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12/4/2017

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IRP Audits

Presented by:

Heidi Crawford (NE)

Drake Israel (IL)

IRP Audits

1. What is an IRP audit?

2. How are IRP audits counted?

3. Do records have to be maintained in a specific format?

4. Is advance notification of audit required; if so, how much?

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What is an IRP Audit?

The Plan defines “audit” as:“…the examination of a Registrant’s Records, including source documents, to verify the distances reported in the Registrant’s application for apportioned registration and evaluate the accuracy of the Registrant’s distance-accounting system for its Fleet. Such an examination may be of multiple Fleets for multiple years.”

If the first month of the 

Registration Year is:

The Reporting Period is:

January 2017 July 1, 2015 to June 30, 2016

February 2017 July 1, 2015 to June 30, 2016

March 2017 July 1, 2015 to June 30, 2016

April 2017 July 1, 2015 to June 30, 2016

June 2017 July 1, 2015 to June 30, 2016

July 2017 July 1, 2015 to June 30, 2016

August 2017 July 1, 2015 to June 30, 2016

September 2017 July 1, 2015 to June 30, 2016

October 2017 July 1, 2106 to June 30, 2017

November 2017 July 1, 2106 to June 30, 2017

December 2017 July 1, 2106 to June 30, 2017

Retention & Availability of Records (1000a)

Preserve records for the reporting periods

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Adequacy of Records (1005)

Accuracy

Substantiation

Sufficient detail

Adequacy of Records (1005)

1005(b) No specific format prescribed. Is the format accessible by the base jurisdiction?

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Contents of Records (1010a)

Adequate records will contain (manual):

1) Trip date (starting/ending)

2) Origin and destination

3) Route of travel

4) Beginning/ending odometer readings

5) Total distance

6) Distance per jurisdiction

7) Vehicle identification

Contents of Records (1010b)

Adequate records will contain (electronic):

Original GPS data

Date/time of each reading

Location of each reading

Beginning/ending odometer

Distance between readings

Route of travel

Total distance

Jurisdictional distance

Vehicle identification

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Contents of Records (1010c)

Summaries:Monthly – total & jurisdictional distance per vehicle

Quarterly – total & jurisdictional distance per fleet

Annually – a summary of the quarterly summaries

Did You Say Records?

Plan 1015 – Inadequate Records; Assessment

• Records Inadequate

• None retained

• None provided within 30 days of written request

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Inadequate Records; Assessment (1015)

1st offense 2nd offense

3rd or more

Inadequate Records; Assessment (1015)

How it works:

OH 1,000 .50000 $ 482.00

PA 500 .25000 325.00WV 500 .25000 298.00

$1,105.00

$ 96.40

65.00

59.60

$221.00

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Scope of Audits (1020)

Base conducts

audits on their registrants, but

they do so for all jurisdictions.

Frequency of Audits (1025)

Three percent (average) annually over 5 years

2017 audits required:

4,823

x .03

145

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Frequency of Audits (1025)

1 fleet x 1 registration year = 1 audit

Base Jurisdiction Audit Expenses (1035)

Where are the records?

Are they maintained outside the base?

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Reexaminations (1040 & 1045)

• 45 Days

• Base to notify all other jurisdictions

• Same sample

• Reasonable time & in cooperation w/base

• Expense borne by reexamining member

Netting Audit Adjustments (1050)

Base collects/refunds

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Audit Reports (1055)

a) Base provides to: RegistrantMember Jurisdictions

b) Narrative and billing

c) 30 and 45-day time periods begin

Audit Transmittals (1060)

Base transmits fees

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Audit Appeals (1065)

a) 30 days, minimum

Any appeals are

per the base

jurisdiction’s laws

b) Base to notify all

jurisdictions of

appeal results

Audit Procedures Manual (1075)

• Required to be maintained by the Repository

• Provisions binding

• Any changes by ballot

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IRP Audit Function

The Audit Procedures Manual (APM) establishes a uniform process for:

• The hiring/supervision of auditors

• Pre-audit notifications

• Processes

• Reports

• Reporting the findings

General Auditing Standards (APM 2)

201 – Proficiency &

Due Professional Care

203 – Planning & Supervision

202 – Study & Evaluation

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General Auditing Standards (APM 2)

204 - Independence

205 – Audit Program

206 – Working Paper Documentation

Qualifications/Responsibilities (APM 3)

301 – Qualifications

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Qualifications/Responsibilities (APM 3)

302 – Responsibilities:

a) Fair/equal treatment

b) Cooperation/good will

c) Continuing Education

Audit Communications (APM 4)

401 – Pre-Audit Contact

402 – Opening Conference

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Audit Communications (APM 4)

403 – Request for Records

Audit Communications (APM 4)

404 - Exit Conference

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Audit Procedures (APM 5)

Equipment List

Internal Controls?

Sampling / Projecting

Red Flag Audit Indicators

Rounding

Non-contiguous

Estimates as actual

Identical operations

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Records Reviews (APM 7)

• What is a records review?

• Procedures and guidelines

• Does a jurisdiction get to count these?

What is the difference between an audit and a records review??

• Focus on adequacy of internal controls and compliance of distance records

• Less that one full reporting period

• May be conducted before the first renewal

• No fee adjustments

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• What’s "The Plan”?

• Apportioned Vehicles, Forms and Credentials

• Application and Base Jurisdiction Requirements

• Introduction to Calculating IRP Fees

• Member Duties, Opportunities, and Responsibilities

• IRP Audits

IRP Education Certificate

IRP Inc.’s Certificate Program

Watching with a group? Add completion of the

“Verification of Attendance”

form to your list of

things to do.

http://www.irponline.org/?AttendanceForm

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Our contact info:Drake Israel Heidi Crawford Audit Manager Senior Auditor

Illinois Secretary of State Nebraska Dept of Motor Vehicles

Phone: (217) 785-1832 Phone 402-471-4099

disrael@ilsos.net heidi.crawford@nebraska.gov