presented by anthony madsen – washington diana kay – florida bob gattinella – rhode island...
Post on 17-Jan-2016
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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
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