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

August 13-14 Pittsburgh, Pennsylvania2014 Annual Business Meeting

Presented by, Debora K. Meise, Senior Director

IFTA, Inc.

Program Compliance Review Program Compliance Review UpdateUpdate


2014 Reviews2014 Reviews

Northeast Region – 5 year Review ConnecticutDelawareMaineMassachusettsMarylandNew BrunswickNew HampshireNew Jersey

New YorkNewfoundlandNova ScotiaPennsylvaniaPrince Edward IslandQuebecRhode IslandVermont


2015 Reviews2015 Reviews

Midwest Region – 5 year ReviewsIllinoisIndianaIowaKansasManitobaMichiganMinnesotaMissouri

NebraskaNorth DakotaOhioOklahomaOntarioSouth DakotaWisconsin


2015 “Volunteer” Jurisdictions2015 “Volunteer” Jurisdictions15 Reviews – 30 Jurisdiction Representatives

ABALARAZBCCACOCTFLGA

IAIDLAMBMEMNMOMTNCND

NENVNYOHORRISKUTWAWY


• 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 Budget2013 Travel Budget


Program Compliance Review Program Compliance Review CommitteeCommittee

UpdateUpdate

By Joe Dian (IN)By Joe Dian (IN)Chair, PCRC Chair, PCRC


Northeast MidwestJohn Szilagyi (CT) –Northeast Administrative Della Golden (OH) – Midwest AdministrativeBruce Bierbaum (VT) – Northeast Auditor Joe Dian (IN) – Chair/Midwest Auditor

Southeast WestMelissa Yocum (KY) - Southeast Administrative Tim Ford (CA) – West AdministrativeClint Hester (NC) - Southeast Auditor Barbara Gluck (TX) – West Auditor

CanadaLorne Bay (PE) – Canadian AdministrativeRichard Wagner (NV) – Vice Chair - At-Large Auditor

Board Liaisons IFTA, Inc. AdvisorTrent Knoles (IL), Lead Debbie Meise Joy Prenger (MO)

Committee RosterCommittee Roster


Projects Projects in Progress…in Progress…

Continue to review the Program Compliance Reviews

Hold monthly conference calls

Sponsoring FTPBP 1-2014 and FTBPB 2-2014

Board Charge


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.

ProjectProject


• 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.


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 ChargeBoard Charge


Return the Review Cycle from five years back to four years (2011 changed from 4 to 5)

Only reviewing those provisions found in R1555Sample size modificationsTraining of Reviewers

The committee is working on the following changes:


• 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 ProposalCommittee Proposal


• Benefits to Membership:

• Focus on what is important to membership– Financial Aspects– Integrity of Audit Programs


PCRC Sponsoring two ballots in 2014:

– FTPBP #1-2014: Return to 4 year Review Cycle

– FTPBP #2-2014: Additions to R1555

Ballot ProposalsBallot Proposals


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 #1-2014FTPBP #1-2014


Additions to R1555

•Adding sections R360 and R1310– R360: Providing Information to Licensees– R1310: Licensee Audits

FTPBP #2-2014 FTPBP #2-2014


R360

Jurisdictions to provide licensees with instructions, requirements, audit information, revisions, and current requirements of the IFTA


Providing Information to Licensees via:-Mail

-E-mail-Web page updates-Updated forms/instructions

All are acceptable but they MUST give licensees updates


R1310Licensee Audits• “…audit its licensees on behalf of all member jurisdictions”.

This citation is currently used in Program Compliance Reviews


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


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


Review Guide

• Will focus on R1555

• Draft will be presented upon completion

Streamlined ReviewsStreamlined Reviews


Sample size will be proportionate to number of licensees

Sample SizeSample Size


Online training to be provided for:– New or prospective reviewers– Jurisdictions under review

Reviewer TrainingReviewer Training


• 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?

QuestionQuestion


Documents

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