IFTA, INC. STRATEGIC PLANIFTA, INC. STRATEGIC PLAN

Julian Fitzgerald (NC)Julian Fitzgerald (NC)IFTA, Inc. Board of TrusteesIFTA, Inc. Board of Trustees

2007 Annual Business Meeting2007 Annual Business MeetingJuly 20-21, 2007July 20-21, 2007Chesterfield, MOChesterfield, MO

Vision StatementVision Statement

The model organization striving The model organization striving for full partner cooperation and for full partner cooperation and

member compliance.member compliance.

Mission StatementMission Statement

To foster trust and cooperation among To foster trust and cooperation among the jurisdictions through efficient and the jurisdictions through efficient and

effective planning and coordination and effective planning and coordination and oversight of activities necessary to oversight of activities necessary to

administer the International Fuel Tax administer the International Fuel Tax Agreement for the betterment of the Agreement for the betterment of the

members and our partners. members and our partners.

IFTA’s StrengthsIFTA’s Strengths

Jurisdictions have few fears regarding receipt of Jurisdictions have few fears regarding receipt of tax revenuestax revenues

Industry supportIndustry support

Good governing documentsGood governing documents

Financially sound Financially sound

IFTA’s OpportunitiesIFTA’s Opportunities

Clearinghouse – paperless transmittals and Clearinghouse – paperless transmittals and funds nettingfunds netting

Partnering with IRP and other governmental Partnering with IRP and other governmental unitsunits

Strengthen committeesStrengthen committees

Increase enforcementIncrease enforcement

Pursue federal fundingPursue federal funding

IFTA’s ThreatsIFTA’s Threats

Court decision that determines IFTA practices Court decision that determines IFTA practices unconstitutional.unconstitutional.

Jurisdiction action that contradicts IFTA.Jurisdiction action that contradicts IFTA.

Alternate fuels which complicate taxation. Alternate fuels which complicate taxation.

GoalsGoals To promote confidence and stability through To promote confidence and stability through partnerships between jurisdictions, industries, and partnerships between jurisdictions, industries, and other governments.other governments.

To continuously plan, manage, and review IFTA, To continuously plan, manage, and review IFTA, Inc.’s existing resources and new opportunities to Inc.’s existing resources and new opportunities to ensure that organizational purposes are achieved.ensure that organizational purposes are achieved.

To meet the needs of customers and stakeholders To meet the needs of customers and stakeholders by utilizing technology.by utilizing technology.

GoalsGoals

To enhance confidence in the agreement by To enhance confidence in the agreement by assertively pursuing enforcement and assertively pursuing enforcement and compliance.compliance.

To expand the knowledge base regarding IFTA To expand the knowledge base regarding IFTA through education and awareness.through education and awareness.

To promote confidence and stability To promote confidence and stability through partnerships between jurisdictions, through partnerships between jurisdictions,

industries, and other governments.industries, and other governments.

Developed joint IFTA-IRP compliance reviews to Developed joint IFTA-IRP compliance reviews to determine feasibilitydetermine feasibility– Established guidelines, standards and worksheetsEstablished guidelines, standards and worksheets– Scheduled and conducted test reviewsScheduled and conducted test reviews

MN (July 2006)MN (July 2006)

WY (May 2007)WY (May 2007)

OR (September 2007)OR (September 2007)– Will analyze test reviews to determine if combined reviews Will analyze test reviews to determine if combined reviews

will be beneficialwill be beneficial

To promote confidence and stability To promote confidence and stability through partnerships between jurisdictions, through partnerships between jurisdictions,

industries, and other governments.industries, and other governments.

Combined Audit Workshop with IRPCombined Audit Workshop with IRP2006 marked the 92006 marked the 9thth year year

Participation on the NAFTA Working GroupParticipation on the NAFTA Working Group

To continuously plan, manage, and To continuously plan, manage, and review IFTA, Inc.’s existing resources review IFTA, Inc.’s existing resources and new opportunities to ensure that and new opportunities to ensure that

organizational purposes are achieved.organizational purposes are achieved.Completed a 5-year budgetCompleted a 5-year budget– Established a minimum cash reserve (one year’s Established a minimum cash reserve (one year’s

operating capital)operating capital)– Ongoing monitoring of operations to ensure not-for-Ongoing monitoring of operations to ensure not-for-

profit statusprofit status– Pursue innovative funding sources, when available Pursue innovative funding sources, when available

Review IFTA, Inc.’s staffing needs to achieve goalsReview IFTA, Inc.’s staffing needs to achieve goalsCreated a contingency plan for business disruptionsCreated a contingency plan for business disruptionsCreated succession plans – for planned and unplanned Created succession plans – for planned and unplanned vacancy of position of Executive Directorvacancy of position of Executive Director

To meet the needs of customers and To meet the needs of customers and stakeholders by utilizing technology.stakeholders by utilizing technology.

Created the Information Technology Advisory Created the Information Technology Advisory Committee (ITAC)Committee (ITAC)

Funds netting through the ClearinghouseFunds netting through the Clearinghouse– Research and evaluation by Clearinghouse Advisory Research and evaluation by Clearinghouse Advisory

Committee complete – working on implementationCommittee complete – working on implementation

Identify technology opportunitiesIdentify technology opportunities– Identifying new ways to utilize the IFTA Web siteIdentifying new ways to utilize the IFTA Web site

To enhance confidence in the agreement by To enhance confidence in the agreement by assertively pursuing enforcement and assertively pursuing enforcement and

compliance.compliance.

Promote enforcement through creation of a Promote enforcement through creation of a Marketing PlanMarketing Plan– Law Enforcement Committee (LEC) has made contact with person Law Enforcement Committee (LEC) has made contact with person

in each jurisdiction responsible for enforcement issuesin each jurisdiction responsible for enforcement issues– Some jurisdictions are populating the Clearinghouse with USDOT Some jurisdictions are populating the Clearinghouse with USDOT

Numbers (See NE ballot 3-2007)Numbers (See NE ballot 3-2007)– LEC is developing a Best Practices GuideLEC is developing a Best Practices Guide– Definition of Roadside Enforcement was added to the IFTA Articles Definition of Roadside Enforcement was added to the IFTA Articles

of Agreement in January 2007of Agreement in January 2007

Include enforcement in the IFTA AgreementInclude enforcement in the IFTA Agreement– See LEC Ballot 1-2007See LEC Ballot 1-2007

– LEC will later develop standards to include in the Program LEC will later develop standards to include in the Program Compliance ReviewsCompliance Reviews

To expand the knowledge base To expand the knowledge base regarding IFTA through education and regarding IFTA through education and

awareness.awareness.

Promote Education & AwarenessPromote Education & Awareness– The Agreement Procedures Committee, the Audit The Agreement Procedures Committee, the Audit

Committee and the LEC are developing Best Committee and the LEC are developing Best Practices GuidesPractices Guides

– Use website as educational toolUse website as educational tool– Enhance the Annual Report and exemption Enhance the Annual Report and exemption

databases on IFTA Web site for clarity and usefulness databases on IFTA Web site for clarity and usefulness – The Agreement Procedures Committee is in the – The Agreement Procedures Committee is in the process of looking at this.process of looking at this.

Strengthen CommitteesStrengthen CommitteesEnhance ParticipationEnhance Participation

Future ChallengesFuture Challenges

– Mexico or tribal entities may join IFTAMexico or tribal entities may join IFTA– Technological changesTechnological changes– Tax IssuesTax Issues

Alternate fuels; Alternate fuels;

multi-fuelsmulti-fuels– Institutional MemoryInstitutional Memory– Legislative/legal challengesLegislative/legal challenges– Adverse court decisionsAdverse court decisions– Congressional actionCongressional action