Motor Fuel Tax Systems - 271-0525-16

Description of Agency

The Motor Fuel Tax (MFT) Section, Special Tax Division, Department of Treasury (Treasury) is responsible for the processing of motor fuel tax returns and refund claims, as well as the licensing of persons involved in the sale, use, or transportation of motor fuel. The MFT Section was created to enforce the Motor Fuel Tax Act, Public Act 403 of 2000. Treasury uses 10 information technology (IT) systems to process MFT returns and refunds. The Department of Technology, Management, and Budget (DTMB) hosts and maintains the majority of the IT systems used by MFT. DTMB also works directly with MFT to oversee and enforce third party contracts.

In fiscal years 2014 and 2015, MFT revenue totaled $964 million and $1.01 billion, respectively.

Audit Objectives

  1. To assess the effectiveness of Treasury’s efforts to enforce the Motor Fuel Tax Act.

  2. To assess the sufficiency of Treasury’s motor fuel tax refund processes.

  3. To assess the effectiveness of DTMB and Treasury’s general and application controls over the motor fuel tax systems.

  4. To assess the sufficiency of DTMB and Treasury’s oversight of the VISTA Fuel Tax Tracking and Compliance System contract.

  5. To assess whether DTMB and Treasury sufficiently secured motor fuel tax and refund data.


Estimated Release Date: April 2017

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