ANNUAL REPORTING
Audit Ready Guide
Audit Ready Guide
Getting audit ready
Signatories to the Australian Packaging Covenant (APC) are required to report by March 31
annually. As in the past, the APC will be initiating an assessment and audit process (outlined
in Figure 1) as part of annual reporting this year, with the primary intention of helping all
signatories to remain compliant with the Covenant.
Annual reports submitted by signatories will be reviewed and accepted by the APC. All
reports are then externally assessed in greater detail, cross-referenced against action plans
and provided with a rating out of five. Signatories have the option of making this rating
publicly available if they choose. Further to this assessment, a selection of signatories will
be randomly chosen for independent audit. In 2014, 28 signatories were audited, with 100
per cent compliance.
Those being audited this year will be required to provide evidence supporting the claims
made in their annual reports. Auditors will also review the content of signatorys action
plans and progress in implementation. It is important that all signatories are audit ready.
ANNUAL REPORTS SUBMITTED BY SIGNATORIES
STAGE 1
INITIAL REVIEW & ACCEPTANCE BY APC
OPPORTUNITY TO ADDRESS ISSUES
ASSESSMENT & RATING
OPPORTUNITY TO ADDRESS ISSUES
NOTIFICATION OF SIGNATORIES TO BE AUDITED
STAGE 2
TIMING OF AUDIT FINALISED
INDEPENDENT AUDIT
RESULTS OF AUDIT PROVIDED
OPPORTUNITY TO ADDRESS ISSUES
Figure 1: APC annual reporting assessment and audit process
What does being audit ready mean?
Being audit ready' involves exercising sound document control procedures to ensure you
can substantiate any claims made in your annual report. Put simply, it requires you to keep
documented evidence of all activities undertaken in line with your APC commitments, and to
have this documentation readily available for an external auditor. You will have one month
to respond to the auditors and provide credible evidence for all claims made.
What is acceptable evidence?
Acceptable evidence could include records of any policies and procedures that have been
developed and implemented to assess and review packaging, and the results of any reviews
committed to within the reporting period. Some other sound examples could include:
Minutes of internal and external meetings;
Copies of emails with suppliers regarding packaging sustainability, linked to action
plan items;
AUDIT READY GUIDE
Audit Ready Guide
Policies supported by senior management;
Documents detailing implementation of procedures;
Evidence of procurement and design practices influenced by APC-related actions;
Checklists used when performing packaging reviews;
Collection data from recovery/ recycling companies;
Tender documents detailing sustainable packaging criteria;
Photos of onsite activities including waste management systems and plant
modifications; and
Tracking of litter management actions.
What is an acceptable way to store and present evidence?
Your organisation may already have a records management system with a central document
storage process. If appropriate, you can use this system to store APC and packaging
sustainability-related data. Having in place a central document storage system may also
improve the efficiency of your APC process by allowing team members to access assessment
and supplier data.
If a system is not in place or not appropriate then each activity/ target in your action plan
should identify what records you will need to maintain in order to be audit-ready. You will
need to ensure this data is available and easily accessible.
To assist signatories with the data collation required for annual reporting the APC has
developed an Annual Report Data Collection Template. This template is designed to
improve efficiency, distribute accountability and establish a sound reference for auditing
purposes.
EXAMPLE 1: If you have reported under KPI 4 that a Buy Recycled policy and relevant
procedures were developed and implemented by June 2014, then you should have a copy of
the policy and evidence it has been implemented and has influenced the consideration of
recycled content in the products procured by your organisation.
What happens if I am selected for audit?
Organisations selected for audit will be contacted via a formal letter and email, addressed to
their APC contact officer. The letter will provide specific details regarding the audit process,
including timelines, what data will be required, and more specifics regarding how the data
should be presented.
Organisations selected will be audited based on the following criteria:
1. That the action plan and annual report meet the minimum obligations outlined by
the APC (as detailed in Schedule 1).
2. That the company has attempted to undertake the actions described in their action
plan or is able to provide a reasonable argument as to why not.
3. That the outcomes reported in the annual report have actually been achieved and
evidence exists which substantiates those achievements.
If a signatory does not comply with the audit requirements and/or is found to be noncompliant, the compliance procedures as set out in Schedule 3 of the Covenant will apply.
AUDIT READY GUIDE
Audit Ready Guide
Who do I contact for support and further information?
As stated above, the intention of the audit process is to ensure signatories remain compliant.
If you have any questions regarding your approach to annual reporting and document
control please contact the APC.
For support in understanding how to be audit ready please email Member Services at:
apc@packagingcovenant.org.au.
For more information regarding the compliance process please contact Signatory Services:
signatory@packagingcovenant.org.au.
AUDIT READY GUIDE
