1. AUDIT REPORTS 12 th Annual IFTA and IRP Audit Workshop San Antonio, TX February 2-4, 2010

2. PRESENTORS  Charmin Tillman (MS)  Gerald Jackson (WY)  Dan Young (MT)

3. ARE REPORTS GETTING TO BE A BURDEN?

4. RUNNING OUT OF GAS AND NEED SOME INSPIRATION?

5. WE WANT TO GIVE YOU SOME CONCRETE IDEAS!

6. Licensee/Registrant Audit Report

7. Licensee/Registrant Audit Report WHAT IS TIPICALLY SENT TO AUDITEE?  Audit Narrative?IFTAIRP  Document Summary?IFTAIRP  Workpapers?IFTAIRP  Who sends Interjurisdictional Audit Report as Licensee/Registrant Audit Report? IFTAIRP

8. Licensee/Registrant Audit Report HEADER INFORMATION REQUIRED  Name and address. IFTAIRP  Account number.IFTAIRP  Fleet number.N/AIRP  Audit period.IFTAIRP  Signature of auditor or reviewer and date. IFTAIRP (Name only required for IRP)

9. Licensee/Registrant Audit Report DISTANCE EXAMINATION REQUIRED ITEMS  Types of records audited.IFTAIRP  Description of audit techniques employed. IFTAIRP  Net distance adjustment.IFTAN/A  Audited and reported distance. N/AIRP (Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

10. Licensee/Registrant Audit Report FUEL EXAMINATION REQUIRED ITEMS  Types of records audited.IFTAN/A  Description of audit techniques employed. IFTAN/A  Net tax paid fuel purchases adjustment. IFTAN/A  Net fuel tax adjustment per jurisdiction. IFTAN/A (Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

11. Licensee/Registrant Audit Report MPG EXAMINATION REQUIRED ITEMS  MPG/KPL as reported. IFTAN/A  MPG/KPL as result of audit. IFTAN/A

12. 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

13. Licensee/Registrant Audit Report CLOSING CONFERENCE AND RECOMMENDATIONS  Remarks and recommendations. IFTAIRP

14. Interjurisdictional Audit Report

15. Interjurisdictional Audit Report WHAT IS TIPICALLY TRANSMITTED?  Audit Narrative. IFTAIRP  Document Summary. IFTAIRP  Final Workpaper Summary. IFTAIRP

16. Interjurisdictional Audit Report HEADER INFORMATION REQUIRED  Name of base jurisdiction. IFTAIRP  Name and address of licensee/registrant. IFTAIRP  FEIN or equivalent.IFTAIRP

17. Interjurisdictional Audit Report HEADER INFORMATION REQUIRED cont.  Registration years audited. N/AIRP  Number of vehicles apportioned. N/AIRP  Date report was issued and auditor’s name. N/AIRP

18. Interjurisdictional Audit Report DISTANCE EXAMINATION REQUIRED ITEMS  Reported distance, percentage and fees by jurisdiction.N/AIRP  Audited distance, percentage and fees by jurisdiction.N/AIRP (Not normally in the narrative part of the audit report, but included with the final workpaper summaries.)

19. Interjurisdictional Audit Report DISTANCE EXAMINATION REQUIRED ITEMS  Brief narrative of audit procedures, findings, any additional information. N/AIRP  Statement on adequacy/inadequacy of distance accounting. N/AIRP

20. Interjurisdictional Audit Report FUEL 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.)

21. Interjurisdictional Audit Report REQUIRED SUMMARY ITEMS  PenaltyIFTAN/A  Interest by jurisdictionIFTAN/A  Total by jurisdictionIFTAN/A (IRP interest only for base jurisdiction and only net fees are communicated by jurisdiction by application year)

22. Additional Requirements Documenting the following requirements in the Audit Reports may satisfy the Compliance/Peer Review teams.

23. Additional Requirements TAXPAYER INFORMATION  Document previous audits of registrant. N/AIRP  Conduct review of applications under audit noting trends and drawing conclusions. Document in audit file. N/AIRP

24. Additional Requirements PRE-AUDIT CONTACT AND OPENING CONFERENCE  All pre-audit contact was confirmed in writing.IFTAIRP  Document licensee/registrant was contacted in writing at least 30 days prior to audit. IFTAIRP  Opening conference documented. IFTAIRP

25. Additional Requirements SAMPLING METHODOLOGY  Licensee/registrant allowed input into sample selection if reason. IFTAIRP  Sampling and extrapolation procedures documented IFTAIRP  Sample was representative of operations. IFTAIRP  Sample must consist of at least three representative months.IFTAIRP

26. Additional Requirements REVIEW OF INTERNAL CONTROLS  Review the licensee’s/registrant’s accounting system. IFTAIRP  Identify potential weaknesses in accounting system. N/AIRP  Document tests of internal controls. N/A IRP  Communicate and document weaknesses to registrant. N/A IRP

27. Additional Requirements REVIEW OF INTERNAL CONTROLS cont.  Identify records used to support returns/applications IFTAIRP  Document any changes in accounting procedures or operations during audit period.IFTAIRP

28. Additional Requirements AUDIT DOCUMENTATION  Results of audit clearly communicated. IFTAIRP  Audit procedures documented and justified. IFTAIRP  Source of audit results documented. IFTAIRP  Documentation clearly supports audit findings. IFTAIRP

29. 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. IFTAIRP

30. Additional Requirements DISTANCE EXAMINATION  Document any discrepancy between summary and application distance. N/AIRP  Provide statement on adequacy/inadequacy of distance accounting system. IFTAIRP

31. 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