iTRAK News - March 2009
Customer Spotlight – Alabama Department of Corrections
When inmate Donell Shelton escaped from a work detail in Alabama earlier this month, he didn't realize that his every move was being reported by the iTRAK device installed in the van he was driving.
 The 41-year old Huntsville man was convicted of burglary in 2007, and was serving a 20-year sentence. Shelton was being held at the Alexander City Work Release Center, where he served as a van driver, shuttling other inmates to jobs in the Birmingham area. On Tuesday night Shelton did not return to Alexander City after taking a fellow inmate to a job, according to Brian Corbett, spokesman for the Alabama Department of Corrections (DOC).
Once prison authorities realized Shelton was missing, they immediately consulted their iTRAK Fleet Manager system that was installed two years ago in 153 vehicles operated by the Alabama Department of Corrections. They could see from the stored data that the van had been driven to a motel in downtown Birmingham, where it was still parked. The van was recovered without damage, and Shelton and the inmate he was transporting were apprehended by Birmingham police a short time later.
 Steve Watson is the Director of the state's Supervised Re-entry Program (SRP), which prepares incarcerated offenders for reentry back into the community, and oversees the agency's use of the iTRAK system. The Alexander City Work Release Center, one of thirty facilities in the Alabama DOC that utilizes the iTRAK system, houses 300 inmates who participate in the work release program and other programs that provide free inmate labor to the Tallapoosa County Commission and the community’s Adopt-A-Mile program.
"Tracking officers, staff, and inmates was intended to help us improve the safety of every person in our system," said Watson. "iTRAK Fleet Manager clearly helped us streamline the process of recapture in the Shelton incident, while minimizing the safety risk to the inmates, our staff, and the community."
Alabama DOC Associate Commissioner James H. DeLoach is a strong supporter of using the latest technology to improve operational efficiency and increase community safety. "Our investment in GPS technology in 2007 has proven its value several times over," said DeLoach. "Protecting the public is our foremost mission, and the iTRAK component provides an additional layer of support in achieving that goal. The ability to track our vehicles is invaluable."
Perspective on ROI – "What would happen if…"
What would happen if the company’s owner rode with each driver every day…
- Drivers would be more conscience of direct routes – Drivers would almost certainly take the fastest route from one job to the next, reducing wasted time and maximizing efficiency.
- Lunch breaks would become more efficient – Employees would take authorized breaks closer to the normal route; there would also be fewer unwarranted coffee breaks, keeping drivers on schedule.
- Personal use of vehicles would drop – Errands would be taken care of outside of company hours, on employees' personal time.
- Speeding would be eliminated – Adherence to local traffic laws and company policies would minimize company liability and potentially help drivers avoid fines or loss of license.
- On-site work would be carried out without wasting time – Once a job is completed, drivers would quickly finish paperwork and head to the next assignment.
- Only 'official' company activities would be carried out with the company vehicle – Moonlighting would be curtailed; personal visits to local hangouts or other unauthorized locations would be eliminated.
The above changes in driver behavior translate directly into cost savings and/or additional revenue:
A company with only 10 trucks eliminates 5 unnecessary miles per day per truck
(at $1.00 per mile) will result in an operating cost reduction of $100 per month per vehicle; or a total of $1,000! If the owner could ride with each driver every day, how much would be saved in operating costs?
Ten technicians, each gaining 15 additional billable minutes each day (billing at $50/hour) increases monthly revenues by $2,500 without adding people or equipment. How many more billable minutes could the company realize if the owner rode with the technicians every day?
With 10 employees eliminating one hour of overtime per week (at $20 per hour overtime rate) eliminates 40 hours overtime per month, or $800 per month in reduced payroll! Using the most conservative estimates, how much could overtime be reduced if the owner was with each driver all day every day?
These three scenarios are very realistic and can result in a cost saving or revenue increase of over $50,000 per year for a small company with only 10 vehicles. Assuming acquisition cost of less than $4,000 for hardware and a total operating cost of $3,000 per year for iTRAK, the return on investment is indisputable!
We know the owner can’t actually ride with every driver and watch what he or she does every day—but iTRAK Fleet Manager can! For more information on putting iTRAK to work for your company, contact us via email at itrak.sales@itrak.com or call 1-866-694-8725.
Did You Know? - Latest IRS Rules Encourage Equipment Purchases
Most new business equipment acquisitions can be expensed immediately under Internal Revenue Code Section 179. If you do not claim this specific deduction on your tax return, you must depreciate the asset over its useful life, spreading the tax deduction over 3-5 years.
As of 2008, Section 179 allows a company to deduct from its taxable income, the full amount of equipment purchases, with certain limitations. Not all business assets qualify, so check the IRS list carefully. Items specifically included that relate to GPS fleet management hardware are "machinery and equipment" and "off-the-shelf computer software."
For example, a $10,000 purchase of equipment would ultimately cost the business $6,500, assuming it had taxable income to deduct and the company was in the 35% tax bracket. Here's the math:
Equipment purchase price: $10,000
Total first-year deduction: $10,000
Cash savings on tax return: $3,500
Actual post-tax equipment cost: $6,500
The single-year deduction is allowable whether you pay cash or finance the purchase. Benefits from Section 179 are available to all types of businesses, including sole proprietorships, partnerships, and both C-corporations and S-corporations.
The latest changes in Section 179, enacted during 2008, increase the purchase limit to $250,000 for tax year 2008 and beyond. As of this writing, no additional changes have been published for the 2009 tax year.
Contact your CPA or tax professional and make sure your purchase will qualify for the Section 179 deduction in your specific situation.
Click here for more information on the specifics of Section 179 deductions.
If you would like to speak with iTRAK sales personnel about purchasing or leasing iTRAK hardware, email us at itrak.sales@itrak.com.
Who's Who at iTRAK...
 Admin Support – This dedicated group based at our headquarters handles a large number of different tasks, including new order processing and acceptance, questions relating to existing orders, new user set-up, fleet and unit changes, billing, and all other administrative issues. Call the admin staff at 1-866-694-8725 or email them at admin.support@itrak.com.
Technical Support – Our support team will make sure you derive the maximum benefit from your iTRAK system. They can help with installation concerns, answer technical questions, and resolve performance issues. Live hours are 6:00 AM - 5:00 PM Mountain Time, with on-call technicians available after hours. Call 1-866-224-8725 or email technical.support@itrak.com.
Sales Team – Based in regional offices throughout the U.S., our team of Regional Sales Managers stands ready to set up product demonstrations, provide current pricing, help calculate return on investment to justify your iTRAK purchase, and organize post-sales training. You can reach the sales team by calling 1-866-694-8725, or emailing itrak.sales@itrak.com
Past Issues of iTRAK News
Check out topics that may interest you from past issues of iTRAK News!
If you have comments, suggestions, or would like to submit a story for publication, we would love to hear from you. Email the iTRAK editorial team at: itraknews@itrak.com. |
