Managed by the International Fuel Tax Association, Inc. Funds Netting 2011 Annual IFTA Business...

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IN TER N A TIO NAL FUEL TAX AG REEM ENT Managed by the International Fuel Tax Association, Inc. Funds Netting 2011 Annual IFTA Business Meeting Lonette L. Turner Executive Director IFTA, Inc.

Transcript of Managed by the International Fuel Tax Association, Inc. Funds Netting 2011 Annual IFTA Business...

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

Funds Netting

2011 Annual IFTA Business Meeting

Lonette L. TurnerExecutive Director

IFTA, Inc.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

Participation

5035

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

Implementation Year Dollars

FUNDS TRANSFERRED THROUGH FUNDS NETTING ACCOUNTS

CHTP 2010 USD CAD TOTAL1 6,338,928.21$ 18,333.33$ 6,357,261.54$ 2 33,788,187.45$ 294,545.78$ 34,082,733.23$ 3 36,370,411.68$ 418,307.31$ 36,788,718.99$ 4 10,859,343.07$ 48,931.00$ 10,908,274.07$ 5 43,259,284.01$ 590,010.99$ 43,849,295.00$ 6 29,355,001.85$ 15,708.49$ 29,370,710.34$ 7 13,061,236.66$ 30,241.40$ 13,091,478.06$ 8 40,404,423.18$ 534,218.78$ 40,938,641.96$ 9 35,125,743.71$ 54,074.56$ 35,179,818.27$

10 3,629,201.33$ 27,906.96$ 3,657,108.29$ 11 35,081,713.39$ 412,864.33$ 35,494,577.72$ 12 38,340,446.43$ 147,399.85$ 38,487,846.28$

TOTALS 325,613,920.97$ 2,592,542.78$ 328,206,463.75$

INTERNATIONAL FUEL TAX AGREEMENT

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CHTP 2011 USD CAD TOTAL1 9,584,243.70$ 36,891.04$ 9,621,134.74$ 2 40,095,790.49$ 560,239.11$ 40,656,029.60$ 3 34,469,677.07$ 111,579.90$ 34,581,256.97$ 4 12,420,562.33$ 30,567.19$ 12,451,129.52$ 5 39,088,492.37$ 235,514.69$ 39,324,007.06$ 6 44,269,182.63$ 250,678.33$ 44,519,860.96$

TOTALS 179,927,948.59$ 1,225,470.26$ 181,153,418.85$

FUNDS TRANSFERRED THROUGH FUNDS NETTING ACCOUNTS

2011 Dollars Through CHTP #6-2011

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

2010 – 2011 Comparison Through CHTP 6-2011(USD)

CHTP 2011 2010 DIFFERENCE

1 9,584,243.70$ 6,338,928.21$ 3,245,315.49$ 2 40,095,790.49$ 33,788,187.45$ 6,307,603.04$ 3 34,469,677.07$ 36,370,411.68$ (1,900,734.61)$ 4 12,420,562.33$ 10,859,343.07$ 1,561,219.26$ 5 39,088,492.37$ 43,259,284.01$ (4,170,791.64)$ 6 44,269,182.63$ 29,355,001.85$ 14,914,180.78$

TOTALS 179,927,948.59$ 159,971,156.27$ 19,956,792.32$

COMPARISON

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

2010 – 2011 Comparison Through CHTP 6-2011(CAD)

CHTP 2011 2010 DIFFERENCE1 36,891.04$ 18,333.33$ 18,557.71$ 2 560,239.11$ 294,545.78$ 265,693.33$ 3 111,579.90$ 418,307.31$ (306,727.41)$ 4 30,567.19$ 48,931.00$ (18,363.81)$ 5 235,514.69$ 590,010.99$ (354,496.30)$ 6 250,678.33$ 15,708.49$ 234,969.84$

TOTALS 1,225,470.26$ 1,385,836.90$ (160,366.64)$

COMPARISON

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

• Checks sent out by jurisdictions during CHTP 2010-#01

• Payments not received timely resulting in two prorate periods

• Payment requests involve manual process• Payments made only two times per week

without a “rush” being placed• Funds not available• Didn’t know payment had not been requested• Fiscal year end issues

• Other payments sent to Funds Netting Account – dues, registration fees

Issues Faced Since Implementation

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

Issues Faced Since Implementation

• Payments not received• Have to calculate by jurisdiction the

amount left due and owing to the jurisdictions that already received 2 prorated payments.

• Data not uploaded timely – two transmittals loaded in the next transmittal period

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

What’s Happening Now

• In calendar year 2011, prorated payments have only been necessary twice. This is due to jurisdictions being timely and the funds netting calendar being slightly adjusted for this year.

• In calendar year 2011, only once has data been untimely uploaded.

• The Funds Netting process is working!

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

QUESTIONS?

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

2011 Annual IFTA Business Meeting

Lonette L. TurnerExecutive Director

IFTA, Inc.

SAS 70TYPE 2 AUDITS

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

“What's in a name? That which we call a rose by any other

name would smell as sweet.” - William Shakespeare, Romeo and Juliet

STATEMENT OF AUDIT

STANDARDS (SAS)

STATEMENT OF STANDARDS

FOR ATTESTATION

ENGAGEMENTS(SSAE)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

STATEMENT OF AUDIT STANDARDS (SAS)

• Previously, the guidance for service auditors reporting on controls at a service organization and for user auditors auditing the financial statements of a user entity was contained in a section of Statements on Auditing Standards (SAS) titled, “Service Organizations” issued by the AICPA.

• That guidance originated in a SAS issued in April 1992 that was numbered 70.

• Since then, reports on controls at a service organization have colloquially been called “SAS 70 reports.”

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

• In April 2010, the AICPA’s Auditing Standards Board issued Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization

• The SSAEs also are known as the attestation standards.

• In an attestation report, a CPA attests to subject matter or an assertion about something other than the fairness of the presentation of financial statements.

STATEMENT OF STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAE)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

• SSAE No. 16 is applicable when an entity outsources a business task or function to another entity (usually one that specializes in that task or function), and the data resulting from that task or function is incorporated in the outsourcer’s financial statements.

• In SSAE No. 16, an entity that performs a specialized task or function for other entities is known as a service organization, and an entity that outsources the task or function to a service organization is known as a user entity.

STATEMENT OF STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAE)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

STATEMENT OF STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAE)

• Basically, IFTA, Inc. must write certain attestations regarding our funds netting system, based on the requirements of IFTA, Inc. found in:

The Clearinghouse Access AgreementFunds Netting RulesThe IFTA Governing Documents

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

STATEMENT OF STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAE)

• Based on review of the documents with our auditors, we identified the following requirements for IFTA, Inc.

Establishing a Funds Netting SystemTimeliness of the Funds Netting ProcessConfidentiality RequirementsAssignment of Clearinghouse UsersReporting to JurisdictionsMonitoring the Funds Netting Account and Tracking

FundsDistribution of FundsControls (security of data, backups, etc.)

INTERNATIONAL FUEL TAX AGREEMENT

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• Required for an SSAE 16 is a description of the system. That has been written and includes attachments with an example of each type of record kept, when applicable.

• The description of our system is under review by the auditors at the present time.

• The AICPA set June 15, 2011 as the start date for SSAE 16s but their materials and guidelines for auditors were not available until July 15, 2011.

STATEMENT OF STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAE)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

• There are Type 1 and Type 2 SSAE 16s.

• In a type 1 report, the service auditor expresses an opinion on whether the description is fairly presented (does it describe what actually exists?) and whether the controls included in the description are suitability designed.

STATEMENT OF STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAE)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

• In a type 2 report, the service auditor’s report contains the same opinions that are included in a type 1 report but also includes an opinion on whether the controls were operating effectively. Controls that operate effectively do achieve the control objectives they were intended to achieve. Both types of reports are examination reports which means the CPA obtains a high level of assurance.

• A Type 2 report will be issued by the IFTA, Inc. auditors.

STATEMENT OF STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAE)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

QUESTIONS?

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

Clearinghouse Update

2011 Annual IFTA Business Meeting

Lonette L. TurnerExecutive Director

IFTA, Inc.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

RENEWAL

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

 

Since the last ABM, Jason has made some changes to the IFTA, Inc. Clearinghouse Transmittal Pages.

The first screen you see now, after logging in, are the Funds Netting pages. The focus is to have Jurisdictions view Summary and Detail Totals.

That is now the first choice you can pick from in the following screen using the Funds Netting Data Integrity Check

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.