AS-12-01

ALLSEA DMCC Date: 15/08/2018

Revision: 00
Page: 1/3

PROCEDURE FOR INTERNAL AUDIT

1. PURPOSE
To verify whether safety, health and pollution prevention activities comply with
the safety and labour management system.

2. SCOPE
To be applied ashore and aboard.

3. REFERENCES
- ISM code.
- MLC 2006.
- IMO’s MSC-MEPC.2/Circ.3 “Guidelines on the Basic Elements of a Shipboard
Occupational Health and Safety Program”.
- ILO’s Code for Accident Prevention at Sea and in Port.

4. PROCEDURE
4.1 Preparing internal audit
DP should plan internal audit schedule at least once in calendar year for a period
not exceeding 12 months within 2 audits referred to “SLMS Audit plan” AS-12-01-
01. Beside the periodical internal audit, as allowed by Managing Director, DP
should be able to organize an unexpected internal audit.

DP is also responsible for forming, controlling internal audit team/ or nominate

person who will manage the internal audit. However, auditors shall not audit his/
her own work or his/her department.

Internal auditors should be trained in internal audit skills and are properly qualified
for implementing the internal audit. It should be ensured that the selection of
internal auditors and implementation of the internal audits are objectively and
independently conducted.

Internal auditors are responsible for planning audit questions which conformity
with each department or ship audited. For a ship internal audit, auditors should be
able to conduct the audit referred to “Shipboard internal audit checklist” AS-12-01-
02. “Office internal Audit Checklist” AS-12-01-03 is used for office audits. MLC
Internal audit is carried out together with ISM internal audit, using form “MLC
2006 internal audit checklist” AS-12-01-04.

Prior to implementing an internal audit, DP should send “Internal audit notice” AS-
12-01-05 to company’s leaders, department managers and masters in order to
preparing accordingly. DP also sends a message that is same as the notice.

4.2 Implementing internal audit

In managing, the process of an internal audit will normally involve following steps:
- Organize an opening meeting.
- Implement the audit.
- Assess results of verification.
 AS-12-01

ALLSEA DMCC Date: 15/08/2018

Revision: 00
Page: 2/3

PROCEDURE FOR INTERNAL AUDIT

- Hold a closing meeting.

- Observe on any non-conformity, major non-conformities (if any).
- Provide for the internal audit report.
- Other steps.

In a safety and labour management system audit, both ship based as well as shore
based, the following contents are required to verify:
- Documents of the procedures.
- Implementation of the safety and labour management system and its effect.
- Understanding the procedures of people who are in charge of.
- Inspecting the ship conditions, especially the safe appliances.
- State of “Stand-by” responding to emergency situations.
- Documents recording the results of works to be carried out.

Immediately after ending the audit, prior to closing meeting, the auditors able to
exchange their ideas, audit the facts that to be found during the inspection.
Objective evidence indicates that procedures of the safety and labour management
system not to be complying with could seem to be strong argument to conclude
that is non-conformity.

After holding a mini meeting in order to summarize all the facts to be found and to
clarify all misunderstandings, DP writes the internal audit report that including:
“Non-conformity Report” AS-09-01-03 (if to be) and “Internal audit report” AS-12-
01-06.

Department managers and Master are responsible to bring out corrective

measures and period of time to correct the non-conformity that to be indicated
“Non-conformity Report” AS-09-01-03. Corrective measures would be repairing or
replacing the corrupt elements, complying with or modifying the procedures of the
safety and labour management system,... It is required to name the person who
carries out (may be crew members or requesting supports from Company).

The time for taking from completing the audit to producing and distributing the
report should be within two (02) days. All Observations / NCs must be rectified
within 03 months.

4.3 Implementation of ISM

The company checks periodically all tasks related to ISM code assigned to
responsibility persons to ensure their compliance. It will go through:
- “Technical Superintendent’s inspection report” AS-10-01-17 – bi-annually.
- “Superintendent safety inspection checklist” AS-12-01-07 – quarterly.
- “DPA’s ship visit report” AS-12-01-08 – bi-annually.
- Periodical inspection of Master and Chief engineer.
- Checking PSC reports, Vetting reports of Oil Majors or terminals.
- Ship’s safety meeting.
- Master’s reviews.
- Internal audit as per “Procedure for internal audit” AS-12-01.
- Management’s reviews as per “Procedure for management review of
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ALLSEA DMCC Date: 15/08/2018

Revision: 00
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PROCEDURE FOR INTERNAL AUDIT

SLMS” AS-12-02.

4.4 After internal audit

DP report to Managing Director and to the responsibility person for functions
concerned on result of the internal audit.

The responsibility persons must rectify immediately all Non-conformities found out.

DP should inspect whether the corrective measures are implemented within

required time as well as meeting the requirements.

After finishing the correction of non-conformity, Department manager or Master

concerned should write the date when the correction for non-conformity has
completed in the “Non-conformity Report” AS-09-01-03, which be formed in the
internal audit, 01 copy should be sent to DP.

DP or Inspector nominated by DP should inspect and confirm to “Non-conformity

Report” AS-09-01-03 which is formed in the internal audit.

Through the internal audit, DP may modify the procedures of the SLMM (if
necessary).

Major Non-conformity: In case of Major non-conformity, the Auditor shall

inform DPA and ensure immediate mitigation/downgrading of the major NC to NC.
The Master/Chief Engineer shall ensure the immediate implementation of
necessary action to mitigate the situation. Upon completion, advise DPA. DPA may
decide for an additional internal audit within 03 months.

5. FORMS/RECORDS
- “SLMS Audit plan” AS-12-01-01.
- “Shipboard internal audit checklist” AS-12-01-02.
- “Office internal Audit Checklist” AS-12-01-03.
- “MLC 2006 internal audit checklist” AS-12-01-04.
- “Internal audit notice” AS-12-01-05.
- “Internal audit report” AS-12-01-06.
- “Superintendent safety inspection checklist” AS-12-01-07.
- “DPA’s ship visit report” AS-12-01-08.
- “Non-conformity Report” AS-09-01-03.
- “Technical Superintendent’s inspection report” AS-10-01-17.