Level 5 Audit – If you are a Trucking Authority – Hotshot or Semi, Box truck, Newbie or Veteran, You really need to read this.
This article was written by one of our members, Katie Miranda, who had came to me for advice for how to prepare for this Audit but it was something that I have not gone through, and know little about. So I asked her to write an article about her experience so that we could share on our Hotshot-USA Resource Network newsletter and blog posts.
What I do know – that this is much more common than in the past. It can cost you in heavy fines and could shut you down.
Here are some interesting facts:
Last year saw a 40-percent jump in fines paid, and a similar rise in audits that uncovered the most serious types of violations.
Only about 5 percent of motor carriers escape an audit without a violation.
Over half of all audits in 2022 (54%) were on companies with fewer than seven power units.
- 3,600 on-site comprehensive audits (up 54%)
- Last year saw a 10-percent rise in investigations that led to some type of enforcement.
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- 95% of audits resulted in at least one violation
- 27% resulted in fines or other penalties
- 3,620 enforcement cases were finalized (up 31%)
- $25,700,000 in fines were collected (up 40%)
- $7,100 was paid per settlement, on average (up 7%)
- 47% of audits resulted in acute or critical violations (up 24%)
- 30% of audits resulted in critical violations (up 15%)
- 17% of audits resulted in acute violations (up 39%)
- 36% of audits resulted in a less-than-satisfactory safety rating
- 30% were conditional
- 6% were unsatisfactory
- READ THE FULL ARTICLE https://eld.kellerencompass.com/resources/blog/2023-blogs/2022-audits-year-in-review
Level 5 Audit – Certain states are now imposing an audit that is not apart of the entrant program but it is very similar. It can take anywhere from 7-30 Business days to receive a pass or fail. If you fail the authority is shut down and cannot be reinstated you will have to open a new Business license and move forward from the beginning.
There’s many reasons for them to choose your authority. It could be because you failed to many inspections, complaints or just because the system selected your number and nothing you can do to bypass it. Level 5 safety audit for the Business office location and equipment. Please remember these officers are learning about these audits the same as we are. This is why they are new and not in all areas. As of now they are testing this process. So if you are chosen it doesn’t mean you did something wrong. Be kind and courteous. This audit is in person and can take between 30 minutes to several hours depending on how well your paperwork is in order.
When you are informed of this level 5 audit you will receive an email with a general list similar to the entrant audit but you need to read each point entirely as each category is going to be asking for different history length (example: 365 days, 6 months and so on)
They are not willing to give you much guidance on the matter other than saying to use the list.
What they leave off the list is that when they ask you for your eld they also want the ratecons and bols (looking to match your logs to what they deem safe commute times). Furthermore, also looking to see if you received the proper clearance (permits) to enter certain areas. As well as asking you to log in and print your Business account statements for what ever time frame they require (Looking to see if your getting loads under the table).
Also, when they do this they can see any other items that could make you at risk, for instance receiving a Cashapp, Zelle from a broker not listed that you deposited to your account. It’s a way for them to see if you’re paying someone to do loads under your authority without having them listed on insurance or as a driver with the FMSCA. As well as finding brokers who are pulling loads and sending out other companies as a way to get around having a bond with the state.
Be as forthcoming with your officer. He will contact your insurance to see how many COL have been issued during the timeframe in which they asked you.
They do a level 1 inspection on the equipment along with inspection of cargo straps (example: weight strength, condition like rips or fraying. As well as the color of the straps if they are fading this could be a mark against you. Example; if FMSCA lists 3 items of equipment then all items must be there for inspection)
They want to see everything down to the desk or how your storing these documents and the age of the authority doesn’t matter. For example, let’s say you had a revocation and restarted… they can legally go back 7 years or to the date you received your EIN not your authority. They can go back to when you filed for your Business license.
Any and all dot inspection from:
• Weight stations must be kept together for 7 years
• Asking to see certain books: example how to properly secure a load, current year hazmat (even if you are not hazmat, you need to know what to do if you get into an accident with a hazmat vehicle and the driver is impaired)
• Any accident forms must be kept for 7 years even if it was not while you were in your truck or on duty (Cdl and non Cdl driver log must also have a copy)
From speaking to several officers that do entrant audits they each have their own opinion on the start of these level 5 audits. Reason given:
• To many drivers being pulled over and illegally operating under an authority
• Authorities getting under the table loads and not reporting it fiscally at the end of the year.
• Authorities (brokers) getting loads using their numbers and double brokering by sending out another company. This becomes a legality in the situation of an accident. If an insurance company finds out you got into an accident they have to contact for the client of the commerce you are transporting and when they find out it’s a double brokered load then this is where insurance companies will start to find loopholes not to cover the injuries with commuting vehicles.
Below you will see a general list of what was sent to us:
