We are an association. Many of our members are blenders who are small and who find the attest engagement (audit) requirement difficult and expensive to comply with. We would like to engage a CPA who would be able to perform the required review of our members' records, in hopes of generating a cost savings to them. The following two part question related to our handling of reporting and attest engagements on behalf of our members:
a. Could we become the delegated authority for submission of reports on behalf
of our members?
b. Could we hire a CPA and pay for the annual attest engagements for our
members?

See More Frequent Questions about Fuels Registration, Reporting, and Compliance Help.

We believe it may be appropriate for individual blenders to pay for CPA services through their association and recognize that this may result in a cost savings to them. Section 80.125(a), which is referenced by 80.1164, says: "Any [blender] subject to to the [attest] requirements shall engage an independent certified public accountant...."

Although his provision could be read to require that a blender must have a contract with the CPA, EPA believes that the purpose of the attest requirements is that an attest is performed by an independent CPA that is given access to all necessary records, and in turn submits a report to EPA. Whether the association or the blender pays the CPA is unimportant to EPA and if the association is capable of making a more cost-effective deal on behalf of its members, we believe that is appropriate.

However you should understand that if the attest engagement is not performed or is performed improperly, responsibility would fall upon the individual blender (ie., the regulated party).

Question and Answer was originally posted at: Questions and Answers on the Renewable Fuel Standard Program (pdf) (55 pp, 221 KB, EPA420-F-07-041a, August 2007)