Are You Prepared To Pass An IFTA/IRP Audit?
As IFTA/IRP audits become more frequent, carriers often find themselves unprepared and unaware of how to successfully navigate the audit process. Are you familiar with the requirements needed to pass an IFTA audit?
During an IFTA/IRP audit, two crucial elements are reviewed – mileage and fuel receipts. This blog will outline the requirements for both components to ensure IFTA compliance.
Manually Tracking Miles
While mileage tracking is crucial for IFTA reporting, Electronic Logging Devices (ELDs) can simplify the process. For guidance on selecting the right ELD, refer to our previous blog titled "Is Your ELD IFTA Compliant?" If you opt for manual tracking, you will need to track the following information:
- Origin And Destination
This pertains to the city and state where you've loaded or unloaded your cargo. Your last destination becomes your starting point for the next trip. It's important to note that this doesn't include locations like your 'shop,' 'home,' or 'local' state; it specifically refers to the state where loading or unloading occurred. Additionally, this information must align with your logs.
- Date Departed
You can track the departure date by comparing receipt dates with the cities and states you've visited. This method helps you keep track of the routes you’ve taken.
- Highways Traveled
Tracking the highways you’ve taken will also help track your routes, and if audited, can be utilized to calculate an accurate milage total by state.
- The Beginning and Ending Odometer of Each Month
The beginning and ending odometer readings for each month are required to ensure that you accurately record all the miles traveled. The total miles you've traveled should match the odometer difference, and the mileage at the end of one month must match the mileage at the beginning of the next month. It's crucial to maintain accurate data because the state will rely on this information when conducting an IRP audit.
- Truck/Unit Number
Truck/unit numbers are required and serve as unique identifiers for each truck. During an IFTA audit, a review of your records will also be conducted to ensure that you are reporting the odometer difference per unit when renewing your IRP licenses. This is essential, especially during the IRP section of an IFTA audit.
- Miles By State
Miles by state for each trip are important because this is how they will verify the accuracy of the origin and destination, ensuring that the reported miles are close to the actual figures.
- Company Name
The company name helps identify each party during the audits, making things easier for both you and the auditor.
Fuel Receipts are also a critical part of an IFTA audit. To learn what information is required on fuel receipts for accurate reporting, stay tuned for our blog, “How To Ensure Your Fuel Receipts Meet IFTA Standards”.
Never Stress About IFTA-IRP Audit
We get it- all this information seems daunting and complex, but that’s why we’re here. We strive for a $0 IFTA audit assessment and will work with you until all your information meets audit requirements.