6. RESPONSIBILITIES WITHIN THE AUDITING PROCESS

The Scheme has three points of audit;

- First purchaser record audit
- Assessor accompanied audit
- Random farm audit

All audits, will be co-ordinated by the Scheme administration (timings and arrangements), and are independent of first purchasers. The costs of all auditing will be met by the first purchaser.

(a) First purchaser record audit

i. First purchasers will receive one ''''records'''' audit per annum.

ii. The auditor will be provided with first purchaser information as extracted from the Scheme database.

iii. Database information will also include location of first purchaser records. If company records are in more than one location and the records auditor must travel between sites, the first purchaser will be required to fund the additional costs of travel, subsistence and time. First purchasers may be able to make arrangements for records to be delivered to the one location to avoid this issue.

iv. Auditing at first purchasers premises will encompass:

- Company documentation including Checklist.
- Assessor names.
- Assessor certification details.
- Registered active producers.
- Number of farms assessed.
- Farm assurance details per farm.
- Evidence that action has been taken to correct any non-compliance within 90 days.
- Evidence that action has been taken on previous audit recommendations.
- Such information and in such a way as the Board of Directors deem necessary.

v. The auditor will complete a report, which will be submitted to both the Scheme administration and the first purchaser.

vi. If the auditor makes a recommendation that action needs to be taken by the first purchaser to improve records or standards a return visit date may be set by the scheme auditor.

vii. The Scheme administration will monitor implementation of auditor recommendations and report any failure to act on recommendations to the Board of Directors.

(b) Assessor accompanied audit

i. Successful completion of the Lantra training course will be followed within twelve weeks by an independent audit of two farm assessments.

ii. On successful completion of the audit the assessor will be awarded the National Dairy Farm Assured Scheme assessor certificate.

iii. Once certificated, assessors will be routinely re-audited at 15 - 18 month intervals.

iv. The auditor will undertake a farm assurance assessment alongside the assessor. No dialogue, (in respect of the assessment), will take place between the auditor, and the assessor.

v. The auditor will only audit the application of the National Standards, and will not include individual first purchaser additions in his assessment.

vi. The auditor will address:

- Assessment planning.
- Assessment technique.
- Knowledge and application of the National Standards.
- Feedback to farmer - technique adopted.
- coverage of requirements.

vii. The auditor will provide verbal feedback to the assessor and complete a report which will be submitted to both the Scheme administration and the first purchaser. The report will provide recommendations when necessary, on the action required to improve the performance of the assessor.

viii. The Scheme administration will monitor implementation of auditor recommendations and report any failure to act on recommendations to the Board of Directors.

(c) Random farm audit

The random audits are directly related to the number of active producers registered by the first purchaser.

From one (1) to five hundred (500) producers registered there will be one random audit in every twelve calendar months. There will be one extra random audit for every one thousand (1000), or part thereof, producers registered thereafter.

i. The Scheme administration will select the farms to be audited from farms which have already received a satisfactory assessment by the first purchaser.

ii. Arrangements will be made through the first purchaser to undertake the farm audit. The first purchaser will advise the farmer that the audit is to be carried out and may have a representative present at the audit.

iii. The audit process will follow the National Scheme Checklist.

iv. The auditor will draw a comparison in general between the farm assessment on the day and the most recent assessment by the first purchaser.

v. Due allowance will be made for changes that may have occurred since the previous assessment. The farm must reflect general consistency with the previous assessment and National Standards.

vi. The auditor will not undermine the credibility of the assessor or the first purchaser of the selected farm.

vii. The auditor will complete a report, which will be submitted to both the Scheme administration and the first purchaser.

viii. It will be for the first purchaser to decide whether to forward the report to the producer. The auditor''''s report will not be available from the scheme administration to individual farmers.

ix. The Scheme administration will monitor implementation of auditor recommendations and report any failure to act on recommendations to the Board of Directors.

Issues identified as a result of the auditing process in relation to the dairy farm assessments will be brought to the attention of the Board of Directors. The Board will decide the most appropriate method of implementing change to both training courses and qualified assessors.

The Board of Directors recognise the importance of continuing the development of both National Scheme Standards and the people implementing the requirements. A role of the Board of Directors is to ensure that once an assessor has successfully completed the training requirements, that support and professional development is continued.

(d) Costs of Auditing

The cost of the auditing process is as follows:

£400.00 + VAT first purchaser record audit.
£400.00 + VAT accompanied assessor audit.
£400.00 + VAT random farm audit.