Tier II – Procedure – Performance evaluation of Authorized Third Parties

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1 Process flowchart

Step 1

Conduct risk assessment and identify Authorized Third Parties for Annual Audit Plan

Step 2

TC Auditor(s) are identified for each audit/performance evaluation

Step 3

Approval of Annual Audit Plan

The following are the steps for each audit/performance evaluation:

Step 4

TC Auditor develops audit scope and criteria

Step 5

Authorized Third Party representative is notified of upcoming audit, conforming dates and attendees

Step 6

AMSDA notifies regional DSIPLO of upcoming audit, requesting info and conformation of participation

Step 7

Terms of Reference prepared and sent Authority Third Party

Step 8

Audit id conducted and auditee briefed on findings

Step 9

Audit report developed and approved by AMSDA

Step 10

Report sent to Authorized Third Party or action plan

Step 11

If required, follow-up conducted by AMSDA regarding closing of action plan

2 Purpose

2.1 The purpose of this document is to outline the procedures for Transport Canada Marine Safety and Security (TCMSS) representatives involved in the performance evaluation of a recognized organization as authorized third parties, herein identified as “RO”.

2.2 In addition, this procedure defines the role of TCMSS’s Safety Management Systems and Authorizations (AMSDA) section in the evaluation of the performance of ROs as part of its oversight activities, under the Delegated Statutory Inspection Program (DSIP) and the frequency of these evaluations.

2.3 Furthermore, this procedure outlines the criteria and Key Performance Indicators used for performance evaluations of an RO.

2.4 Moreover, this procedure outlines the national reporting process on the performance evaluations of each RO.

2.5 This document does not address procedures related to the monitoring of vessels enrolled in the DSIP; such procedures are described in Tier II Procedure “Compliance Inspection Procedure for Operational Delegated Vessels “ (RDIMS #5073673)

3 Authority

3.1 This procedure is authorized by the Marine Safety and Security Executive (MSSE) and is in accordance with the objectives of the Canada Shipping Act, 2001 (CSA 2001).

3.2 This procedure is in line with the requirements of the Code for Recognized Organizations (RO Code), as adopted by the International Maritime Organization (IMO), by Resolution MEPC.237 (65) and Resolutions MSC.349 (92).

4 Background

4.1 To bring national consistency to the oversight activities of the DSIP, MSSE has included the conduct of performance evaluations of an RO as part of its oversight activities, under the Delegated Statutory Inspection Program.

4.2 These performance evaluations provide assurance that ROs are meeting the requirements as outlined in the authorization agreements signed between a RO and the Minister of Transport, as well as within the additional instructions provided by TCMSS, including items raised during the review of operational activities for delegated vessels.

4.3 In addition, the process of performance evaluations take into consideration the various rules, procedures, recommendations and guidelines published by the International Association of Classification Societies Limited 2017 (IACS).

5 Scope

5.1 This procedure applies to TCMSS’s oversight activities and the preparation of performance evaluations required as a result of risk base analyses.

5.2 While this procedure does not provide details regarding how to conduct monitoring inspections of vessels enrolled in the DSIP, result from previous monitoring inspections could be integrated in the development of an audit.

6 Responsibility

6.1 The Executive Director, Domestic Vessel Regulatory Oversight, is accountable for the development, implementation, maintenance, and continuous improvement of this procedure.

6.2 The Regional Directors are responsible for the implementation of this procedure in their respective regions.

6.3 This procedure applies to TCMSS’s representatives involved in the performance evaluation of a RO.

6.4 Comments or queries related to this procedure and its application should be addressed to:

Manager, National Marine Safety Program
Safety Management Systems and Authorizations
330 Sparks Street
Ottawa ON K1A 0N8

7 Procedure

7.1 Developing the Annual Audit Plan

7.1.1 AMSDA is responsible for the planning and the conduct of performance evaluation activities of ROs, including the determination and implementation of the oversight scopes.

7.1.2 By the first week of March of each year, AMSDA submits to the Executive Director, Domestic Vessel Regulatory Oversight an Annual Audit Plan for Performance Evaluation of the Authorized Third Parties (e.g. ROs Annual Audit Plan) (RDIMS 16489028), for approval.

7.1.3 The annual audit plan is developed, taking into consideration that 100% of ROs’ offices, and their Head Quarter (HQ), should be visited within a period of 5 years.

7.1.4 However, based on their level of involvement with the DSIP, ROs’ HQ Offices may not require visits.

7.1.5 AMSDA assigns an audit team for the development, preparation and conduct of each audit.

7.1.6 AMSDA notifies the head representative of the ROs that have been identified as part of the annual audit plan.

7.2 Development of Criteria

7.2.1 For each performance evaluation, the audit team identifies criteria based on a risk assessment to be conducted by the audit team.

7.2.2 The audit team develops the audit scope and criteria based on elements extracted from the RO Code and Canadian Instructions.

7.3 Information Gathering

7.3.1 AMSDA ensures that the following documents are maintained on a regular basis to help identify authorized third parties for the audit plan, and make easy identifying criteria and objectives: Tracking of RO Related Issues – National Input worksheet, which highlights RO and/or delegated vessel issues, including information recorded by DSIPLOs, groups with functional authority over delegated activities, customer complaints, etc. (RDIMS 15797047). The SMS Risk Matrix and Tracker Sheet (RDIMS 10574224). RO Audit Report and Recommendation/Action Plan Tracking Sheet (RDIMS 10909226). Generic Audit Program for RO Audit (RDIMS 9486337). Information from each RO’s website/databases, including survey reports and due dates. Data such as incidents/accidents obtained from Transportation Safety Board’s website.

7.4 Preparation for conducting Performance Evaluations (e.g. Audits)

7.4.1 The audit team prepares a Terms of Reference for each RO identified in the ROs’ Annual Audit Plan.

7.4.2 AMSDA informs the Regional DSIPLO, and TCMSS HQ groups that have functional authority over delegated activities that a RO identified on the ROs’ Annual Audit Plan will be visited in his/her region.

7.4.3 The DSIPLO provides input and regional participation. Regional participation is understood as the involvement of the DSIPLO, or a designated replacement involved in the oversight of the regional DSIP activities, in the preparation and conduct of the RO performance evaluation.

7.4.4 AMSDA contact the TCMSS HQ groups who have functional authority over delegated activities in order to obtain their input on potential areas of concern regarding the delegated activities.

7.5 Conducting Performance Evaluations

7.5.1 The audit team conducts the performance evaluation, for RO Offices, in accordance with, at the minimum, the following standards:

  • RO Code
  • ISO 19001:2015 Guidelines for Auditing Management Systems

7.6 Reporting on the Performance Evaluation

7.6.1 The audit team will compile the analysis from the oversight visit and prepare a performance evaluation report.

7.6.2 The audit team will provide a summary of the findings with the RO’s representative(s) at the time of the closing meeting.

7.6.3 The audit team will submit to AMSDA a RO Performance Report.

7.6.4 AMSDA forwards the copy of the report, with any request for action, to the RO’s representative(s).

7.7 Follow-up on Finding

7.7.1 When finding are identified, a root cause analysis, together with an action plan, is required to be submitted by the representative of the RO.

7.7.2 On receipt of the response from the RO, the audit team reviews the root cause analysis and action plan.

7.7.3 AMSDA forwards an acknowledgment outlining the response (e.g. acceptance or refusal) of the submitted action plan to address the findings to the RO representative(s).

7.7.4 The audit team tracks the finding and the action plans submitted by the ROs evaluated.

7.8 Consolidated National Performance Report

7.8.1 In addition to a report being developed for each performance evaluation, AMSDA will maintain a consolidated performance report for each RO that will cover at the minimum the past 3-year period.

7.8.2 This report is to highlight the overall performance of each RO that TCMSS has audited, observed and monitored. This includes:

  • Summary of past audits and related action plans developed by a RO.
  • Summary of monitoring inspection findings and SMR observations
  • Summary of issues related to any other RO’s delegated functions (e.g. vessel’s plan approval, MTRBs, Authorization of Service Providers, Type Approval Certification, etc.).

8 Related documents

8.1 Tier I Policy – Authorization of a Person or Organization to Exercise the Powers, or Perform Duties and Functions, under the CSA 2001 on Behalf of the Minister of Transport (RDIMS 7382109).

8.2 Code for Recognized Organizations (RO Code), adopted by the International Maritime Organization (IMO), on January 1, 2015, as specified in Resolutions MSC.349 (92) and Resolution MEPC.237 (65).

8.3 IACS Blue Book published by the International Association of Classification Societies Limited 2017 (IACS)

8.4 Tracking of RO Related Issues (RDIMS 15797047).

8.5 The SMS Risk Matrix and Tracker Sheet (RDIMS 10574224).

8.6 RO Audit Report and Recommendation/Action Plan Tracking Sheet (RDIMS 10909226).

8.7 Generic Audit Program for RO Audit (RDIMS 9486337).

9 Date of application

9.1 This procedure is applicable as of July 1, 2021.

10 Date for review

10.1 This procedure will be reviewed no later than three years after its date of application or its last revision.

11 RDIMS Reference

11.1 The English version of this document is saved in RDIMS under reference number 7372814. The applied naming convention is PUBLICATION – TP 13585 – PROCEDURE - Performance Evaluation of Recognized Organization as Authorized Third Parties.

11.2 La version française du présent document est dans le SGDDI et porte le numéro de référence 16504725. La règle d'affectation des noms est Évaluation du rendement d’une organisation reconnus en tant que tiers autorisés.

11.3 This is the first approved and finalized revision of the English version of this document.

12 Keywords

  • Delegated Statutory Inspection Program
  • Authorized Third Party
  • Recognized Organization
  • Performance Evaluations

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