Inspection and Audit Preparation
Inspections can happen any day, at any time, without warning.
Audits may be triggered by complaints, violations, inventory discrepancies, METRC issues, or random selection.
Your responsibility is to ensure the dispensary can pass an inspection even if OCM walks in at 10:02 a.m. on a Tuesday and the manager is out sick.
This page explains what inspectors look for and what must be ready before they arrive.
Types of Inspections and Audits
OCM conducts several types of inspections and audits.
Pre-Opening Inspection
Verifies that:
- Buildout matches approved plans
- Security systems are operational
- Layout matches the licensed premises diagram
- Inventory storage areas and vault are properly configured
- ADA access and egress requirements are met
- Opening SOPs are in place
Routine Compliance Inspection
Unannounced. Reviews:
- ID checks and age verification
- POS compliance
- Packaging and labeling
- Quarantine area controls
- Inventory accuracy
- Waste logs
- Staff training
- Security footage access
Targeted Inspection
Triggered by:
- Complaints
- Prior violations
- Suspicious METRC activity
- Adult-use enforcement requests
- Media or consumer complaints
Full Compliance Audit
A deeper review of:
- Business records
- METRC versus POS data
- Payroll compliance
- Security logs
- Ownership and financial disclosures
Joint Inspections
Conducted with other agencies, including fire, building, law enforcement, or labor authorities.
What Inspectors Look For (Initial Checklist)
Within the first few minutes, inspectors commonly review the following areas.
Sales Floor
- Active ID checks
- Product display compliance
- No minors, intoxicated customers, or unlawful sales
- Required educational materials available
Inventory
- METRC data matching physical counts
- Quarantine area clearly labeled and restricted
- No expired or damaged product on shelves
- Accurate packaging and labeling
Security
- Cameras functioning with required coverage
- Footage accessible immediately
- Alarms active
- Access control systems operational
Back of House
- Secure storage
- Cash handling logs
- Delivery logs and manifests
- Clear staff-only area boundaries
Documentation
Must be accessible immediately:
- License documents
- Certificate of Occupancy or Temporary Certificate
- Fire inspection approvals
- Waste logs
- Training logs
- Payroll records
- Incident reports
If retrieval takes more than a few minutes, OCM treats it as noncompliant.
What Must Be Immediately Accessible
Inspectors may request:
- Sales records (same-day and historical)
- METRC logs
- Delivery manifests
- Training records
- Security footage (last 24 hours and requested time windows)
- Employee roster
- Payroll and scheduling records
- Waste and destruction logs
- Recall documentation
- Ownership documentation (for audits)
Delays escalate inspections.
Staff Expectations During an Inspection
OCM expects staff to:
- Be cooperative and professional
- Never argue with inspectors
- Defer to a manager if unsure
- Never hide, alter, or delete records
- Follow internal access protocols
Staff must know:
- Where logs are stored
- Who retrieves footage
- Who handles METRC requests
- Who performs inventory counts
A trained supervisor must be on-site whenever the store is open.
Inventory Inspection Process
Inspectors will:
- Select random products
- Request physical pulls
- Compare items to METRC
- Compare items to POS
- Review quarantine storage
- Review waste logs
- Review recent destruction events
- Reconcile discrepancies
Mismatches escalate the inspection.
Security Inspection Process
Inspectors review:
- Camera placement and coverage
- Footage retrieval speed
- Alarm functionality
- Access control logs
- Restricted-area security
- Lighting supporting surveillance
Missing or inaccessible footage is a serious issue.
Delivery Inspection Process
Inspectors may request:
- Driver roster (W-2 employees only)
- Delivery logs
- Manifests
- Attempted delivery records
- ID verification documentation
- Vehicle assignments
Activity resembling third-party courier use is flagged.
Labor and Payroll Documentation
Labor laws apply. Inspectors may review:
- Employee files
- Timecards
- Scheduling records
- Payroll records
- Job classifications
- Termination documentation
- Wage notices
Schedule and payroll mismatches are violations.
Incident Reporting Requirements
Logs must exist for:
- Theft
- Disturbances
- Violent incidents
- Police involvement
- Customer complaints
- Product issues
- Security system failures
- Fire alarms or safety events
Documentation should be same-day.
Daily Inspection Readiness Checklist
Before opening each day:
- Test cameras and confirm coverage
- Review prior-night cash logs
- Confirm ID check procedures
- Verify POS limits
- Inspect quarantine area
- Confirm waste containment
- Verify staff assignments
- Review delivery logs
- Confirm METRC sync
- Update incident log
This is the baseline for inspection readiness.
Common Violations
Frequent failures include:
- Missing camera footage
- No on-site METRC access
- Staff unable to explain ID procedures
- Expired or damaged products on shelves
- Incomplete delivery documentation
- Missing incident logs
- Out-of-date waste logs
- Payroll and scheduling discrepancies
- Unlocked restricted areas
- POS and METRC mismatches
Why This Matters
Inspections are not procedural checklists.
Failures can lead to:
- Fines
- Corrective action plans
- Mandatory follow-ups
- Stop-sale orders
- License suspension or revocation
OCM uses inspections to determine whether a dispensary is safe, compliant, and operationally controlled.
If your store is not inspection-ready every day, it is not compliant.
Related Pages
Source Material
