R.C.C.S., LLC.

Loss Prevention Audit Findings and

Follow-ups

2005

Loss Prevention Audit Findings2005

• HC&A is committed to being thorough with all aspects of the audit process.

• Audits focused on each of the Best Practice Standards.• No middle ground. Either in compliance, or not in

compliance. Goal is to have members fully implement Best Practice Standards, not partially.

• In general, audit findings were very positive. • Presentation based on original audit, and follow-up

improvements

The Good

The Bad

The Ugly

Audit Findings, 2005 Success Story

Pioneer Roofing implemented the recommended Best Practice Standard of Pre-Employment Work Assessment Physicals in late May. Within the first two months after implementation, management became aware of three job applicants that could not meet the essential functions of the job, as identified in the job physical demand profile created in Denver. Therefore, these applicants were not hired at Pioneer Roofing. This potentially has prevented workplace injuries. Great job by Pioneer Roofing, in the implementation of this important testing criteria.

New Hire Orientation

• Focused on;– Timeframe (was it being conducted

for all new hires?)

– Content – (compared to HC&A created outline)

– Documentation

Of the 20 Captive Members; - Eight found to be “Not in Compliance” - Of those “Not in Compliance, HC&A has worked with the majority of them individually where needed to bring them up to compliance. (IMPROVEMENT!!)

- If contractors are still out of compliance, the Loss Control Committee & Captive Owners will address.

Progressive Disciplinary Actions

• Focused on;– Written Program– Communication of Program– Consistent Enforcement of Policy

• Of the 20 Captive Members;– Eight found to be “not in compliance”– Out of compliance for various reasons.

Some w/o written programs. Some not utilizing written program fully. Some not utilizing written program at all.

– Of those “Not in Compliance, HC&A has worked with the majority of them individually where needed to bring them up to compliance. (IMPROVEMENT!!)

– If contractors are still out of compliance, the Loss Control Committee & Captive Owners will address.

- HC&A found that members have disciplined and even terminated employees for;

- Routinely late to work.

- Poor production.

- Lack of quality.

- Poor attitudes with other employees or foremen.

Why do we sometimes allow employees to ignore safety requirements, and only

receive a “slap on the wrist”?

We must continually work on developing a strong safety culture, and begin treating a disregard for safety, in

the same consistent manner we treat poor production and quality!

Documented Regulatory Compliance

• Focused on;– Documentation– Content– Fall Protection, Scaffold User, Aerial Lifts,

Haz-Com, Forklift, Material Handling

• Of the 20 Captive Members;– Nine found to be “Not in Compliance”– Of those “Not in Compliance, HC&A has

worked with the majority of them individually where needed to bring them up to compliance. (IMPROVEMENT!!)

– If contractors are still out of compliance, the Loss Control Committee & Captive Owners will address.

Success Story

Success Story

- Boone Brothers Roofing instituted a program which requires all foremen to complete a documented jobsite inspection of their site on a weekly basis, in addition to the Safety Managers inspections. Failure to turn in an inspection form can result in disciplinary action. The requirement of foremen to complete these goes above and beyond the Best Practice Standard requirements, but was instituted after HC&A recommended this as a method of improving their overall Safety Culture. Since this program was implemented, foremen have informed the Boone Brothers Safety Manager that this program is one of the best programs they have implemented, as it has made them focus on safety items that may have been overlooked in the past. Excellent job Allen, Penny, Chris, and all of Boone Brothers Management.

Foremen & Superintendent Training

• After recognizing the need, HC&A and the Loss Control Committee decided to change implementation date from May 1, 2005 to October 1, 2005 to allow company’s to enroll their foremen & Superintendents in the HC&A provided online training program.

• Program covers;– Supervisors role in Safety

– Cost of an accident

– Hazard Recognition

– Accident Investigation

– Supervisors Role in a Return to Work Program

– Counseling & Disciplinary Programs

– Conducting a Tool Box Talk

– Handling an OSHA Inspection

Front line Supervisors (foremen/superintendents)

play the most important role in the company’s Safety

Culture

Pre-Employment Drug Screening

• Of the 20 Captive Members,– 4 found “Not In Compliance”– Of those “Not in Compliance, HC&A has worked with the

majority of them individually where needed to bring them up to compliance. (IMPROVEMENT!!)

– If contractors are still out of compliance, the Loss Control Committee & Captive Owners will address.

Since the Denver meeting, some members have begun using instant saliva based

drug testing.

Proposed Drug Testing Best Practice Standard Changes

- Current Best Practice Standard requires only Pre-Employment Drug Screening.

- Owners recommended increasing this Best Practice Standard, and making it mandatory for each company to perform Drug & Alcohol Testing to the limits the particular state laws allow. This includes post accident, random, and reasonable suspicion.

Return to Work Programs

• Focused on;– Written Program

– Communication of Program to Staff

– Are employees actually being provided restricted duty?

• Of the 20 Captive Members;– Two found to be “Not in

Compliance”

Benefits of a Return to Work Program

-Reduces Insurance Indemnity costs

-Promotes employee morale and security

- Reduces financial difficulties of injured employees

- Speeds medical recovery

- Reinforces management commitment to employee welfare

• Focused on;– Distribution & Collection on a weekly basis– Mandatory RoofConnect monthly talks– Are claims alerts being utilized?

• Of the 20 Captive Members;

– Five found “Not in Compliance”– Significant improvement has been made on

the completion of the Mandatory RC Toolbox Talks. Most are being turned in. Continue the good work!!

Weekly Tool Box Talks

Are you getting your money’s

worth?

100 EMPLOYEE WORKPLACE

X 40 MINUTES PER MONTHX 12 MONTHSX $15.00/HOUR AVERAGE WAGE

= $12,000.00/Year(Very conservative figure.)

• Social Security Verification – 19 Members in compliance

• Professional & Criminal Record Checks of Supervisors

– Although many members had not hired supervisors from outside the organization since joining RoofConnect LLC., all have agreed to perform these checks when and if a supervisor is hired.

• First Report of Injury within 24hours– All members in compliance

• Supervisors Accident Investigations– Four members initially found “Not in

Compliance”.

• Safety Managers Meeting– All members in compliance

• CERTA Training– All members whom perform torch down

application are in compliance.

Other Best Practice Standards• DMV Record Checks

– Two members found “Not in compliance”. Both have begun performing these checks.

• Defensive Driver Training– Most members have brought in outside

agencies, or utilized HC&A training. Training expected to be complete by Oct. 1, 2005.

• Vehicle Accident Kits– Four members found “Not In Compliance”.

• Written Administrative & Regulatory Programs

– Two members found “Not in Compliance.” Both have begun making necessary changes.

• Safety Committees– Five members found “Not in Compliance.”

All have made the necessary changes.

• Documented Jobsite Safety Evaluations– Five members found “Not in Compliance.”.

Other Best Practice Standards

2nd Round of AuditsRandom & Unannounced

• Owners agreed that HC&A should perform a 2nd round of audits. These should be coordinated through the owner, and unannounced to field employees, and Safety Managers.

• These audits are to specifically focus on jobsite inspections.

• HC&A is utilizing a jobsite inspection sheet, which has incorporated a point system. A score of a 70 is average, and means that the site was in full *minimum* compliance with OSHA regulations & Best Practice Standards.

• Inspection sheet is weighted, meaning that more significant concerns are rated heavier than less significant concerns. (Fall Protection is rated higher than having MSDS sheets on-site.)