Sampling Techniques and Methodology IFTAIRP Audit Workshop Ft

Company Overview Name: Snow Bird Delivery Services DBA: Coast to Coast Express Motto: “Leave

Hitting the Mark - % of Error 0 – 2% 2. 1 – 3.

Sampling Techniques & Methodology – Miles Statistical Judgmental/random ie. ◦ choose every nth unit

Sampling Techniques & Methodology – Fuel Statistical Judgmental/random ie. ◦ select fuel for sample

Sampling Concepts: What method is best? What items should be considered when sampling? Should

Considerations: Change in operations Multiple locations – same system? Fleet makeup – different unit

Considerations Cont’d: Do you need to sample every jurisdiction? Will you get accurate results

Audit Scope Audit Period: 1/1/2012 – 12/31/2012 Sample Period: 01/01/2012 – 03/31/2012 (12/01) Sample

Audit Sample of 15 Units Pulled every 15 th vehicle Reported Total Sample Units:

Audit Sample of 15 Units In class random number generator: Reported Total Sample Units:

How does a sample affect an audit? Summarizing: Applying results of a sample should

Slides: 14

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Sampling Techniques and Methodology IFTA/IRP Audit Workshop Ft. Lauderdale, FL February 2014 Presented by: Anthony Madsen - Washington Bob Schwab – Missouri Dawn Lietz - Nevada

Company Overview Name: Snow Bird Delivery Services DBA: Coast to Coast Express Motto: “Leave the driving to us. ” Company Size: 150 Units Demographics: All Continental US and DC Average Reported: Distance per Unit: 40, 079 Fuel per Unit: 6, 956

Hitting the Mark - % of Error 0 – 2% 2. 1 – 3. 5% 3. 6 – 5%

Sampling Techniques & Methodology – Miles Statistical Judgmental/random ie. ◦ choose every nth unit to arrive at your determined size based on the population ◦ choosing units ending in the nth to arrive at your determined size based on the population Random number generator

Sampling Techniques & Methodology – Fuel Statistical Judgmental/random ie. ◦ select fuel for sample units ◦ choose nth ticket by jurisdiction

Sampling Concepts: What method is best? What items should be considered when sampling? Should it be completely random?

Considerations: Change in operations Multiple locations – same system? Fleet makeup – different unit types

Considerations Cont’d: Do you need to sample every jurisdiction? Will you get accurate results if you include a jurisdiction with significant operations, but for only one or two trips?

Audit Scope Audit Period: 1/1/2012 – 12/31/2012 Sample Period: 01/01/2012 – 03/31/2012 (12/01) Sample Size: 15 Units (10%) Audit Period: Total Reported Miles: 24, 047, 545 Total Reported Gallons: 4, 174, 021 Sample Period: Total Reported Miles: 4, 628, 264 Total Reported Gallons: 807, 462

Audit Sample of 15 Units Pulled every 15 th vehicle Reported Total Sample Units: Total Reported Miles: 396, 058 Total Reported Gallons: 70, 604 Actual of Total Sample Units Audited: Total Audited Miles: 406, 616 (2. 67%) Total Audited Gallons: 68, 054 (-3. 61%)

Audit Sample of 15 Units In class random number generator: Reported Total Sample Units: Actual of Total Sample Units Audited: Drilling further…. Let’s look at the effect to individual jurisdictions.

Hitting the Mark - % of Error 0 – 2% 2. 1 – 3. 5% 3. 6 – 5%

How does a sample affect an audit? Summarizing: Applying results of a sample should not be done blindly! Without careful examination, inconsistent or unreasonable results could occur! Adjust the results during field work instead of during appeal!

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