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

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.

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!

Thank YOU for your participation