepancy is discovered and corrected.

so, what is the best course of action for keeping records accurate and staying up to date on upcoming regulatory changes?

It all comes down to consistent reconciliations, on not just your inventory, but your necessary records as well. Having a well-trained compliance team is the first step. A Forbes' article from 2018 noted five key reasons why investing in proper training and continuing education is so important to any industry but especially important in an industry with such a high turn over rate such as cannabis.

When completing your audits, you should have a weekly and monthly schedule that also looks at all areas of record retention including, but not limited to, waste logs, visitor logs, manifest, medical card information, reconciliation with adjustment log, promotions, tax collection and verifies all pertinent information is on the manifests. These logs should be reconciled to help prevent loss from employees and avoid unnecessary fines for missing signatures or times.

lastly, auditing the auditors is huge!

Having an Internal Inventory Auditor who can check that all of your compliance teams are adhering to the regulations and entering data correctly will create a checks-and-balance system that should eliminate any doubt about the integrity of your data. RMCC is always happy to act as your Third-Party Auditor, as well. Click the link below to see all of our available services!