State Scrap Tire Fee Reporting Compliance Audit

Inspection template for verifying that per-tire state disposal fees are correctly collected at point of sale, recorded accurately, and supported by complete reporting and remittance documentation.

Audit Scope and Site Identification

• Audit location, date, and business unit are correctly identified
  Record the site name, address, audit date, and department or business unit in scope.
• Responsible manager or designee is present for the audit opening
  Verify that the store manager, accounting lead, or authorized designee is available to answer questions.
• Audit period and sample size are documented
  Document the reporting period reviewed and the transaction sample used for testing.
• Applicable state scrap tire fee schedule or statutory reference is on file
  Record the current fee amount and the source document used by the business for compliance.

Point-of-Sale Fee Collection Controls

• Scrap tire fee is configured in the POS system for each taxable tire sold
  Confirm the POS applies the fee automatically or through a controlled manual override process.
• Fee amount charged per tire matches the current state requirement
  Enter the observed fee amount per tire and compare it to the required state fee.
• Fee appears as a separate line item on customer receipts
  Verify the fee is itemized and not hidden within the tire price.
• Manual fee overrides are restricted and documented
  Confirm only authorized users can adjust the fee and that overrides are logged with a reason.
• Transactions tested with missing or incorrect fee were corrected promptly
  Review whether any undercharged or omitted fees were identified and corrected through voids, re-rings, or adjustments.

Exemptions, Credits, and Transaction Accuracy

• Exempt transactions are supported by valid documentation
  Verify that any exempt sales, returns, or credits are backed by approved documentation and state-allowed criteria.
• Returned or exchanged tires are handled according to policy
  Confirm the business applies the fee reversal or credit process consistently when tires are returned or exchanged.
• Transaction exceptions are logged and reviewed by management
  Verify exception logs or adjustment reports are maintained and periodically reviewed.

Daily Reconciliation and Reporting

• Daily POS fee totals reconcile to tire sales transactions
  Confirm the total fees collected match the number of qualifying tires sold for the audit period.
• Fee collection reports are generated at the required frequency
  Verify reports are produced daily, weekly, or monthly as required by the state program or internal control.
• Reported fee totals match remittance records
  Compare reported amounts to payment confirmations, deposit records, or remittance filings.
• Supporting worksheets or reconciliation files are retained
  Confirm reconciliation workpapers are saved and traceable to source transactions.

Records, Retention, and Management Oversight

• Required records are retained for the state-mandated retention period
  Verify invoices, receipts, reports, remittance confirmations, and exception logs are kept for the required period.
• Management reviews fee compliance results periodically
  Confirm a manager, controller, or compliance lead reviews fee collection and reporting results on a recurring basis.
• Deficiencies have documented corrective actions and due dates
  Record whether any non-conformance identified during the audit has an assigned corrective action, owner, and completion date.