MANUAL OF REGULATORY AUDIT

1 GOVERNMENT OF INDIA OFFICE OF THE DIRECTOR GENERAL OF CIVIL AVIATION TECHNICAL CENTRE, OPPOSITE SAFDARJUNG AIRPORT, NEW DELHI MANUAL OF REGULATORY AUDIT Issue No. 02, Rev No. 0 MANUAL of REGULATORY Audits August 2016 Page 1 of 37 History of Revisions Issue No. Rev No. Particulars of revision Effective Date Issue 1 Rev 0 Initial issue December 2012 Issue 2 Rev 0 1. In view of all the available resources with the DGCA and in accordance with risk based approach, the frequency of REGULATORY AUDIT is defined. 2. Also the procedures and the responsibilities of the Team Leader, Team Members, DAS-HQ, and CA is defined. 3. The procedure for conduct of AUDIT , finalization of the report and closing of the observations has been defined.

2 August 2016 MANUAL of REGULATORY Audits August 2016 Page 2 of 37 Record of Amendments Amendment Date Pages Affected Date Entered Initials No. MANUAL of REGULATORY Audits August 2016 Page 3 of 37 Foreword MANUAL of REGULATORY AUDIT has been developed to promote conformance with the aviation regulations and standards which collectively prescribe an acceptable level of aviation safety. It also ensures that the AUDIT policies and procedures are applied uniformly across the State. A REGULATORY AUDIT is an effective means of providing civil aviation authorities with an in-depth view of an aviation document holder s operation.

3 It is a unique process in that DGCA's approach to the candidate organisation is one of complete openness throughout the activity. Successful REGULATORY audits require auditors to adopt a positive and a professional approach while using proven methods for analysis. Equally important are the overall experience and auditing skills developed by each participant in the process. Only when all AUDIT participants strive for the highest possible standards, can the final product be an accurate assessment of the AUDIT organisation. Operators are encouraged to use their own policy and procedures taking the guidance of this MANUAL . DGCA officers are advised to follow the REGULATORY AUDIT MANUAL when conducting REGULATORY Audits.

4 (Shri Bhullar) Director General Civil AviationManual of REGULATORY Audits August 2016 Page 4 of 37 Table of Contents Para No. Content Chapter 1 - Definitions, Abbreviations and Acronyms Definitions Abbreviations and Acronyms Chapter 2 AUDIT Policy Purpose Approval AUDIT Types Initial Certification AUDIT Additional Approval AUDIT Routine Conformance AUDIT Special-Purpose AUDIT Scope and Convening Authority (CA) Level Matrix AUDIT Activities Pre- AUDIT (Desk AUDIT ) Physical AUDIT Post- AUDIT AUDIT Follow-up Co-ordination Scope and Depth - Criteria Frequency Resource Allocation Criteria Risk Indicators Financial Change Labour Difficulties Management Practices Poor Internal AUDIT or Quality Assurance Program Change in Operational Scope or Additional Authorities Changes in Contracting for Services High Turnover in Personnel Loss of Key Personnel MANUAL of REGULATORY Audits August 2016 Page 5 of 37 Additions or Changes to Product Line Poor Accident or Safety Record Merger or Takeover REGULATORY Record Periodic Cycle Unity of Control Qualifications Restrictions for Officer in-charge Inconsistencies

5 - DGCA Approvals Confidentiality Discussion of AUDIT Content Parallel Report Chapter 3 - General AUDIT Procedures Classes of Audits General REGULATORY AUDIT Special AUDIT Airworthiness Operations Air Safety Pre- AUDIT Team Selection Convening Authority (CA) Responsibilities Director Air Safety, Headquarter Nodal Officer Team Leader Terms of Reference Qualifications Responsibilities Team Members for Individual Areas Appointment of Team Members / Auditors Qualifications Responsibilities Observer AUDIT Plan Objective Scope and Depth Company Data MANUAL of REGULATORY Audits August 2016 Page 6 of 37 Approach Specialist Assistance Scheduling Pre- AUDIT Documentation Pre- AUDIT Team Meeting Physical AUDIT General Entry Meeting Evaluation Pre- AUDIT Checklists Interviews Sampling Verification Confirmation Request Form (CRF)

6 AUDIT Finding Form Completion of AUDIT Finding Form Daily Briefings Exit Meeting Post- AUDIT General AUDIT Report Parallel Report Parallel Report Follow-Up AUDIT Follow-Up General Corrective Action Plan Post- AUDIT Surveillance MANUAL of REGULATORY Audits August 2016 Page 7 of 37 Chapter 1 Definitions, Abbreviations and Acronyms Definitions The following terminology is specific to the REGULATORY AUDIT Program s (RAP) MANUAL of REGULATORY Audits (MRA): Additional approval means extension to the existing scope of approval. AUDIT means an in-depth review of the activities of an organisation to verify conformance to regulations and standards. AUDIT activities mean those activities and procedures through which information is obtained to verify the auditee s conformance to applicable regulations and standards.

7 Such activities may include, but are not limited to: interviews, observations, inspections and the review of files and documents. Auditee means the organisation to be audited. This term may be interchanged with organisation , company , operator , air operator , private operator or flight training unit operator . AUDIT Finding means the determination of non-conformance of a product, process, practice or procedure or a characteristic thereof to a specified regulation or standard. This will be documented on the AUDIT Finding Form. AUDIT Report means a report that outlines the AUDIT process and provides a summary of the AUDIT findings. Certification means the process of determining competence, qualification, or quality on which the issuance of an aviation document is based.

8 This includes the original issuance, denial, renewal or revision of that document. Characteristic means any distinct property or attribute of a product, process, service or practice of which the conformance to a regulation or standard can be measured. Combined AUDIT means an AUDIT that targets both Airworthiness and Operations functional areas. Compliance the state of meeting REGULATORY requirements. Confirmation means the assurance that AUDIT findings are in accordance with data obtained from different sources. Confirmation Request Form (CRF) means a form issued during the inspection portion of an AUDIT to the auditee by DGCA Officer requesting information that is not readily available. The auditee will be requested to respond within a specified time period.

9 MANUAL of REGULATORY Audits August 2016 Page 8 of 37 Conformance means the state of meeting the requirements of a regulation or standard. Convening Authority (CA) The Director General of Civil Aviation or his representatives. Corrective Action Plan (CAP) means a plan submitted to the CA or to his or her delegate byte auditee, following receipt of the AUDIT report. This plan outlines the manner in which the company proposes to correct the deficiencies identified by the AUDIT findings. Carrying out the plan should bring the auditee into full conformance with REGULATORY requirements. Depth means the period of time over which a company will be audited, normally from the last AUDIT up to the present day. Documented means that which has been recorded in writing, photocopied or photographed and then signed, dated and retained so as to ensure the continuity of the evidence secured.

10 Documented (evidence) recorded in writing, by photocopy or by photography and signed, dated and retained in a manner to ensure continuity of the evidence secured. Follow-Up means the activity following an AUDIT that is dedicated to program modification based on an approved Corrective Action Plan. Follow-up ensures that the document holder meets REGULATORY requirements. Inspection means the basic activity of an AUDIT , involving examination of a specific characteristic of a company. In-Depth extensively, completeness or thoroughly. Mandatory Information Request A form issued by the auditee by DGCA officer requesting information, which is readily available. The auditee must respond within a specified time period. REGULATORY AUDIT Program (RAP) means the program that promotes conformance with the aviation regulations and standards that collectively prescribe an acceptable level of aviation safety.