Audit findings

November 2007
Texas OCCC audit finding Beaumont TX.....

A OCCC auditor  discovered that the  dealer was rounding off the  the license plate fee to $59.00. The dealer charged every customer the same fee.

Note: "Every transaction is different resulting in a different amount for each transaction."

The $59.00 amount charged on every account caught the auditor's attention. His recommended satisfaction was to compare the actual amount of the fees charged by the title registration and credit the account or actual refund the overcharges to the customers. The dealer was to do this on every deal going back to 2003. Which happens to be the year the dealer got his license.

Wow!

Problem:
1. Where do you start? How do you fix this?
2. You need a report that list every finance transaction disclosing the license fee starting back in 2003.
3. You need a list of all active accounts.
4. You need to identify the status of every account in question in order to decide how to issue the credit or refund.
5. You need to evaluate each account refund or credit one at a time.

 All of this takes time.

How Cars*Plus was able to help the dealer. The Cars*Plus tech assisted the dealer to run the "Sales Fee Disclosure " report from the 2003 date through today's date.

This gave him a starting point. He then assisted the dealer in running the "active account " report. The dealer  credited the overcharges back to the active customers, leaving him with the paid or repossessed accounts to settle with.

 Our programmer came to the rescue. She wrote a procedure to read all accounts and generate a batch of letters, to inform all the dealers customers of the credits and refund adjustments.

Hot to prevent this event: "It's okay to charge the $59.00 license fee. After you transfer title handle the refund or credit right then. Issue a credit to the customers account or hand the customer the cash difference when you hand him his plates and receipt."

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