Introduction
Welcome to the CDL Services Inc. blog! As a new trucking company, it’s crucial to understand the Federal Motor Carrier Safety Administration (FMCSA) new entrant audit process. This audit ensures that your company complies with safety regulations and sets the foundation for a successful and compliant operation. In this post, we’ll cover the requirements for the new entrant audit, the consequences of failing audits or no-shows, and what happens after the initial review.
What is an FMCSA New Entrant Audit?
The FMCSA new entrant audit is a review process for all new trucking companies within their first 18 months of operation. The purpose of this audit is to ensure that new carriers comply with federal safety regulations.
Requirements for the New Entrant Audit
To pass the new entrant audit, you need to have the following documents and systems in place:
1. Driver Qualification Files
- Application for employment.
- Driving records (MVRs).
- Valid Commercial Driver’s License (CDL).
- Medical certificates and long-form physicals.
2. Hours of Service Records
- Logbooks or electronic logging device (ELD) records.
- Supporting documents such as fuel receipts and toll tickets.
3. Vehicle Maintenance Records
- Regular inspection, maintenance, and repair records.
- Annual inspection documentation.
4. Insurance Documentation
- Proof of the required levels of insurance coverage.
5. Drug and Alcohol Testing Records
- Pre-employment and random drug and alcohol test results.
- Enrollment in a drug and alcohol testing program.
- Clearinghouse registration and query reports.
6. Accident Register
- Records of any accidents that occurred within the past three years.
Consequences of Failing Audits and No Shows
Failing the new entrant audit or not showing up can have serious repercussions for your business:
1. Failing the Audit:
- Safety Management Plan: If you fail the audit, you must submit a corrective action plan within 60 days to address the deficiencies.
- Out-of-Service Order: Continued non-compliance can result in your company being placed out of service.
2. No Shows:
- Automatic Failure: Missing the scheduled audit without prior notice or valid reason results in automatic failure.
- Out-of-Service Order: No shows will lead to an out-of-service order, and you must reapply for new entrant status.
What Happens After the Initial Review?
After the initial new entrant audit, here’s what you can expect:
1. Pass the Audit:
If you pass, your company continues operations as usual. The FMCSA will continue to monitor your safety performance.
2. Safety Monitoring:
For the first 18 months, the FMCSA will closely monitor your safety performance, including roadside inspections and accident history.
3. Compliance Reviews:
After the new entrant period, your company may be subject to periodic compliance reviews to ensure ongoing adherence to safety regulations.
4. Transition to Permanent Status:
If you successfully pass the 18-month monitoring period without significant safety violations, your company will receive permanent operating authority.
5. Enhanced Record Keeping:
• Centralized Records: Maintain comprehensive records of fuel purchases, mileage, and tax payments in a centralized system, facilitating easy access and review.
• Historical Data Access: Use historical data for trend analysis, strategic planning, and identifying areas for operational improvement.
Tips for a Successful Audit
- Prepare in Advance: Ensure all required documents and records are organized and up-to-date.
- Train Your Staff: Make sure your drivers and administrative staff understand the importance of compliance.
- Conduct Internal Audits: Regularly review your records and practices to identify and address any potential issues.
Conclusion
Navigating the FMCSA new entrant audit process can be challenging, but with proper preparation and understanding, you can ensure your trucking company stays compliant and on the road to success. For more information or assistance with your compliance needs, visit our website at www.cdlservicesinc.com or contact us directly.
Nelson Arias
Director CDL Services Inc.
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