Oregon Administrative Rules › Chapter 340 - DEPARTMENT OF ENVIRONMENTAL QUALITY › Division 258 - MOTOR VEHICLE FUEL SPECIFICATIONS › Section 340-258-0290 - Oxygenated Gasoline: Attest Engagements Guidelines When Prohibited Activities Alleged

Current through Register Vol. 63, No. 7, July 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.