DRAFT. VERIFICATION MANUAL TVD-FC (R. Gyimah) Procedures, Standards and Check list

Transcription

1 DRAFT TIMBER LEGALITY AUDIT & VERIFICATION MANUAL TVD-FC (R. Gyimah) Procedures, Standards and Check list

2 Structure of Presentation Introduction TVD Audit & Verification Framework Conducting the Audit/Verification Layout of Generic Timber Legality Standards & Checklist Sample of Data Reconciliation Procedures Sample Corrective Action Request Reporting,TVD working relationships & Complaints/Resolution Procedure Implications for TVD Audit & Verification

3 Introduction-1 Why legal timber audit and verification? A requirement that needs to be fulfilled under the Legality Assurance System of the VPA to enhance market access & trade Improve upon the regulatory function of the FC Provides assurance to markets of legally sourced & compliant wood What does the TVD audit and verification seeks to achieve? Measure practice against compliance to standard Verify operational procedures and outputs of FC divisions, timber operators and processors to ensure that they conform to laid down standards Put in place corrective measures to address non-conformance of legal timber standards Identify areas for improvement as far timber legality standards are concern Enforce sanctions and reward systems

4 Introduction-2 How will the audit and verification system operate? The TVD under the VPA is to perform the functions of verification and auditing Field audit teams (TVD staff+ external expertise) under the leadership of the TVD Verification Manager will perform the audit Specifically, TVD will verify operational procedures and outputs of FC divisions, timber operators and processors against the Ghana legal timber standards to ensure compliance. Verification will be done at two levels: WTS system check (data reconciliation) + Field Audit Apply evidenced-based verification using representative audit samples Apply basic auditing principles; impartial, transparent, objectivity, operate within audit scope, confidentiality, responsive to complaints, etc.[iso 17021: 2007]

5 TVD AUDIT & VERIFICATION FRAMEWORK

6 Legislation and Mandate-1 The Forestry Commission Act, 1991 (Act 571) Section 2; outlines a limitless scope by which FC shall ensure a regulatory environment that provides for the control and monitoring of the utilization of forest resources The VPA envisages the following: A management and reporting systemto plan and authorize the TVD s verification activities and channel its findings Report to a multi-stakeholder TVC that validates and adopts findings, provides a buffer between the TVD and other vested interests The TVD must demonstrate a strong desire to retain confidence in the audit exercise and uphold its independence Well-defined provision for dispute resolution in the form of complaints surrounding the issuance of FLEGT license TVD has the responsibility of ensuring verification of legality of export consignment to the EU

7 Legislation and Mandate-2 Within FC, TVD has the right of access to relevant informationheld by the division(s) without the need for prior approval. For MLNR and other relevant ministries/authorities a separate arrangement may be necessary TVD Verification and Audit Team has the right of movement and accessto any part of the country in order to carry out any verification and validation missions The TVD will report major and minor non-compliance to the CE of FC for the necessary action including sanctions to be taken Respect confidentiality and professional secrecy on all information in its possession, and communicate or disseminate such information only in strict respect of the laid down procedure by the FC and TVC Demonstrate diligence and objectivity in the exercise of its functions Work in harmony with division of FC and other stakeholders in the course of legality standard check

8 Objective of Audit & Verification To find out how well FSD, TIDD, RMSC, FC-HQ and the private sector players have carried out their respective functions as defined by the principles and criteria governing the Ghana timber legality framework Generally, to find out whether LAS including FLEGT license requirements under the VPA are met To find out whether the rights and responsibilities of forest dependent communities including adherence to social responsibility agreement, code of conduct and approved benefit sharing systems, etc. are duly implemented To provide a source of information for use by policy makers, regulators, third-party auditors and the general public in verifying legal compliance in the forest sector of Ghana.

9 TVD Audit & Verification Plan-1 The scope of audit; Source of Timber Timber Rights Allocation Timber Harvesting Operations Transportation Processing Trade Fiscal Obligation Layout of Standard A hierarchical framework with Principles & Criteria, Indicators & Verifiers including frequency of check Evidence of Compliance/non-compliance

10 TVD Audit & Verification Plan-2 Major non-compliance; evidence of repeated illegality, or a significant risk that problems will result if corrective action is not taken Principle 1:SOURCE OF TIMBER (criterion 1.1);When there is proof of timber rights granted for a non-production area and / or there is no written consent from landowners; Principle 2: TIMBER RIGHTS ALLOCATION (criterion 2.2);Any person who harvest timber to which the Timber Resources Management Act, 1997 (ACT 547) applies without a valid timber utilization contract; Principle 3: TIMBER HARVESTING OPERATIONS (criterion 3.2); Any person who- is found in found in possession of timber products that is unmarked or unnumbered or untagged in violation of Forestry Commission s regulation; fails to systematically and/ or continuously mark the stump of a tree he/she fells with his /her timber registration number or tagged in a manner described by the Forestry Commission any officer who systematically and/ or continuously declares a false measurement of timber or falsely calculates stumpage fees; A Major non-compliance will generally result in a strong recommendation for corrective action request, the failure of which will attract sanction as prescribed in forestry laws of Ghana or any related laws of Ghana appropriate to the offence committed

11 TVD Audit & Verification Plan-3 Minor non-compliance; these are elements of the indicators that should be improved to ensure that good legal timber compliance is maintained in the long term Principle 3 (criterion 3.3); When there are no substantial discrepancies detected between the initial and checked stock survey/ inventory conducted in on-reserve, off-reserve, plantations and submerged forest TUC areas. Examples are: number of trees that were missed in the original stock survey was low (e.g. 5 out of 100 trees checked) few wrong species identification (e.g. 5 out of 100 trees checked) Principle 3 (criterion 3.6); Social Responsibility Agreement Compliance (SRA) When there is partial compliance of SRAs at the time of auditing and there is evidence of commitment on the part of TUC holder to ensure full compliance Principle 5 (criterion 5.2); Industrial practices that relate to the following: Occupational health and safety equipments are provided but are not rigidly used by workers A Minor non-compliance will generally result in a mild recommendation for corrective action request to be effected in the shortest possible time frame and generally may not attract sanctions.

12 CONDUCTING THE VERIFICATION AND AUDIT

13 Verification system Two-tier verification system will be adopted WTS Verification: purely at system level and will focus on data reconciliation using FC divisions & private operators input into the central database Field Audit: office and/or site visits at planned intervals or randomly as the case may demand

14 WTS Verification-1 This verification is designed to reflect systemic check by the TVD on the WTS data reconciliation TVD Data Analysis Manager will have access to the central data base to perform this function- data reconciliation All timber flows data identified under the WTS will be entered into the central database by responsible actors Data reconciliation procedures will make use of details on the following: Activity & output, Data source & key data [ See Appendix 3A-3F] Reconciliation will involve matching output of previous activity with output of subsequent activity to check for inconsistencies and generate appropriate reports for redress

15 WTS Verification-2 The system check will be routine (daily, weekly or monthly) depending on the timely need of a particular data as identified by the responsible actor (FSD, TIDD, TUC holder, FC-HQ, RMSC) System generated history of events for an entire business transaction produced at the end of reconciliation If a Company applies for a FLEGT license, TVD will check for compliance/ noncompliance of the company under the WTS and then appropriately inform TIDD whether or not the company qualifies for a FLEGT license Where a required data necessary for reconciliation is lagging behind time or needs to be verified in the field appropriate measures will be taken to that effect

16 Field Audit The Audit Teams under leadership of TVD Verification Manager will be responsible for the field audits/verification Audit protocols; entry and exit meetings Audit focus area and frequency FC Divisional inputs for audit planning Office/on-site visits Audit frequency; depends on type of verifier to be checked [see Appendix 2 for details] Selection of TUC holders for the audit Audit sampling and sampling intensity; dependent on several factors such as method of sampling, material, geographical location, logistics and resource availability, environmental and socio-economic considerations sampling intensity will depend on the type of output being verified or audited at a critical control point; high for documentary evidence (e.g., permits, property mark, receipts) but low for field and mill site visits because of detail checks at a given time Information gathering for compliance and non-compliance TVD Verification Manager prepares audit report & submit to TVD Director

17 LAYOUT OF GENERIC TIMBER LEGALITY STANDARDS & CHECKLIST

18 EXAMPLE OF GENERIC TIMBER LEGALITY STANDARD AND CHECK LIST PRINCIPLE #3: TIMBER HARVESTING OPERATIONS The logger complied with forest operation procedures and standards specified by statute TIMBER LEGALITY CRITERION AND INDICATOR(S) VERIFIER(S) [Frequency check] Criterion 3.4 Appropriate measures shall be taken to ensure that timber harvested corresponded to the species and volumes or numbers authorised in the TUC or salvage/other prescribed permits Written guidelines/procedures for data reconciliation are adhered to: FSD checks whether tree species and volume/numbers declared from harvest records match with permitted yield (species and volume/numbers) In the event that TIF and LIF are used, FSD conducts data reconciliation In the event that hand held devices are used for tree and log data capture, TVD conducts data reconciliation from the central database Tree and log information data WTS Reconciliatory reports [At least Once per audit visit using the recommended sampling intensity] GUIDANCE NOTES AND COMMENTS VPA document WTS functional specification (NON)COMPLIANCE+ EVIDENCE Criterion 3.5 Appropriate measures shall be taken to ensure that stumps and logs are physically identified in accordance with the Logging Manual/ written guidelines Written guidelines/procedures for stumps and log marking/tagging are implemented: FSD and TUC holder checks that all stumps and logs are physically identified (e.g. numbered, marked and/ or tagged with appropriate colour) every log identified with species code, locality mark, TUC holder s number, log number and property mark Marked and tagged logs Marked and tagged stumps [At least Once per audit visit using the recommended sampling intensity] Note provisions on relevant Act/legislation on timber harvesting standards/logging Manual VPA document

19 An Example of Verification and Audit Manager s completed checklist PRINCIPLE #3: TIMBER HARVESTING OPERATIONS The logger complied with forest operation procedures and standards specified by statute TIMBER LEGALITY CRITERION AND INDICATOR(S) VERIFIER(S) GUIDANCE NOTES AND COMMENTS Criterion 3.4 Appropriate measures shall be taken to ensure that timber harvested corresponded to the species and volumes or numbers authorised in the TUC or salvage/other prescribed permits Written guidelines/procedures for data reconciliation are adhered to: FSD checks whether tree species and volume/numbers declared from harvest records match with permitted yield (species and volume/numbers) In the event that TIF and LIF are used, FSD conducts data reconciliation In the event that hand held devices are used for tree and log data capture, TVD conducts data reconciliation from the central database Tree information data and Log information data Reconciliatory reports Not all the FSD field staff had copies of the approved yield with them for reference TUC operator s field staff not conversant with the use of Hand held devices for log information capture (NON)COMPLIANCE + EVIDENCE Y=COMPLIANCE Tree volume/species harvested match with approved yield Example CI Report Approved yield summary vs. CI Report 016-log production showed no discrepancy Criterion 3.5 Appropriate measures shall be taken to ensure that stumps and logs are physically identified in accordance with the Logging Manual/ written guidelines Written guidelines/procedures for stumps and log marking/tagging are implemented: FSD and TUC holder checks that all stumps and logs are physically identified (e.g. numbered, marked and/ or tagged with appropriate colour) every log identified with species code, locality mark, TUC holder s number, log number and property mark Marked and tagged logs Marked and tagged stumps Logging Manual does not specify where tags should be placed on the stumps and logs X n = MINOR NON- COMPLIANCE Log markings very faint but stumps and logs tagged

20 SAMPLE DATA RECONCILIATION PROCEDURES

21 Example of Reconciliation Procedures-1 Activity Output Data source Reconciliation Key data 1.0 Source of Timber 1.1 TUC Allocation Process a. TUC grant Updated TUC database:- CI Report 001 TUC summary report; CI Report 053 TUC rent summary Decision letter to FC- CE/TREC TRAU TUC Dossier vs. Updated TUC database and decision letter to FC- CE/TREC b. Entry permit issue Updated TUC database MLNR/ FC-CE/TRAU Decision letter to FC- CE/TREC vs. Updated TUC database c. Parliament Endorsement Updated TUC database TRAU Decision letter of Endorsement including date vs. Updated TUC database Web Form 001 TUC form detailing: TUC reference & name Location (district, Forest Reserve name (if in Forest Reserve), forest zone (WE, ME, MSSE, MSNW or DS) Area Stool owners (several possible) Amount of Timber Right Fee (TRF) Date of grant (letter from Ministry) Duration Contractor name & property mark Web Form 022 TUC Termination Web Form 023 TUC Transfer Web Form 007 Entry permit form (decision letter reference no. + date of award) Web Form 008 Parliament s endorsement

22 Example of Reconciliation Procedures-2 Activity Output Data Source Reconciliation Key Data 2. Stock Enumeration/stock survey CI Report 003 & 004- Harvesting schedule CI Report 005 Stock survey summary CI Report 006 Stock survey map CI Report 007 Stand table report CI Report 009 Stock survey validation report FC/Private Operator TUC reference Compartment number Area Previous harvest dates Transect number Tree barcode number Tree survey number Latitude & longitude Species Diameter Tree form (1 to 5) 2.1 Yield selection CI Report Automated yield summary CI Report 011 Provisional yield summary FSD, District/ Regional Office CI Report 005 Stock survey summary CI Report 006 Stock survey map vs. CI Report Automated yield summary CI Report 011 Provisional yield summary Survey data Selected tree list, yield tag barcode number, Species, Property Mark, etc Number of trees to be selected by species Choice of formula to apply (regular or reduced)

23 Sample: Corrective Action Request CAR No. 01/2010 TIMBER LEGALITY STANDARD UNDER REFERENCE: PRINCIPLE 1 NON-CONFORMANCE There is no letter from land owners consenting to the land being subjected to the grant of timber rights MAJOR (Xm) MINOR Corrective Action Request: Forestry Commission shall ensure that a duly signed written consent has been secured. Evidence of this consent letter must accompany the forest management plan of the TUC area. Timeline for Conformance Prior to the next annual audit Evidence to close CAR Pending CAR status Open Follow-up Action(s) if any CAR No. 02/2010 TIMBER LEGALITY STANDARD UNDER REFERENCE: PRINCIPLE 5 NON-CONFORMANCE Company has not provided workers with the necessary information, instructions and training about health and safety at their work place MAJOR MINOR(Xn) Corrective Action Request: Company shall provide training to all workers on health and safety requirements at the work place. Evidence of training program and participation shall be documented and supplied to the Forestry Commission Timeline for Conformance Evidence to close CAR CAR status Follow-up Action(s) if any Prior to the next annual audit Pending Open

24 REPORTING, TVD WORKING RELATINSHIP & COMPLAINTS/RESOLUTION PROCEDURE

25 Reporting & TVD working Relationship with other Bodies MLFM Quarterly reports/ advice Corrective measures taken TVC Reports Adjudicator Corrective measures Reports Reports TVD Independent Monitor INDUSTRY FC Reports

26 COMPLAINTS AND RESOLUTION PROCEDURE Corrective measures Re-apply TVD Accept Industry Apply Aggrieved party (industry) Reject & Appeals No TVD legality certificates (VLO/VLC) Not successful TVC 3 working days Request for ruling Yes Appeals Committee 2 working days Adjudicatio n Successful 1 working day Export

27 IMPLICATIONS FOR THE TVD VERIFICATION AND AUDIT

28 Implications How soon do we bring on board the private operators to get their systems ready? For companies with some form of electronic tracking system in place how do we ensure that a compatible data interface is established For companies without any form of electronic tracking how do we assist them to meet some minimum requirements Data transmission protocols? Competencies/Capacity strengthening requirements What will be the technical expertise required to constitute the field teams? Training of TVD Staff Logistics for TVD Training of Private Operators on TVD protocols

29 Implications What will be the technical expertise required to constitute the field teams? Where do we physically stationed the field teams Is it appropriate for TVD to use the services of RMSC field teams or freshly recruit field staff and attached them to international verification bodies for capacity development? Cost sharing in the conduct of Auditing/Verification How soon will the TVC be formed and made functional? How will the TVC be funded / Who pays for their work?