The conduct of onsite audit activities is critical to the outcome of the audit. It’s important that self insurers take full advantage of the opportunity to engage with the regulator, ask questions and get advice and clarification where required.

Onsite audit activities

3. The local audit report

Following the completion of verification activities, the auditors will develop a local audit report on the last day of the audit.

The local report includes:

• Audit Report Summary - The audit report summary provides an assessment of conformance (or otherwise) against the audit criteria selected.
• Performance Level Matrix - The performance level matrix uses a numerical score to identify a percentage of compliance.
• Corrective Action Request (CAR) - These are used to identify specific criteria in areas which existing self-insurer license holders were non-compliant.

4. Provide outcomes to the self insurer and S&SILB

Where non-conformances have been identified during the course of the audit activity, the designated lead auditor will require existing self-insurers to furnish a report back to WorkCover NSW outlining their intended strategies and providing reasonable timeframes for addressing any non-conformances or corrective action.

Following a review of the response from the self insurer by the lead auditor, a final report will be compiled for the Self & Specialized Insurer Licensing Branch (“S&SILB”). The audit outcome will be taken into account for license renewal for existing self-insurers or the granting of a self-insurer license for new applicants.

Audit standards

Self-insurer audits conducted by the WorkCover Audit Unit are performed in accordance with the AS/NZS ISO 19011 Guidelines for quality and/or environmental management systems auditing. This Australian standard provides detailed criteria in relation to audit methodology and minimum competency requirements of persons conducting audits.

NAT conformance issues

WorkCover Audit Unit auditors evaluate conformance/non-conformance against audible criteria within the scope of the audit. Evaluation is based on a numerical assessment of compliant criteria to determine a compliance score to a maximum of 100%.

The minimum scoring outcome acceptable is 75% conformance for each of the NAT audit categories audited.

In circumstances where self-insurer audit outcomes are unsatisfactory, (i.e. do not meet the minimum licensing performance standards), WorkCover may audit a self-insurer’s OHS Management System on a more frequent cycle.

Continuing unsatisfactory OHSMS performance may result in action being taken in respect of the self-insurer's licence. Where outcomes for new applicants are unsatisfactory, WorkCover will discuss options with the applicant concerning its licence application which may lead to further audit activity or the withdrawal of a licence application.

NOTE: Failure to comply with the provisions of the NAT will preclude the applicant from being granted a self-insurer licence.

Common Problems

• Audit materials provided to auditors inadequate to meet auditable criteria.
• Timetables developed for the audit verification activity and lack of sufficient guidance to meet the scope of the audit effectively within the audit timeframe.
• Insufficient audit preparation of audit participants does not/cannot provide a reasonable representation of the self insurer activities.
• Failure to adequately manage the audit processes whereby the audited organisation is unable to demonstrate compliance.