2007 IFTA CLEARING HOUSE UPDATE

1. 2007 IFTA CLEARING HOUSE UPDATE

2. IFTA CLEARINGHOUSE FUNDS NETTING • The IFTA Clearinghouse provides for the electronic exchange of fuel information and reconciliation of tax among the member jurisdictions. It: • Transfers funds electronically between member jurisdictions. • Ensures timely and accurate exchange of tax information. • Reduces errors. • Provides a safe environment, with appropriate back up and data recovery.

3. Benefits of IFTA Clearinghouse Funds Netting • Only one EFT or check payment to be made verses up to 57. • Billings are paid timely. • No more lost payments or payments duplicated

4. IFTA Funds Netting Outline • The IFTA, Inc. Clearinghouse will be providing a mechanism for payments to and from other Jurisdictions based on Transmittal Information. The totals derived for funds netting are collected exclusively from the Summary Totals file uploaded to the Clearinghouse. • The total that a jurisdiction will owe or receive will be based on a netting process for all participating jurisdictions. The final net amount will be one final total you will be owed or have to fund to your EFT banking accounts. • Participating jurisdictions will have to follow their normal procedures for paying non-participating jurisdictions. • All participating members of the IFTA, Inc. Clearinghouse will be required to participate in Funds Netting.

5. IFTA Funds Netting Order of Events • The IFTA Funds Netting Processing will take place 12 times a year, once per month. The IFTA, Inc. Clearinghouse will number the processing 1 through 12 for the given year. • IFTA Funds Netting Processing will include the following: • 1) Upload your data. • 2) View, correct and Re-load data as needed. • 3) Funds netted. • 4) EFT accounts funded by the Jurisdictions who owe. • 5) Jurisdictions receive funds through EFT accordingly.

6. Continued: IFTA Funds Netting Order of Events • Upload your data: The Jurisdiction may upload as many transmittals as they wish in the given time period as specified by the funds netting calendar. All transmittals that are uploaded during the time period will be processed as one batch for that time period. During the upload period no files will be loaded into the Clearinghouse until at or around the 1st of any given month, as specified in the funds netting calendar. • View, correct and Re-load data as needed: After the upload period, all transmittals will be loaded into the clearinghouse database at or around the 15th of a given month. Over the subsequent 15 days, your jurisdiction will be able to view and replace data as needed. This will be the time to check for the accuracy of your transmittals. • Funds netted: On the 15th of the month, or thereabouts, the actual funds netting totals will be generated. At this point, any transmittals loaded to the Clearinghouse are considered final, no corrections, removals or additions can take place at this point.

7. Continued: IFTA Funds Netting Order of Events • Funds netted: On the 15th of the month, or thereabouts, the actual funds netting totals will be generated. At this point, any transmittals loaded to the Clearinghouse are considered final, no corrections, removals or additions can take place at this point. • EFT accounts funded by the Jurisdictions who owe: Jurisdictions will have from the 16th of the month, or thereabouts, and 5-6 days after to fund the EFT accounts if they are said to owe. • Jurisdictions receive funds through EFT accordingly: On the 25th day of the month, or thereabouts, those jurisdictions will be sent any funds owed to them through EFT as distributed by IFTA, Inc.

8. IFTA Funds Netting Calendar • The funds netting calendar will be strictly adhered to too ensure as much accuracy as possible as well as the timely processing of funds. • The calendar dates will account for weekends and holidays. • All ‘final’ dates will land on a business day.

9. IFTA EFT Accounts and Fund Transfers • All jurisdictions will be required to setup an EFT account with their banking organizations. • Fund transfers may take place at anytime within the period allotted as laid out in the funds netting calendar. • Distribution of funds will be done by IFTA, Inc. according to the funds netting calendar.

10. IFTA Late Transmittals • A late transmittal is one of which is not loaded into the IFTA, Inc. Clearinghouse by the 15th of the month, or as specified in the funds netting calendar. • Jurisdictions need not load transmittal data till the 15th of the month, but in doing so there will be no time for corrections if needed. • If a transmittal is late, the jurisdiction will have to wait till the next upload time frame to submit the transmittal. • A jurisdiction may also be required to send funds to each jurisdiction in their normal manner without assistance from the IFTA, Inc. Clearinghouse..

11. IFTA Late Payments • If a jurisdiction is late in paying into the EFT accounts, IFTA, Inc. will then send out funds on a pro-rated basis. • The tool IFTA, Inc. will be using to derive the pro-rated amount will be available on the Clearinghouse pages and can be used at your disposal. • If a jurisdiction misses the payment deadline, they will have to seek alternatives to meet their payment requirements to all the jurisdictions they owe.

12. IFTA Funds Netting Numbering • IFTA, Inc. will be numbering each funds netting period from 1 through 12. • The purpose of this is to help jurisdictions identify all the activity for a given time period. • The numbering will account for all transmittals uploaded in the designated time frame as stated in the funds netting calendar.

13. IFTA Timely Transmittals • For consistency and timeliness of transmittals jurisdictions will have to upload data in a timely manner. • For example, all May Transmittals should be loaded in the June 1-15th time frame, June transmittals in the July 1-15th time frame, or as specified by the funds netting calendar.

14. How does the IFTA Funds Netting Work? • Process your monthly transmittals as currently do. • Upload transmittal information to IFTA clearinghouse by due date. • Review transmittal information uploaded to IFTA Clearinghouse, make needed corrections within funds netting time frame on calendar. • Review Funds Netting Totals within time frame on calendar. • Jurisdictions owing funds will make payment to EFT account for IFTA Clearinghouse within time frame on calendar. • IFTA Inc will Distribute Funds in EFT Accounts to jurisdictions owed payment.

15. IFTA Funds Netting Example • May 22, 2007 Kansas processes the May 2007 Transmittal. • May 24, 2007 Upload to IFTA Clearinghouse. • June 1 through 14 2007 Review KS Transmittal on IFTA Clearinghouse if errors found make corrections. • June 15, 2007 review Fund Netting Totals to see if we are going to need send payment or receive payment. • June 16 through 21 if payment owed Kansas makes Payment to EFT account. • June 22, 2007 IFTA Inc distributes funds in EFT account to all jurisdictions reflected to receive payment.

16. IFTA, Inc. Clearinghouse Funds Netting Tentative Calendar 2007 - 2008

17. IFTA, Inc. Clearinghouse Funds Netting Tentative Calendar 2007 - 2008

18. IFTA Funds Netting Demo

19. Netting- Amount Due from Base Jurisdiction

20. Final Settlement Report - All Jurisdictions

21. Accounting Features. Who has paid and who has not. For IFTA Inc. Maintenance Only

22. Date Search

23. Taking advantage of all the IFTA Clearinghouse has to offer • Electronic Funds Management • Support and Training. • Security • Good Accounting Practices • Streamlined Process • Saves Time and Money

24. Questions Or Comments Thank You Please direct all questions to Jason DeGraf