ISM audits
What is an ISM audit?
ISM Audits ensure the human factors of a maritime operation are operating in accordance with the ISM Code. This includes reviewing a ship’s safety management system (SMS) to ensure the ship’s operations have adequate procedures for the operation, maintenance, and emergency response of a ship.
An ISM Audit also compares the ship or ship company’s procedures against their required records, to validate the ship’s SMS is operating as intended.
Compliance with the objectives of the ISM Code is mandatory for applicable companies and ships through SOLAS Ch. IX and Maritime Rule part 21.
Auditors focus on the practical implementation of the ship’s SMS through observation, interviews, and review of records.
Key areas include:
- Safety and Environmental Policy: Commitment from top management and clear safety objectives.
- Designated Person Ashore (DPA): Confirmation of a duly appointed and suitably qualified DPA, who is effectively implementing the SMS.
- Crew Competence and Training: Verification of STCW certifications, training records, and familiarisation with their duties.
- Shipboard Operations: Procedures for all key shipboard operations, including navigation, maintenance routines, and cargo handling.
- Emergency Preparedness: Records of drills, procedures for responding to emergencies, and maintenance of lifesaving / fire-fighting equipment.
- Maintenance and Inspection: Adherence to planned maintenance schedule, inspection regime, and assurance of reliability for essential equipment.
- Reporting and Analysis: Documentation of accidents, hazardous occurrences, and non-conformities, along with the corrective actions taken.
- Document Control: Ensuring that only the latest, authorised SMS procedures are in use.
Who does the audit?
Maritime NZ is New Zealand’s Flag State Administration and retains direct responsibility for the assessment and audit of all New Zealand flagged shipping companies and ships against the ISM Code.
Maritime NZ auditors are duly appointed and qualified Port State Control Officers from the Maritime Inspection Team, with experience and training in auditing practices.
When are audits required?
To operate SOLAS ships in New Zealand, shipping companies must hold a valid ISM Document of Compliance (DOC) certificate, and the ship’s company must hold valid ISM Safety Management Certificate (SMC).
To maintain these certificates, the company and ships must be periodically audited by Maritime NZ.
Document of Compliance (DOC) Audits
- Verification for issuing Interim DOC: Shall be conducted for a newly established Company or addition of ship type (this is not a full audit).
- Initial Audit: Shall be conducted to issue a DOC for a Company for the first time.
- Annual Audit: Shall be conducted every year between three months before and after each anniversary date.
- Renewal Audit: Shall be conducted within three months before the expiry date of the existing DOC.
- Additional Audit: Shall be conducted to verify effective actions are taken for Major Non-Conformity as necessary, or when deemed required by Maritime NZ.
Safety Management Certificate (SMC) Audits
- Verification for issuing an Interim SMC: Shall be conducted to issue an Interim SMC for a ship which has not operated or for a ship which the flag has been changed to New Zealand (this is not a full audit).
- Initial Audit: Shall be conducted to issue a SMC for a Ship for the first time.
- Intermediate Audit: Shall be conducted between the second and third anniversary date (within twelve months).
- Renewal Audit: Shall be conducted within three months before the expiry date of the existing SMC.
- Additional Audit: Shall be conducted to verify effective actions are taken for Major Non-Conformity as necessary, or when deemed required by Maritime NZ.
If you would like to learn more about these certificates, please contact Maritime NZ.
Outcomes of audits
Maritime NZ auditors will conduct interviews, review reports, records, and other documents related to a ships SMS to confirm the SMS:
- conforms with objectives of the ISM Code; and
- is effective in implementing the objectives of the ISM Code.
Potential outcomes from ISM Audit findings:
- Observation: A statement of fact made during an audit and substantiated by objective evidence referring to the ISM Code. It may also be a statement made by the Auditor referring to a weakness or potential deficiency in the SMS which, if not corrected, may lead to a nonconformity in the future.
- Non-conformity: An observed situation where objective evidence indicates the non-fulfilment of a specific requirement. Namely, when objective evidence, which substantiates the non-fulfilment of a specific requirement of the Company’s SMS, the ISM Code, Rules and Regulations are found, the matter shall be judged as a Non-conformity.
- Major Non-conformity: An objective deviation which poses a serious threat to personnel or ship safety or a serious risk to the environment and requires immediate corrective action; in addition, the lack of effective and systematic implementation of a requirement of the ISM code is also considered a major non-conformity.
- Corrective Action Follow-up: The company is responsible for determining and initiating the corrective action needed to correct a non-conformity or to correct the cause of a non-conformity. Failure to correct non-conformities with specific requirements of the ISM Code may affect the validity of the Document of Compliance and related Safety Management Certificates.
Corrective actions and any subsequent audits should be completed within the agreed time frame. For corrective actions this should not normally exceed three months. Corrective Actions will be closed out during subsequent audits in most circumstances.
A ship which is issued a major non-conformity may not sail, unless the major non-conformity can be downgraded, through the company taking immediate corrective actions that can adequately address the risk. Such corrective actions must be approved by Maritime NZ. In some cases, Maritime NZ may withdraw the SMC from a ship where major non-conformities are identified.
If a company is issued a major non-conformity during a DOC audit, its ships may not sail, unless and until the major non-conformity can be downgraded through the company taking immediate corrective actions that can adequately address the risk. Such corrective actions must be approved by Maritime NZ. In some cases, Maritime NZ may withdraw the DOC from a company where major non-conformities are identified.