Compliance: A New Year’s Resolution

I know you are likely in the flurry of holiday festivities but let’s take a moment to look ahead to 2014. Over 40% of Americans make New Year’s resolutions – to lose weight, keep to a budget, spend more time with family, whatever it is. Do you make New Year’s resolutions for your company? You probably do, but you likely call them “goals”, “metrics”, or “performance indicators”.

I have a suggestion for one of your 2014 company goals: verify the regulatory compliance of your organization.

An individual seeking a Part 135 air carrier certificate must complete a letter or statement of compliance to prove their compliance to the FAA. The statement of compliance is essentially a table that lists each regulation applicable to the air carrier and also the manual or document location in which the operator demonstrates compliance. Many companies believe this statement of compliance is a one-time deal – once the air carrier obtains certification, the company never needs to look at the statement of compliance again. However, the FAA has indicated the letter of compliance should be a “living document” which should be updated when the operator makes changes to manuals and other documents. (And even if the FAA doesn’t require a new statement of compliance with every manual revision, wouldn’t it be great to say, “Here’s my new manual revision, Mr./Ms. POI. You’ll see the revisions are compliant with the regulations by referring to the handy dandy statement of compliance I’ve provided.” Then smile and offer the inspector a cookie. More on cookies in a future post.)

Many operators think their annual audit by XYZ Auditing Firm or their IS-BAO registration ensures their Part 135 regulatory compliance. That is a false and potentially costly assumption. The Air Charter Safety Foundation Industry Audit Standard is the most complete compliance audit currently available but for various reasons, only a handful of operators have completed that audit. Don’t assume you are compliant with Federal Aviation Regulations just because you have a fancy audit certificate in your lobby. Also don’t assume you are compliant just because your FAA-assigned inspectors have approved or accepted your manuals. (See the “My Inspector Said” post.)

I often see companies in business for many years that are on revision 30 or higher for operations and maintenance manuals but seldom have they updated their statement of compliance since certification. It’s not difficult for manuals to fall out of compliance. Occasionally companies that have experienced significant management or ownership changes or have had numerous manual revisions inadvertently drop manual language that is required by regulation. Federal Aviation Regulations change frequently and it can be difficult for operators to keep up. Many operators forget to make appropriate changes to Department of Transportation (DOT) regulations (hazardous materials, anyone?) and National Transportation Safety Board (NTSB) regulations. (Go look at your operations manual or whatever document outlines the NTSB accident reporting requirements. If the revision date of that section is older than June 22, 2010, your manual is out of date and you risk failing to submit a required report if you use your manual as a reference. Forgot about that one? You’re in good company. Most operators do. Don’t get me started on hazmat. The DOT seems to change 10 words every few years. Identifying those 10 words and revising your manual and training program is kind of like a riddle – but a riddle that could cost you big bucks if you mess up.)

Your New Year’s resolution for 2014 should be to assess your manuals and documents by completing a new statement of compliance. Then identify any omissions or inconsistencies and make appropriate corrections to ensure your company is in compliance. It is best for YOU to identify these gaps before another party (*cough cough* the FAA) does.

“But Lindsey, why do I need to be concerned about regulatory compliance if the FAA has approved or accepted my manuals?” I refer you once again to the “My Inspector Said” post, not to mention the fact inspectors are human too and mistakes happen. Plus there are some situations that prompt “special” FAA surveillance. The sale of a company that holds a Part 135 air carrier certificate, significant management or business model changes, financial hardship/bankruptcy of an air carrier, and a number of other scenarios can trigger in-depth FAA inspections, including detailed manual reviews. Certainly a significant accident can prompt an investigation of your compliance by the FAA, NTSB, and even plaintiffs’ attorneys. Aside from the desire to keep the FAA happily at bay, you should consider completing a new statement of compliance or revising your current statement of compliance if you’ve been in operation for a long period of time (say 10 or more years) or you are considering selling your company.

Are you sure your company is in compliance with all applicable FAA, DOT, and NTSB regulations? Pretty sure? Maybe? Have I mentioned OSHA compliance? Now there’s the holiday spirit!

Give me a call (703-445-2450) or send me an email if you have compliance questions or want to start off the new year with a clean statement of compliance. Then if you don’t lose weight, stick to your budget, or spend more time with the kids in 2014, at least one resolution was successful!

Click here to visit or return to McFarren Aviation Consulting’s website.

Advertisements

One thought on “Compliance: A New Year’s Resolution

  1. Pingback: PINC – Not the Tattooed Rocker Girl | McFarren Aviation Safety News

Have some thoughts on today's post? Leave me a comment! All comments will be moderated to avoid spam or inappropriate comments so don't worry if you don't see your comments right away!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s