IFTA Audit
 

I recently went through an IFTA audit. The auditor was pleasant. I gave her the records she asked for an printed out several quarters from my software program. She said that I should hear something back from them within a couple of weeks. I am not sure why it should take that long, but we are dealing with the government. I was leased to a major carrier a number of years ago and recall them going through an IFTA audit, but I have several friends who run their own authority and none have been audited. According to my state they are starting to random select carriers to audit. So, if you run your authority an audit may be in your future.

If I remember correctly, each IFTA state is supposed to audit at least 2% of their accounts each year. I'm sure the selection process is left to each state.

From what I understand, they are doing more audits, at least in my state. I was never told the percentage or number that they do each year. The auditor also wanted to check my IRP. Of course, since we use our IFTA to send in for our IFTA, she has everything she needs to complete the audit. When I received notification of the audit I called my IFTA office and asked why I was being audited. I was told that they are pulling FEIN's and doing random audits on carriers that have not been audited. I guess I have been lucky. I have been in business for some time and this is the first time I have been audited. Hopefully, everything is in order. I try to make sure that I have everything together on each load. One think that I found interesting is that the state wants to have original driver records for each trip, which I have, but thought that it would be the same difference if I just printed out reports for each load from my software. Since the information in the software is taken from the driver reports, I figured that would be OK. Apparently, it isn't. The new version of my software (Trucknpro Business Manager) has the capability to scan all of my documents, such as BOL, fuel receipts, etc., She was somewhat non committal, but it would reproduce each original fuel receipt. She didn't seem very familiar with any of the trucking specific software programs. I guess it depends on the auditor. More and more states and industries are going electronic. I thought that would be much faster than having all that paper to check. I keep all records on each load in an envelope so everything will be together. In any case, it was interesting talking with this auditor. I was wondering whether any of our other members have ever gone though an IFTA audit?

Most of the big boys have their drivers scan all documents to them; no originals there. It has long been accepted that a faxed or copied document is a legal substitution for the original. I've been lucky enough to never be audited but a close friend just went through it at the first of the year. About like yours; requested lots of records, kept them for 3-4 weeks, and he passed with no issues. He does keep meticulous records though. I know I'd be scrambling a little to pull all the info together.

Are you using GPS or paper for the miles? Not all GPS is acceptable for mileage. Has to maintain a continuous record(driving without showing the miles driven) If paper all odometer miles must be accounted for. Don't get free miles for personal use. Had an IFTA audit in 2007 for 04,05&06. They found some O/O's that put small amounts of cash fuel with no ticket.(logs) when it was over cost me 5G+ in fines/penalty.

what did they ask for in the audit?

In my case the auditor sent me a form that she requested I fill out. It was several pages long. She asked me to list all states or jurisdictions in which I ran during the audit period. In addition, she asked how I calculated my miles, such as odometer, gps or software. The auditor also wanted to know the type of freight I haul and type of equipment I drive. There were some other questions that I don't recall off the top of my head. I think this is a form she did herself. When the auditor came by I showed her how I kept my records, including the envelopes. We talked for about an hour or two. I printed out IFTA reports for 4 quarters. Before coming out she sent a list of what she needed for the audit. She wanted original IFTA driver records, IRP records for specific years. Some of what she originally requested she got direct from the state IRP and IFTA departments. I use Trucknpro Biz Manager (foglinesoftware) to keep my records so it was simple to print out the reports. The software is set up so I can key in an invoice number, gallons and fuel stop, which makes it easier to check and to get a copy if needed. According to the auditor, she needed original fuel receipts, per the state revenue department. I don't see why it should matter as long as you have all the information. With the latest version of the program I can scan in fuel receipts, maintenance records and anything that is related to a particular trip. That would make it easy to print out a copy of the original should I decide to go completely electronic. I spoke with the software developer prior to the audit and he told me that he has spoken with others who have been audited and they accepted the printed reports from the program. It may just be my state that wants the originals. Frankly, I don't see why it should make a difference whether it is an original or something that is printed from the original as long as the information is there and it matches what was filed. I will continue to use my envelopes and keep all receipts by the load. On the outside of my envelopes I put all the trip information such as miles by state, invoice number, gallons, cost or price paid and where the fuel was purchased. In addition, I also put where I deadheaded from, picked up and delivered. I also put the amount I was paid for that load. I then take that information and key into my software program. So, what I printed off for her should match what was in my envelopes. She told me that she used PC Miler and another mileage program (I don't recall the name) to check mileage. Hopefully, I didn't miss anything and have everything she needed to complete the audit.

One of the things they look at close is for un-recorded miles. Some seem to think that driving to a repair shop, parking, ect doesn't count. Every mile on the truck is subject to IFTA.

I think you are probably right, chris although I am not sure how closely they could monitor those types of miles unless they were considerably out of route. If they have the addresses, I am sure they could come closer to the actual miles. I have been told that they will make a certain percentage for errors or perhaps out of route miles, such as for repairs.