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 Distance per Unit: Average Distance per Jurisdiction:

3. 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

4. Audit Sample of 15 Units Reported Total Sample Units: Total Reported Miles: Total Reported Gallons: Actual of Total Sample Units Audited: Total Reported Miles Total Reported Gallons:

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

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

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

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

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

10. 0 – 2% 2.1 – 3.5% 3.6 – 5%

11. How does a sample affect an audit? 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!

12. Thank YOU for your participation