SO YOU GOT A LETTER OR A PHONE CALL that the auditor is coming. The clock is ticking and the pressure is on. The stakes are high and you don't have room for error. What do you do?
MAKE THIS YOUR No 1 PRIORITY as things can get very, ... very expensive. Some owners become too anxious, thinking that their company is going to be shut down. In practice, I had seen many companies failed MTO audit, and allowed to continue operations. However, the invisible hand of
THE INSURANCE MARKET is going to become de facto safety enforcer. The company with a "Conditional" safety rating, assigned as a result of a failed audit, will see many insurance providers close their doors. Those that will remain open will 'hit hard' with premiums.
LET'S DO THE MATH the over simplified way. Let's say there's only 10 payments a year, and you're paying $1000 per month per truck (some people will pay more, some people will pay less). Now a 10% insurance premium increase is going to cost you $100 per truck per month or $1000 a year. Multiply that by the number of trucks you run ... and you get a very nice figure, that will hurt your bottom line for the period of ...
UNTIL YOU PASS ANOTHER MTO AUDIT, because the only way to improve a carrier safety rating, previously downgraded as a result of a failed audit, is to pass another audit. Currently the wait time for a voluntary one is around six months.
MOST OWNERS ARE FORMER DRIVERS and they think of a facility audit as a weigh-scale check. This is not a scale check, nor its an insurance audit, nor its a US DOT educational audit. It originated for a reason, and they are not coming to give you an award.
YOUR COMPANY IS GOING TO BE AUDITED for a period of about 2 to 3 days on average, depending on the size of the operation. The officer is going to go into much more depth, cross-verifying more documents and doing their "homework" (that's what they call it). I had witnessed top of the roster drivers, 30 years of experience, passed all scale inspections without driver defects, being failed during a facility audit. So take this one seriously.
THE CHOICE IS YOURS. You are the captain of your ship, and I am not here to tell what to do, and how to run your business.
WHAT I CAN BRING TO THE TABLE is an easy to use guide, compiled based on a combined experience of 30 audits, that you could use to prepare yourself for the audit successfully.
1) Printed/text materials such as:
- driver, maintenance, collision files checklists
- hours of service audit Excel sheet
- guides on how to recover missing documents (DVIR, Annual Safety Inspections, etc.)
- procedure on how to obtain CVOR L2 Abstract and/or MCMIS report (if operating in US)
2) video demonstrations of how an experienced consultant would:
- audit/compile required driver, maintenance and collision files,
- audit log books and/or daily requirements (not to be confused with daily inspection reports)
3) tips and tricks on what to look for, and top issues why companies fail
Please call 647-478-7736 for inquiries.