F4 I FINANCE - 100% ORIGINAL & A+ QUALITY WORK

An Overview of Finance & Accounting Systems

NOTE: All finance and accounting systems applications support (as are all other Huffman Systems) to include hardware, modifications, version updates, etc., are performed under contract by Smith Systems Consulting.

By design and necessity, Huffman Finance & Accounting Systems are tightly integrated with the Fleet Maintenance System and the Enterprise Transportation Application.

The Fleet Maintenance System is integrated to capture financial and accounting data/information relative to:

Maintenance costing

Fuel management and costing

Warranty management

Materials inventory management

Fixed assets

The Enterprise Transportation Systems is integrated to capture financial and accounting data/information relative to:

Fuel Tax reporting

Revenue analysis

Driver management (cost & settlements)

Claims

Collections

Licensing costs

Payroll (driver only)

Freight Billing (LTL & Truckload)

Imagining

Interline Payables

Insurance

The Finance & Accounting Application is licensed on an annual per user basis from a vendor specializing in F & A systems for the transportation industry. While functionality is tailored to the needs of the transportation industry…the modules are fairly standard for an F & A Software Package:

General ledger

Accounts Payable

Accounts Receivable

Cash Management

Billing/Invoicing

Credit/Collections

Costing

Property Management

Assets

Taxes

Huffman Trucking Balance Sheet
(Unaudited)
	December 31st
	2011	2010
	(In Thousands)
Assets
Current Assets
Cash & Cash Equivalents	$89,664	$58,003
Accounts Receivable	51,869	81,557
Prepaid Expenses & Supplies	6,267	5,529
Total Current Assets	$147,800	$145,089
Carrier Operating Property (at cost)	$85,306	$81,461
Less: Allowance for Depreciation	(69,536)	(67,119)
Net Carrier Operating Property	$15,770	$14,342
Assets of Discontinued Operations	7,516	8,739
Goodwill (net)	49,852	49,852
Other Assets	46,327	37,306
Total Assets	$267,265	$255,328
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable	$40,843	$45,381
Salaries & Wages	37,299	33,014
Current Portion of Long-Term Debt	1,752	1,343
Freight & Casualty Claims Payable	10,389	9,697
Total Current Liabilities	$90,283	$89,435
Long-Term Liabilities
Accrued Pension & Post-Retirement Health Care	$64,058	$58,672
Long-Term Debt	7,307	6,562
Total Long-Term Liabilities	$71,365	$65,234
Shareholders' Equity
Common Stock ($1.00 par value Authorized: 20,000,000 shares)	$3.882	$3.882
Treasury Shares	(1.952)	(1.952)
Retained Earnings	105,615	100,657
Total Shareholders' Equity	$105,617	$100,659
Total Liabilities and Shareholders' Equity	$267,265	$255,328

Huffman Trucking Statement of Income
(Unaudited)
	December 31st
	2011	2010
	(In Thousands)
Revenue	$1,109,295	$969,240
Operating Expenses
Salaries, Wages & Benefits	$406,191	$367,993
Fuel Expense	318,737	258,904
Operating Supplies and Expenses	117,670	105,875
Purchased Transportation	138,140	114,250
Operating Taxes & Licenses	19,033	17,753
Insurance & Claims	11,995	12,493
Provision for Depreciation	3,009	2,773
Total Operating Expenses	$1,014,775	$880,041
Operating Income form Continuing Operations	$94,520	$89,199
Interest Expense	$466	$768
Tax Expense	34,887	32,923
Net Income	$59,167	$55,508

2003 Wages and Benefits Analysis - Drivers
Over the Road Drivers	Rate	Avg. Miles Driven Per Year	Avg. Weekly Wage	Avg. Annual Wage	# of Drivers	Annual Cost for Drivers (000s)	% of Annual Wages	% of Sales ($620,000,000)
Wages (per mile driven)	$0.50	110,000	$ 1,058	$ 55,000	3,400	$187,000		30.2%
Paid Vacation (based on seniority)			$ 1,058	$ 2,115		$ 7,192	3.8%	1.2%
Paid Holidays		$ 1,058	$ 2,115		$ 7,192	3.8%	1.2%
Paid Sick Days		$ 1,058	$ 1,058		$ 3,596	1.9%	0.6%
Health & Welfare Contributions		$ 9,194		$ 31,258	16.7%	5.0%
Pension Fund Contributions		$ 8,840		$ 30,056	16.1%	4.8%
FICA Match		$ 3,738		$ 12,709	6.8%	2.0%
Medicare Match		$ 874		$ 2,972	1.6%	0.5%
FUTA Contributions		$ 434		$ 1,476	0.8%	0.2%
SUTA Contributions		$ 585		$ 1,989	1.1%	0.3%
Workers' Compensation		$ 12,400	6.6%	2.0%
Average annual cost		$ 83,953		$ 297,841	59.3%	48.0%

Total Payroll (000s)	Less Drivers (000s)	Remaining Salaries (000s)	# of remaining employees	Avg. per employee
$ 386,896	$ 297,841	$ 89,055	1,800	$ 49,475

Huffman Trucking - HRIS

The company has an HRIS system that was developed by in-house programmers prior to the decision to outsource all IT services. Smith Consulting is recommending that Huffman convert to a new system that was developed by Smith for its clients.

The current system is integrated to track employees from an operational and financial perspective. Data is organized into several major categories.

Employee Personal Information

This part of the database includes information needed to prepare payroll and maintain employee “census” information, such as:

· Personal information, such as name, address, marital status, birth date, etc.

· Pay rate

· Personal exemptions for tax purposes

· Hire date

· Seniority date (which is sometimes different than the hire date)

· Organizational information (department for budget purposes, manager's name, etc.)

· Vacation hours accrued and used (for non-exempt employees)

Employees can go online through the company's intranet and update this personal information as necessary. An employee without access to the company intranet may submit changes in writing to his/her supervisor, who will forward the information to Human Resources for processing.

Compliance Information

For each employee, a separate part of the database contains information required for complying with federal and state highway standards. This information includes:

· Drug testing results

· Hours/miles driven

· Safety records - all violations and corrective actions

· Attendance at mandatory training workshops

· Injuries, workers compensation history

· Licenses and training certifications

Employee/Labor Relations Information

· Grievances filed

· Resolution of grievances

· Any investigations of employees

Applicant Tracking

Each recruiter maintains applicant information for open positions. Résumés and applications are filed in a central storage area. Basic applicant tracking statistics required for compliance reporting are entered into an in-house applicant tracking system, which can be accessed by all recruiters. Applicants may also apply via the company's internet site, a recent systems addition by Smith Consulting.

Official employee files are kept by the HR department. Individual managers may not maintain copies for their personal use, however selected information for each subordinate may be accessed via the intranet. Supervisors are expected to send originals of performance reviews, disciplinary actions, etc. to HR for permanent record storage.

HR personnel are also responsible for tracking FMLA absences and any requests for accommodation under the ADA. Employees who request FMLA accommodation must fill out a request and send it to HR, where the request is investigated and approved or denied. HR staff members will work with the employee and manager to determine whether accommodations are feasible.

The compensation manager keeps an Excel spreadsheet with the results of job analyses, salary surveys, and individual compensation decisions. The labor relations department keeps a separate set of records related to union negotiations.