{"id":35329,"date":"2020-05-13T07:43:37","date_gmt":"2020-05-13T14:43:37","guid":{"rendered":"https:\/\/www.dmv.ca.gov\/portal\/?post_type=dmv_handbook&p=35329"},"modified":"2020-05-19T13:24:36","modified_gmt":"2020-05-19T20:24:36","slug":"chapter-9-audits","status":"publish","type":"dmv_handbook","link":"https:\/\/www.dmv.ca.gov\/portal\/es\/handbook\/irp\/chapter-9-audits\/","title":{"rendered":"Chapter 9: Audits"},"content":{"rendered":"

9.000 – AUTHORITY AND FREQUENCY OF AUDITS<\/strong><\/p>\n\n\n\n

California Vehicle Code (CVC) Section 8057(b) authorizes the Department to audit fleet records of apportioned registrants to ensure the accuracy of the reported distance (mileage), vehicle cost, and weight information.<\/p>\n\n\n\n

The Plan Section 1020 authorizes the base jurisdiction to audit the apportioned registration applications and supporting documents of registrants based in that jurisdiction.  The audit shall be to assess the accuracy of distances reported in the application for apportioned registration, and where inaccuracies are found, to adjust the fees accordingly.  An audit conducted by the base jurisdiction shall be conducted on behalf of all Member Jurisdictions, and the base jurisdiction may assess and collect fees based on its audit.<\/p>\n\n\n\n

Per Section 1025 of the Plan, Member Jurisdictions shall conduct a number of audits equivalent to an average of three percent per year of the number of fleets whose registration it renews annually.  Nothing in this section precludes a base jurisdiction from conducting more audits than required or from auditing a registrant more than once.<\/p>\n\n\n\n

9.005 – JOINT AUDITS<\/strong><\/p>\n\n\n\n

IRP Section 1030, \u201cJoint Audits,\u201d allows audits of any registrant by multiple jurisdictions. Upon completion of the joint audit, the base jurisdiction is responsible for issuing the audit report, collecting and distributing the resulting fee adjustments, and resolving any disagreement with the audit findings.<\/p>\n\n\n\n

9.010 – PURPOSE OF AUDITS<\/strong><\/p>\n\n\n\n

Audits are necessary to ensure: (1) The accuracy and integrity of information reported on the apportioned registration applications;
(2) Compliance with provisions of the IRP and jurisdictional statutes; and (3) Proper payment of apportionable fees to all affected Member Jurisdictions.<\/p>\n\n\n\n

9.015 – AUDIT STANDARDS<\/strong><\/p>\n\n\n\n

Audits are conducted in a professional manner with the results clearly documented, following the Plan, the IRP Audit Procedures Manual, and Generally Accepted Government Auditing Standards.<\/p>\n\n\n\n

9.020 – AUDIT LOCATION<\/strong><\/p>\n\n\n\n

Audits are performed at DMV Headquarters in Sacramento (in-house audits) or at the registrants\u2019 or the designated agents\u2019 business locations where operational records are maintained and made available for examination (field audits), as determined by the Department.<\/p>\n\n\n\n

9.025 – AUDIT NOTIFICATION<\/strong><\/p>\n\n\n\n

In accordance with IRP Audit Procedures Manual Section 401(a) and CVC Section 8057(b), the Department will provide a 30-day<\/strong> notice to the registrant prior to conducting the audit.  For just cause, notification requirements may be waived, as provided in IRP Audit Procedures Manual Section 401(c).<\/p>\n\n\n\n

For field audits<\/strong>, the auditor will contact the registrant or the registrant\u2019s authorized agent by telephone to arrange an audit.  An audit notification letter is sent to the registrant to confirm the audit commencement date, the registration year(s) to be audited, the location where the audit will take place, the types of records to be examined, and the person(s) conducting the audit.<\/p>\n\n\n\n

For in-house audits<\/strong>, the auditor will notify the registrant by telephone.  An audit notification letter is also sent to the registrant regarding the registration year(s) to be audited, the types of records to be examined, the due date for the submission of records, the address to where records should be sent, and other information regarding the audit.<\/p>\n\n\n\n

Audit notification letters are sent by certified mail to the last known mailing address on record with the Department, and are considered received, when delivered. It is the responsibility of the registrant to ensure that the telephone numbers as well as business and mailing addresses are correct and current, and to promptly notify the IRP Operations Section whenever there is an address change.<\/p>\n\n\n\n

9.030 – ENTRANCE (OPENING) CONFERENCE<\/strong><\/p>\n\n\n\n

The auditor will hold an entrance conference with the registrant or agent to discuss the registrant\u2019s operations, distance accounting and reporting system, records to be examined, sampling procedures, and the extent and timing of the audit.  For in-house audits, the entrance conference will be held over the telephone.<\/p>\n\n\n\n

9.035 – TRAVEL EXPENSES<\/strong><\/p>\n\n\n\n

Pursuant to CVC Section 8057(b), the registrant may be required to reimburse the Department for the auditor\u2019s per diem and actual travel expenses incurred under certain conditions as determined by the Department.<\/p>\n\n\n\n

In-house audits involve no travel expenses.  Under the Department\u2019s current administrative policy, the registrant will not be charged for the travel cost for a field audit conducted in California, except when:<\/p>\n\n\n\n