Audit Handbook

Audit Handbook 2017-01-18T21:13:30+00:00

As referenced in the Container Trucking Act, the Office of the Container Trucking Commissioner will conduct routine audits of Licensees moving export/import containers to determine compliance with the minimum rates set out in the Container Trucking Regulation.

The purpose of these guidelines is to outline the operation of the audit and compliance determination process.  The following information will provide the general expectations for Licensees within the context of an audit.

More comprehensive practice guidelines and/or rules may be developed in the future should the Commissioner conclude further structure and clarification is necessary.

The focus of an audit will be to determine if minimum rates and, where applicable, fuel surcharges, have been paid by a Licensee for the movement of export/import containers by Independent Operators, Directly Employed Operators and Indirectly Employed Operators.

Companies should refer to the updated Rate Summary for the application dates associated with each method of pay.  Compliance will be assessed based on payment of said rates according to each outlined date of application.

In broad terms, the audit and compliance determination process will operate as follows:

Initiation of Audits

1) The Commissioner may undertake an audit for any Licensee as defined in section 31 of the Act.

2) Any person who believes that a Licensee has not met its obligation to pay the minimum rates set out in the Regulation may file a complaint via ConfidenceLine or directly with the Commissioner. The Commissioner will do a preliminary investigation to determine whether an audit is appropriate, and if the Commissioner is satisfied that an audit should be conducted, an Auditor will be assigned.

3) The identity of any complainant will, as much as possible, be kept confidential by the Commissioner.

Notice & Provision of Information

4) When an audit is initiated, a letter will be sent to the Licensee advising of the audit, identifying the areas of interest for the investigation, and the documents and records required to be provided.

5) Those documents may include trip sheets, dispatch records, daily time records, pay statements, T4 statements, cancelled cheques or banking clearance of the direct deposit, or any record or thing that may be relevant to the investigation. The documents provided may be originals or copies.

6) The records for Independent Operators paid by the trip will be expected to show the rate and the geographical zone for the origin/destination of each container moved.

7) The pay statements for all operators paid by the hour will be expected to show the hourly rate paid, the amount of gross earnings, the type of benefits paid and the hourly value of each benefit.

8) The letter from the Auditor will generally advise where the documents and records are to be delivered to, and the time frame for delivery (usually five to ten days).

9) Failure to comply with a direction by the Auditor may result in the Commissioner taking further steps deemed appropriate for the particular circumstances.

Calculation of Adjustment

10)  The records provided will be compared to the minimum rates set out in the Regulation.

11)  The Auditor will calculate the appropriate fuel surcharge entitlement for Independent Operators and compare their gross earnings to the pay statements.

12)  The Auditor will review all deductions from earnings to establish the basis for a determination on whether said deductions are appropriate.

13)  The Auditor will generally share information disclosed during the audit with the Licensee, and an opportunity will be offered to provide any additional information or identify any errors or omissions.

14)  The Auditor will make any necessary changes to any calculated adjustments arising as a result of input from the Licensee.  The Licensee may agree at that point to pay the calculated adjustment (if there is one).

15)  The Auditor will provide an Audit Report to the Commissioner setting out the information disclosed during the audit.