Associated Gas & Oil Company Limited

RC 369036

ASSOGAS

AUDIT POLICY
ASSOCIATED GAS AND OIL COMPANY LIMITED recognizes that full and
consistent implementation of the Companys Safety Management System requires
the establishment of follow-up systems to ensure and measure its usefulness and
effectiveness. The most appropriate system in this case is the timely arrangement
of internal management audits. Proper planning of audits, prompt evaluation of
their findings and thorough reviews by the Companys senior management will
warrantee the continuous improvement and streamlining of the Companys Safety
Management System in light of and in accordance with Classification requirements,
fleet size changes and new industry standards and regulations.
This document provides an overview of the procedures in place within
ASSOCIATED GAS AND OIL COMPANY LIMITED and its fleet of vessels that
will ensure the correct application of the Safety Management System throughout
the management hierarchy. These procedures include matters of audit scheduling
and execution followed by management review and evaluation.
Audit Planning
The function of the Company-wide Internal Audit system is to investigate and
collect objective evidence for the suitability of Company procedures and practices
in light of:
the Companys ability and experience
fulfilling the Companys management needs
improving standards rather than focusing on firefighting efforts
understanding the basic principles of safety and environmental protection
management
The audit team consists of the SMS Designated Person and the Port Captain &
Nautical Safety Officer; together, they bear the overall responsibility for
initiating Company and vessel audits.
Additional team members will be chosen on the basis of :
- knowledge and training in safety management
- professional knowledge, skill and experience in a particular function
- analytical ability to evaluate a system and identify potential improvements
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- capacity in understanding conflicts in organizational levels

- personality, impartiality and trustworthiness.
Onboard Company vessels, the Ship Master is conducting the internal audit of his
vessel, based on a similar procedure as the corresponding shore team.
A tentative annual audit schedule (see Appendix A) of the Company and its vessels
must be established and approved by the General Manager; it may be subject to
changes however, due to chartering obligations and vessel routeing. The audit
schedule, once approved, is circulated to the relevant Departments and vessels;
individuals to be interviewed are notified one week in advance of the actual audit.
Audit Execution & Evaluation
During Company audits, team members interview personnel for the purpose of
collecting and noting information. Departments and people whose functions affect
safety and/or protection of the environment are to be audited. These include :
- The General Manager
- Operations Department
- Technical Department
- Safety Management Department
- Crewing Department
- Company vessels.
Company audits will be executed and findings to be recorded according to the
checklists in Appendix A since they are to provide all the necessary documentation.
In case of a non-conformity or other form of a safety compromise, the responsible
Department Head is informed and requested to take corrective action.
Vessels audits will be conducted by the Master of each vessel and similar forms as
the shore-based internal audit team are to be completed. Findings of nonconformities will be recorded following the forms of Chapter Eleven. Originals of
the completed reports will be returned to the SMS and Safety Officers while
copies must be kept onboard the vessels being audited.
The Lead Auditors carrying the interview process must evaluate the relevant
forms and checklists and assess the status of the Company Departments / vessels
based on:
- organization and managerial structure
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personnel, duties and responsibilities

familiarity with SMS procedures
training, and
Reporting and recordkeeping.

Management Reviews
The Committee for evaluating the results of internal audits consists of the General
Manager, as presiding member, and, of the Operations, Technical, SMS and
Crewing Officer.
The Board, after being fully briefed by the audit team and the SMS Person in
particular, decides on corrective actions based on :
-

audit findings
requests for changes to the Safety Management system,
analysis of accidents, hazardous occurrences and non-conformities,
recommendations by Class and other statutory surveys.

The Board convenes on a regular basis once every year, unless a critical occurrence
has taken place; in such a case a Board meeting is called upon by the General
Manager. Minutes of all meetings are retained; findings, follow-up actions and
responsible Departments are documented for future reference and discussion.

- - - - - - - - - - - - - - - - - ---- - - - - Ben Omomia

(Managing Director)
ASSOCIATED GAS AND OIL COMPANY LTD
April 2014

Safety First, Dont Learn By Accident

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