1. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Presented by, Debora K. Meise, Senior Director IFTA, Inc. Program Compliance Review Update

2. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting 2014 Reviews Northeast Region – 5 year Review Connecticut Delaware Maine Massachusetts Maryland New Brunswick New Hampshire New Jersey New York Newfoundland Nova Scotia Pennsylvania Prince Edward Island Quebec Rhode Island Vermont

3. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting 2015 Reviews Midwest Region – 5 year Reviews Illinois Indiana Iowa Kansas Manitoba Michigan Minnesota Missouri Nebraska North Dakota Ohio Oklahoma Ontario South Dakota Wisconsin

4. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting 2015 “Volunteer” Jurisdictions 15 Reviews – 30 Jurisdiction Representatives AB AL AR AZ BC CA CO CT FL GA IA ID LA MB ME MN MO MT NC ND NE NV NY OH OR RI SK UT WA WY

5. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting On-site Reviews:$54,000 (12 Review x 3 Reviewers x $1,500 (3 days) E-Reviews:$3,200 (Conference Call hours for 2013) 2013 Travel Budget

6. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Program Compliance Review CommitteeUpdate By Joe Dian (IN) Chair, PCRC

7. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting NortheastMidwest John Szilagyi (CT) –Northeast AdministrativeDella Golden (OH) – Midwest Administrative Bruce Bierbaum (VT) – Northeast AuditorJoe Dian (IN) – Chair/Midwest Auditor SoutheastWest Melissa Yocum (KY) - Southeast AdministrativeTim Ford (CA) – West Administrative Clint Hester (NC) - Southeast AuditorBarbara Gluck (TX) – West Auditor Canada Lorne Bay (PE) – Canadian Administrative Richard Wagner (NV) – Vice Chair - At-Large Auditor Board LiaisonsIFTA, Inc. Advisor Trent Knoles (IL), LeadDebbie Meise Joy Prenger (MO) Committee Roster

8. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Projects in Progress… Continue to review the Program Compliance Reviews Hold monthly conference calls Sponsoring FTPBP 1-2014 and FTBPB 2-2014 Board Charge

9. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting The PCRC has started sending mid-review cycle notifications showing audits completed and audits needed to complete to be compliant with A310 and A320 during a jurisdiction’s next Review. Project

10. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting In 2014 letters sent to Midwest Jurisdictions In 2015 will rotate to Western Jurisdictions (due for PCR in 2017) Letters are sent to Commissioners and Audit Contacts.

11. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting The Board requested a comprehensive review of the review processes and to determine if they should be modified to better serve the membership in today’s environment. Current system is NOT broken. A Sub-committee of committee members met in Chandler, AZ in June 2013 to brainstorm and develop suggestions to enhance the process. Board Charge

12. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Return the Review Cycle from five years back to four years (2011 changed from 4 to 5) Only reviewing those provisions found in R1555 Sample size modifications Training of Reviewers The committee is working on the following changes:

13. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting IFTA’s Moving Forward – Members have 20 years or more in IFTA! Change the PCR’s to only items in R1555 New Jurisdictions would still have thorough reviews under current processes. Committee Proposal

14. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Benefits to Membership: Focus on what is important to membership – Financial Aspects – Integrity of Audit Programs

15. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting PCRC Sponsoring two ballots in 2014: – FTPBP #1-2014: Return to 4 year Review Cycle – FTPBP #2-2014: Additions to R1555 Ballot Proposals

16. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Return to 4 year review cycle – Would only add one additional review in a 20 year period. – To help find distressed jurisdictions quicker to bring into compliance. – First Comment Period not favorable – Hybrid Options? FTPBP #1-2014

17. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Additions to R1555 Adding sections R360 and R1310 – R360: Providing Information to Licensees – R1310: Licensee Audits FTPBP #2-2014

18. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting R360 Jurisdictions to provide licensees with instructions, requirements, audit information, revisions, and current requirements of the IFTA

19. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Providing Information to Licensees via: -Mail -E-mail -Web page updates -Updated forms/instructions All are acceptable but they MUST give licensees updates

20. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting R1310 Licensee Audits “…audit its licensees on behalf of all member jurisdictions”. This citation is currently used in Program Compliance Reviews

21. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Decisions need to be made for all jurisdictions and not biased towards the base jurisdiction. Potential examples… – Applying gap miles to base jurisdiction without justification – Allowing tax paid fuel credits as reported without supporting documentation

22. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting PCRC works with Jurisdiction to be compliant before referring to membership Final Determination Finding of Non- Compliance is last resort Membership determines whether a dispute will be initiated…. ….Now and in the future

23. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Review Guide Will focus on R1555 Draft will be presented upon completion Streamlined Reviews

24. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Sample size will be proportionate to number of licensees Sample Size

25. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Online training to be provided for: – New or prospective reviewers – Jurisdictions under review Reviewer Training

26. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting Should a jurisdiction be required to make up their audit shortage? When should this be required? How much time should be allowed? Should ALL shortages be made up, regardless of size? Question

27. August 13-14Pittsburgh, Pennsylvania 2014 Annual Business Meeting