§ 54-18-14 — Annual audit of association

The books, records, accounts, inventories, stocks of merchandise, supplies, equipment, and
all affairs of the association must be audited and examined once in each year by the state
auditor. The audit must be made as soon as possible after June thirtieth in each year. Said audit
and the report thereof must disclose fairly and accurately the actual condition of the association
as of June thirtieth of that year. Profits and losses may be computed only on such contracts and
commitments, or parts thereof, as have been completed on said date, and no estimates of
forecasts may be made as to the probable loss or gain on transactions to be fulfilled after said
date. Inventories of grains, supplies, and stocks on hand must be computed on the basis of cost
or market, on a consistent basis, in accordance with generally accepted accounting principles.
The report may disclose the actual obligations and commitments of the association on existing
unfulfilled contracts, and the consideration and prices fixed in said contracts, if, in the judgment
of said state auditor, the same are necessary to a complete audit, but the report constitutes a
factual report of existing conditions, and, to the fullest extent possible, all estimates, forecasts,
and probabilities must be eliminated therefrom. Copies of such audit report upon completion
must be filed with the industrial commission, the manager of the association, with the state
auditor, and a consolidated balance sheet and operating statement must be made public.