Ballot 371 IRP Audit Rewrite A Change is Coming!.

Ballot 371Ballot 371IRP Audit IRP Audit RewriteRewrite

A Change is Coming!A Change is Coming!

Ballot 371Ballot 371

•Drake Israel, IllinoisDrake Israel, Illinois

•Renée Kyser, AlabamaRenée Kyser, Alabama

Ballot 371 HistoryBallot 371 History

Why was this ballot Why was this ballot needed?needed?

– Response to issues Response to issues raised by the raised by the Jefferson Wells studyJefferson Wells study

– Update language for Update language for the use of new the use of new technology technology

Ballot 371 HistoryBallot 371 HistoryJefferson Wells study issues:Jefferson Wells study issues:

– Lack of audit uniformityLack of audit uniformity

– Lack of language clarityLack of language clarity

– Lack of Registrant complianceLack of Registrant compliance

– Audit activity not improving Audit activity not improving Registrant complianceRegistrant compliance

– 3% Audit quota impact not clear3% Audit quota impact not clear

Ballot 371 HistoryBallot 371 History

New technology issues:New technology issues:

– Current language has not kept Current language has not kept pace with new technologypace with new technology

– Current language did not allow Current language did not allow for future advancements for future advancements through rigid check list through rigid check list requirementsrequirements

– Many Registrants are using or Many Registrants are using or moving to advanced technology moving to advanced technology systemssystems

Ballot 371 ConceptBallot 371 Concept

Move from rules based auditing to Move from rules based auditing to principal based auditing.principal based auditing.

– Auditing for the purposes of the Auditing for the purposes of the Plan.Plan.

– Appropriate and SufficientAppropriate and Sufficient

– Adequate or Inadequate ratingAdequate or Inadequate rating


Auditing for the purposes of the PlanAuditing for the purposes of the Plan

– Verify reported distancesVerify reported distances

– Evaluate the Registrant’sEvaluate the Registrant’s

distance accounting system distance accounting system


Appropriateness and SufficiencyAppropriateness and Sufficiency

– Appropriateness: the measure of the Appropriateness: the measure of the quality of the audit evidence.quality of the audit evidence.

– Sufficiency: the measure of the Sufficiency: the measure of the quantity of the audit evidencequantity of the audit evidence

– If the audit evidence is appropriate If the audit evidence is appropriate and sufficient the Registrant will and sufficient the Registrant will receive an Adequate ratingreceive an Adequate rating

Ballot 371 ChangesBallot 371 Changes

Adequate vs InadequateAdequate vs Inadequate

Registrant’s compliance is determined Registrant’s compliance is determined by an examination of their source by an examination of their source documents and distance reporting documents and distance reporting system. system.

Based on whether the above are found Based on whether the above are found to be appropriate and sufficient the to be appropriate and sufficient the Registrant will be rated as Adequate or Registrant will be rated as Adequate or Inadequate. The audit then proceeds Inadequate. The audit then proceeds based on the rating.based on the rating.



If a Registrant receives an If a Registrant receives an Adequate rating and Adequate rating and adjustments are made the adjustments are made the result will be that any result will be that any negative or positive negative or positive jurisdictional fee changes will jurisdictional fee changes will be netted.be netted.



Inadequate ratings will result in a fee Inadequate ratings will result in a fee assessment based on the application assessment based on the application for registration under audit for for registration under audit for allall affected jurisdictions as follows:affected jurisdictions as follows:

– 11stst audit engagement 20% audit engagement 20%– 22ndnd audit engagement 50% audit engagement 50%– 33rdrd audit engagement 100% audit engagement 100%

Ballot 371 Changes


Gone but not ForgottenGone but not Forgotten

– 100% Base fee assessment 100% Base fee assessment will no longer be an option for will no longer be an option for Inadequate records.Inadequate records.

– Denial of the netting of credits Denial of the netting of credits will no longer be an option for will no longer be an option for Inadequate records.Inadequate records.


New language in regard to record New language in regard to record keeping requirementskeeping requirements

– Waiver system removed for odometers Waiver system removed for odometers and routes of travel.and routes of travel.

– Guidance provided for electronic Guidance provided for electronic tracking systemstracking systems

– Record keeping requirements moved Record keeping requirements moved from the APM to the Planfrom the APM to the Plan


New requirements for New requirements for Interjurisdictional Audit Reports Interjurisdictional Audit Reports (IAR’s)(IAR’s)

– Provide clear picture of audit Provide clear picture of audit process.process.

– Gain uniformity in information Gain uniformity in information contained in IAR’scontained in IAR’s

– Possible uniformity with IFTA Possible uniformity with IFTA IAR’sIAR’s


New to the Plan: Records ReviewNew to the Plan: Records Review

– Records Reviews have been Records Reviews have been added to the Plan as a new way to added to the Plan as a new way to improve compliance improve compliance andand attain attain quota.quota.

– Three Records Reviews equal one Three Records Reviews equal one audit. Records Reviews can audit. Records Reviews can satisfy no more than 25% of the satisfy no more than 25% of the audit count for quota. audit count for quota.

Ballot 371 ChangesBallot 371 ChangesRecords Review FAQ’sRecords Review FAQ’s

– Can be conducted on any accountCan be conducted on any account

– Does not result in adjustment to feesDoes not result in adjustment to fees

– Adequacy of records and system is Adequacy of records and system is determined and documenteddetermined and documented

– Records Review report required. Must Records Review report required. Must be archived for Peer Review. Required be archived for Peer Review. Required contents of report found in Audit contents of report found in Audit Procedures Manual Article 7Procedures Manual Article 7


Records Review quota calculationRecords Review quota calculation

– A Jurisdiction’s audit quota equals 100A Jurisdiction’s audit quota equals 100

– 75 Records Reviews equals 25 audits75 Records Reviews equals 25 audits

– A jurisdiction can conduct more than 75 A jurisdiction can conduct more than 75 Records Reviews but only receives credit Records Reviews but only receives credit toward quota for 25 audits.toward quota for 25 audits.

Did Somebody say Peer Review?Did Somebody say Peer Review?

How will the How will the change be change be handled from a handled from a review review perspective?perspective?

July 1, 2013 is July 1, 2013 is the magic number!the magic number!


Old vs. NewOld vs. New

When will reviews When will reviews include audits include audits

conducted under the conducted under the new language?new language?


Must vs. ShouldMust vs. Should

Must – used to specify an Must – used to specify an unconditional requirementunconditional requirement

Should – conformance is Should – conformance is expected unless, when expected unless, when applying professional applying professional judgment, circumstances judgment, circumstances justify deviation.justify deviation.


Conducted vs. CompletedConducted vs. Completed

The PRC looks at The PRC looks at the completionthe completion

date when date when counting/reviewing counting/reviewing audits.audits.

Ballot 371 Moving ForwardBallot 371 Moving Forward

Knowledge and PreparationKnowledge and Preparation

– Changes are effective Changes are effective July 1, 2013July 1, 2013!!

– What do I do to prepare my What do I do to prepare my organization?organization?

– Can I get training for my organization?Can I get training for my organization?

– Can I get deliverables for my Can I get deliverables for my

organization?organization?

Contacts - CAWGContacts - CAWGChair:Chair: Jeff Hood, IndianaJeff Hood, Indiana

Phone: Phone: 317-690-5923317-690-5923

Email: Email: [email protected]

Region I:Region I: Bob Weber, CTBob Weber, CT

Region II:Region II: Bobby Johnson, TXBobby Johnson, TX

David Nicholson, OK David Nicholson, OK

Renée Kyser, ALRenée Kyser, AL

Region III:Region III: Drake Israel, ILDrake Israel, IL

Region IV:Region IV: Jerri Hunter, IDJerri Hunter, ID

Industry:Industry: Lanny Gower, Con-way FreightLanny Gower, Con-way Freight

Connie Owen, J.J. Keller & Associates, Inc.Connie Owen, J.J. Keller & Associates, Inc.

Robert Pitcher, American Trucking Assoc.Robert Pitcher, American Trucking Assoc.

IRP Liaison:IRP Liaison: Tim Adams, CEOTim Adams, CEO

mailto:[email protected]

Contacts - ACContacts - AC

Chair:Chair: Drake Israel, Illinois Drake Israel, Illinois

Phone: Phone: 217-785-1832217-785-1832


Vice:Vice: Anthony Madsen, IdahoAnthony Madsen, Idaho

Phone: Phone: 208-769-1500 208-769-1500

Email:Email: [email protected]

For complete roster, see the IRP websiteFor complete roster, see the IRP website



Contacts - PRCContacts - PRCChair:Chair: Chris Barry, Massachusetts Chris Barry, Massachusetts

Phone: Phone: 617-351-9897617-351-9897


Vice:Vice: Betsy McCabe, NevadaBetsy McCabe, Nevada

Phone: Phone: 702-486-5571 702-486-5571


Past:Past: Renée Kyser, AlabamaRenée Kyser, Alabama

Phone: Phone: 334-493-0053 334-493-0053


For complete roster, see the IRP websiteFor complete roster, see the IRP website




Ballot 371

Ballot 371 IRP Audit Rewrite A Change is Coming!.

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