ifta, inc. clearinghouse funds netting account

INTERNATIONAL FUEL TAX AGREEMENT

Celebrating 25 Years of Cooperation and Trust - 2008

IFTA, Inc. ClearinghouseFunds Netting Account

JP Morgan Chase



• The account is a checking account dedicated to funds netting; sits with a zero balance pending the next funds netting cycle.

• Allows for ACH Credit and Funds Transfer (Wire) activity only – money in and money out



• US and Canada to US:– Once funds netting final totals are completed,

jurisdictions owing funds will transmit by ACH Credit (US) or Funds Transfer (Canada) into the funds netting account in US $.

– IFTA, Inc. will then transmit funds by ACH Credit (US) and Funds Transfer (Canada) to those jurisdictions due money from the Funds Netting Account in US $.



• Canada to Canada– A separate account will be set up with the JP

Morgan Chase affiliate in Canada (World Bank). The account has not been set up yet, but will allow the Canadian jurisdictions to transmit Canadian $ to and from the Funds Netting Account via ACH Credit.



• Two Test Phases– Penny Test – Each jurisdiction participating in

the current funds netting test will transfer $.01 to the Funds Netting Account.

– Funds Netting Test – From the Clearinghouse, a Final Funds Netting report will be run from actual transmittal data uploaded by the test jurisdictions. Based on that report, those jurisdictions will transfer money to or receive money from the Funds Netting Account.



• Penny Test Status– On July 2, 2008, Kansas successfully

transferred $0.01 into the Funds Netting Account.

– From JP Morgan Access, IFTA, Inc. was able to verify the details of that transaction and e-mail Kansas a copy of the verification.



CREDIT Details

AMOUNT TRANSACTION DESCRIPTION TRAN OUR-REF-NO AVL TIME DATE TYPE

0.01 EFT Credit ACH 1846668427TC SAME 5:16 7/2/2008ORIG CO NAME: ST OF KS STARSORIG ID: 1486029925DESC DATE: 080630ENTRY DESCR: VEND PAYMTENTRY CLASS: CTXTRACE NO: 021000026668427ENTRY DATE: 080702

IND ID NO: 022130983

IND NAME: 0006860640757 01ADDENDA: ISA*00* *00* *17*101000695 *17*122100024 *080630*200

Balance and Transaction Detail Report for KS Transaction



– Also on July 2, 2008, IFTA, Inc. sent the return transfer to KS (which is done by batch through JP Morgan Access)

– The batch was created with one jurisdiction (KS) and released

– The bank sweeps for batches 7 times per day from 5:30 a.m. (PT) through 6:00 p.m. (PT)

– IFTA, Inc. released the batch at 8:00 a.m. (PT) and it was in process by the bank at 8:30 a.m.

– Within 30 minutes, the batch had been approved by the bank and submitted for payment



– On the morning of July 3, 2008, we received confirmation from Kansas that they had received the penny that morning.

ACH Credit Received 0.01

Immediate Funds

INTL FUEL TAX,,PAYMENTS,021000022098705

0200005150,0000000001,MOTOR FUEL TAX,KS DEPT OF REVENUE

ADDENDA: 05IFTA TRANSMITTAL PAYMENT

00012098705



• Funds Netting Test Status– The actual funds netting test will take place

after the penny tests are completed with each of the four test jurisdictions.

ifta, inc. clearinghouse funds netting account

Documents