AUDIT REPORTS

12th Annual IFTA and IRP Audit Workshop

San Antonio, TX

February 2-4, 2010

PRESENTORS

Charmin Tillman (MS)

Gerald Jackson (WY)

Dan Young (MT)

ARE REPORTS GETTING TO BE A BURDEN?

RUNNING OUT OF GAS AND NEED SOME INSPIRATION?

WE WANT TO GIVE YOU SOME CONCRETE IDEAS!

Licensee/Registrant Audit Report

Licensee/Registrant Audit ReportWHAT IS TIPICALLY SENT TO AUDITEE?

Audit Narrative? IFTA IRPDocument Summary? IFTA IRPWorkpapers? IFTA IRPWho sends Interjurisdictional Audit Report

as Licensee/Registrant Audit Report?IFTA IRP

Licensee/Registrant Audit ReportHEADER INFORMATION REQUIRED

Name and address. IFTA IRPAccount number. IFTA IRPFleet number. N/A IRPAudit period. IFTA IRPSignature of auditor or reviewer and date.

IFTA IRP(Name only required for IRP)

Licensee/Registrant Audit Report DISTANCE EXAMINATION REQUIRED ITEMS

Types of records audited. IFTA IRPDescription of audit techniques employed.

IFTA IRPNet distance adjustment. IFTA N/AAudited and reported distance. N/A

IRP(Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

Licensee/Registrant Audit Report FUEL EXAMINATION REQUIRED ITEMS

Types of records audited. IFTA N/ADescription of audit techniques employed.

IFTA N/ANet tax paid fuel purchases adjustment.

IFTA N/ANet fuel tax adjustment per jurisdiction.

IFTA N/A(Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

Licensee/Registrant Audit Report MPG EXAMINATION REQUIRED ITEMS

MPG/KPL as reported.IFTA N/A

MPG/KPL as result of audit.IFTA N/A

Licensee/Registrant Audit Report FEE EXAMINATION REQUIRED ITEMS

Amount of percentage factor change.N/A IRP

Net fees due per jurisdiction.N/A IRP

(Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

Identify vehicles assessed full plate fees. N/A IRP

Licensee/Registrant Audit ReportCLOSING CONFERENCE AND

RECOMMENDATIONS

Remarks and recommendations.IFTA IRP

Interjurisdictional Audit Report

Interjurisdictional Audit ReportWHAT IS TIPICALLY TRANSMITTED?

Audit Narrative.IFTA IRP

Document Summary.IFTA IRP

Final Workpaper Summary.IFTA IRP

Interjurisdictional Audit ReportHEADER INFORMATION REQUIRED

Name of base jurisdiction.IFTA IRP

Name and address of licensee/registrant.IFTA

IRPFEIN or equivalent. IFTA IRP

Interjurisdictional Audit ReportHEADER INFORMATION REQUIRED cont.

Registration years audited.N/A IRP

Number of vehicles apportioned.N/A IRP

Date report was issued and auditor’s name.N/A IRP

Interjurisdictional Audit ReportDISTANCE EXAMINATION REQUIRED ITEMS

Reported distance, percentage and fees by jurisdiction. N/A IRP

Audited distance, percentage and fees by jurisdiction. N/A IRP(Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

Interjurisdictional Audit ReportDISTANCE EXAMINATION REQUIRED ITEMS

Brief narrative of audit procedures, findings, any additional information.

N/AIRP

Statement on adequacy/inadequacy of distance accounting.

N/A IRP

Interjurisdictional Audit ReportFUEL EXAMINATION REQUIRED ITEMS

Reported tax by jurisdiction.IFTA N/A

Audited tax by jurisdiction.IFTA N/A

(Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

Interjurisdictional Audit Report REQUIRED SUMMARY ITEMS

Penalty IFTA N/AInterest by jurisdiction IFTA N/ATotal by jurisdiction IFTA N/A

(IRP interest only for base jurisdiction and only net fees are communicated by jurisdiction by application year)

Additional Requirements

Documenting the following requirements in the Audit Reports may satisfy the Compliance/Peer Review teams.

Additional RequirementsTAXPAYER INFORMATION

Document previous audits of registrant. N/A IRP

Conduct review of applications under audit noting trends and drawing conclusions. Document in audit file.

N/A IRP

Additional RequirementsPRE-AUDIT CONTACT

AND OPENING CONFERENCE

All pre-audit contact was confirmed in writing. IFTA IRP

Document licensee/registrant was contacted in writing at least 30 days prior to audit.

IFTA IRPOpening conference documented.

IFTA IRP

Additional RequirementsSAMPLING METHODOLOGY

Licensee/registrant allowed input into sample selection if reason . IFTA IRP

Sampling and extrapolation procedures documented IFTA IRP

Sample was representative of operations.IFTA IRP

Sample must consist of at least three representative months. IFTA IRP

Additional RequirementsREVIEW OF INTERNAL CONTROLS

Review the licensee’s/registrant’s accounting system. IFTA IRP

Identify potential weaknesses in accounting system. N/A IRP

Document tests of internal controls. N/A IRP

Communicate and document weaknesses to registrant. N/A IRP

Additional RequirementsREVIEW OF INTERNAL CONTROLS cont.

Identify records used to support returns/applications IFTA IRP

Document any changes in accounting procedures or operations during audit period. IFTA IRP

Additional Requirements AUDIT DOCUMENTATION

Results of audit clearly communicated.IFTA IRP

Audit procedures documented and justified.IFTA IRP

Source of audit results documented.IFTA

IRPDocumentation clearly supports audit

findings. IFTA IRP

Additional Requirements AUDIT DOCUMENTATION cont.

List records maintained and presented by licensee (IRP) and state whether records comply with IFTA agreement.

IFTAIRP

Document if a BIA audit.IFTA

IRP

Additional Requirements DISTANCE EXAMINATION

Document any discrepancy between summary and application distance.

N/A IRPProvide statement on adequacy/inadequacy of

distance accounting system.IFTA IRP

Additional Requirements OPENING AND CLOSING CONFERENCE

Auditor conducted an opening conference with licensee/registrant. IFTAIRP

Auditor conducted an closing conference with licensee/registrant. IFTAIRP

Synopsis of opening and closing conference notes along with attendees. IFTAIRP