Current through August 30, 2024
(a) To meet the reporting requirements of
18 AAC 53.100(b),
a CAR must submit to an attest engagement that consists of a review of the
supporting documentation used to prepare reports required under this chapter,
for accuracy, completeness, and conformance with the requirements of this
chapter.
(b) An attest engagement
must be conducted by an independent certified public accountant (CPA) in a
manner consistent with applicable professional standards, including those in 12
AAC 04. The CPA may not be an employee of the CAR. Nothing in this subsection
prohibits the CPA from requesting assistance from the CAR's internal auditors
in accordance with the document entitled Codification of Statements on
Standards for Attestation Engagements, published by the American
Institute of Certified Public Accountants (AICPA), as amended through January
1, 1997.
(c) A CPA shall exercise
due diligence in conducting an attest engagement in accordance with the
agreed-upon procedures described in this section.
(d) Unless another form of sample selection
is approved by the department, a CPA shall determine the sample size for each
population of supporting documentation that is sampled in the attest engagement
as set out in Table 1 of this section. The number of the population from which
a sample must be drawn may vary depending on the circumstances for each attest
engagement. Sample items must be selected in such a way that the sample can be
expected to be representative of the population. If the department approves the
use of another method of sample selection, or another method to determine the
sample size, that method must be summarized in the attest engagement report.
=ep
TABLE 1. POPULATION SAMPLE SIZE Number in Population (N)
Sample Size 66 or larger 5941 - 654126 - 40310 - 25N or 24, whichever is
smaller
(e) An attest
engagement must include the review and analysis of CAR records that show the
(1) quantity and oxygen content of gasoline
entering the terminal and leaving the terminal in bulk;
(2) destination, quantity, and oxygen content
of each truckload of oxygenated gasoline going to specific covered
areas;
(3) oxygen content of
gasoline in storage tanks from which trucks are loaded, and the calculations
used to determine the characteristics of the gasoline;
(4) oxygenate type and amount that was
blended; and
(5) testing results
for storage tanks when additional gasoline is added.
(f) Unless other procedures are approved by
the department, an attest engagement must include at least the following
agreed-upon procedures, as appropriate, when reviewing a CAR's reporting forms:
(1) read the reports completed by CAR
management and submitted to the department as required in
18 AAC 53.100;
(2) obtain from the CAR an inventory
reconciliation that summarizes the receipts and deliveries of all gasoline,
gasoline blendstocks, and oxygenates by a CAR serving a control area, and
(A) test the mathematical accuracy of the
inventory reconciliation;
(B) agree
beginning and ending inventory amounts to the company's perpetual inventory
records; and
(C) agree deliveries
into the control area to the reports submitted to the state as required in
18 AAC 53.100, if
applicable;
(3) obtain a
listing of all gasoline, gasoline blendstocks, and oxygenate receipts during
the period, and
(A) test the mathematical
accuracy of the listing;
(B) agree
amounts to the inventory reconciliation; and
(C) select a representative sample of
individual receipts of gasoline, gasoline blendstocks, and oxygenates, and
trace details back to source documents;
(4) obtain a listing of all gasoline,
gasoline blendstocks, and oxygenates sold or dispensed during the period, and
(A) test the mathematical accuracy of the
listing;
(B) agree amounts to the
inventory reconciliation report; and
(C) select a representative sample of
individual batches sold or dispensed both into and outside the control area,
and
(i) agree volumes for the sample items to
the original bill of lading or other source documents; and
(ii) for sales or deliveries into the control
area, determine that oxygenate content meets the required oxygen content
standard identified in
18 AAC 53.020 by examining bills
of lading;
(5) calculate the oxygen content units by
multiplying the required oxygen content identified in
18 AAC 53.020 by the total volume
of oxygenated gasoline sold or dispensed into the control area as indicated in
the inventory reconciliation report, and agree to the reports submitted to the
department as required in
18 AAC 53.100;
(6) calculate the actual total oxygen credit
units generated by adding together the oxygen content units of each batch or
truckload of oxygenated gasoline that was sold or dispensed in the control
area;
(7) calculate the adjusted
actual total oxygen content units that are the sum of
(A) the actual total oxygen content units
generated in (6) of this subsection; plus
(B) the total oxygen credits purchased or
acquired through trade; minus
(C)
the total oxygen credits sold or given away through trade;
(8) test the actual total oxygen content
units in (6) of this subsection as follows:
(A) for CARs using rack and splash blending,
recompute oxygen content by weight for a representative sample of deliveries
based on detailed meter readings of gasoline, blendstocks, and oxygenate
receipts; and
(B) for CARs using
in-tank blending of gasoline, blendstocks, and oxygenates, obtain a register of
RWOC by tank and using the individual sample items selected in (3) and (4) of
this subsection, test the calculation of running totals; and
(C) for CARs using in-tank blending of
gasoline, blendstocks, and oxygenates, and where laboratory analysis is used
within the CAR's weighted average calculation, select individual analysis
reports of oxygenated gasoline receipts and deliveries during the period on a
representative sample basis to
(i) review
laboratory results for consistency with the CAR's calculations, noting oxygen
volume and specific gravity;
(ii)
recalculate oxygen by weight; and
(iii) agree information on laboratory reports
to underlying delivery and receiving information;
(9) obtain a register of oxygen
credit purchases and sales, and select representative samples of oxygen credits
purchased and oxygen credits sold, and
(A)
agree selected oxygen credit transactions to the transfer agreement or other
supporting documentation, noting the volume and oxygen content of the gasoline
associated with the oxygen credits; and
(B) agree to the transfer agreement or other
supporting documentation that the
(i) oxygen
credits are generated in the same control area as they are used;
(ii) oxygen credits are generated in the same
control period as they are used;
(iii) ownership of oxygen credits is
transferred only between CARs; and
(iv) oxygen credit transfer agreement is made
no later than 15 days after the last day of the control period in which the
oxygen credits are generated; and
(10) prepare an attestation report to the CAR
client that complies with the requirements in (b) of this section, and that
indicates the results of performing the attest engagement under this
section.
(g) The
attestation report required in (f)(10) of this section must include
(1) the description and location of all
records reviewed during the attest engagement;
(2) the names and positions of all persons
responsible for preparing the CAR's reports to the department, including
persons who gathered information, operational personnel, and
officers;
(3) the location and
description of the refinery, import facility, or terminal audited, including
its operating procedures and internal controls;
(4) specific reports and examples of
calculations performed in the conduct of the attest engagement;
(5) summaries or duplicates of records that
support the CPA's findings, analyses, and conclusions; and
(6) a complete list of all discrepancies that
the CPA found during the conduct of the attest engagement.
The document entitled "Statements on Standards for
Attestation Engagements," referred to in this section may be reviewed at the
department's Anchorage Fairbanks or Juneau offices, or it may be ordered from
the American Institute of Certified Public Accountants, 220 Leigh Farm Road,
Durham, North Carolina 27707-8110.
Authority:AS
44.46.020
AS 46.03.010
AS 46.03.020
AS 46.14.020
AS 46.14.030
AS
46.14.510
