IRP Audits. IRP Audits

Transcription

1 IRP Audits Presented by: Drake Israel (IL) Doug Varnes (IL) IRP Audits 1. What is an IRP audit? 2. How are IRP audits counted? 3. Do records have to be maintained in a specific format? 4. Is advance notification of audit required; if so, how much? 1

2 What is an IRP Audit? The Plan defines audit as: the examination of a Registrant s Records, including source documents, to verify the distances reported in the Registrant s application for apportioned registration and evaluate the accuracy of the Registrant s distance-accounting system for its Fleet. Such an examination may be of multiple Fleets for multiple years. Retention & Availability of Records (1000a) Preserve records for the reporting periods 2

3 Adequacy of Records (1005) Accuracy Substantiation Sufficient detail Adequacy of Records (1005) 1005(b) No specific format prescribed. Is the format accessible by the base jurisdiction? 3

4 IRP Audits Poll Question #1 Contents of Records (1010a) Adequate records will contain (manual): 1) Trip date (starting/ending) 2) Origin and destination 3) Route of travel 4) Beginning/ending odometer readings 5) Total distance 6) Distance per jurisdiction 7) Vehicle identification 4

5 Contents of Records (1010b) Adequate records will contain (electronic): Original GPS data Date/time of each reading Location of each reading Beginning/ending odometer Distance between readings Route of travel Total distance Jurisdictional distance Vehicle identification Contents of Records (1010c) Summaries: Monthly total & jurisdictional distance per vehicle Quarterly total & jurisdictional distance per fleet Annually a summary of the quarterly summaries 5

6 Did You Say Records? Plan 1015 Inadequate Records; Assessment Records Inadequate None retained None provided within 30 days of written request Inadequate Records; Assessment (1015) 1 st offense 2 nd offense 3 rd or more 6

7 Inadequate Records; Assessment (1015) How it works: OH 1, $ PA WV $1, $ $ Scope of Audits (1020) Base conducts audits on their registrants, but they do so for all jurisdictions. 7

8 IRP Audits Poll Question #2 Frequency of Audits (1025) Three percent (average) annually over 5 years 2015 audits required: 4,823 x

9 Frequency of Audits (1025) 1 fleet x 1 registration year = 1 audit Base Jurisdiction Audit Expenses (1035) Where are the records? Are they maintained outside the base? 9

10 IRP Audits Poll Question #3 Reexaminations (1040 & 1045) 45 Days Base to notify all other jurisdictions Same sample Reasonable time & in cooperation w/base Expense borne by reexamining member 10

11 Netting Audit Adjustments (1050) Base collects/refunds Audit Reports (1055) a) Base provides to: Registrant Member Jurisdictions b) Narrative and billing c) 30 and 45-day time periods begin 11

12 Audit Transmittals (1060) Base transmits fees Audit Appeals (1065) a) 30 days, minimum Any appeals are per the base jurisdiction s laws b) Base to notify all jurisdictions of appeal results 12

13 Audit Procedures Manual (1075) Required to be maintained by the Repository Provisions binding Any changes by ballot IRP Audit Function The Audit Procedures Manual (APM) establishes a uniform process for: The hiring/supervision of auditors Pre-audit notifications Processes Reports Reporting the findings 13

14 General Auditing Standards (APM 2) 201 Proficiency & Due Professional Care 202 Study & Evaluation 203 Planning & Supervision General Auditing Standards (APM 2) Independence 205 Audit Program 206 Working Paper Documentation 14

15 IRP Audits Poll Question #4 Qualifications/Responsibilities (APM 3) 301 Qualifications 15

16 Qualifications/Responsibilities (APM 3) 302 Responsibilities: a) Fair/equal treatment b) Cooperation/good will c) Continuing Education Audit Communications (APM 4) 401 Pre-Audit Contact 402 Opening Conference 16

17 Audit Communications (APM 4) 403 Request for Records Audit Communications (APM 4) Exit Conference 17

18 Audit Procedures (APM 5) Equipment List Internal Controls? Sampling / Projecting Red Flag Audit Indicators Rounding Non-contiguous Estimates as actual Identical operations 18

19 IRP Audits IRP Education Certificate What s "The Plan? Apportioned Vehicles, Forms and Credentials Application and Base Jurisdiction Requirements Introduction to Calculating IRP Fees Member Duties, Opportunities, and Responsibilities IRP Audits 19

20 IRP Inc. s Certificate Program Watching with a group? Add completion of the Verification of Attendance form to your list of things to do. IFTA/IRP Managers' and Law Enforcement Workshop Sept , 2016 Tampa, FL Register on IRP website. 20

21 Our contact info: Drake Israel Audit Manager Illinois Secretary of State Phone: (217) Doug Varnes Revenue Agent Accounting Revenue Department Illinois Secretary of State Phone: Thanks for Your Time & Attention! 21