August, 2010

Web: www.CayCan.Ca E-Mail: mail@CayCan.Ca Phone: 877.216.1939

Risk Factor Number and NSC Audits

Last year Alberta Transportation changed the way they interact with carriers that may have safety or compliance issues. The Risk Factor Number was introduced in July 2009. The Carrier Prole now rolls the Convictions, CVSA Inspections and Collisions into one number, the R-Factor. The carrier is then compared to the rest of the carriers with the same size of eet. If you are the same as or better than the group average you dont really have to be looking over your shoulder. If you are worse than the group average, you may be getting a visit. In the past Carrier Services would contract Third Party Auditors to conduct audits on about 1% of the 23,000 Alberta carriers. The new approach was to determine which carriers were likely to be the highest risk and have them pay for their own audit. Several times more carriers have already been audited this year than last. The audit is a measurement of your compliance to legislation. If there is a law that says you should do something and you dont, you get points against you in the audit. The lower the score the better. Less than 15% is usually considered a pass. There is a guideline used to determine what happens if you fail the audit. The usual consequences are a downgrading of your Safety Fitness Certicate to Conditional, not renewing some permits and assessing Administrative Penalties ($)

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for more information please contact: mail@caycan.ca

August, 2010

Web: www.CayCan.Ca E-Mail: mail@CayCan.Ca Phone: 877.216.1939

C A Y C A N A U G U S T N EWS L ETTER
Here are some examples of the type of carriers we have audited lately. 1. Fleet size of 3 R-Factor 4.560 Industry Average R-Factor 0.327 In the worst 172 of 23,720 carriers Audit Score: 66.53% Audit Level: Level 4 2. Fleet size of 1 R-Factor 2.496 Industry Average R-Factor 0.269 In the worst 691 of 23,737 carriers Audit Score: 33.22% Audit Level: Level 2 3. Fleet size of 12 R-Factor .808 Industry Average R-Factor 0.281 In the worst 422 of 23,938 carriers Audit Score: 65.07% Audit Level: Level 4 As you can see, in each case the R-Factor is several times higher than the industry average. For carrier #2, with a eet size of 1, it only took 1 conviction and 1 Out of Service for the R-Factor to get that high! Remember the lower the R-Factor and audit score the better.

So what happens if you are selected for an audit?

The audit is basically a paper trail verication. When the carrier applied for a Safety Fitness Certicate someone signed off that they had a written Safety & Maintenance Program and that someone in the company was responsible for maintaining the program and ensuring compliance with the laws. The audit measures whether your programs meet the requirements of the legislation. Do your driver les contain applications, abstracts, notices of convictions and collisions, records of training? Do your vehicle les support a preventative maintenance program? Do the driver trip inspection reports correspond to the work orders? Are the log books accurate and are all violations recorded? Did you know a public version of your Carrier Prole, with R-Factor Score is available to anyone that wants it? Perhaps your clients, insurance company, competitors.... Here is a link to an example of a Public Prole and the link for the form to obtain one. http://www.transportation.alberta.ca/Content/docType276/Production/pubproreque.pdf http://www.transportation.alberta.ca/Content/docType276/Production/publicpro.pdf You dont have to wait for the government to tell you to get an audit done. You can have an internal audit to identify any shortcomings in your system. If you want detailed information on the audit, send us an email.
for more information please contact: mail@caycan.ca

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