Audit Reports
9th Annual IFTA and IRP Audit Workshop
Tempe, AZ
January 4-7, 2007
PRESENTORS
Leroy Johnson (SC)
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 Report
WHAT IS TIPICALLY SENT TO AUDITEE?
Audit Narrative?
IFTA
IRP
Document Summary?
IFTA
IRP
Workpapers?
IFTA
IRP
Who sends Interjurisdictional Audit Report
as Licensee/Registrant Audit Report?
IFTA
IRP
Licensee/Registrant Audit Report
HEADER INFORMATION REQUIRED
Name and address.
IFTA
IRP
Account number.
IFTA
IRP
Fleet number.
N/A
IRP
Audit period.
IFTA
IRP
Signature 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
IRP
Description of audit techniques employed.
IFTA
IRP
Net distance adjustment. IFTA
N/A
Audited 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/A
Description of audit techniques employed.
IFTA
N/A
Net tax paid fuel purchases adjustment.
IFTA
N/A
Net 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
Net fees due per jurisdiction.
N/A
IRP
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 Report
CLOSING CONFERENCE AND
RECOMMENDATIONS
Remarks and recommendations.
IFTA
IRP
Interjurisdictional Audit Report
Interjurisdictional Audit Report
WHAT IS TIPICALLY TRANSMITTED?
Audit Narrative.
IFTA
IRP
IFTA
Final Workpaper Summary.
IFTA
IRP
Document Summary.
IRP
Interjurisdictional Audit Report
HEADER INFORMATION REQUIRED
Name of base jurisdiction.
IFTA
IRP
Name and address of licensee/registrant.
IFTA
IRP
FEIN or equivalent.
IFTA
IRP
Interjurisdictional Audit Report
HEADER 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 Report
DISTANCE 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 Report
DISTANCE EXAMINATION REQUIRED ITEMS
Brief narrative of audit procedures,
findings, any additional information.
N/A
IRP
Statement on adequacy/inadequacy of
distance accounting.
N/A
IRP
Interjurisdictional Audit Report
FUEL EXAMINATION REQUIRED ITEMS
Reported tax by jurisdiction.
IFTA
Audited tax by jurisdiction.
IFTA
N/A
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
Interest by jurisdiction
Total by jurisdictionIFTA
IFTA
IFTA
N/A
N/A
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 Requirements
TAXPAYER 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 Requirements
PRE-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
IRP
Opening conference documented.
IFTA
IRP
Additional Requirements
SAMPLING 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 Requirements
REVIEW 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 Requirements
REVIEW 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
IRP
Documentation 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.
IFTA
IRP
Document if a BIA audit.
IFTA
IRP
Additional Requirements
DISTANCE EXAMINATION
Document any discrepancy between
summary and application distance.
N/A
IRP
Provide statement on adequacy/inadequacy
of distance accounting system.
IFTA
IRP
Additional Requirements
OPENING AND CLOSING CONFERENCE
Auditor conducted an opening conference
with licensee/registrant.
IFTA
IRP
Auditor conducted an closing conference
with licensee/registrant.
IFTA
IRP
Synopsis of opening and closing
conference notes along with attendees.
IFTA
IRP