Feedback at the 2007 ABM in St. Louis suggested that changes be made to the proposed funds netting...

INTERNATIONAL FUEL TAX AGREEMENT

Celebrating 25 Years of Cooperation and Trust - 2008

Feedback at the 2007 ABM in St. Louis suggested that changes be made to the proposed funds netting process as follows:

• Establish and implement a revised funds netting calendar to allow sufficient time to process returns, upload data and make payments. The revisions should be established prior to any related changes to the Clearinghouse Access Agreement.

• Review the provisions of the IFTA Governing Documents to determine whether any additional changes might be necessary to P1040 or the Clearinghouse provisions in the Articles of Agreement to implement and utilize the funds netting process.

The following introduces a revised calendar and outlines a test conducted to ensure the schedule and process is feasible.



Jurisdiction uploads and verify IFTA Inc. Upload and netting

Jurisdictions fund Acct IFTA Inc. Distributes funds

2nd Funding 2nd Distribution



• Test involved the jurisdictions of Kansas, Maine, Mississippi and Saskatchewan

• Made up of three phases over a six month period (February – July)

1. Data Upload/Verification 2. Penny test3. Transfer of Netted Funds



1. Data Upload/Verification (June example – Funds Netting #6-2008)

1. The test jurisdictions upload and verify accuracy of data on or before June 27, 2008.

3. IFTA, Inc. processes and uploads the transmittals to the Clearinghouse on or before June 30, 2008. 4. IFTA, Inc. generates Funds Netting Totals for the test jurisdictions on June 30, 2008. 5. The test jurisdictions will review the Net Results and the Final Settlement Report for accuracy.



2. Penny Test

6. Each test jurisdiction electronically transffered $0.01 to IFTA, Inc.’s funds netting account.7. IFTA, Inc. reviewed the account to determine that the funds have been deposited into the funds netting account.8. IFTA, Inc. transferred $0.01 to each test jurisdiction that successfully transferred into the funds netting account.9. The applicable test jurisdictions verified the deposit of $0.01 from IFTA, Inc. and reported the result to IFTA,Inc.



3. Transfer of Netted Funds

• Each test jurisdiction with an amount showing in the “Due To Fund” column of the Final Settlement Report will electronically transfer the amount due to IFTA, Inc.’s funds netting account on or before the assigned calendar date.

• IFTA, Inc. will review the account to determine that the funds have been deposited into the funds netting account.

• IFTA, Inc. will transfer the amount due to each test jurisdiction with an amount showing in the “Due From Fund” column of the Final Settlement Report to each test jurisdiction

• The applicable test jurisdictions will verify deposit of the amount due from IFTA, Inc. and report the result to IFTA, Inc.(This portion of the test is planned to be completed with the August transmittal )



Test Results to Date

• Jurisdictions had no trouble meeting data submission deadlines as stipulated by the Funds Netting Calendar.

• Data was transferred accurately and timely• The Net Results and Final Settlement reports produced

by the Clearinghouse were verified to be accurate by the test jurisdictions.

• The Penny Test is underway and thus far shows that the jurisdictions and IFTA Inc along with their banking partners are well prepared to implement funds netting.

Feedback at the 2007 ABM in St. Louis suggested that changes be made to the proposed funds netting...

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