presented by anthony madsen – washington diana kay – florida bob gattinella – rhode island...

Presented by

Anthony Madsen – WashingtonDiana Kay – Florida

Bob Gattinella – Rhode IslandStacey Hammock - Wyoming

Auditor 101_301

Can we hit our mark or do we need to go around the target

and back?

Definitions

What is IFTA -● Record keeping requirements?● Similarities to IRP?

What is IRP -● Record keeping requirements?● Similarities to IFTA?

Audit Proces

s

Pre-audit PlanningAudit NotificationOpening ConferenceEvaluation of Internal

ControlsEntering the data into

spreadsheets or databases and testing to mileage programs

Communication

We are more than just information gatherers.

It’s so important to communicate with the carriers throughout the audit process.

Good communication can make the audit easier on both the carrier and the auditor. A job well done has an impact on the big picture (Peer Reviews).

How can we deal with an angry carrier?

Determining ResultsChanges (if any)Inadequate assessment

Audit ReportAgreement A660 and IRP Audit Procedures

Manual Article 6, requirementsTip: Be clear and to the point

Exit Conference

Wrapping It Up

There are obstacles that can get in the way.

Which way do we go?

Website Resources

IRP website: http://www.irponline.org/default.aspIRP (The Plan): http://c.ymcdn.com/sites/www.irponline.org/resource/resmgr/publications/plan_effective_july2013_5.20.pdfIRP Audit Procedures Manual:http://c.ymcdn.com/sites/www.irponline.org/resource/resmgr/publications/apm_&_appendix_3_1_13.pdfIFTA website: http://www.iftach.org/index.phpIFTA (The Agreement):http://www.iftach.org/manuals/2013/AA/Articles%20of%20Agreement%20Complete%20Document%20-%20FINAL%20July%202013.pdf

Websites Continued

IFTA Audit Manual:http://www.iftach.org/manuals/2012/AM/Audit%20Manual%20January%202012%20FINAL.pdf IFTA Procedures Manual:http://www.iftach.org/manuals/2012/PM/Procedures%20Manual%20Complete%20January%202013.pdf FMCSA Safer System: http://safer.fmcsa.dot.gov/

Secretary of State websites

Google the carrier’s company

Let’s test your knowledge

Which of the following terms are correct?

A. IRP RegistrantB. IFTA CarrierC. IRP LicenseeD. IFTA Licensee

A & D

The Plan Article II“Registrant” means a person in whose name a properly registered vehicle is registered.

The Agreement R236“Licensee” means a person who holds an uncancelled Agreement license issued by the base jurisdiction.

Which of the IFTA governing documents details the Licensee’s specific recordkeeping requirements?

A. Articles of AgreementB. Procedures ManualC. Audit Manual

A. IFTA Articles of Agreement

It states in the Agreement R700:Every licensee shall maintain records to substantiate information reported on the tax returns. Operational records shall be maintained or be made available for audit in the base jurisdiction. Recordkeeping requirements shall be specified in the IFTA Procedures Manual (P540.200 Distance Records)

Which of the IRP governing

documents details the Registrant’s

specific recordkeeping requirements?

A. The PlanB. Audit Procedures ManualC. Best Practices Guide

A. The Plan

Article X; 1010 Contents of Records

● Beginning & ending dates ● Origin & destination ● Route of travel● Beginning & ending reading

from the odometer, hubodometer, engine control module (ECM), or any similar device for the trip

● Total distance● Distance traveled in each

jurisdiction● Vehicle ID number or unit

number

A. TrueB. False

Licensees may be required to keep supporting documentation for their returns for longer than the customary four years from the due

date of the return or the filing date whichever is later.

A. True

IFTA Procedures Manual P510.200Failure to provide records demanded for audit purposes extends the 4 year record retention requirement until the records are provided.

A. Route of TravelB. Unit number or vehicle ID numberC. Odometer or Hubodometer reading D. Total Distance

When a Licensee/Registrant maintains a single source document to record

distances traveled, which of the following may be waived by the base jurisdiction for

IFTA? For IRP?

IFTA Procedures Manual P540.200The base jurisdiction may waive route of travel; odometer readings. (however, an acceptable distance accounting system is necessary to substantiate the reported returns)

The Plan Article X 1005The records maintained shall be adequate to enable the base jurisdiction to verify the distances reported and to evaluate the accuracy of the accounting system. (There is no mention of waiver)

A & C. Route of Travel and Odometer or Hubodometer

reading

A. TrueB. False

A licensee does not need to keep a copy of the original fuel slip to obtain

credit for tax paid purchases.

The Agreement R1000.100To obtain credit for tax paid purchases, the licensee must retain a receipt, invoice, credit card receipt or automated vendor generated invoice or transaction listing, showing evidence of such purchases and taxes paid.

(See Procedures Manual “P560 – Tax Paid Retail Purchases” & “P570 – Tax Paid Bulk

Fuel Purchases” for the recordkeeping requirements.)

A. TRUE

What procedures can an auditor use if the licensee’s/registrant’s records

are lacking or inadequate to support what they have reported?

IFTA Audit Manual A550.100 Inadequate Licensee Records/Assessment; Fuel Use Estimation

Prior Experience of the Licensee Licensee with similar Operations Industry Average Records Available from Fuel Distributors Other Pertinent information the auditor may obtain or

examineIRP Article X 1015 Inadequate Records; Assessment

The base jurisdiction may impose on the Registrant an assessment in the amount of 20% of the apportionable fees paid by the Registrant for the registration of its fleet in the registration year to which the records pertain including apportionable fees based on estimated distance.

Can fuel receipts be helpful during an IRP audit?

A. YesB. No

A. Yes Fuel receipts can be helpful in determining routes of travel.

A. IncreaseB. DecreaseC. MPG will stay the sameD. None of the above

After auditing a test quarter you find that the only change is an increase

in mileage, what effect will this have on the MPG?

A. Increase

A. Discuss the differences with the licensee

B. Consider the nature of the differencesC. Accept what is recordedD. Both A and BE. Both A and CF. All of the above

While auditing IVDRs, the auditor finds the distance and fuel is different than the

distance and fuel recorded by the licensee, the auditor should:

Discuss the differences and consider the nature of the differences.

D. Both A and B

Who is provided an Audit Report?

A. All Affected JurisdictionsB. Reporting AgentC. Licensee/RegistrantD. All the aboveE. None of the above

D. All the above

IRP Audit Procedures Manual, Article 6, 601 Audit Report

IFTA Audit Manual, A660 Audit Report

With regard to fuel records that an IFTA licensee must retain, which of the following statements is false?

A. The licensee must maintain complete records of all motor fuel purchased, received and used in the conduct of its business.

B. Separate totals must be compiled for each motor fuel type.

C. Retail fuel purchases and bulk fuel purchases are to be accounted for separately.

D. None of the above

D. None of the aboveD. None

of the above

IFTA Procedures Manual P550

Name the 7 items that must be contained on an acceptable

receipt or invoice.

IFTA Procedures Manual P560.300

Date of PurchaseSellers Name and AddressNumber of gallons or liters purchasedFuel TypePrice Per Gallon, liter & total amount of

saleUnit numbersPurchaser’s Name

A. That the Applicant receives utility bills in that Jurisdiction in its name

B. That the Applicant has a vehicle titled in that Jurisdiction in its name

C. The Applicant has a driver’s license issued by that Jurisdiction

D. All of the above

For IRP, to establish residence in a member jurisdiction, an applicant must demonstrate to the satisfaction of the

member jurisdiction:

The Plan Article III, 305 Selection of Base Jurisdiction

They must provide/prove at least three of the 9 items listed

D. All of the above

A. TrueB. False

Bulk fuel delivered into storage facilities maintained by the licensee

may or may not be tax paid at the time of delivery?

IFTA Procedures Manual P570.100

Copies of all delivery tickets and/or receipts must be retained by the licensee showing whether tax was paid or not.

A. True

Let’s see if we can hit our target or have to

take an alternate

route