Post on 16-Jan-2016
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