Most trucking companies think of DOT compliance audits as their worst nightmare, but if you're properly prepared it can actually be a "positive and peaceful event."

Or so said speakers at a recent teleconference, "Preparing for and Managing a Compliance Review Audit," sponsored by the Truckload Carriers Association.

Following are some suggestions offered by Kevin Burch, president of Jet Express; Jeff Davis, Jet's vice president of safety and human resources; and David Hedgpeth, vice president of corporate compliance and safety, FFE Transportation Services.

• Know the regulations. "It's important that each primary safety contact in the company be very knowledgeable of the safety regulations," said Davis. If you know the rules, you also know your rights and responsibilities, and you are less likely to be blindsided by unexpected questions or information requests. If you don't know the rules, you're effectively letting the auditor dictate the outcome of the review.

• Be prepared. Companies that routinely perform internal audits are able to catch their own errors and address problems before they get out of hand. And when they get word that they're going to be audited, they don't have to rush to get ready. "You have to be prepared," Burch said. "If you can get away from last-minute scrambling, you'll do a lot better in the audit."

• Be ready with the necessary information. Not all auditors will want exactly the same thing, but there are some fairly standard requirements. "If you have these items ready and available, it will make the audit process go much smoother," advised Hedgpeth.

Generally, that information includes the number of CDL drivers you employ, the number of tractors and trailers in your fleet, the number of leased tractors, trailers and contract drivers, your annual mileage, your annual gross revenue, proof of financial responsibility, your DOT accident register for the previous 365 days, and documentation of drug and alcohol testing.

• Know what documents will be required. Audit procedures outlined in Part 385 of the Federal Motor Carrier Safety Regulations segment safety rules into two categories: acute and critical. Noncompliance with an acute regulation is considered to be so severe that it warrants immediate action, regardless of the carrier's overall safety posture. Documents related to acute rules will always be checked thoroughly.

Noncompliance with a critical regulation generally means there has been a breakdown in management or operational controls. In a compliance review, auditors look for patterns of violations – i.e. more than one violation or, when several documents of one category are reviewed, a certain percentage of violations.

A careful review of the list of acute and critical regulations (385, appendix B, VII) can therefore help determine what documents the auditor will need to see.

Driver hours of service records are a major focus in compliance reviews. In fact, as much as three-quarters of the auditor's time may be spent examining documents that can help show if the company and its drivers are following HOS rules.

Auditors also will want to see documents related to safety events, such as accidents and out-of-service orders. Drug and alcohol testing is another area that often gets a thorough scrutiny, and where compliance documents are carefully checked.

• Know what documents are not required. Providing too much information does little more than produce more audit leads and waste the auditor's time, speakers cautioned. There are three information overload mistakes commonly made by carriers: listing all accidents and safety incidents in the accident register, including unnecessary information in the accident files, and putting non-required personnel information in driver qualification files.

Part 390.15 of the safety regulations requires carriers to keep an accident register of all "reportable" accidents (defined in 390.5 rules and interpretations.) Very often, Davis said, carriers include all accidents and incidents, whether or not they're DOT reportable.

The rules also say that carriers must make accident information available to FMCSA, state and local authorities and authorized third-party representatives as part of investigations; but exactly what needs to be included in the files is not entirely clear. Davis said their interpretation of the regulations is that an accident file must contain accident reports required by government entities or insurers. However, photographs, notes made by adjusters, dispatch notes or similar information used in the company's own investigation can be kept in a file separate from the DOT accident file.

The regulations (part 391) are fairly specific as to what steps should be taken to qualify a driver, and what information should be included in the driver qualification file. "If you present that information, that's all the auditor really wants to see," Davis noted.

• Monitor and control your SafeStat numbers. SafeStat (short for Motor Carrier Safety Status Measurement System) is FMCSA's analysis system that measures the relative safety fitness of trucking companies. An estimated 65 percent of compliance reviews are triggered by SafeStat scores, so one way to reduce your chances of being audited is to maintain a good score.

Accidents and the results of roadside inspections make up a big portion of SafeStat scores. "Those are the safety events within our companies that we have to monitor and control," Davis said. "Half the battle is easily won if you spend your resources auditing these safety events and providing training and accountability for drivers."

• Watch for date/time markers. Toll receipts, bridge receipts, accident reports, carrier SafeStat reports and any other documents with date and time information are an excellent tool for internal audits of driver logs – and an equally useful way for government auditors to find problems with hours of service compliance.

Carrier safety personnel must be constantly aware of the fact that this information exists in the company database, Davis cautioned. "It's absolutely critical that all documents containing date/time markers be audited internally for accuracy."

• Develop a "visitor procedure." Among other things, this should state that visitors must be accompanied by a host or primary contact at all times, even during interviews with other company personnel. It should also state that all information and data is the sole property of the company and cannot be removed or disseminated without authorization by management.

"Whether you put it in writing or make it common knowledge in the company, the safety professionals need to know the process and be ready to explain it to the auditor," said Hedgpeth.

"This begins to set the tone with the auditor that he or she may not have free reign of your company," Davis added. "Your job is to cooperate fully with federal investigators; however, you can cooperate fully within the framework of your written safety procedures."

• Don't talk too much. Many times opening discussions in compliance reviews become gab sessions, with company representatives saying more than they should. "One thing you have to remember is that anything discussed during the opening session could produce an audit lead," Davis cautioned. "The key is to keep it short and sweet, friendly but brief. You want to treat auditors with respect and dignity, but you don't want to tell them about all the ins and outs of the safety department."

A company tour isn't recommended. For one thing, there's always the chance that the auditor will see something that can be used later in the audit. Moreover "they're not there to make new friends and they're not there to see a trucking company. They've seen plenty of them," Davis said. "What they're there to do is audit documents, and the quicker we get them into that situation, the faster they'll be gone."

Provide a comfortable place for the auditor, but not one with access to files or computers. Make sure employees know that an audit is taking place, and that they understand what shouldn't be discussed in the audit area. "You want a friendly environment, but there's a fine line between friendship and duty," said Hedgpeth. Avoid discussions regarding the merits of the regulations or your safety program. "This is not the time or the place to do that."

• Control document flow. Supply only one type or category of documents at a time. Once the auditor is finished reviewing those documents, recommend that they be returned right away to their proper place.

If possible, produce documents at a fairly consistent speed. Some will be easier to get than others, so you may have to slow up the production of some and speed it up for others. "The way you speed it up is to stay in front of the requests," Davis said. When you deliver the documents for one category, ask what will be needed next so you can begin to prepare.

• Keep records of the review. Count and record every document supplied to the auditor. This is important, because critical violation rates can depend on the number of documents audited. If you haven't kept track of those numbers, category by category, it can be difficult to check your own scores.

Keep a diary of the proceedings. Copies of any requests the auditor makes in writing should be included in your audit file. Accurate records of what went on in the review are critical if you decide to appeal the findings.

Many carriers bring in third-party consultants who sit in a nearby room during the review and re-audit the documents. "Errors are made," Davis said. "Procedures and protocol are sometimes broken." Back-up audits by a carrier's own safety people or an outside consultant not only verify what the auditor has done, but give you more confidence when it comes time to sign off on the closing forms.

• Prepare for interviews. A single person, usually the primary safety officer, should be designated as the auditor's contact within the company. If the auditor wants to interview drivers or other personnel, that designated contact person should make the arrangements. The interviews should be scheduled as quickly as possible. Persons to be interviewed should be cautioned to keep their answers short and to the point. They should be instructed to answer questions, but to avoid volunteering information.

• Think before signing. At the end of the review, the company's designated representative will be asked to sign a form certifying that compliance review information has been received. But if the auditor also presents affidavits, voluntary statements, consent orders or other documents that aren't familiar or clearly understood, politely decline until you can consult your attorney.

To purchase an audio tape of this conference or for information on other TCA audio conferences, see the Truckload Academy section of www.truckload.org or call Virginia DeRoze at (703) 838-1950.

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