§ 2-8-5. SAMPLING IN AUDITING; PROJECTING ASSESSMENTS.

(A)

In this section:

(1)

PERSON means an audited entity or business.

(2)

CONTROLLER means the controller of the Financial and Administrative Services Department.

(B)

The controller may use sample and projection auditing methods that the comptroller determines provides the most reasonable means to determine a tax or fee imposed by the City.

(C)

Use of a sampling auditing method under this section is appropriate if:

(1)

the records being examined are so detailed, complex, or voluminous that an audit of all records would be unreasonable or impractical;

(2)

the records being examined are inadequate or insufficient and make a competent audit for the audit period otherwise impossible; or

(3)

the cost to the person or the City of an audit of all detailed records is unreasonable in relation to the benefits of the audit and sampling procedures will produce a reasonable result.

(D)

Before using a sample technique to establish liability, the controller must notify the person in writing of the sampling procedure to be used.

(E)

A sample under this section must reflect as nearly as possible the normal conditions under which the person operated during the audit period. If a person can demonstrate that a transaction in a sample period is not representative of the person's business operations, the transaction shall be eliminated from the sample and be separately assessed in the audit.

(F)

If a person's records are inadequate to reflect accurately the person's business operations, the controller shall determine the best information available and base the audit report on that information.

(G)

If a person demonstrates that a sampling method used by the controller is not in accordance with generally recognized sampling techniques, the portion of the audit established by projection based on the challenged sampling method will be dismissed and a new audit of that portion may be performed.

Source: 1992 Code Section 5-1-6; Ord. 031204-9; Ord. 031211-11.