Pre-ConditionCAR Verification Desk Audit

Organization Name: / Potlatch Corporation, Wood Products Division, Warren Sawmill
Location: / Warren, AR USA
Report Date: / August 11, 2005
  1. AUDIT PROCESS

Auditor, qualifications: / Loy Jones, Senior Forester, SmartWood US Region
Audit dates: / August 11, 2005
Review process:
(Documents reviewed, persons interviewed, etc.) / Potlatch worked with SW staff to prepare documentation indicating how they intend to meet the Major CARs identified in their initial audit. Matt Roberts, Nick Koulianas and Mike Weatherford have been interviewed in relation to the material presented.
Audit overview: / Auditor did a desk review of documentation provided as evidence of having met the Major Car
Changes to procedures since last audit: / None
  1. CAR REVIEW

Note: Paste Pre-conditions and/or CARs from last Report

SmartWood CoC Pre-Condition/CAR Verification Desk Audit Report1

CoC- 27 705

CAR #: 1/05 / Reference Standard #: 1.2; 5.2; 5.3
Non-compliance:
Major Minor X / Company has developed adequate COC procedures but responsible people have not always been notified of their responsibilities and no training programs have been written or training sessions held.
Corrective Action Request: Before the first run of certified material, Potlatch Southern Sawmill must prepare a training document that specifies procedures for each step of the manufacturing process and use that document as a basis for training of personnel involved in the COC. Records of these training sessions shall be maintained by the company.
Timeline for compliance: Must be done before manufacture of any material to be sold as FSC certified
Audit findings: Potlatch provided the Warren Sawmill FSC CoC Procedures that specifies procedures for each step in the process for FSC Pure, FSC Mixed and Uncontrolled Wood. They also provided Training Course Attendance Forms where employees that have attended sign off for credit.
Status: Closed
Follow-up Action (if applicable):
CAR #: 2/05 / Reference Standard #: 13.1, 14.1; 14.2; 14.4; 14.8; 14.11
Non-compliance:
Major Minor X / No written procedures or work instructions for establishment, maintenance, monthly recording procedures, and measures to insure that FSC-credit account is not overdrawn have been developed.
Corrective Action Request: Potlatch Southern Sawmill shall establish a written procedure for use of the credit system that includes establishment, monthly recording, and measures that insure the FSC-credit account will not be overdrawn.
Timeline for compliance: Must be completed before implementing credit system or within 3 months of the date of certification, whichever comes first.
Audit findings: Potlatch submitted documented procedures for the use of the credit system including examples of the reporting form that will be used.
Status: Closed
Follow-up Action (if applicable):
CAR #: 3/05 / Reference Standard #: 16.1; 17.1; 17.2
Non-compliance:
Major Minor X / Current invoices and shipping documents will be modified to contain the required FSC information, but thus far they have not been modified.
Corrective Action Request: Current invoices and shipping documents shall be modified to contain the information specified under 16.1 and 17.1 of “FSC Chain of Custody Standard for companies Supplying and Manufacturing FSC-Certified Products.”
Timeline for compliance: Must be done before shipment of any certified material.
Audit findings: Potlatch provided procedures developed for the preparation of invoices and shipping documents specifying the minimum information to be included on each for FSC orders. They have not produced an invoice to date since there have been no sales.
Status: Closed
Follow-up Action (if applicable):
CAR #: 4/05 / Reference Standard #: Controlled Wood # 3.7; 8.2; 9.5
Non-compliance:
Major Minor X / Although likelihood of receiving wood from high-risk area is very low, the company has not performed an assessment of high-risk areas in their wood source area.
Corrective Action Request: Company must do an assessment of their wood source area to determine the existence and location of high-risk areas where trees could be harvested and logs delivered to the Potlatch Southern Sawmill. If logs are delivered to the sawmill from these areas the company must then do a determination of whether or not the wood can be classified as controlled wood.
Timeline for compliance: Assessment must be done before acceptance of wood that may be sold as controlled wood or included with FSC as a mixed product.
Audit findings: Potlatch provided a document titled Controlled Wood Risk Assessment and Procurement Procedures that covers both the AR sawmill and papermill. In addition they provided a copy of their Trip Ticket, Gatewood Master Agreement, RMD-023 Forest Stewardship of Gatewood, copy of a gatewood Field Inspection form, and Training Course Attendance Forms. This was a very thorough document that defined in detail how they have assessed location of high risk areas and how they will handle wood sourced from these areas versus low risk areas. This CAR has been completed; however they do need to further define the sampling size and frequency for verification of transport and purchase documents.
Status: Closed
Follow-up Action (if applicable): See new CAR added below.

SmartWood CoC Pre-Condition/CAR Verification Desk Audit Report1

CoC- 27 705

  1. CONCLUSIONS

Audit Conclusions for Review of:
CARs
N/A / CAR(s) closed
No follow-up required
New CAR issued (see below)
CAR(s) open
Company shall be suspended (CAR from major non-conformance is open)
Minor non-conformance has become a major non-conformance (see below)
Audit conclusions for review of:
Pre-conditions
N/A / Pre-condition(s) closed, Company is approved for certification
No follow-up required
New CAR raised (see below)
Pre-condition(s) open, certification is not approved
Comments:

SmartWood CoC Pre-Condition/CAR Verification Desk Audit Report1

CoC- 27 705

Corrective Action Requests (CARs):

Note: insert CARs

CAR #: 7/05 / Reference Standard #:: 3.7; 8.2; 9.3 under controlled wood
Non-compliance: / Potlatch did not provide a sampling size and methodology for verification of transport and purchase documents because FSC has not provided guidance to date.
Major / Minor
X
Corrective Action Request: Potlatch shall propose a sampling size and methodology for verification of transport and purchase document of their suppliers based on the best available guidance provided by FSC sampling methodology, another certification such as SFI, or other statistically appropriate recommendation.
Timeline for compliance: Prior to the next annual audit.

SmartWood CoC Pre-Condition/CAR Verification Desk Audit Report1

CoC- 27 705

Report Approved by:
Note: pre-condition verification requires full Decision Memo
Date:

SmartWood CoC Pre-Condition/CAR Verification Desk Audit Report1

CoC- 27 705