Procedures

Procedures are activities that the verifier uses to collect evidence. Verification procedures include inspection, observation, inquiry, confirmation, recalculations, re-performance, and analytical procedures. These are described in more detail below.

3.6.3.1 Inspection

Inspection is a visual review done to assess the presence of objects and documents23. Verifiers will typically do a site tour to identify the completeness of emissions sources, meters (objects), and records; and to gain a general understanding of the facility operations. The verifier may ask to see operational or maintenance records, calibration records, and similar types of documents maintained on site.

Verifiers will use a variety of tools to support the inspection including a walk-through, digital photographs, satellite imagery, etc. Information collected at this stage supports inventory completeness and the existence of evidence needed to support the verification.

Inspection can also involve tracing and vouching of the data (Figure 8). Tracing involves identifying the source document and following the information in the source document through to the reporting phase. Tracing follows data from individual data sources to more aggregate forms such as monthly summaries. It assists in establishing an understanding of the completeness of the data. It is used to test for understatements in the greenhouse gas assertion.

Vouching moves in the opposite direction along the data trail. Aggregated data will be followed through the process to its source data points. Vouching helps to assess the existence of records and is used to test for overstatements in the greenhouse gas assertion.

Figure 8: Tracing and Vouching 3.6.3.2 Observation

Observation involves witnessing an activity or process. Observation can be used to confirm that procedures are being performed (e.g., site backups, meter calibrations, measurements of fluid levels

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Documents in this context refer to both living documents, such as standard operating procedures and historical records, such as meter readings.

Meter Read Spreadsheet for Calculating Emissions Greenhouse Gas Assertion

Tracing (test for understatement)

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in tanks, etc.). Observation needs to be done without notice during the site visit to ensure it accurately reflects people’s behaviours. This maintains objectivity as people can modify their behavior if they know they are being watched.

3.6.3.3 Inquiry

Inquiry involves collecting oral evidence from the responsible party and/or independent third parties. Oral evidence is summarized in a written statement that is reviewed and approved by the interviewee to ensure accuracy.

Inquiry is generally considered to be a weaker form of evidence. It is not used as stand-alone proof of practice to substantiate an assertion; however, consistent responses from independent interviewees can increase the strength of the inquiry evidence.

3.6.3.4 Confirmation

Confirmation24 requires the verifier to obtain evidence directly from a third party. For example, electricity exported to the grid can be confirmed by the Alberta Electric System Operator (AESO) and should match information provided by the responsible party.

Production data from pipeline operators, custody transfer meters, and sales invoices are other examples of types of evidence that can be assessed through confirmation.

3.6.3.5 Recalculations

Recalculation requires the verifier to do independent calculations to recalculate data reported by the responsible party. The verifier should be able to come to the same values as reported in the

greenhouse gas assertion.

Recalculations are a higher form of evidence that assess the mathematical accuracy of the assertion. Verifiers cannot rely solely on recalculations because this creates a situation where the verifier has independently recreated the greenhouse gas assertion, but has not examined the responsible party’s systems for generating the greenhouse gas assertion. Overuse of recalculation would result in the verifier moving from an assurance role to a compilation function that would not achieve the verification objectives. Consequently, recalculation, while important, must be used in conjunction with other verification procedures.

3.6.3.6 Re-performance

During a re-performance procedure, the verifier will execute the responsible party’s procedures to assess the effectiveness of these procedures and controls. Re-performance is only used occasionally in greenhouse gas verification.

3.6.3.7 Analytics

Analytics are used initially in the planning phase to determine which procedures to apply. See Section 3.3 for more information on planning analytics.

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Please note that this section refers to confirmations as verification procedures. AESRD also required the verifier to confirm certain information in the greenhouse gas assertion, see Section 5.4.

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In substantive testing, analytical procedures are designed to test the greenhouse gas assertion for existence, completeness, accuracy, cut-off, and classification. These procedures are conducted on a data sample identified during the preliminary analytical testing (e.g., examine the daily transaction during the period June 5-June10). Analytic design must take into account the following:

1) The variables used to conduct the analytical testing must be independent of one another; 2) There is an underlying physical phenomena that creates the relationship between the

variables (e.g., fuel consumption and electricity generation are related through an energy balance);

3) Tests are sensitive enough to detect material errors and omissions; and

4) Expectations on the variables’ performance are pre-determined based on the verifier’s knowledge and experience.

Tests that show relationships beyond the verifier’s expectations must be investigated. The

relationships, expectations, and results of the analytics and other procedures undertaken during the verification must be document in the verifier’s working papers.