Member Duties, Opportunities & Responsibilities

1. Member Duties, Opportunities & Responsibilities Presented by: Deann Williams, KS Laurie Glenn, NE Ken Carey, IRP, Inc.

2. Our Program Today Key duties in administering the IRP Voting and Ballots IRP committees and volunteers Annual fee test & Annual report of plan activity Requirements of jurisdictions when fees change Audit basics Peer Reviews

4. Member Duties • Administer the IRP agreement as outlined in Article XII • All jurisdictions shall administer the Plan in a way that won’t cause undo harm toward other member jurisdictions. • Each jurisdiction will cooperate with other jurisdictions in connection with applications and the collection of fees.

6. Member Duties ... • Each jurisdiction shall make sure the fees collected on behalf of the other jurisdictions are done as if that jurisdiction is making the collection itself. • Each jurisdiction shall expend reasonable resources to prevent, fraud and sham in all areas of the Plan.

7. Voting and Ballots

8. IRP’s Structure Membership IRP Inc. (the Repository) Board of Directors Task Forces Full Reciprocity Compliance Audit INCVA Audit Committee Peer Review Committee Industry Advisory Committee Dispute Resolution Committee International Committee Clearinghouse Committee Education Committee (nee PPEC)

9. Board of Directors Executive Committee Chair Vice Chair Treasurer Secretary Past Chair (non-voting) Voting Members Board Advisory Panel US Region I 2 members Canada 2 members Industry 3 members US Government 1 member US Region II 2 members AAMVA 1 member CCMTA 1 member Mexican Gov 1 member US Region III 2 members US Rotating 1 member CVSA 1 member US Region IV 2 members

10. Audit Committee Chair Region I 2 members Region II 2 members Board Liaison Vice Chair Region III 2 members Region IV 2 members Industry 2 members Past Chair Duties: Review recommended audit standards and procedures for compliance with the Plan, APM and Audit Training Manual Propose audit related ballots Review ballots affecting the IRP audit program Assist jurisdictions with audit matters Advise IRP, Inc. committees and the board on audit-related issues Develop the agenda and related materials for the annual IFTA/IRP Audit Workshop.

11. Clearinghouse Committee Chair US Region I 1 member US Region II 1 member Canada 1 member Board Liaison Vice Chair US Region III 1 member US Region IV 1 member Past Chair Duties: Provides expertise in addressing the issue(s) of enhancements or changes to Clearinghouse

12. Dispute Resolution Committee Chair US Region I 1 member US Region II 1 member Canada 1 member Board Liaison Vice Chair US Region III 1 member US Region IV 1 member Industry 6 members Past Chair Parliamentarian • Duties: • Interpret the International Registration Plan (Plan) • Resolve issues of Plan compliance • Enforce compliance with the provisions of the Plan

13. Education Committee (nee PPEC) Chair Region I 1 member Region II 1 member Any Jurisdiction 2 members Board Liaison Vice Chair Region III 1 member Region IV 1 member Industry 2 members Past Chair • Duties: • Develop training tools and programs to educate IRP Member Jurisdictions • Provide educational content for IRP meetings and/or workshops • Monitor and review ballots and provide comments to ballot sponsor(s) • Complete other responsibilities as assigned by the Board

14. International Committee Chair US Region I 1 member US Region II 1 member Canada 2 members Board Liaison Vice Chair US Region III 1 member US Region IV 1 member Industry 5 members Past Chair US Federal Gov 1 member Mexico Gov 1 member Canadian Gov’t 1 member Law Enforcement 1 member • Duties: • Address issues relating to travel between the U.S., Canada and Mexico

15. Peer Review Committee Region I 2 members Region II 2 members Board Liaison Region III 2 members Past Chair Region IV 2 members At Large Positions 1 US member 1 CA member Duties: Perform peer reviews of each IRP Member Jurisdiction Administer the annual fee test

16. Industry Advisory Committee Chair Steering Committee 4 members + Chair/VC Motor Carrier Industry, Allied Industries and Industry Associations 24 members Vice Chair Duties: Provide a forum within IRP for matters concerning the motor carrier industry and allied industries in relation to the Plan Provide advice and policy recommendations relating to the Plan Nominate industry members to the Board Advisory Panel Nominate industry members to standing and ad hoc committees of the Board

17. IRP, Inc. (The “Repository”) Executive Director(Tim Adams ) Senior Director, Programs and Education(Claudia Rizzo) Director, Clearinghouse & Info. Systems Management (Robin Murphy) Program ManagerCompliance Programs and Education(Ken Carey) Communications Coordinator(Danielle Polo) Membership Assistant (Lora Pickard)

18. IRP is Volunteer Driven

19. Volunteering with IRP – A How to: • Board of Directors • Voting members elected by ballot for each term • Voted on only by region or country • 3 year terms (except 1 rotating US member) • 2 terms max • Task Force(s) • Appointed by Board Chair • No term limits • Standing Committees • Appointed by Board Chair (in consultation with region/ country/ IAC) • 2 year terms • 2 terms for most (industry members 3 terms, DRC 3 terms) • Short term/ Ad hoc • As required ADD SHORT term volunteer opps. • Board Advisory Panel • Appointed by Board Chair • 1 year term • No term limit To apply to volunteer, contact: irpmail@irpinc.org

20. Volunteering with IRP – A why to: “I have always found the experience worthwhile, for three reasons. (1) working with these groups, you can make a real difference, (2) you always learn something new, and (3) the people involved with IRP are the best!” - Robert Pitcher (ATA), Industry Advisory Committee & Dispute Resolution Committee “ I felt I had a lot of insight and skills that would benefit the IRP community as a whole. I also got involved to develop relationships with other states that will allow better insight into other states’ best practices.” - Chester Cook (GA), Audit Committee “There are three main reasons for volunteering: • To give back to the community. IRP was built by the membership and we must all continually give back to keep the program strong and build the bonds between jurisdictions. • To expand one’s knowledge. All volunteers will gain from being a volunteer. We are here to...learn and expand our knowledge. • To teach others. We must share back the knowledge we learn with the community.” Richard Wagner (KY), Audit Committee “I volunteer for...the common good of IRP; to help others and for my own skill development.” - Drake Israel (IL), Audit Committee “ I think of volunteering as a learning experience, I have been around the IRP world for many years, but listening to what other jurisdictions do and why they do it is a great way to learn.” - Leo Luttjohann (KS), Clearinghouse Committee

21. Duties Related to Fees

22. Fee Changes Article XII Section 1205 Member Jurisdictions will notify IRP regarding fee changes Once IRP is notified, a notice will be sent to the other jurisdictions within 10 days

23. Notifying IRP Jurisdictions’ submit fee changes in the following format: Memo Fee Schedules Fee Calculations

28. Implementation • Jurisdictions have 120 days to implement fee changes from the date notification was received from IRP • Jurisdictions may implement changes anytime within the 120 days

29. Compliance • Jurisdictions can ask for a confirmation of when the fee changes have been implemented • Jurisdictions can monitor their fee changes through the transmittal and/or the Annual Fee Test

30. Registrant’s Payment of Fees Timely Collection of Apportionable Fees Article XII Section 1210 Base Jurisdictions are required to suspend a carrier’s registration if a carrier does not pay for a supplement or temporary within 90 days of issuance.

31. Annual Report of Plan Activity Annual Report of Plan Activity Article XII Section 1220 Each jurisdiction will submit an Annual Report of Plan Activity for the preceding calendar year to IRP, Inc. by March 1 of each year.

32. Annual Report of Plan Activity

33. Annual Fee Test Article XII Section 1225 Fee Test • A Member Jurisdiction shall complete an annual fee test according to such a format and schedule as determined by the Peer Review Committee.

34. Purpose of Fee Test • Fee test is a tool designed for jurisdictions to insure that fees collected on the behalf of other jurisdictions are being calculated correctly • Base Jurisdictions use the fee test to analyze member jurisdictions fee calculation of their fee

35. Annual Fee Test Instructions

36. All calculations will be for January 1-December 31 of the current year. If your jurisdiction cannot use the provided effective dates, use a 12-month period.

37. Scenarios • FEE TEST 2 • Supplement 000 – Add • Effective Date of “Add” Transaction: January 1, 2011 • Carrier type is Haul for Hire • Add Equipment #1:Year: 2000 (Used)Make: KenworthVIN: 1KWTESTVEH0212345Axles: 3Fuel: DUnladen Weight: 18,000 lbs./8,163 kgs.GVW: 80,000 lbs./36,287 kgs. (6 axles for Quebec)Factory Price: $95,000 US/ $94,164 CDPurchase Price: $60,000 US /$59,472 CDDate of Purchase: January 1, 2006 • Calculate fees for 12 months • STOP: Verify your work before completing the next test Add Unit

38. FEE TEST 3 • Supplement 001 – Add/Delete • Effective Date of “Add/Delete” Transaction: April 1, 2011 • Delete Equipment #1 • Add Equipment #2:Year: 2007 (Used)Make: FordVIN: 1FDTESTVEH0112345Axles: 3Fuel: DUnladen Weight: 18,000 lbs./8,163 kgs.GVW: 80,000 lbs./36,287 kgs. (6 axles for Quebec)Factory Price: $149,000 US /$147,689CDPurchase Price: $120,000 US /$118,944 CDDate of Purchase: April 1, 2011 • *(Use current date if system will not accept future purchase dates) • Calculate fees for nine months • STOP: Verify your work before completing the next test Add/Delete

39. Sample of Fee Test Results

40. Cooperative Agreement

41. IRP Inc. Dues • Specified in the Plan • Fee changes done by ballot to amend the Plan (75% required to pass) • Penalties in the Plan for non-payment • Dues include membership in the Clearinghouse

42. IRP Inc. Dues $ $6,000.00 U.S. per Jurisdiction plus an amount based on the number of power units

43. The 3% Rule explained: • Jurisdictions must perform a number of audits equivalent to an average of 3% of its number of renewed IRP fleets for each year of the peer review period. Audit Basics

44. Audit Basics … Continued

45. NEW ! July 2013 Audit Basics – Post Ballot 371 • The 3% Rule • Mostly Same as before except from July 1, 2013 • Three Record Reviews, which are not as in depth as audits, can be conducted to account for one audit for up to 25% of a jurisdiction’s annual audit quota • Audit webinar, March 21

46. Peer Reviews – the Basics Why is peer review important? It’s required by Section 1355 to happen every five years It’s an effective process to ensure member jurisdictions are in compliance with Sections of the Plan and Audit Procedures Manual (APM) It’s a tremendous training opportunity and information sharing activity It ensures that you are collecting the appropriate fees and taxes for other jurisdictions

47. Common misconceptions Fiction: Peer Review Committee (PRC)’s goal is to write up a jurisdiction for non-compliance Fact: The PRC is not a “gotcha group” The PRC uses the compliance guide to verify that the processes and procedures are followed Helps ensure jurisdictions’ quality control isn’t being overlooked The PRC works with the jurisdictions throughout the review process to assist in achieving full compliance

48. Peer Review Prep How can you prepare for a peer review? Do your own mock peer review on yourself… Use the compliance guide and related documents (all available at IRPonline.org) Why wait… do an annual self review Review recent Final Peer Review Reports @ IRPonline.org Check the Final PRC reports to ensure your jurisdiction is in compliance   Ask questions of the PRC about the process or issue before they come (questions don’t count as a non-compliance finding!!!)

49. Collection of Fees Peer Review Annual Activity Reports In conclusion… 59 Jurisdictions Audits Fee Test Industry Volunteers IRP Staff

50. Questions?