Current through Register Vol. 28, No. 3, September 1, 2024
10.1 Audit
Requirement. The books and records of all public carriers shall be subject to
audit by OPC to verify compliance with 2 Del.C. Chapter 18 and Rules and
Practices of the OPC pertaining to the Regulation of public carriers operating
in the State of Delaware.
10.2
Audit Notification. At least thirty (30) days notice prior to conducting a
routine audit, the public carrier shall be contacted in writing and advised of
the approximate date that an audit is to be conducted, the records to be
produced, the location of the audit and the time period the audit will cover.
The notification will provide the Public Carrier the opportunity to make the
required records available.
10.3
Record Keeping Requirements.
10.3.1 All
public carriers must maintain operational records that support the total
distance traveled by all registered qualified vehicles and the annual gross
revenue collected as a result of both intrastate and interstate operations.
Operational records include source documents suitable for verification of
distance traveled and gross revenue collected. An acceptable source document
for verifying total distance traveled is a "Log Sheet". A standardized Log
Sheet is required and must be maintained in the vehicle daily, during times of
operation, and shall contain the following minimum information:
10.3.1.1 Date of trip (starting and
ending)
10.3.1.2 Registrant's
name
10.3.1.3 Vehicle
number
10.3.1.4 Trip origin and
destination
10.3.1.5 Time leaving
origin
10.3.1.6 Time arriving at
destination
10.3.1.7 Number of
passengers
10.3.1.8 Routes of
travel
10.3.1.9 Beginning and
ending odometer reading of the trip
10.3.1.10 Total trip distance
traveled
10.3.1.11 Fees
charged
10.3.2 From the
information recorded on the Log Sheets, the public carrier must prepare and
maintain at a minimum:
10.3.2.1 A quarterly
mileage and gross revenue summary that recaps the activity of each qualified
vehicle operated.
10.3.2.2 A
quarterly mileage and gross revenue summary that recaps the activity on a per
service type basis.
10.3.2.3 A
summary of the quarterly recaps used in preparing the Annual Gross Revenue
return that includes the mileage and gross revenue collected on a per service
type basis.
10.3.2.4 Summaries are
not acceptable at face value and must be supported by source documents such as
Log Sheets in order to be of any use during the audit.
10.3.3 The information recorded on the Log
Sheets must be accurate and readable. The mileage figures and gross revenue to
be entered on the Trip Logs can be obtained from various sources such as
odometer and taximeter readings as long as the method used is accurate and
consistent.
10.3.4 In recording the
mileage traveled and the gross revenue collected, the public carrier must
record all movement (intrastate and interstate) of all qualified
vehicles.
10.3.5 All public
carriers will be required to sign a record keeping requirements certification
annually attesting to compliance with records to be maintained for this
department to verify compliance with Delaware Law and this Department's
promulgated regulations.
10.4 Penalties. Failure to maintain records
upon which the public carrier's true gross revenue liability may be determined
or to make records available upon proper request shall result in the following:
10.4.1 An assessment of the gross revenue of
the public carrier, determined on the basis of the best information available
to the OPC;
10.4.2 A $250.00
penalty per qualified vehicle registered; and
10.4.3 Possible revocation or suspension of
the operating credentials of any Public Carrier who fails, neglects, or refuses
to file a tax report with full payment of tax when due.
10.5 Record Retention Period. The public
carrier is required to preserve the records upon which the annual gross revenue
returns are based for four years from the return due date or the filing date
whichever is later. Failure to provide records demanded for audit purposes
extends the four year record retention requirement until the records are
provided. Records may be kept on microfilm, microfiche, or other computerized
or condensed record storage system acceptable to the department.
10.6 Audit Appeal Rights. Within thirty ( 30)
days of notification of audit results, the public carrier may file with the OPC
a petition for redetermination of such assessments. Every petition for
redetermination shall state specifically the reason(s) which the petitioner
believes entitles the petitioner to such determination. It shall be the duty of
the OPC within sixty ( 60) days after the receipt of the petition to dispose of
such petition for redetermination. Notice of the decision shall be given in
writing to the petitioner promptly by the OPC.
