Auditor 101 AnnMarie Chamberlain (MA) Gerald Jackson (WY) Thom Rabaglia (WI) Joel Foreman (NE) Derrick Rumph (AK)

“An auditor is the guy who comes in after the battle to bayonet the wounded.” Anon Some say we twist the knife too!

INTRODUCTION This is not meant to be a “how-to” course. Rather, we’re going to try to offer some networking references ideas and maybe alternative solutions

REFERENCES IFTACH.org AAMVA.org Best Practices Audit Guide IFTA vs.IRP Similarities and Differences

Audit Standards Adequate technical training Proficiency in auditing Independent mental attitude Conduct audits in a professional manner Results are clearly documented

What information do you need? CASE SELECTION Pre-Audit Questionnaire Pros and Cons What’s your plan of action? OPENING CONFERENCE Who is your contact? What information do you need?

SAMPLING ERROR RATES Sample quarter(s) Sample vehicles – leased, owner/operators Sample fuel – OTR, bulk ERROR RATES How are they calculated? Isolate or project your differences? Do you really want to project them?

Who will attend? AUDIT REPORTS CLOSING CONFERENCE Narrative Interjurisdictional Audit Report CLOSING CONFERENCE Who will attend? What issues will you address?

Jurisdictional Disputes The IFTA AGREEMENT, Article 15 Jurisdictional Disputes The IFTA AGREEMENT, Article 15. The IRP PLAN, Article 14. What are Disputes? Jurisdictional non-compliance or violations of the IFTA or IRP. Audit adjustments that appear to have been applied incorrectly. What is their purpose? To correct and advise jurisdictional action or to bring a jurisdiction into compliance with the agreements. Who can dispute your audit results? Any jurisdiction can. How long do they have to dispute the results? 45 days after receiving the interjurisdictional audit report.

What can a jurisdiction ask for during an audit dispute What can a jurisdiction ask for during an audit dispute? They could ask for a number of things: A re-audit. A re-exam. That the audit be reversed and re-done- That your jurisdiction be involved in a re-audit or re-exam- That the original audit results be re-adjusted or eliminated based on evidence that the original audit was incorrect. What is the difference between a re-audit and re-exam? 

Its important to keep in mind that the work you are doing is reviewed by all of the affected jurisdictions. If someone doesn’t like your audit work or its results, they can ask questions and/or request re-audit or re-exam. Disputes are to be avoided as much as possible. They are NOT a normal end result of an audit.   Disputes though the Dispute Resolution Committee (DRC) are settled much like lawsuits in court. The specific disputed issues are identified. Evidence will be presented. The DRC will review the dispute, the evidence, and the testimony presented.   The DRC will then render a decision much like a panel of judges. Their word is binding.

Here’s Thom! Photo provided by the Thomas Rabaglia Fan Club of Wisconsin…

POINTS TO PONDER Is the purpose of an audit to make the carrier whole? At any cost? Should an audit be FAIR? Fair to whom? Fair to the licensee/registrant? Fair to other jurisdictions? Fair to the taxpayers in the base jurisdiction? Fair to the carrier’s competition? How does the auditor ensure that the audit is conducted on behalf of the other affected jurisdictions? What do the terms acceptable, unacceptable and marginal mean? Should a jurisdiction refund taxes/fees when marginal or unacceptable records are encountered?