IFTA/IRP Audit WorkshopIFTA/IRP Audit WorkshopReport WritingReport Writing

IARs: What’s requiredIARs: What’s requiredEffective IARsEffective IARs

How much is too muchHow much is too much Stacey Hammock – WYStacey Hammock – WY

Debbie Hill – MODebbie Hill – MOBob Weber - CTBob Weber - CT

Interjurisdictional Audit Interjurisdictional Audit Report (IAR)Report (IAR)

What’s Required?

IFTA & IRP

IFTAIFTA

Audit Manual

• A660 Audit Reports

• .200 Interjurisdictional Audit Report

(IFTA) IAR shall contain(IFTA) IAR shall contain

• Name of base jurisdiction

• Name and address of licensee

• FEIN or equivalent

• Reported tax by jurisdiction

• Audited tax by jurisdiction

• Penalty

(IFTA) IAR shall contain(IFTA) IAR shall contain

• Interest by jurisdiction

• Total by jurisdiction

IRPIRP

Audit Procedure Manual

• Article 8 Audit Completion and Audit Reporting Procedures

• Section 803 Interjurisdictional Audit Report

(IRP) IAR shall contain(IRP) IAR shall contain• Name of Base Jurisdiction

• Name and address of Registrant

• Account number

• Registration Year(s) audited

• Number of Apportionable Vehicles

• Reported Jurisdiction Distance

In-Jurisdiction Distance Percentages

Member’s Apportionable Fees

(IRP) IAR shall contain(IRP) IAR shall contain

• Audited Jurisdiction DistanceIn-Jurisdiction Distance PercentagesMember’s Apportionable fees by

Jurisdiction• A brief narrative of Audit procedures used,

Audit findings & pertinent information the auditor feels should be relayed to affected Member Jurisdictions

(IRP) IAR shall contain(IRP) IAR shall contain

• Date of issuance of the report and the name of the auditor(s)

• A statement on whether the Registrant’s accounting system is adequate or inadequate and reason why

Peer/Compliance Review IAR Peer/Compliance Review IAR RequirementsRequirements

• Peer/Compliance Review teams when examining your IAR’s will be checking that those reports contain all these required items for the two respective programs.

Effective IAREffective IAR

• The primary purpose of any writing, whether formal audit report or a memo, is to communicate a message to a reader.

• To do this effectively the writer must consider the audience who will receive and respond to the report.

Analyze your AudienceAnalyze your Audience• Who will be the most important

readers of the report?

• How much do they know about the subject?

• How do they plan on using the report?

• What’s their reaction going to be to the report’s message?

Auditor/Writer vs. Reader Auditor/Writer vs. Reader MindsetMindset

• I want to show you lots of data!

• Accuracy• Linear explanations

(Inductive reasoning)

• Just enough, and try to make it interesting

• Accurate, but brief and clear

• Bottom line first, then supporting details

(Deductive reasoning)

• Use clarity to inform readers of conditions found in your audit; a simple and direct statement of the situation encountered.

• Use persuasive writing to convince your reader to accept the recommendations; show the reader your conclusions are logical and valid and that suggestions represent an effective way of correcting the problem.

• Present points in a logical order

• Cut excess evidence, usually one fact or example (at most two) will support a point.

• Use active verbs, this will produce a shorter sentence.

• Avoid negative words; emotions and opinions

• State facts and conclusions in a positive manner.

• Do not over use a word or phrase.

• Use words everyone will understand

- voluminous – large

- modification – change

- acquiesce - agree

• Avoid common word wasters:

- At the present time = Now

- In the event of = If

- In the majority of instances = Usually

- For the reason that = since or because

- Look into = consider

- on the basis of = based on

Review your ReportReview your Report

• Is the report’s central message clear?• Is it the appropriate length (too short or too

long)?• Does the paragraph contain too much

information so that it will overwhelm the reader?

• Is the information within the paragraph presented in the correct order?

• Are all words in my sentences necessary?

Mr. Stevens, who was my former neighbor, won his lawsuit.Mr. Stevens, my former neighbor, won his lawsuit.

The company is taking applications at this point in time.The company is taking applications now.

• Are my sentences easy to understand?

• Do the sentences contain action verbs (active vs. passive construction)?

Active construction

- The professor teaches the students.

- Right now, Sarah is writing the report.

Passive construction

- The students are taught by the professor.

- Right now, the letter is being written by

Sarah.

• Have you explained major audit adjustments?- disqualified vehicles

- incorrect mileage period

- mileage of non-IRP vehicles

- disqualified fuel

- major changes to mileage or fuel

- inadequate bulk fuel records

- non-compliant retail fuel records

• Auditor judgment decisions, if the auditor decides to call the records sufficient for audit but they are lacking the required information, these decisions must be explained in the report.

How much is too much or How much is too much or not enough? not enough?

• Depends on carrier’s records, mileage accounting system & internal controls

• Include all Peer Review required items

• Present findings in a direct and concise manner

• Report major issues/errors

• Include explanation of audit adjustments

• Avoid unnecessary/trivial details

George Orwell: “Politics and the George Orwell: “Politics and the English LanguageEnglish Language””

• “Never use a long word where a short one will do.”

• If it is possible to cut a word out, always cut it out.”

• “Never use the passive when you can use the active.”

Proofread your audit report• Don’t rely on Spell/Grammar check

- Items not caught

from – form

do – due

our - are

there, their, they’re

• Have others edit your work

Mechanical mistakes, spelling

and grammar errors cast doubt

over the quality of the entire

report.

Some helpful web sitesSome helpful web sites

• Purdue on-line writing Lab

http://owl.english.purdue.edu

• Grammar Slammer

http://englishplus.com/grammar

• Georgia State University

http:www2.gsu.edu/~accerl/wordiness/WO.html