IFTA/IRP Audit Workshop

1. IFTA/IRP Audit Workshop Improving your Audit Process IFTA Closing/IRP Exit Conference

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

3. IFTA Closing Conference What is required?

4. IFTA Closing Conference (A650.100) • The closing conference may be: • In person, • By telephone, • In writing (by fax, email, or snail mail). • It must communicate: • Preliminary findings with penalty and interest, • Recommendations for improvement, • Rights to appeal, • Who gets the audit report.

5. IFTA Closing Conference (A650.200) • An audit conducted in accordance to R1210: • No closing conference is required, but • The auditor must document why no closing conference was held. • R1210 allows an assessment, when the licensee: • Does not file a return, • Does not provide records, • Does not keep records showing true liability.

6. IRP Exit Conference What is required?

7. IRP Exit Conference (APM 404) • An exit conference should be held to: • Review identified, documented audit issues, • Preliminary findings. • Auditor must document conference with: • Overview of the post Audit process, • Recommendations for improvement, • Rights of appeal, • Who gets the audit report. • If no conference possible, document why.

8. Planning your Closing Conference • Prepare for the closing conference • Review the file and draft report (be prepared) • The audit findings: • What issues are there? • Prepare an Agenda to help guide you through the conference. • What will the licensee/registrant ask? • Express the findings • Clearly. • Without judgment.

9. Exit Meeting Purpose • To provide the Registrant/Taxpayer with an understanding of the contents of the draft report and any concerns that may not be set out in the report. • Help avoid any misunderstanding or misrepresentation of facts by providing the auditee the opportunity to clarify specific issues and express their views on significant audit findings & recommendations.

10. Effective Closing/Exit Conference What can you do to ensure your conference is effective and successful?

11. Effective Exit Meeting • Meeting should be open and courteous. • Summarize what was done. • Outline significant audit concerns & recommendations. • Provide justification for conclusions & recommendations.

12. Effective Exit Meeting • Highlight any audit concerns which have already been addressed/corrected. • Be willing and able to discuss all matters in whatever detail is necessary. • Be sure all significant matters have been discussed so the report contains no surprises.

13. Principles for Communication • Be curious, positive, and patient. • Be an active listener. • Ask questions. (Open/Closed) • Respectfully acknowledge opinions. • Restate answers by paraphrasing. • Be friendly and approach the audit in a positive manner.

14. Principles for Communication • Be confident, however be careful not to sound arrogant or aggressive. • Be able to give and receive Feedback. • Be clear and concise, provide your message in as few words as possible. • Avoid interrupting the respondent.

15. Case Study

16. Case Study: Audit Findings • 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 26,000 lbs. to 80,000 lbs. GVW. • IRP travel: AAA, BBB, CCC, & DDD. • Assume conference is with the authorized company representative.

17. Closing Conference Case Study • Distance Summary Error: • The auditor found no trip records for BBB. • All fuel was purchased at local fueling station across the street from Location 3 headquarters. • Location 3 had other trucks registered for AAA travel plus the IRP trucks registered for AAA & BBB.

18. Closing Conference Case Study • Fuel Summary Error: • All fuel is purchased in AAA at Location 1, 2, or 3 headquarters. • Fueling station is across the street from the various location head quarters. • Vehicles return each night to fleet headquarters.

19. Closing/Exit Conference “The nine most terrifying words in the English language are, ‘I’m from the government and I'm here to help.’ “ Ronald Reagan

20. 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

21. References • 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