Current through Register Vol. 63, No. 3, March 1, 2024
(1) The
Department will not require a CAR or blender CAR to submit attest engagement
reports except as an optional defense for any alleged violations of OAR
340-258-0110 through 340-258-0310.
(2) The attest engagement shall consist of
performing the agreed-upon procedures set forth in the guidelines in accordance
with the Association of Independent Certified Public Accountants' (AICPA's)
statements on standards for Attestation Engagements and using statistical
sample design parameters provided by EPA.
(3) In performing the attest engagement, the
CPA shall determine the sample size for each population according to parameters
set out in Table B. [View a PDF of table by clicking on "Tables" link
below.]
(4) The number of
populations from which samples should be drawn will vary depending on the
circumstances. Sample items should be selected in such a way that the sample
can be expected to be representative of the population.
(5) If the CPA agrees to use some other form
of sample selection and some other method to determine the sample size, that
agreement should be summarized in the CPA's report.
(6) The attest engagement shall be conducted
by an independent Certified Public Accountant (CPA).
(7) The CPA is required to comply with the
general code of conduct and ethics as prescribed by the State of Oregon and by
the AICPA.
(8) The attest
engagement shall include the following agreed-upon procedures, as appropriate,
for the CAR's standardized reporting form(s):
(a) Read the report completed by management
and filed with the Department;
(b)
Obtain from the CAR an inventory reconciliation summarizing receipts and
deliveries of all gasoline, gasoline blendstocks, and oxygenates for CARs
serving a control area:
(A) Test mathematical
accuracy of inventory reconciliation;
(B) Agree beginning and ending inventory
amounts to company's perpetual inventory records;
(C) Agree deliveries into the control area to
Department report, if applicable.
(c) Obtain listing of all gasoline, gasoline
blendstocks, and oxygenate receipts during the period:
(A) Test mathematical accuracy of
listing;
(B) Agree amounts to
inventory reconciliation;
(C)
Select a representative sample of individual receipts of gasoline, gasoline
blendstocks, and oxygenates and trace details back to source
documents.
(d) Obtain
listing of all gasoline, gasoline blendstocks, and oxygenates sold or dispensed
during the period:
(A) Test mathematical
accuracy of listing;
(B) Agree
amounts to inventory reconciliation report;
(C) Select a representative sample of
individual batches sold or dispensed both into and outside the control area:
(i) Agree volumes for the sample items to
original bill of lading or other source documents;
(ii) For sales or deliveries into the control
area, determine that oxygenate content is at least two percent by examining
bills of lading.
(e) Using the volume of oxygenated gasoline
sold or dispensed into the control area from the inventory reconciliation
report, recalculate the number of oxygen content units required by multiplying
by 2.7 percent, except where otherwise specified in OAR 340-258-0310, and agree
to Department report;
(f)
Recalculate the actual total oxygen credit units generated by adding the oxygen
content of each batch or truck load of oxygenated gasoline that was sold or
dispensed in the control area as determined in subsection (8)(e) of this rule
multiplied by the actual oxygen content by weight associated with each batch or
truck load;
(g) Recalculate the
adjusted actual total oxygen credit units as follows:
(A) The actual total oxygen credit units
generated from subsection (8)(f) of this rule;
(B) Plus the total oxygen credit units
purchased or acquired through trade; and
(C) Minus the total oxygen credit units sold
or given away through trade.
(h) The following steps apply to the testing
of the actual total oxygen content from subsection (8)(f) of this rule and are
applicable based on method of blending:
(A)
For CARs using rack- and truck-blending, recompute oxygen content by weight for
a representative sample of deliveries based on detailed meter readings of
gasoline, blendstocks and oxygenate receipts;
(B) For CARs using in-tank blending of
gasoline, blendstocks and oxygenates, obtain register of running weighted
oxygen content by tank and:
(i) Using the
individual sample items from subsections (8)(c) and (d) of this rule test
calculation of running totals;
(ii)
Where laboratory analysis is used with the CAR's weighted average calculation,
select individual analysis reports of oxygenated gasoline receipts and
deliveries during the period on a representative sample basis:
(I) Review laboratory results for consistency
with CAR's calculations noting oxygen volume and specific gravity;
(II) Recalculate oxygen by weight;
(III) Agree information on lab reports to
underlying delivery and receiving documentation.
(i) Obtain register of
oxygen credit unit purchases and sales and select separate representative
samples of individual purchased credits and individual sales credits:
(A) Agree selected credit unit transactions
to the underlying contract and/or other supporting documentation noting
specific volumes and oxygen content of the gasoline associated with the
credits;
(B) Agree to the
underlying contract and/or supporting documentation that the credits are
generated in the same control areas as they are used. For example, no credits
may be transferred between control areas;
(C) Agree to the underlying contract and/or
supporting documentation that the credits are generated in the same averaging
period as they are used;
(D) Agree
to the underlying contract and/or supporting documentation that the ownership
of credits is transferred only between CARs;
(E) Agree to the underlying contract and/or
supporting documentation that the credit transfer agreement was made no later
than 30 days after the final day of the averaging period in which the credits
are generated.
(j)
Prepare a report to client in accordance with the report provisions of
Statements on Standards for Attestation Engagements indicating results of
performing the above procedures.
(9) The attestation report must be in
compliance with the AICPA's Statement on Standards for Attestation Engagements.
[NOTE: Publications referenced are available from the
agency.]
