Ifta audit

ela you better gather whatever you used to figure out what to file with and get ready to explain what you did. If you at least did that, you'll establish that you were at least trying to do the filing accurately. There may still be some adjustments made, but at least it won't look like a total fraud.

Otherwise, you can look forward to hours of running trip summaries thru Google maps and reconstructing everything. Of course that won't match up since it's different than what you did in the first place.

I was just audited for 2011-2012 IFTA and IRP. My auditor offered to sample two quarters and apply the findings to the entire period. Knowing I would be close, if not dead on, I agreed. I use GPS reports for the miles. I supplied the original GPS files along with my summary workbooks. Scanned logbook pages (three drivers over that period, mine the only one with odometer readings recorded.

The whole process went over a few weeks. First a conversation to understand the process and what documentation needed to be supplied. He wanted to drive up to my office from Macon, but agreed to do it via e-mail if I could supply readable scans of everything. I sent him the files about 10 days later. A short phone call from him confirming he was able to download and read everything. A couple weeks later he called to discuss the outcome. My back up documentation was accepted as-is. Nothing due or owed to me. About a week later I got a paper report in the mail.

 

The auditor told me what two quarters to send over. Keep in mind the risk with that is: mistakes on those two quarters will be assumed to exist on the entire period.

The reefer fuel will mean you reported more fuel tax paid at the pump than actual. If you can put a number on that, it could help you (overpayment on your part).

I think what you need to do is contact the auditor and ask your questions. I wouldn't go into too much detail about how careless sounding your records are. Do more listening than talking during that first call. At least try to sound like you have your stuff together even if you don't.

Knowing what you're working with, you know that you need to bargain for time. A few weeks isn't unreasonable. Once a date to meet (or send if they will do it by email) hustle to get together what you can. Hand it over on time and hope for the best. Deal with shortcomings at that time. If it gets too sideways, there are consultants that can help you (for a fee). I wouldn't rush out and hire one right away. You have some time to try to get it worked out.

 

If they catch you hiding trips from them yes.

 

I had a terrible fire once just before an IFTA audit...what a shame, lost everything they wanted. Everything else in that room was still intact; it was a miracle indeed.


Since then, I got on the game and I just comply. Every day the paperwork (as redundant as it may be...)gets stapled together with logs, fuel slips, mileage. In the event of the actual audit, always remember to hand the auditor what he/she asks for ONLY...nothing volunteered.

The way I found worked best for me was to always take any mileage I would need off the IFTA report I have on file. That way everything will always match if they try and trip you up. If you pull some info off the GPS, some from the BOL's...you'll create an unecessary alligator nest. Use the IFTA report you have as the main source of reference if possible, that's what's kept me out of the horizontal striped jumpsuits for years.

 

IFTA requires 30 days notice. You can get at least that amount of time to get your records together. You should take the opportunity to ask a lot of question about what is required and how to comply given the size of your company. I agree with letting the auditor do most of the initial talking. Although if they have been doing it for any length of time they will have a very good idea you don't have all you need.

Audits are typically done on a sample basis with the assumption that mistakes made in one quarter will be made in all quarters. A sample is a good use of the auditor's time and the jurisdiction's resources. Don't provide anything that is not asked for but do make sure to provide what is asked for. I know as an auditor, I picked up extras because the information was there. If I had to wait for a while it screwed up my schedule and I would have to determine how much I needed it. The jurisdiction gave very strict guidelines on time allotted based on the size of the operation.

If you are using GPS reports for your reporting, you need to have copies of those records. A map printout of the GPS route with give the route of travel. You need to make sure that you have quarterly odometers to limit the total miles that can be assessed. I know that a lot of truckers seemed to disagree with that for some reason I never understood. Trip reports with origins, stops and destination with routes of travel and miles by jurisdiction are a requirement. Typically, drivers logs do not contain that much detailed information. If your computer program only routes from pick up to delivery without taking into account deadhead and home miles, the base jurisdiction will want to make allowance for those especially their home miles. By adding those the base jurisdiction usually increases its percentage.

 

FormerInauditor:

My GPS provider tracks and records all mileage in every state I travel. My fuel card records all fuel purchases. I'd still need "Trip reports with origins, stops and destination with routes of travel and miles by jurisdiction" too or would the previously mentioned items suffice??

 

The requirements are to have routes of travel. If you can print out a map and download the pings on a relevant time period that would be sufficient in an audit. The problem is usually the information is not retained by the company. I audited for Indiana. The written routes were not looked at if a download was available. It became more of a how many errors were in the information. The download would be stripped (duplicate pings removed) and formatted for the state's program to run through a routing program to compare the information. A auditor is not going to take the time to audit routes of travel to VERY GOOD data for no reason. GPS pings are considered VERY GOOD data unless there is an obvious problem such as the pings are every 3 hours on a local delivery vehicle. The route issue can be a stickler for IRP which required it. Indiana was mostly beginning/ending odometer and/or routes of travel. Some jurisdictions don't have the OR. There is much debate about what is the beginning and ending time frame, a day, a week, a month or quarter. Indiana worked with the companies more than some I have heard about.

Third party fuel systems are considered VERY GOOD data unless the company mess that up. An example would be giving the driver a card then he is in 5 different vehicles 3 of which aren't subject and it cannot be determined which vehicle is which because they only entered the last 3 digits of the odometer. The last 3 digits or even 4 sound sufficient until you are the one trying to determine which of 30 vehicles was fueled on a given day. This would be very common at a construction or rigging company.

I really can't answer what your jurisdiction would require. If you have that information you would be able to defend your position in a protest. That being said you don't want to get there. Call your jurisdiction and ask what is required in an audit.