1. Presented by Anthony Madsen – Washington Diana Kay – Florida Bob Gattinella – Rhode Island Stacey Hammock - Wyoming Auditor 101_301

2. Can we hit our mark or do we need to go around the target and back?

3. Definitions What is IFTA - ● Record keeping requirements? ● Similarities to IRP? What is IRP - ● Record keeping requirements? ● Similarities to IFTA?

4. Audit Process Pre-audit Planning Audit Notification Opening Conference Evaluation of Internal Controls Entering the data into spreadsheets or databases and testing to mileage programs

5. 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?

6. Determining Results Changes (if any) Inadequate assessment Audit Report Agreement A660 and IRP Audit Procedures Manual Article 6, requirements Tip: Be clear and to the point Exit Conference Wrapping It Up

7. There are obstacles that can get in the way. Which way do we go?

8. Website Resources IRP website: http://www.irponline.org/default.asphttp://www.irponline.org/default.asp IRP (The Plan): http://c.ymcdn.com/sites/www.irponline.org/resource/res mgr/publications/plan_effective_july2013_5.20.pdf http://c.ymcdn.com/sites/www.irponline.org/resource/res mgr/publications/plan_effective_july2013_5.20.pdf IRP Audit Procedures Manual: http://c.ymcdn.com/sites/www.irponline.org/resource/res mgr/publications/apm_&_appendix_3_1_13.pdf IFTA website: http://www.iftach.org/index.phphttp://www.iftach.org/index.php IFTA (The Agreement): http://www.iftach.org/manuals/2013/AA/Articles%20of% 20Agreement%20Complete%20Document%20- %20FINAL%20July%202013.pdf

9. 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%20M anual%20Complete%20January%202013.pdf FMCSA Safer System: http://safer.fmcsa.dot.gov/http://safer.fmcsa.dot.gov/ Secretary of State websites Google the carrier’s company

10. Let’s test your knowledge

11. Which of the following terms are correct? A. IRP Registrant B. IFTA Carrier C. IRP Licensee D. IFTA Licensee

12. 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.

13. Which of the IFTA governing documents details the Licensee’s specific recordkeeping requirements? A. Articles of Agreement B. Procedures Manual C. Audit Manual

14. 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)

15. Which of the IRP governing documents details the Registrant’s specific recordkeeping requirements? A. The Plan B. Audit Procedures Manual C. Best Practices Guide

16. 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

17. A. True B. 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.

18. A. True IFTA Procedures Manual P510.200 Failure to provide records demanded for audit purposes extends the 4 year record retention requirement until the records are provided.

19. A. Route of Travel B. Unit number or vehicle ID number C. 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?

20. IFTA Procedures Manual P540.200 The 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 1005 The 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

21. A. True B. False A licensee does not need to keep a copy of the original fuel slip to obtain credit for tax paid purchases.

22. The Agreement R1000.100 To 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

23. What procedures can an auditor use if the licensee’s/registrant’s records are lacking or inadequate to support what they have reported?

24. 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 examine IRP 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.

25. Can fuel receipts be helpful during an IRP audit? A.Yes B.No

26. A. YesFuel receipts can be helpful in determining routes of travel.

27. A. Increase B. Decrease C. MPG will stay the same D. 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?

28. A. Increase

29. A. Discuss the differences with the licensee B. Consider the nature of the differences C. Accept what is recorded D. Both A and B E. Both A and C F. 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:

30. Discuss the differences and consider the nature of the differences. D. Both A and B

31. Who is provided an Audit Report? A. All Affected Jurisdictions B. Reporting Agent C. Licensee/Registrant D. All the above E. None of the above

32. D. All the above IRP Audit Procedures Manual, Article 6, 601 Audit Report IFTA Audit Manual, A660 Audit Report

33. 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

34. IFTA Procedures Manual P550

35. Name the 7 items that must be contained on an acceptable receipt or invoice.

36. IFTA Procedures Manual P560.300 Date of Purchase Sellers Name and Address Number of gallons or liters purchased Fuel Type Price Per Gallon, liter & total amount of sale Unit numbers Purchaser’s Name

37. 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:

38. 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

39. A.True B.False Bulk fuel delivered into storage facilities maintained by the licensee may or may not be tax paid at the time of delivery?

40. 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

41. Let’s see if we can hit our target or have to take an alternate route