Audits, annual reviews and evaluation

13.1 External survey and audit

• Flag State will carry out audits and surveys of the yacht and the office to ensure ongoing adherence to safety and security standards.
• Classification Societies require regular surveys to be carried out on board.
• The purpose of these audits and surveys is to check that certification standards are maintained and that compliance is regularly re‑evaluated.
• The Master must transmit copies of reports of all surveys carried out on board by Flag State, Classification Societies, Port State Control, or any other authority concerning compliance of the yacht, to the office as soon as possible.
• Where possible, surveys should be carried out at the annual refit/dry‑docking to cover items required in the following 12 months, leading to the next refit/dry‑docking.

13.2 Internal audits

• The Designated Person Ashore (DPA) is responsible for the internal audit and must liaise with the yacht to schedule this at interval not exceeding 12 months.
• The audit verifies whether safety and pollution‑prevention activities comply with Yachting Concept Monaco’s documented procedures.
• The auditor appointed must be trained and, as far as possible, independent of the area to be audited.

Audit process:

• Begin with an opening meeting covering the scope and purpose of the audit, the audit schedule, and the process.
• Gather objective evidence of compliance through observation of activities, interviews of personnel, and examination of relevant records.
• Compare information to policies and procedures and to the International Safety Management (ISM) Code requirements to determine the level of compliance.
• Document evidence within the auditor’s checklists, notes, examples, and report.

On completion, the auditor must produce:

• An Internal Audit Report
• Non‑conformity Reports (NCRs) for individual findings
• Observations

13.3 Non‑conformities, root‑cause analysis, corrective and preventive action

• Non‑conformities and Observations should be issued by trained auditors during an audit; or, if extraordinarily necessary, by the DPA as an action following a review or incident.
• Non‑conformities require agreement on proposed corrective action and a completion date within three months of issue.
• Root cause and appropriate corrective and preventive action should be discussed and reviewed between auditor and auditee at the time of issue.
• Ongoing progress, including the person(s) responsible, must be communicated and documented between the Master, yacht, and Yacht Manager (YM) until all actions have been completed and the record can be marked as “Closed” by the DPA or external auditor, depending on issuer.
• Records of the status of each NCR must be maintained, identifying who completed the actions and when.
• Once satisfied, the DPA shall close the NCR by signing, dating, and recording the relevant actions taken on the NCR. Any changes to the agreed requirements of the NCR, including the target date for closure, must also be documented.

Reportable damage or non‑conformities (not listed in Chapter 8.3 reportable items) must be reported promptly when one or more of the following criteria are met:

• Material damage affecting the seaworthiness of a vessel
• Collision, allision, stranding, grounding, abandonment, or loss of a vessel
• Severe damage to the environment; fire or explosion
• Loss of life
• Serious injury resulting in incapacitation where the injured party is unable to function normally for more than 72 hours, commencing within seven days from the date when the injury was suffered

The crew and DPA should refer to forms available in Deepblue© under ISM/Procedures/Reporting Forms/Defect Report for a report suitable for the vessel’s Flag.

13.4 Annual review

13.4.1 Master’s annual review

• To assist the DPA in assessing the shipboard element of the Safety Management System (SMS), the Master shall carry out an annual review.
• It is recommended that this review be completed approximately one month before the Company Review; the date will be advised by the DPA.
• The review should include key on‑board personnel such as the Chief Engineer, Chief Officer, and Safety Officer.
• The Master must complete a written report of findings on the review form and transmit it to the DPA. The DPA will review and provide feedback and comment.

13.4.2 Company annual SMS review

A report of the Company Annual Review must be brought to the attention of all personnel with responsibilities within the SMS.