IFTA/IRP Audit Workshop

Improving your Audit Process IFTA/IRP Opening Conference

Presenters

• Kristie Zanis – New Hampshire• Bob Weber – Connecticut• Don Williams - Idaho

Entrance Conference

“The nine most terrifying words in the English language are, ‘I’m from the government and I'm here to help.’ “

Ronald Reagan

IFTA Opening Conference

What is required?

IFTA Opening Conference (A630.100)

• The opening or initial conference may be:– In person– By telephone– In writing (by fax, email, or snail mail)

• It must communicate:– Licensee’s business operation/overview of company– Audit procedures to be performed– Records that will need to be examined– Sampling periods

IRP Opening Conference

What is required?

IRP Opening Conference (APM 402)

• An opening conference held to discuss:– Registrant’s operation/overview of company– Distance accounting system– Records, sampling (procedure, periods, etc.)

• Auditor must document conference with:– Date of opening conference– Auditors and Licensee’s Representatives attending

opening conference– Details of the meeting

Principles for Communication

• Be curious, positive, and patient• Be an active listener

– Ask questions. Show an interest in the business– Respectfully acknowledge opinions– Restate answers by paraphrasing– Be friendly and approach the audit in a positive

manner

Initial/Opening Conference

• Knowing HOW to ask the questions is as important as WHAT to ask

Types of Questions

• Closed Question – provides a single word or very short response

• Open Question – results in a longer answer, usually start with what, why , how, tell me or describe

• Funnel Question – a string of questions starting out very general and becoming more specific or detail

Types of Questions

• Probing question – another way to obtain more detail information, questions will include the word exactly

• Leading question – will lead an individual towards your thinking, questions may include an assumption, personal appeal to agree, an easy simple response or choice between two points

Types of Questions

Question Identification Exercise

Question #1

Are any vehicles leased?

Question #2

Tell me how you determine your total and jurisdictional miles?

Question #3

Your fuel purchases are recorded in liters as opposed to gallons?

Question #4

Exactly how do you determine your reported total gallons and tax paid?

Question #5

Describe your mileage accounting system?

Question #6

You have one IRP Fleet?Your registration information shows you have increased from two to four fleets?The number of vehicles you have apportioned has not changed, why the increase in the number fleets?

Question #7

Do you maintain a bulk tank disbursement log?

Question #8

Mileage information for your vehicles not monitored by GPS is done by a driver prepared Daily Log which includes required IRP information?

Listening Skills

• Verbal Cues– Pay attention to the speaker– Ask clarifying questions– Rephrase what was said to ensure understanding

• Nonverbal Cues– Body language– Hand gestures– Eye contact

Initial/Opening Conference

• Do you ask about what you know already?

Case Study: Pre-Audit Information

• Licensee/Registrant with three locations• Single IFTA reported from central location

• All vehicles are single fuel type (DSL)• IFTA travel: AAA, CCC, & DDD

• Multiple registration records show:• Three registration accounts• Vehicle weights from 26K lbs. to 80K GVW• IRP travel: AAA, BBB, CCC, & DDD

• Assume conference is with the authorized company representative

Case Study: Vehicles

Units in your IFTA fleet (by weight & fuel type)?Diesel Gas Other

IRP Fleet 1 0-26K          over 26K 7   1    

IRP Fleet 2 0-26K          over 26K 1        

IRP Fleet 3 0-26K          over 26K 11   2    

Case Study: Vehicles

• What questions do you want to ask?

Case Study: Trip recordsTrip records include the following:

Flt 1 Flt 2 Flt 3Driver's name X X X

Vehicle number X X XRoutes traveled X X  

Total distance X X XTrip date (Start/End) X X X

Fuel purchased      Trip number      

Trailer number X    Odometer reading X X X

Trip origin/destination X X  Distance by jurisdiction X    

Case Study: Trip records

• What questions do you want to ask?

Case Study: Mileage/Fuel Cutoff

What is the cutoff date to meet reporting deadline?

Flt 1 Flt 2 Flt 3What day of the month? 5th    

Month the trip begins?      Month the trip ends?      

Other     X   

Fleet C: End of the Quarter

Case Study: Mileage/Fuel Cutoff

• What questions do you want to ask?

Reference

• Dale Carnegie, How To Win Friends And Influence People

• Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler, Crucial Conversations: Tools for Talking When the Stakes are High

Reference

• http://www.helpguide.org/mental/effective_cmmunication_skills.htm

• http://www.mindtools.com/pages/article/newTMC_88.htm

• http://skillsyouneed.com/ips/questions-types.html

• http://jobsearch.about.com/od/skills/qt/communication-skills.htm