1. Peer Review Process Presented by: Cindy Arnold – Nevada Ken Carey – IRP, Inc. Marie Stark – Montana Cindy Swanson – California “ What to Expect when Expecting” A Peer Review

2. Peer Review Process A Peer Review offers a detailed analysis of each Member Jurisdiction’s IFTA/IRP audit and administrative operations The review is conducted to ensure compliance with the provisions of the IFTA Agreement and IRP Plan. For both IFTA and IRP, the reviews can be performed either remotely or on-site in the Peer Review.

3. “ What is a Remote Peer Review”? A remote Peer Review is an alternate process to the traditional on-site Peer Review. Instead of reviewing documents on-site, the Jurisdiction being reviewed provides all requested documents and information electronically. The Peer Review Opening and Closing Conferences, as well as discussions between Jurisdiction Staff and Review Teams, are conducted by conference calls.

4. Peer Review Process “When does the Pain Start” For both IFTA and IRP, each Member Jurisdiction’s administrative procedures and audit programs are reviewed for compliance every five calendar years

5. Peer Review Process “ THE Peer Review IS COMING! WHAT NOW” In the months prior to the Peer Review: Meet with your staff participating in the review and review the IFTA worksheets and IRP Compliance Guide so you know what will be expected. This information can be found at www.iftach.org. or at www.irponline.org. www.iftach.orgwww.irponline.org

6. Peer Review Process “Be Prepared” Do your own mock Peer Review on your own Jurisdiction. Review recent Peer Review final reports to determine common non-compliance findings. Review your Jurisdiction’s past Peer Review results.

7. Peer Review Process “Three to Get Ready” For both remote and on-site reviews, you will receive an information/documentation request notification from IFTA and IRP. Work with your staff to ensure all required requested documents/reports are available in the requested timeframe and format. Ensure the availability of staff during the complete review process.

8. Peer Review Process “ Stay on top of things be alert” Plan to meet via conference call with the review team and your staff daily throughout the review week. Everyone will have the ability to ask questions and research findings before they turn into citations. Not all findings are automatic citing's, do your homework

9. Peer Review Process * If you or your staff have questions, ask the Review Team about the process or any issue concerning the Peer Review prior to the review. (Remember questions don’t count as a non- compliance finding!!!)

10. Peer Review Process Who has the 411? For IFTA Contact Dick Beckner, Phone 480-839-4382 E-mail rbeckner@iftach.org For IRP Ken Carey, Phone: (703) 963-1604 E-mail: kcarey@irpinc.org (Coordinators of the reviews can confirm what is expected, information requested/received and corroborate time frames during the review period.)

11. Peer Review Process “Houston we have a Problem” Make note of any issues found and be prepared to respond on how your Jurisdiction will address these issues.

12. Peer Review Process Its over now what? At the end of an IFTA Review a closing conference will be held with the Jurisdiction. The purpose of the closing conference is to present preliminary findings of the Review to the jurisdiction. Following the completion of a Review, a draft Report will be prepared by the Administrator, based on the findings of the Team, and will be presented to the jurisdiction for response. Once the response is received, it will be incorporated into the draft Report and presented to the Committee for processing as required in this Guide. If the findings of the Panel include a recommendation for Follow Up, the Committee chair and vice chair will make a determination on the Follow Up recommendation.

13. Peer Review Process Its over now what? At the end of an IRP Peer Review a closing conference will be held with the Jurisdiction. The purpose of the closing conference is to present preliminary findings of the Review to the jurisdiction. Following the completion of a Review, a preliminary Report will be prepared based on the findings of the Team, and will be presented to the jurisdiction at the closing. The jurisdictions will be encouraged to provide a response on the review. After 30 days, the preliminary report will become Final and posted on the IRP web site along with Jurisdiction responses to the review.

14. Peer Review Process For IRP there will be a Follow-up Peer Review for non-compliant Sections (Conference Call) Approximately one year from the closing conference, a follow- up Peer Review call will be held with the Jurisdiction as part of the Committee’s monthly conference call. Jurisdiction will be provided with Action Plan requesting required documents to determine compliance with Sections found out of compliance. Jurisdiction staff members may participate in the conference call to explain the information provided. Continued non-compliance issues will be referred to the Dispute Resolution Committee (DRC).

15. Peer Review Process Check the Final PRC reports to ensure your Jurisdiction is in compliance. Review the final report with staff, discuss any findings or any changes of procedures due to the findings or suggestions of PRC. Ensure you remain in compliance by conducting a mini review once a year.

16. Top 5 IFTA Findings #5 A320 SELECTIONS OF AUDITS You must when making your audit list yearly include 25% high distance accounts and15% low distance accounts. There were 22 violations of this in the last five years. #4 A310 NUMBER OF AUDITS You are required to complete audits of an average of 3 percent per year of the number of IFTA accounts reported on the annual report. There were 28 violations of this in the last five years. #3 R1230 INTEREST The base jurisdiction, for itself and on behalf of the other jurisdictions, shall assess interest on all delinquent taxes due each to jurisdiction except taxes collected directly by other jurisdictions in accordance with IFTA. There were 50 violations of this in the last five years.

17. Top 5 IFTA Findings #2 R940 TAX RETURN FORMAT The tax return must be furnished at no charge at least 30 days prior to the due date. Whether by standard, non-standard or electronic format. Ok there were 64 violations of this in the last five years. Let’s talk about this one. What does furnished mean? #1 P1040 MONTHLY TRANSMITTALS Outgoing Transmittals, Incoming Billing Transmittals even with the clearinghouse there are still 87 issues with this yearly and with only 10-15 jurisdictions being reviewed every year more than likely each of those jurisdictions are being hit by this violation.

18. Top 5 IRP Findings #5 Section 1025 – Notification of Audit Findings Upon the completion of an Audit, the Base jurisdictions shall provide notice of the Audit findings to the registrant and to all Member Jurisdictions in which the Registrant was apportioned or in which it traveled. The base jurisdiction shall submit the Interjurisdictional reports to all affected jurisdictions at the time the Registrant Audit Report is sent. #4 Section 1215 – Fee Transmittals A Member Jurisdiction shall establish and follow procedures by which it shall regularly transmit to each other Member Jurisdiction all of the Apportionable fees it has collected under the Plan for such other Member Jurisdictions 6/14

19. Top 5 IRP Findings #3 Section 320 – Distance Estimates by Base Jurisdictions When an Applicant for a fleet that did not accrue any actual distance during the Reporting Period does not have an estimate of anticipated Fleet distance that is acceptable to the Base Jurisdiction, the Base Jurisdiction shall estimate distance based on the average per-Vehicle distance in each Member Jurisdiction (Estimated Distance Chart). #2 APM 803 – Interjurisdictional Audit Report The Audit file or other record maintained separately shall include evidence of timely notification. The Interjurisdictional audit report shall contain the information outlined in 803 (b).. 6/14 8/14

20. Top 5 IRP Findings # 1 Section 315 – Application Process The Base Jurisdiction shall review any estimate of distance and any supporting documentation. If the Base Jurisdiction does not accept the Applicant’s estimate of distance, or if the Applicant does not submit an estimate, the Base Jurisdiction shall estimate the distance using the method provided in Section 320. 9/14

21. Peer Review Process “When will the Labor Pains Hit Again?” IFTA Review Schedule WESTERN REGION 2012 SOUTHEAST REGION 2013 NORTHEAST REGION 2014 MIDWEST REGION 2015

22. Peer Review Process “When will the Labor Pains Hit Again?” IRP Jurisdictions for review in 2013 Arizona Alabama North Dakota New Brunswick Montana Wisconsin Delaware Prince Edward Island Washington New York Nebraska Louisiana

23. Peer Review Process You have survived the Labor Give yourself and your team a pat on the back you have survived the review. One of the most important things you can do, is have someone from your Jurisdiction volunteer to assist in other Jurisdictional upcoming reviews for IFTA or volunteer to serve on the IRP Peer Review Committee when there are vacancies

24. QUESTIONS?