2013 ANNUAL IFTA BUSINESS MEETING

1. 2013 ANNUAL IFTA BUSINESS MEETING State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

2. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

3. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

4. State Of New Jersey Report On Audit Compliance Key Elements of the DRC issued order were: • Performing the minimum number of required audits as stipulated under A310 and A320 for calendar year 2012 and 2013. New Jersey Motor Vehicle Commission

5. State Of New Jersey Report On Audit Compliance Key Elements of the DRC issued order were: • Performing the minimum number of required audits as stipulated under A310 and A320 for calendar year 2012 and 2013. • Performing audits in a number that is equal to the audit shortfall during the period of calendar years 2009 – 2013. New Jersey Motor Vehicle Commission

6. State Of New Jersey Report On Audit Compliance Key Elements of the DRC issued order were: • Performing the minimum number of required audits as stipulated under A310 and A320 for calendar year 2012 and 2013. • Performing audits in a number that is equal to the audit shortfall during the period of calendar years 2009 – 2013. • Moving the peer review that would normally be performed in Nov/Dec 2014 up to Jan/ Feb of 2014. New Jersey Motor Vehicle Commission

7. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

8. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

9. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

10. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

11. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

12. State Of New Jersey Report On Audit Compliance New Jersey Motor Vehicle Commission

13. State Of New Jersey Report On Audit Compliance Challenges • Obtaining funding and hiring staff took much longer than expected. New Jersey Motor Vehicle Commission

14. State Of New Jersey Report On Audit Compliance Challenges • Obtaining funding and hiring staff took much longer than expected. • The accounting firm and MVC auditors underestimated the learning curve. New Jersey Motor Vehicle Commission

15. State Of New Jersey Report On Audit Compliance Challenges • Obtaining funding and hiring staff took much longer than expected. • The accounting firm and MVC auditors underestimated the learning curve. • The original 8 MVC auditors diverted from IFTA audits in order to: • train new both the hires and the vendor’s auditors. • review audits completed by the new hires & the vendor. • Manage the activities of the accounting temps. New Jersey Motor Vehicle Commission

16. State Of New Jersey Report On Audit Compliance Challenges • Obtaining funding and hiring staff took much longer than expected. • The accounting firm and MVC auditors underestimated the learning curve. • The original 8 MVC auditors diverted from IFTA audits in order to: • train new both the hires and the vendor’s auditors. • review audits completed by the new hires & the vendor. • Manage the activities of the accounting temps. • Hurricane Sandy New Jersey Motor Vehicle Commission

17. State Of New Jersey Report On Audit Compliance On the Plus Side • Implemented Mail – In audits New Jersey Motor Vehicle Commission

18. State Of New Jersey Report On Audit Compliance On the Plus Side • Implemented Mail – In audits • Accounting Temps exceeded expectations New Jersey Motor Vehicle Commission

19. State Of New Jersey Report On Audit Compliance Summary of Actions Taken • Increased the number of MVC auditors. End of 2012As of Today No audit supervisor 1 audit supervisor 6 auditors 7 auditors 2 auditor trainees 7 auditor trainees 1 clerical assistant New Jersey Motor Vehicle Commission

20. State Of New Jersey Report On Audit Compliance Summary of Actions Taken • Increased the number of MVC auditors. End of 2012As of Today No audit supervisor 1 audit supervisor 6 auditors 7 auditors 2 auditor trainees 7 auditor trainees 1 clerical assistant • Engaged an accounting firm in Oct ’12. New Jersey Motor Vehicle Commission

21. State Of New Jersey Report On Audit Compliance Summary of Actions Taken • Increased the number of MVC auditors. End of 2012As of Today No audit supervisor 1 audit supervisor 6 auditors 7 auditors 2 auditor trainees 7 auditor trainees 1 clerical assistant • Engaged an accounting firm in Oct ‘12. • Hired 6 accounting temps in Oct ’12. New Jersey Motor Vehicle Commission

22. State Of New Jersey Report On Audit Compliance Summary of Actions Taken • Increased the number of MVC auditors. End of 2012As of Today No audit supervisor 1 audit supervisor 6 auditors 7 auditors 2 auditor trainees 7 auditor trainees 1 clerical assistant • Engaged an accounting firm in Oct ‘12. • Hired 6 accounting temps in Oct ‘12. • Implemented Mail-In audits for low and medium mileage customers. New Jersey Motor Vehicle Commission

23. State Of New Jersey Report On Audit Compliance What Questions Do You Have ? New Jersey Motor Vehicle Commission