Facts about DOT Audits

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1 Are You Prepared for adot Audit? Today s Presenters Miranda Gervais DMO Client Services Manager J. J. Keller & Associates, Inc. Tory Much Sr. DMO Client Service Specialist J. J. Keller & Associates, Inc. Tom Bray Editor,Transportation Manager J. J. Keller & Associates, Inc. Agenda Reasons for an audit 6 Factors of an audit How DMO can help you be prepared for an audit 1

2 Most common reasons for an audit SafeStat Score. Valid Complaint. Carrier Request. Conditional or Unsatisfactory Follow-up. Other. The New Entrant Safety Audit Program is a different program aimed at educating and evaluating new carriers. Facts about DOT Audits 9,774 Compliance reviews completed in 2007 (Federal alone). 65% Satisfactory. 27% Conditional. 2% were not rated. 5% Unsatisfactory. 19% of reviews discovered acute violations. 42% of reviews discovered critical violations. 48% of reviews discovered other violations. Poll question When was the last time you were audited? Within the last year In the last 5 years Never Don t know 2

3 The 6 Factors Factor 1 - General: Part 387 Financial Responsibility Part 390 General Compliance Factor 2 - Driver: Part 382 Drug and Alcohol Part 383 CDL and 391 Driver Qualifications Factor 3 - Operational: Part 392 Safe Operations Part 395 Hours of Service The 6 Factors Factor 4 - Vehicle: Part 393 Parts and Accessories Part 396 Inspection and Maintenance Factor 5 Hazardous Materials: Parts 171, 177, 180, and 397. Factor 6 - Accident: Recordable Accident Rate per MM Factor 1: General Regulations General regulatory requirements. Financial responsibility. Proof of liability insurance. Proof of cargo insurance. Accident register and records. Vehicle marking (name and DOT number). False statement or documents. 3

4 Factor 1: General Regulations Accident Register (b). Keep three years after accident. List of accidents to include: Date City, State Driver # Injuries # Fatalities Hazardous Materials Spilled Copy of Accident Report Factor 1: General Regulations What is an accident? An accident is an occurrence on a roadway which results in: A fatality; Bodily injury to a person requiring immediate medical treatment away from the scene; or One or more vehicles being transported away from the scene by a tow truck or other motor vehicle due to disabling damage. Poll results When was the last time you were audited? Within the last year In the last 5 years Never Don t know 4

5 Find an Employee Anderson, Ann Find an Employee Add new accident 5

6 Adding an Accident Adding an Accident DOT Accident Register 6

7 DOT Accident Register DOT Accident Register Factor 1: General Regulations Motor carrier must require observance of driver regulations ( ). Whenever a duty is prescribed for a driver or a prohibition is imposed upon the driver, it shall be the duty of the motor carrier to require observance of such duty or prohibition. 7

8 Factor 1: General Regulations Records Fraud No motor carrier, its agents, officers, representatives, or employees shall make or cause to make: A fraudulent or intentionally false statement on any application, certificate, report, or record. A fraudulent or intentionally false entry on any application, certificate, report, or record required to be used, completed, or retained. Factor 2: Driver Regulations Driver records selection criteria: Involved in accidents Placed out of service Roadside violations Top performing drivers Factor 2: Driver Regulations Drug and Alcohol Program (Part 382) A written policy. Pre-employment drug testing. Not allowing the drivers to perform safetysensitive work until you receive verified negative results of the pre-employment tests. A random drug testing program. A random alcohol testing program. 8

9 Factor 2: Driver Regulations Drug and Alcohol Program (Part 382) Reasonable suspicion drug and alcohol testing and supervisory training. Immediately removing drivers that fail a drug or alcohol test. Not allowing drivers to drive while under the influence. A post accident drug and alcohol testing system. Factor 2: Driver Regulations Post-accident test required if: There was a fatality, or Anyone involved was injured or a vehicle had to be towed away AND a citation was issued to the driver for a moving violation. Drug & Alcohol Tests 9

10 Adding a Drug Test MIS Report MIS Report 10

11 MIS Report Poll question What records must a carrier produce for an audit? Driver qualification files Driver vehicle inspection reports and maintenance An accident register and copies of all accident reports required by state and other governmental entities or insurers All of the above Factor 2: Driver Regulations Driver Qualifications (Part 391) Entry-level driver training (Part 380). CDL class and endorsement (Part 383). Road testing or an acceptable equivalent. Only one driver s license. Proof driving records checked when hired and once annually thereafter. 11

12 Factor 2: Driver Regulations Driver Qualifications (Part 391) Requiring drivers to report (once per year) traffic convictions from the prior 12 months. Requiring drivers to notify the company whenever they are convicted of a moving violation or suffer a disqualification, suspension, or revocation of driving privileges. Not using drivers with suspended licenses or that have had the CDL privileges disqualified. Factor 2: Driver Regulations Driver Qualification (Part 391) Using only drivers that have passed a FMCSA physical. Employment application asks the right questions. A background investigation of previous employers. A safety performance history inquiry of previous employers that are regulated by the DOT, which includes questions on accidents and compliance with drug and alcohol regulations. Factor 2: Driver Regulations Driver Qualification (Part 391) Maintaining drivers qualifications, safety performance history, and substance abuse files that documents all the activities listed above. If an item required in the file cannot be documented (former employer is no longer in business) the carrier must document a good faith effort to comply. 12

13 Poll results What records must a carrier produce for an audit? Driver qualification files Driver vehicle inspection reports and maintenance An accident register and copies of all accident reports required by state and other governmental entities or insurers All of the above Ann s Prequalification Checklist Ann s Prequalification Checklist 13

14 Ann s Prequalification Checklist 12/15/2008 Ann s Maintenance Checklist 2/12/ /15/2008 Drivers with Incomplete Qualification File 14

15 Drivers with Incomplete Qualification File Expiration Report Expiration Report 15

16 Factor 3: Operational Regulations Using drivers who are under the influence, ill, or fatigued. Schedules are legal. Cargo is secured. Hours of service! Poll question How are carriers selected for an audit? They have been in business for more than 5 years A follow-up to a satisfactory review A non-fatal accident Randomly None of the above Factor 3: Log Auditing General form and manner ( 395.8). Hours of service ( and 395.5). Supporting documents are any documents kept in the course of business that can be used to verify the driver s record of duty status ( 395.8). Duty logged correctly ( 395.2). Accurate and true ( 395.8). 16

17 Factor 3: Log Auditing Violation Summary Report Violation Summary Report 17

18 Violation Summary Report Poll results How are carriers selected for an audit? They have been in business for more than 5 years A follow-up to a satisfactory review A non-fatal accident Randomly None of the above Factor 4: Vehicle Regulations Performance Standard: No higher than 34% Vehicle Out-of-Service (National Average 22.9%). Similar review selection process. 18

19 Poll question How long must a motor carrier retain a roadside inspection report without any violations? 1 year 3 years Indefinitely No need to keep the report Roadside Inspections Tracking roadside inspection outcomes Carriers should track all roadside inspections. Verify that violations have been corrected. Spot trends that could lead to future problems. Compare internal tracking data to data in SafeStat monthly. SafeStat website: Roadside Inspections 19

20 Unit Inspection Report Poll results How long must a motor carrier retain a roadside inspection report without any violations? 1 year 3 years Indefinitely No need to keep the report Factor 4: Maintenance All unsafe or out-of-service vehicles are repaired before operated (Part 396). Systematically and promptly inspect, maintain, and repair vehicles, and retain records ( 396.3). Drivers complete and review DVIRs (three signature process) ( and.13). 20

21 Factor 4: Maintenance Annual inspections are current ( ). Annual and roadside inspection reports are on file. PM History Report Repair Detail Report 21

22 Factor 5: Hazmat Regulations Bills of Lading. Training. Security Plan. Acceptance of damaged or misclassified goods. Much more!!! Factor 6: Accident Rate Definition of an accident ( 390.5). Accident rate per million miles (nonpreventable accidents can be removed from calculation). Compared to industry average x 2. Factor 6: Accident Rate Factor 6 is either Satisfactory or Unsatisfactory, no scoring. 1.5 pmm for regular carriers 1.7 pmm for urban carriers that operate entirely within 100 miles of terminal. 22

23 Fines & Penalties Recordkeeping Violation Monetary Penalty $1,000 for each day the violation continues, up to $10,000. Non Recordkeeping violations $11,000 for each violation. Knowing falsification of records Non Recordkeeping Violations by Drivers Violations of Hazardous Materials Regulations (HMRs) Violations of Hazardous Materials Regulations (HMRs) $10,000 if such action misrepresents a fact that constitutes a violation other than a reporting or recordkeeping violation. $2,750 $250 up to $50,000 for each violation. Each day of a continuing violation constitutes a separate offense. If the violation results in death, serious illness, or severe injury to any person or in substantial destruction of property, $105,000 per offense. Each day the transportation continues constitutes a separate offense. Factor Scoring Factors 1 to 5 are scored based on acute and critical violations. Over 10% noncompliance with a critical regulation - assess one point (Part 395 violations count double). Each incident of noncompliance with an acute regulation - assess one point. Factor Rating If a Factor has a score of 0 it is scored Satisfactory. If a Factor has a score of 1 it is scored Conditional. If a Factor has a score of 2 or more it is scored as Unsatisfactory. 23

24 Motor Carrier Safety Rating Table Factor ratings Unsatisfactory Conditional Overall Safety rating 0 2 or fewer Satisfactory 0 more than 2 Conditional 1 2 or fewer Conditional 1 more than 2 Unsatisfactory 2 or more 0 or more Unsatisfactory Mock Audits Done by internal or external auditors. Use formatted program and checklists if doing it yourself. Do not go by we do that. Actually review the documentation and verify that you are doing it. Be brutal, the real auditors will be. Use action plans to rapidly fix what is found. Questions Use the Questions section on the right side of your screen to ask a question. 24

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