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

2. 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

3. 0 – 2% 2.1 – 3.5% 3.6 – 5%

4. 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

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

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

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

8. 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?

9. 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

10. 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%)

11. 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.

12. 0 – 2% 2.1 – 3.5% 3.6 – 5%

13. 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!

14. Thank YOU for your participation