Operator Compliance Audits

Question 1

1. Operator Compliance Audits

Accepted Answer

1.1 Introduction

Holders of operator licences are required to have systems and arrangements in place to ensure the safe and legal operation of vehicles used under the licence. The use of independent audits is an important tool that operators can use to test their systems and identify weaknesses. A traffic commissioner may accept undertakings from operators as a way to demonstrate a commitment to future compliance and mitigating the need for regulatory action against a licence.

This document is intended to provide guidance to operators on what an acceptable audit should cover.

1.2 General Principles

Audits should be conducted by people or organisations who are independent of the operator. The body conducting the audit must be free to report accurately on the operator without pressure. Payment cannot be linked to the successful outcome of an audit.

When procuring a provider an operator may wish to establish the qualification of the person conducting the audit. A good indication is ISO 9001:2015 certification, as the international standard that defines the requirements for a quality management system, but this is not mandatory. Experience in the industry and carrying out audits may be as valuable. A TM CPC, up-to-date CPD and no adverse licensing history are also important.

It is usual for an undertaking to be provided to a traffic commissioner that the audit will be carried out in alignment with the Driver and Vehicle Standards Agency (DVSA) earned recognition standards – www.gov.uk/government/publications/dvsa-earned-recognition-vehicle-operator-standards. It is for an operator to decide whether a proposed audit is sufficient to demonstrate compliance. Different audit providers will use different templates. An inadequate audit may not be accepted by a traffic commissioner as sufficient to satisfy that the holder of the licence is capable of running a compliant business.

Audits should generally be covered in person at the operator’s premises. Elements of the audit may be covered remotely but the auditor must have access to the documents evidencing compliance.

The standard audit framework has been updated with the minimum necessary evidence required. In accessing evidence, the following principles apply:

Documents may be seen in hard copy – this is preferred. Alternatively, they may be scanned or photographed for transmission to the auditor. Each document must be complete and easy to read. (It may be preferable to use a SharePoint site to maintain image quality).
Use should be made of publicly available information, for example, on vehicle taxation status and MOT history.
Operators must not share VOL login credentials with auditors. These are personal and not transferable.
If necessary, operators and auditors should aim to use software such as Skype or Microsoft Teams to share screens so that the auditor can check remotely, for example, tachograph and maintenance records stored electronically.
Operators may, at their own risk and at their own discretion, provide auditors with remote access to any online compliance systems (e.g. for maintenance or drivers hours).
Interviews and debrief meetings with operators and transport managers should be conducted ideally face-to-face. If there is justification to carry out the audit remotely, use software such that all the parties are visible to each other.
The auditor must verify the identity of operator representatives before any interview or debrief commences. The debrief should be with a director, partner or the sole trader AND with the Transport Manager for standard licences.
Where no evidence is available, this should be stated. Phrases such as “the operator verbally advised that…” carry little weight.

1.3 Sample Sizes

When checking vehicle and trailer records, the following sample sizes are appropriate:

Total vehicles in possession	Vehicle records	Total trailers in possession	Trailer records
1-3	All	1-3	1
4-20	3	4-20	2
21-49	4	21-49	3
50+	10%	50+	10% of trailers in possession

When checking driver records, the following sample sizes are appropriate:

Total vehicles in possession	Drivers records
1-3	All
4-20	4
21-49	5
50+	10%

These are the minimum number of records which should be assessed, there may be reasons to view more. Maintenance samples may need to be larger to ensure that they cover all maintenance providers and types of equipment. Maintenance records should be sampled for a period that covers no less than four scheduled Preventive Maintenance Inspections (PMIs). If the DVSA has carried out a recent investigation the audit may only go as far back as the date of that investigation.

The driver record sample must cover all types of operation, for example: tramper drivers, local day drivers, those on EU and domestic hours, etc. Driver records should cover not less than the previous three months.

1.4 Declaration

Audits should include a statement from the person conducting the audit confirming that it is, to the best of their knowledge, a true reflection of the position. The following statement is provided as an example of what should be used:

“I confirm that I have made clear which facts and matters referred to in this report are within my own knowledge and which are not. Those that are within my own knowledge, I confirm to be true. The views I have expressed represent my true and complete professional opinions on the matters to which they refer. I understand that future acceptance of audits to satisfy an undertaking may be the subject of Traffic Commissioner review if I make, or cause to be made, a false or misleading statement in the audit without an honest belief in its truth.”

Question 2

2. Standard Audit Framework

Accepted Answer

Name and CV of auditor and controls under which they work, relevant qualifications and training.

The auditor should describe how the audit was undertaken including how evidence was viewed and who was involved.

For Multiple Licence Holders, please ensure it is clear which licence was audited and which, if any, operating centres visited.