INDEPENDENT COMPLIANCE AUDIT Chris Bateman, Jones Environmental

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INDEPENDENT COMPLIANCE AUDITChris Bateman, Jones
Environmental
NFGWS Annual Conference Water Services National
Training Group Nuremore Hotel, Carrickmacross,
Co. Monaghan 18th September 2002
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Why Independent Compliance Audit (ICA) is required

• Demonstrate to Stakeholders that the facility is
  being properly managed
• Assess PSPs and Employers Performance
• Group Member perception Good Management
• Quality Management
• Emerging practice in EU, Europe and US

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Why do we need to Audit?

• Services today are frequently outsourced
• Must deliver good service Quality Assurance
• Audit the service delivery Good or Bad?
• Good Is there room for improvement?
• How do the Group Members know the service is
  good?
• Personal Experience
• Regular Audit

Group Members Perception will improve. Regular
Audit. Clean bill of health
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What does ICA Achieve?

• Quality Assurance
• Delivery of services is checked independently
• Very effective Management Procedure
• Constructive feedback to both Parties
• Provides assurance to Group Members

Does not relieve Employer of his Responsibility
to manage the Contract
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Responsibilities

• Contract Between PSP and Employer
• PSP Operate and Maintain the Facility
• Employer Monitor and Manage the Contract
• Independent Compliance Audit checks if PMS is
  being implemented

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Information Given to Auditor

• Contract Documents, including PMS
• LMC meeting minutes
• MSRs (for period of audit)
• PSPs Complaints Records
• Employers Complaints Records
• Payments to PSP
• Copies of previous ICARs
• Site Safety File

Auditor is Required to Limit his Investigation to
this Information
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Contents of ICA Report (ICAR)

• Non-Technical Summary
• Review of Monthly Status Report
• Review of Compliance with Performance
  Requirements
• Review of Emergency Systems and their
  Implementation
• Review of Third Party Complaints and their
  Resolution
• Review of LMC Meetings
• Review of Payments and Expenditure

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Schematic
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Synopsis of Procedure AP1
Procedure AP1

• Auditor provided with specific information
• Audit based exclusively on that information
• Includes Non-Technical Summary
• Audit Report based on Table of Contents in PMS

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AP1 - Checklist
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Procedure AP4
Synopsis of Procedure AP4

• Compare actual performance of facility with the
  Specified Requirements
• Highlight Non-Compliance

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Procedure AP8
Synopsis of Procedure AP8

• Check that Payment Procedures are being adhered
  to
• Verify
• Payment frequency is per Contract
• Contributions to CRF are made and disbursed as
  agreed
• Penalties (if any) are applied as per the
  Contract
• Indexation is as per the Contract

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AP8 - Checklist
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ICA Report

• Completed within one month of Audit
• Submitted to
• Employer
• PSP
• Information for Employer to pass on to Group
  Members

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Appointment of Audit Service Provider

• DOELG will set up National Framework Panel of
  Auditors
• Appointed from Panel by rotation
• In interim follow regular procurement
  procedures (detailed in PMS)
• Sample Advertisement and Brief included in PMS

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Frequency of Audit Service

• Set down in Contract (Employers Requirements)
• Generally once per year
• Cost provided for in the Contract

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ICA To Summarise

• It is Good Management Practice
• It Provides a vital assessment of the Service
  being Provided
• It Provides Good Feedback to the Employer, Group
  Members and the PSP

It is an Essential part of the PMS
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The End