Acacso Conference Nov 2015, Albuquerque (NM)
This presentation provides an overview of the AAR Car Hire Audit process and explains how carriers are evaluated for compliance with Car Hire Rules. It describes the purpose and authority of the audit program, the role of Railinc in conducting audits on behalf of the AAR, and the use of sample data to evaluate a carrier's car hire accounting procedures.
The session traces the evolution of car hire auditing from labor-intensive, on-site reviews using paper records and manually selected samples to remote, data-driven audits supported by electronic records and Railinc systems. It explains how electronic data access and statistically significant sampling improved the efficiency and consistency of the audit process.
The presentation also identifies the individual areas tested during a car hire audit, including mileage accuracy, mileage gaps, LCS usage, payable and receivable claims, timely car hire payment, Rule 22 reclaims, Rule 5 and Rule 4 TOL activity, and DDCT-related Rule 7 and Rule 8 compliance. Examples show how several of these audit tests transitioned from manual reviews to automated or system-based processes.
car hire audit, AAR Car Hire Audit, Car Hire Rule 6, car hire compliance, Railinc, railroad auditing, car hire accounting, LCS audit, Liability Continuity System, mileage audit, mileage gap analysis, car hire claims audit, Rule 22 audit, Rule 5 TOL, Rule 4 TOL, DDCT, Car Hire Rules 7 and 8, percent payment audit, car hire reclaims, audit sampling, railroad equipment accounting, interline settlements