2009 Annual Business Meeting – Manchester, NH IFTA FTPBP#2-2009 Jay Starling (AL) 2009 Annual Business Meeting – Manchester, NH

IFTA FTBP #2-2009 Sponsor – IFTA Program Compliance Review Committee Proposed Effective Date – January 1, 2011 Subject – Change the IFTA Program Compliance Review cycle from four (4) to five (5) years

History Result of IFTA board of trustees strategic plan Identify jurisdictions operating IFTA & IRP in same agency Confirm interest with IRP Survey jurisdictions 30 out of 56 jurisdictions wanted combined review Additional 10 jurisdictions wanted combined audit only review

History Form combined compliance review committee Combined compliance review members Gerald Jackson Jay Starling Renee’ Kyser Art Farley Beth Hartley Debra Stewart Garry Hinkley Joe Dian Mary Pat Paris Ken Carey Richard Beckner Scott Greenawalt Rena Hussey Debora Meise

History Committee reviewed existing IFTA and IRP compliance review processes and worksheets Committee developed combined worksheets and processes, whenever possible Both organizations have made improvements to their review processes as a result of this project

History The following jurisdictions volunteered for combined reviews: Minnesota (completed) Wyoming (completed) Oregon (completed) Alabama (completed) Nevada (scheduled) Utah (scheduled)

History Jurisdictions and Review Teams were surveyed upon completion of reviews. Combined review comments: Very positive experience Beneficial for jurisdictions Overall excellent experience Sign me up for future combined reviews IFTA & IRP boards approved continuation of project

Intent Promote combined IFTA & IRP program compliance reviews Align IFTA & IRP review cycles to five (5) years Combined reviews would be optional Combined reviews conducted upon request by jurisdiction Jurisdictions required to retain records for an additional year Does not change licensee record retention requirements

Intent R1500 Membership R1510.200 Conditions For Membership Submit to a program compliance review to determine compliance with the Agreement. Such review shall be performed after one year of implementation and once every four five years thereafter unless a review is ordered as prescribed by this Agreement

Intent A600 The Audit Process A690.300 Communication of Audit Findings Member jurisdictions may request copies of the audit reports and work papers. A copy of the audit report, work papers, supporting documentation and any pertinent post-audit communications must be maintained by the base jurisdiction as part of the audit file for a period of four years from the date of completion of the audit the period set forth in P910 Eliminates redundancy

Intent P900 Base Jurisdiction Recordkeeping P910 Licensee Records The base jurisdiction shall maintain fuel tax records for licensees based in that jurisdiction for a period of five year or until they have been examined as part of a Program Compliance Review and the Final Report has been issued, whichever is later

Intent P910 Licensee Records P910.150 Audit findings and work papers files P910.550 Outgoing jurisdictions transmittals; and P910.600 Incoming billing transmittals

Intent P920 Preservation of Records P920.200 Tax returns shall be maintained for a minimum of four years P920.300 Outgoing jurisdiction transmittals and incoming billing transmittals must be retained until they have been examined as part of a Program Compliance Review and the Final Report has been issued Included in P910

Thank You!