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PUC approves $5,000 penalty and settlement with Schooler Company after financial reporting lapse
Summary
The South Dakota Public Utilities Commission approved a settlement with Schooler Company and assessed a $5,000 civil penalty after staff found Schooler’s audited statements briefly showed current assets below current liabilities and the company failed to immediately notify the commission; Schooler said it remedied the deficiency by converting short‑term to long‑term debt and cooperated with staff.
The South Dakota Public Utilities Commission approved a settlement with Schooler Company and assessed a $5,000 civil penalty after staff found the company’s audited financial statements showed a period where current assets were below current liabilities and the company did not promptly notify the commission as required under state law.
Logan Shapar of PUC staff said auditors’ review revealed the financial shortfall and that Schooler had not provided immediate notification as required by state grain‑warehouse rules. "When we became aware of this, we immediately began talks with Schooler to figure out what happened and rectify the situation," Shapar said. Staff said Schooler has been cooperative and subsequent financial information shows the company’s financial position had been rectified; staff asked the commission to approve the settlement agreement in resolution of the matter.
Alan Williams Blackwell, representing Schooler Company, said the company does not oppose the $5,000 fine. Nick Ketchum, Schooler’s corporate controller, described how the company corrected the ratio: "we were able to rectify the deficiency by fixing short‑term debt into long‑term debt." Staff and the commission said they have no ongoing concerns about the company’s financial viability and that no producer complaints had been filed with staff.
Commissioner Nelson moved to approve the settlement and assess the $5,000 civil penalty; the motion carried unanimously (Commissioner Hansen: I; Commissioner Nelson: I; Vice Chairperson Fegan: I).
Why it matters: Grain‑warehouse license regulations require prompt reporting of material changes in a licensee’s financial condition. Staff concluded Schooler remedied the deficiency and cooperated with investigators, and the commission approved a settlement and penalty in lieu of further enforcement.
