1. Recordkeeping in the 21 st Century Reflections on …Where we've been …How far we've come …Where we are headed in the future Discover the intricacies of data collection by IFTA/IRP Registrants Connie Owen (JJ Keller) & Sandy Johnson (TTML) IFTA/IRP Audit Workshop San Antonio, TX – February 2009

2. Agreement Principle – IFTA/IRP  To promote the fullest and most efficient possible use of the highway system

3. How does that happen?  Through the fair and equitable payment of taxes Fuel Tax Registration Fees Sales Taxes In some cases – mileage taxes Federal Excise Tax Personal Property Taxes Ad Valorem Taxes

4. What is Industry’s Part in this? Collection and reporting of distance and fuel…

5. THE EVOLUTION

6. Types of Records – Written in Stone  Paper Driver Trip Records (DTR’s) Bills of Lading/Manifests Log Books IVDR’s Fuel Receipts – handwritten Distances based on Household Goods Carrier Bureau guide, in-house systems of point to point Vehicle odometer or hubometer Driver “guesstimate at miles” Map miles

7. Written in Stone DTR’s & Fuel Receipts PROS  Historically most familiar  Can’t be changed “after the fact” (maybe)  Odometer relatively consistent CONS  Not always complete  Not always easy to get from driver  Not necessarily accurate  Can get lost or destroyed  Historically most familiar  Odometer good but not perfect  Massive amounts of storage

8. Types of Records – Computerized  Computer generated or assisted “System generated” DTR’s  Electronic dispatch/routing Mileage programs Fuel Cards and invoices (includes bulk)

9. Computerized DTR’s & Fuel Receipts PROS  Big step up from handwritten records  Can’t be changed “after the fact” (maybe)  Less reliance on driver  Storage less of a problem CONS  Information not necessarily completed by the driver  Not necessarily accurate or could be incomplete Routing Vicinity miles Missed trips

10. Types of Records – GPS  Global Positioning System (GPS) Distance calculated using Latitude, Longitude, Date & Time  Calculated “on-board”  Calculated in post processing by running through a mileage program  Combination of on-board and post processing  Supported by Driver logs Bills of lading Odometer readings  On fuel purchase information  Once a month to reconcile  On Driver Logs  Backed up by Manual system in the unlikely event of failure

11. GPS DTR’s PROS  Highly accurate  Can’t be changed “after the fact”  Little or no reliance on driver  Data stored electronically – typically lower cost alternative  More detailed  Less paper  Less work to audit CONS  Not all systems created equal Frequency of “pings”  Vendor/Carrier may not fully understand IFTA/IRP requirements  Government may not use same tools to verify as industry Different miler programs for post processing the data  Hard to sell to many auditors  Education required by both industry and government  Trust factor

12. Where are we now?

13. Carrier #1  Electronic records for both distance & fuel Distance: GPS for a majority of trucks; electronic dispatch data for trucks that are not equipped with GPS.  GPS/dispatch points processed through mileage generator software Fuel: Internal fuel purchase order system accumulates fuel purchases by state (includes collection of odometer at each fueling)  small number of fuel records entered in P.O. system from a "Card- Lock" or similar fuel-card entity  PO's supported by paper invoices.  To date, we have not had any issues with auditors regarding records.

14. Carrier #2  Mileage and fuel is manually recorded on the DOT safety log by driver --- only ORIG, DEST, and routes of travel are listed --- no odometers (no onboard recording devices)  Driver's logs are submitted on paper, along with supporting fuel receipts  Fuel purchases are manually audited to ensure accuracy -- 99% are single fuel receipts  Logs are scanned and stored as PDF  Fuel receipts are stored as received (no imaging) Stopped using odometers on the logs since we were only in possession of our own authority logs. When the vehicle traveled intermittently between ours and the agent's authority, the odometer readings would not be fully aligned or gaps would occur. Even with the odometer readings available, the auditors relied on the routes of travel to close the gaps. During an audit, we manually select the PDF images from discs and print out logs per sample selection. Since the paper fuel receipts are stored in boxes for the month, the auditor selects receipts from a box to review.

15. Carrier #3  Distance Dispatch data/planned trip data/billing data Mark DOT trip logs with beginning & ending odometer readings Routes of travel marked on the trip logs Beginning and ending odometer readings on the freight bills.  Fuel TCH (Transportation Clearinghouse) to store and track all fuel purchases Data is downloaded from the TCH website when needed.  Customer 1 - Distance - GPS device, trip logs Fuel - 5 different fuel card providers (T-Chek, Petro, Husky, 5th Wheel, TCH)  Customer 2 - Distance - GPS devices, trip logs Fuel - EFS, TCH

16. Carrier #4  Distance Calculated by calculating the distance using 1 second “pings” and storing every 5 minutes Jurisdiction determined by geo-fencing all states and provinces Latitude and Longitude readings analyzed to determine jurisdiction Reconciled monthly to an odometer reading  Fuel Combination of cardlock and individual fuel receipts

17. Conclusion The Trucking Industry is Evolving  Recordkeeping is evolving – it takes many different forms  Younger people who are more technology “saavy” want to use it. It is what they understand  Companies are pushing trucking for more electronic processing  Efficiency is important for both industry and government  Jurisdictions have to find a way to do more audits with fewer resources  The labour pool of trucking is changing – can’t always rely on the driver for records – good or bad  Section of IFTA & IRP must be updated to accommodate the new reality

18. Recordkeeping in the 21 st Century Reflections on …Where we've been …How far we've come …Where we are headed in the future Discover the intricacies of data collection by IFTA/IRP Registrants Connie Owen (JJ Keller) & Sandy Johnson (TTML) IFTA/IRP Audit Workshop San Antonio, TX – February 2009