| Preceded
by Procedure No: |
|
Followed
by Procedure No: |
|
| Purpose: |
To
describe independent audits of Timber Utilisation
Contracts |
| Applies
to: |
FC
Chief Executive
FSD Director
FSD Regional
Managers
FSD District
Managers |
| Reference
Documents: |
LI
1649, LI 1721
Terms
of reference for auditing organisation |
|
1.
Each TUC is
subject to audit by a qualified independent
organisation at intervals of not more than
5 years, in addition to the regular monitoring
activities undertaken by FC staff. The baseline
audit by an assigned independent organisation
should take place within 12 months of the
first harvesting activities. |
|
2.
The Chief
Executive maintains a list of organisations
that are independent from any commercial forest
or forest industry interests and are qualified
to carry out audits. A qualified organisation:
a)
has management
systems in place that meet the requirements
of ISO/IEC Guide 62:1996
and that have been accredited a body
operating to the requirements of ISO/IEC Guide
61:1996;
b)
has demonstrated
expertise in forest management with particular
experience of the requirements of the Timber
Resource Management Act, LI 1649 and LI 1721
and the pro forma Timber Utilisation Contract. |
|
3.
The Chief
Executive engages and assigns, through a competitive
bidding process, a qualified auditing organisation
for each TUC. |
|
4.
Within 11
months from the start of harvesting operations
the Chief Executive will give notice to the
TUC holder that a compliance audit of the
TUC will be held within 30 working days. |
|
5.
The auditing
organisation performs an audit of each TUC
to which it has been assigned, that includes
sufficient administrative and field checks
to cover the following aspects:
a)
access to all manuals that affect the TUC holder's activities;
b)
adequate written procedures to assure compliance with essential requirements
of the TUC and the manuals;
c)
adequate knowledge of the essential requirements of the procedures
by each person in the TUC holder's organisation
whose functions are affected by them;
d)
adequate operational supervision and control by the TUC holder to
assure compliance with the procedures; and
e)
availability and accessibility of records that demonstrate the TUC
holder's compliance with the procedures and
that appropriate corrective actions were taken
where procedures were not followed.
The
auditing organisation also checks the TUC's
compliance record, with regard to payment
of fees and regulatory breaches at the District
Office concerned. |
|
6.
The auditing
organisation prepares and submits an audit
report to the FSD Director that:
a)
shows that it has performed all required checks;
b)
identifies all areas where the audited TUC holder failed to meet
requirements;
c)
refers to objective evidence that the auditor has used to determine
compliance and non-compliance; and
d)
lists appropriate actions that the TUC holder and/or the Forestry
Commission should take to rectify any shortcomings. |
|
7.
The FSD Executive Director
reviews the reports and determines whether
any of shortfalls identified by the audit
require sanctions and what the nature of such
sanctions should be. |
|
8.
The FSD Executive
Director through the FSD Regional and District
Managers notifies the TUC holder of the audit
findings, the actions it requires the TUC
holder to take and any sanctions that the
FSD Director has determined to be appropriate. |
|
9.
The TUC holder
may dispute any audit finding and appeal any
sanctions by submitting sufficient written
objective evidence to the contrary. |
|
10.
The FSD Executive Director
reviews all disputed findings and appeals
and determines whether or not they are justified
and notifies the appellant in writing of its
decision. |
|
11.
The FSD Executive Director
annually summarises the results of all audits
performed and submits the report to the Board
with recommendations for any actions that
the Forestry Commission should take. |
