IFTA Audit Committee Report 2016 IFTA ABM David Nicholson – AC Chair

12 Pages·2016·1.12 MB·English

by  Debora K Meise

IFTA Audit Committee Report
2016 IFTA ABM
David Nicholson – AC Chair

The Audit Committee continues to meet via conference call each 2nd Tuesday of the month.
During these calls we have reviewed audit questions that have been received from the
community. As a result of these questions, the committee members have provided responses,
asked additional questions and determined if the questions could be useful topics for the Audit
Workshop. The committee also continues to provide input to the Workshop Planning Committee
as we move towards finalizing the 2017 Workshop Agenda.

We currently have a full representation on the committee.

The committee is updating the Best Practices Guide to include changes as a result of the passing
of the Audit Ballot. We are looking at setting up Hyperlinks to the particular language from the
three IFTA Governing Documents.

The AC has also submitted a Short Track Ballot with regards to Audit Counts for Compliance
Review Purposes. This ballot will be discussed during the 2016 IFTA Annual Business Meeting.
We need input from all the Stakeholders.

Meeting minutes can be found on the IFTA website.

Respectfully submitted,
David Nicholson – AC Chair
IFTA Agreement Procedures Committee (APC)
Update

Dear IFTA Board, 

On behalf of the APC committee, I would like to report on our activities.  

Currently the APC does not have any openings after Kerryn deVerteuil from Mississippi joined us in July. 
We welcome him and look forward to working with him.   

The APC is the lead and has three members on the joint planning committee for the 2016 5th Annual 
IFTA/IRP Managers’ and Law Enforcement Workshop. The registration is open and the agenda has been 
published. The presenters are working on their presentations and fine tuning how the workshop will 
flow.  We believe this will be a very educational workshop with a wide variety presentations and 
multiple opportunities for discussion. 

The APC is the sponsor of ballot #02‐2016. The purpose of this ballot is to change the one month 
allowable timeframe to display the next year’s IFTA credentials to two months. Here is a little history of 
how this ballot came about. Last year at the IFTA/IRP Manager’s and Law Enforcement Workshop at the 
open APC meeting, an industry representative described how they had an issues with decals falling off 
due to putting them on in December in a cold weather area and asked if they could be put on the trucks 
sooner. We were told that one jurisdiction actually fines the carriers if they are on too early. The 
committee reviewed this and brought it forth as a ballot. 

Marie Stark 
Montana Department of Transportation 
APC Chair

IFTA BOARD OF DIRECTORS’ MEETING
REPORT OF THE ATTORNEY SECTION STEERING COMMITTEE

In the year, the main activities of the Attorney Steering Section have involved the
planning and preparation for its annual meeting that is to be held October 26th and 27th in
Chandler, Arizona.

The Attorney Section has been working on developing a blend of topics to be presented
by its members that would address the questions for attorneys who are new to the IFTA arena
and those that have been practicing in this area of law for some time now. Topics would include
the basic history of IFTA and the legal underpinnings of the IFTA Agreement, emerging issues
such as alternative fuels and presentations on pure legal technique issues such as auditing and
witness preparation. Moreover, this Section has tried to take advantage of new participation
from the representatives of the Canadian provinces to broaden our perspectives and
understanding of the differences in our legal relationships.

Furthermore, we have tried to broaden our outreach by having committee members
directly contact IFTA attorneys throughout the country in order to encourage greater
participation in our activities with the aim of strengthening and coordinating the legal aspects of
IFTA in the various jurisdictions.

Sukanya Mukherjee, Chair
Attorney Section Steering Committee

IAC Report to Membership – 2016 ABM 

Maybe this isn't news if you own a new vehicle but I was surprised by all the bells and whistles on a car I 
recently rented.  Let me tell you, it could do everything from warning me that I was too close to the 
centre line to saying that there was a car in my blind spot.  It could even park itself!  It took me an entire 
two weeks and 2,500 kilometers of driving to figure out most of these options even with the manual.  I 
thought at one point a hand might reach out and pat my forehead dry on the warm days. 

For people like me who drive old cars without new technology, having to suddenly confront changes in 
the way I drive was pretty jarring. 

On one hand, I felt like my rental car genuinely wanted to help me get safely from A to B.  On the other, 
there were times when I was confused as hell.  And a little frustrated. 

When I first started driving the rental car, it was fun to discover what it could do, or really, what it could 
do for me.  But after a while I turned off the lane cross‐over alert.  The blind‐spot indicator was a 
distraction at times.  Then I went to change lanes and the little light blinked that I was about to drift into 
the car beside me. 

It's easy to envision that a sea of change is upon us.  Not unlike the millions involved in the 
transportation industry.   New technology, new procedures, new rules.  And how about self‐driving 
trucks!  Though that level of assistance is farther out, when it comes, it will affect the industry 
tremendously.  It’s easy to feel like these things get in the way of how we’ve always gotten the job done.   
But as time goes on, we see the value in a new approach. 

Anyone in fleet tax management is dealing with two issues that will upend the way we’ve done business: 
URS and electronic logging devices. 

With its many delays, the URS (Unified Registration System) has hit the industry like a slow drip. But it 
will become a tsunami when the final implementation becomes a reality.    

The same is true of ELDs. Slowly, even the crustiest of operators are succumbing to the convenience of 
the smartphone and logging apps. 

We can plan and prepare and think we have all the bases covered. But until these two changes are fully 
implemented, none of us truly knows how these changes will affect us—and what unintended benefits 
or problems they’ll present. 

And what does it all mean to the average trucker? Are private carriers paying attention? 

In anticipation of URS and ELDs coming into full force, here are a few ideas to keep in mind with the 
onslaught of changes in the lane next to you. 

The worst‐kept secret in transportation is the fudging of hours‐of‐service logs. It’s been an accepted 
practice since 1938. 

Not anymore. Many fleets haven’t waited for ELDs to be forced upon them and have  switched on their 
own, and I’m hearing good things.
IAC Report to Membership – 2016 ABM 

When used properly, trucking operations can manage their times better and actually gain time in their 
cycles. Who knew?  

Drivers gain driving time by eliminating paperwork, and fleets save time and money through 
automation. ELDs can put drivers and dispatchers on the same page when it comes to planning. For 
instance, they can both see why it makes sense to send the driver to the shipper the night before so his 
waiting time can be done off‐duty. 

Now’s the time to look around and test out various programs. There are lots available (some for free) 
that comply with the latest rules and regulations. Carriers can shop to their heart's content and find a 
program that fits them rather than them fitting it. 

As for the URS, there will be many who will be totally surprised and caught off guard. Now don't get the 
URS confused with the Uniform Carrier Registration ‐‐ UCR.  The UCR is simply a way for the government 
to collect money to fund programs.  The URS is an electronic on‐line registration system that is intended 
to streamline and simplify the FMCSA registration process.  The URS will act as a clearinghouse and 
depository of information on all entities regulated by the Agency.  There is that BIG DATA rearing its ugly 
head again. 

But will it be everything that it is intended to be?  Already it takes much longer to set‐up a new carrier.  
There are other concerns as well.  How about the portal and the access to the data?  It seems 
complicated to me and is a nightmare for third party service providers ‐‐ at least so far.  And how about 
all the delays in the final release?  Can we expect more delays? 

 Private carriers have some work to do. Getting the word out to them will be important.  They've never 
had to file insurance or register process agents on a BOC‐3 form. 

URS doesn't seem to affect IFTA directly, but maybe there is a silver lining ‐‐ perhaps the elimination of 
the IFTA decal as more and more data is collected and shared by the various government agencies. 

We can dream, can't we? 

How the ELD changes will affect the IFTA community is anyone's guess.  My hope is that it will be 
positive, but there is at least one caution as it relates to IFTA. 

Many of the ELD providers are offering IFTA reporting as part of their service.  After all, isn't GPS the 
magic elixir we are all looking for? 

We all know that the data retention requirements for IFTA and ELD's are not the same.   And how about 
checking the data for gaps and errors?  Although it's buyer beware, as a community, we should be 
educating our users as to the correct way to use GPS to file an IFTA return.  It's too late when the auditor 
shows up.   

These changes will mean at least some companies will outsource their fleet tax compliance 
requirements. Outsourcing means giving access to data to third parties.  Industry understands that there 
are privacy concerns for government.  After all, it's our data.  But using third party providers for fleet tax 
compliance work is commonplace, a necessity and a reality.  In the end government will be much farther
IAC Report to Membership – 2016 ABM 

ahead by allowing the job to be done right in the first place.  Giving easier access to third party providers 
is a step in the right direction. 

These types of changes give people the chance to think about changes for themselves.  How many 
people and companies will decide that they don't want to get on this bus and simply retire from the 
industry. 

The IFTA IAC is also making a few changes.  We are reorganizing our steering committee to spread out 
the workload.  This is a start towards making better inroads in our membership and getting the word out 
to others who might not be aware of the committee and their ability to participate in the issues that are 
driving our industry.  We want to encourage government members to attend our meetings.  The 
importance of government and industry cooperation in both the IFTA and IRP programs cannot be 
overstated.  History has proven this and for these programs to remain successful, this relationship needs 
to be nurtured.   

We’re all used to being in the driver’s seat, and we all know the rules of the road. We know how park 
our own car and hopefully stay out of someone else's lane without being warned.  

But we’re about to confront some new bells and whistles, and it’s going to be frustrating at times. We 
have to be aware that much of this will all be new to many carriers. 

In all of this, let's not lose site of the fact that in the end, will any of this make us safer?  But that is 
another topic for another day. 

For now, we have some time to make some changes on our own terms. Let's make good use of our time 
and resources.
July 28th 2016 

IFTA Inc. Law Enforcement Committee
Board of Trustees Report
July 28th, 2016

Board of Trustees,
The LEC Team continues to strive towards promoting IFTA and IRP Enforcement across North America
by conducting its monthly teleconference calls; taking action on existing practices and procedures as well
as providing enforcement liaison to the IFTA and IRP community at large. Tasks are assigned on a
voluntary basis as we all work together in achieving our mandate and ensuring a strong safe working
environment for all Enforcement Officers conducting IFTA/IRP inspections and compliance. The LEC
seeks to promote uniformity and consistency as best possible.
The committee has one working document, the “Best Practice Guide”, currently being revised for
implementation on the IFTA, Inc. website. This guide is meant to be used as a “guideline” only for any
enforcement personnel to familiarize themselves with the enforcement of IFTA. Each individual jurisdiction
remains responsible for their Acts, Regulations and Statutes in relation to Fuel Gasoline taxes.
The LEC Membership is currently at its full capacity with Enforcement representation in the following
regions:
Midwest: David Bales (KS) Officer -LEC Vice-Chair
West: Eric Belford (MT) Captain
Leonard McLaughlin (WS) Trooper
Southeast: Barbara Arkwright (VA) Special Agent in Charge
Kevin Ingalls (AL) Trooper Corporal     
Northeast: William Haynes (NH) Captain
Joe Hatcher (MD) Supervisory Agent
Midwest: Michael Klingenberg (WI) Lieutenant
Canadian: Andrew Markle (ON) Provincial Inspector -LEC Chair
Robert Chapple (SK) Supervisor, Investigation and Enforcement -LEC 2nd Vice-Chair
Vincent Wood (NS) Manager, of Compliance and Special Investigations