March 2013 Newsletter | Glostone Trucking Solutions

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March Newsletter

What Are Auditors Looking For?

In our February issue, we focused on the Federal Motor Carrier Safety Regulations. We detailed the list of documents an auditor would require when looking for compliance with these regulations.

For this article, we will focus on the International Registration Plan (IRP) and the International Fuel Tax Agreement (IFTA). Both apply to trucks over 26,000lbs and traveling interstate. The IRP deals with how states register vehicles and distribute the registration fees to the states traveled. IFTA is the system states use to collect and distribute fuel tax monies based upon where the fuel was used. Each state is required to audit 3% or more of their carriers registered in these programs.

Both IRP and IFTA have similar record keeping requirements when it comes to tracking distance traveled. IFTA goes beyond IRP record keeping requirements by also requiring fuel purchase records. The records are used by auditors to verify that each carrier has an adequate record keeping system in place and uses those records accurately to pay the proper registration and fuel tax fees. Auditors can request records going back 4 years.

Here is a list of required records common to both IRP and IFTA:

Distance recaps for each vehicle for each jurisdiction in which the vehicle operated.
1. An acceptable distance accounting system is necessary to substantiate the information reported on the tax return filed quarterly or annually. At a minimum, must include distance data on each individual vehicle for each trip and be recapitulated in monthly fleet summaries. Supporting information should include:

Date of trip (starting and ending);
Trip origin and destination;
Route of travel;
Beginning and ending odometer
Total trip miles/kilometers;
Miles/kilometers by jurisdiction;
Unit number or vehicle identification number;
Vehicle fleet number;
Registrant’s name; and
May include additional information at the discretion of the base jurisdiction.

Additional fuel records are required for IFTA. The fuel records shall contain:

The date of each receipt of fuel;
The name and address of the person from whom purchased or received;
The number of gallons or liters received;
The type of fuel;
The vehicle or equipment number into which the fuel was placed, and
If applicable, details of taxable and non-taxable usage of fuel;

These are the minimum records needed for an IFTA and/or IRP audit. Just having the document does not mean it will be acceptable. Auditors will verify the accuracy of the records plus ensure the correct numbers were actually reported.

Common mistakes carriers make with IFTA and IRP record keeping:

Recording miles from dispatch records and not balancing them with odometer readings
Recording miles using mapping software and zip code references
Not recording odometer readings
Not recording routes of travel
Not recording empty or bob-tail miles
Not recording personal miles
Not keeping fuel receipts or accepting fuel receipts without all of the required information included.

Error percentages are applied to the entire three year audit period and to all vehicles which can result in substantial fee, penalty and interest assessments. When it comes to compliance and audits, being proactive is the key. Have systems in place that will guarantee records compliance and promote safety. If you need help with a proactive plan, give us a call!

Pre-Employment Screening Program

The DOT makes available to carriers their Pre-employment Screening Program (PSP). The information contained in the PSP reports is a summary of each drivers roadside violations going back 3 years. This information can prove invaluable when trying to select the right driver for your company.

Carriers can enroll in the PSP program or avoid the annual fee by having us run the PSP report for you! Glostone is an authorized 3^rd party provider for PSP reports. Give us a call for more information!

Electronic On Board Recorders

When used properly, Electric On Board Recorders (EOBRs) can be a great investment. Used incorrectly, they can become money down the drain. There is a wide variety of equipment and pricing available. We recommend to always try before you buy and make sure the equipment is right for your operation.

Contact us if you have interest in a free, no obligation trial using uDrove (www.uDrove.com). Their system uses most late model smart phones as a communication platform and is complete with electronic driver logs, distance tracking, load tracking and more. After the free, no obligation trial, no money down pricing options are available!