Examinations
Examinations are done to insure the producers of Kansas that their commodities are being stored in safe and solvent warehouses. Any entity that stores grain for the public is required to be licensed, either by the state or the federal government. One advantage that the state license offers is that the state mandates that each licensee be examined once every year (between July 1 and June 30). During the examination, a list of all open store customers and their stored bushels is printed. This figure is matched up with the elevator’s position report. The position report gives a breakdown of all commodities in possession of the warehouseman by commodity. This report will also give the amount of grain owned by the warehouseman (company owned). Once the reports are obtained, the examiner begins measuring the facility. This consists of measuring the air in each and every tank, bin, or building. If a tank has a 22 foot diameter and is 60 feet tall, and we measure 5 feet of air, we know that there is 55 feet of grain. This information is inputted into our laptops, which factors the commodity, tank size, and test weight to determine the number of bushels in that tank. Once the measuring is done, a comparison is made to the warehouseman’s book stock from his position report. If the warehouseman’s book stock exceeds the measured inventory by more than 500 bushels and 1%, the warehouseman is required to write down his company owned grain until the stocks are in balance. If the warehouseman does not have sufficient company owned grain, he is required to purchase sufficient stocks to come into balance. During the examination, several items are checked at the facility. Along with open storage, the warehouse receipts, terminal storage, and unpaid grain are all balanced. Deferred price and payment contract are reviewed to verify that their format is in compliance with Kansas Law. Scale tickets are randomly selected and tested to make sure that no irregularities are discovered in their processing. Facilities are evaluated for safety and cleanliness. Stock insurance policies are reviewed. Grain quality is evaluated. If problems are discovered, they are brought to the attention of the warehouseman for correction. Between the warehouseman, the examiner, and the office, a plan is developed to correct any problems that arise. In some cases, more frequent examinations are necessary to insure that the warehouse come into and remains in compliance. Examinations may be classified as:
• Subsequent – this is the yearly examination required by law. 85% of the program’s time is being used to complete this task.
• Special – this is an examination done at the request of the warehouseman. This may be for a year end audit, a change in management, etc. These are always at the expense of the licensee.
• Original – this is used when a new facility comes on board or a licensee builds a new tank or building. Measurements are taken while the tank or building is empty to ensure accurate numbers are gathered and the correct amount of bushels is reported during an examination.
• Accelerated – this is the type of examination done when compliance has not yet been achieved. These may be done at the expense of the licensee.
Currently, there are six grain examiner, one supervisor, and one program manager:
• Tim Tyson, Program Manager 785-862-2415
• Bob Casper, Supervisor 785-296-3786
• Jeff Gray, Examiner Goodland
• Steve Carter, Examiner Hoxie
• Jim Zenger, Senior Examiner Clyde
• Scott Marshall, Examiner Topeka
• Steve Matheny, Examiner Dodge City
• Paul Heady, Examiner Oswego