MY 05396 SPOC Q31 Tatau Audit Summary Report Organization: Malaysian Palm Oil Board – SPOC Q31 Tatau Address: MPOB Bintulu Office Pejabat MPOB Caw. Bintulu, Sublot 71, Taman Siong Boon, Jalan Sebiew, 97000 Bintulu, Sarawak, Malaysia. Standard(s): MS2530-2 : Part 2: General Principles for Accreditation Body(s): DEPARTMENT Independent Smallholders STANDARDS MALAYSIA (DSM) Representative: En. Yusof Mohamad (Research Officer) 013-6727221 En. Rowney Anak Salau (Group Manager) Site(s) audited: Participants Date(s) of audit(s): 24th – 26th September 2019 1. Khamis Bin Jalil 2. Samsul Bin Gaphar 3. Noriah Bt Laut 4. Malati Binti Sidup 5. Asnah Binti Sidup 6. Sidup Bin Leman 7. Timin Bin Ali 8. Jantai Anak Lani 9. Rauwon Anak Danggang 10. Denis Anak Ansam 11. Julin Jingut 12. Jeffrey Anak Engah 13. Uchong ak Nyelipan 14. Sangau anak Empinit 15. Tutong Anak abang 16. Kapok Anak Ansar 17. Ngedan Anak Pudai 18. Lily Lee Ling (Dynamic Nature Agro Sdn Bhd – 21.04 ha) 19. Magdeline Eyta (Dynamic Nature Agro Sdn Bhd – 1.72 ha) 20. Nair anak Buan 21. Tr Kinminsna 22. Mutu Karsim 23. Ling Wei Chan 24. Melissa Hwang Ee Yee 25. Irin Anak Jinggut Job n°: MY05396 Report date: 26.09.2019 Visit Type: Main Visit n°: 2 Assessment CONFIDENTIAL Document: GP 7003A Issue n°: 10 Page n°: 1 of 51 Visit Type: MSPO Audit Stage 2 Type of Certification Main Audit Assessment Lead auditor: Dickens Mambu (LA) Additional team Abdul Khalik Bin Arbi (AM) member(s): Jeffrey Denis Ridu (AM) Audit Member (AM) This report is confidential and distribution is limited to the audit team, audit attendees, client representative, the SGS office and may be subject to Accreditation Body, Certification Scheme owners or any other Regulatory Body sampling in line with our online Privacy Statement which can be accessed. 1. Audit objectives The objectives of this audit were: ▪ to confirm that the management system conforms with all the requirements of the audit standard; ▪ to confirm that the organization has effectively implemented the planned management system; ▪ to confirm that the management system is capable of achieving the organization’s policy objectives. 2. Scope of certification Production of FFB for Independent Smallholders in compliance to the MSPO Certification Standard MS2530-2:2013 Part 2. The audit covered the MS 2530:2013 requirements particularly MSPO Certification Standard MS2530-2:2013 Part 2. Validation of processes for production and service provision Has this scope been amended as a result of this audit? Yes No This is a multi-site audit and an Appendix listing all relevant sites and/or remote Yes No locations has been established (attached) and agreed with the client 3. Current audit findings and conclusions The audit team conducted a process-based audit focusing on significant aspects/risks/objectives required by the standard(s). The audit methods used were interviews, observation of activities and review of documentation and records. The structure of the audit was in accordance with the audit plan as annexes to this summary report. The audit team concludes that the organization has has not established and maintained its management system in line with the requirements of the standard and demonstrated the ability of the system to systematically achieve agreed requirements for products or services within the scope and the organization’s policy and objectives. Number of nonconformities identified: 3 Major 0 Minor Therefore the audit team recommends that, based on the results of this audit and the system’s demonstrated state of development and maturity, management system certification be: Job n°: MY05396 Report date: 26.09.2019 Visit Type: Main Visit n°: 2 Assessment CONFIDENTIAL Document: GP 7003A Issue n°: 10 Page n°: 2 of 51 Granted / Continued / Withheld / Suspended until satisfactory corrective action is completed. 4. Previous Audit Results The results of the last audit of this system have been reviewed, in particular to assure appropriate correction and corrective action has been implemented to address any nonconformity identified. This review has concluded that: Any nonconformity identified during previous audits has been corrected and the corrective action continues to be effective. The management system has not adequately addressed nonconformity identified during previous audit activities and the specific issue has been re-defined in the nonconformity section of this report. 5. Audit Findings The audit team conducted a process-based audit focusing on significant aspects/risks/objectives. The audit methods used were interviews, observation of activities and review of documentation and records. The management system documentation demonstrated conformity with the requirements Yes No of the audit standard and provided sufficient structure to support implementation and maintenance of the management system. The organization has demonstrated effective implementation and maintenance / Yes No improvement of its management system. The organization has demonstrated the establishment and tracking of appropriate key Yes No performance objectives and targets and monitored progress towards their achievement. The internal audit program has been fully implemented and demonstrates effectiveness Yes No as a tool for maintaining and improving the management system. The management review process demonstrated capability to ensure the continuing Yes No suitability, adequacy and effectiveness of the management system. Throughout the audit process, the management system demonstrated overall Yes No conformance with the requirements of the audit standard. Certification claims are accurate and in accordance with SGS guidance N/A Yes No 6. Significant Audit Trails Followed The specific processes, activities and functions reviewed are detailed in the Audit Plan. In performing the audit, various audit trails and linkages were developed, including the following primary audit trails, followed throughout: Job n°: MY05396 Report date: 26.09.2019 Visit Type: Main Visit n°: 2 Assessment CONFIDENTIAL Document: GP 7003A Issue n°: 10 Page n°: 3 of 51 Malaysian Palm Oil Board (MPOB) Organization: Smallholders Palm Oil Cluster (SPOC) SPOC Q31 (Tatau) Address: Contact Person: Mr. Yusof Mohamad (Research Officer) Sustainability, Conservation & Certification Unit Mr. Rowney Salau (SPOC Manager Q31) Tel: 03-87693949 Fax: 03-89222016 H/p: 013-672 7221 Email: [email protected] Bintulu Office Pejabat MPOB Caw. Bintulu, Sublot 71, Taman Siong Boon, Jalan Sebiew, 97000 Bintulu, Sarawak Visit Number 02 (Stage 2 Audit) Actual Visit Date: 24th – 26th September 2019 Sites Audit Visit SPOC Q31 Tatau (563 participants) Samples to be audit: 1√563 = 23.727621≈ 24 participants Lead Auditor : Dickens Mambu (DM), Contact No.:014 696 2400 Team Member (s) : Abdul Khalik Bin Arbi (AKA), Contact No.: 013 8628187 Jeffrey Denis Ridu (JDR), Contact No.: 019 8774943 Additional Attendees Nil and Roles Standar(s): MSPO MS2530-2:2013 Part 2: General principles for independent smallholders. Audit Language: English and Malay Audit Scope: 1. The audit covered documentation assessment and site visit as appropriate which will perform the following scope: 2. Oil palm operations comprising of plantation management systems thru documentation and site assessment to produce fresh fruit bunches (FFB). This report is confidential and distribution is limited to the audit team, audit attendees, client representative, the SGS office and may be subject to Accreditation Body, Certification Scheme owners or any other Regulatory Body sampling in line with our online Privacy Statement which can be accessed. Job n°: MY05396 Report date: 26.09.2019 Visit Type: Main Visit n°: 2 Assessment CONFIDENTIAL Document: GP 7003A Issue n°: 10 Page n°: 4 of 51 Date Time Auditor Organizational and Functional Key Units/ Processes and activities Contact 24th September 2019 8.00 am DM, AKA & Arrived at Bintulu Airport, Depart to Estate JDR MPOB Bintulu Office Personnel 8.30 am DM, AKA & Depart to MPOB Bintulu Office Estate JDR Personnel Opening Meeting Audit Process (Documentation Review) • Principal 1: Management commitment and responsibility • Principle 2: Transparency • Principle 3: Compliance to legal requirements • Principal 4: Social responsibility, health, safety and employment condition • Principal 5: Environment, natural resources, biodiversity and ecosystem services • Principal 6: Best Practice • Principal 7: New Planting 12.30pm Lunch 1.00pm Continue Audit Process Site visit at 8 participants of Q31 (Document review, local law compliances, Safety and health aspect, environment procedure, social benefits) 6.00pm End of Audit Day 1 Depart to Bintulu Town Job n°: MY05396 Report date: 26.09.2019 Visit Type: Main Visit n°: 2 Assessment CONFIDENTIAL Document: GP 7003A Issue n°: 10 Page n°: 5 of 51 Date Time Auditor Organizational and Functional Key Units/ Processes and activities Contact 25th September 2019 8.00 am DM, AKA & Depart to MPOB Bintulu Office Estate JDR Personnel (Day 2) 8.30 am DM, AKA & Site visit at 8 participants of Q31 Estate JDR Audit Process (Documentation Review Personnel and Site Visit) • Principal 1: Management commitment and responsibility • Principle 2: Transparency • Principle 3: Compliance to legal requirements • Principal 4: Social responsibility, health, safety and employment condition • Principal 5: Environment, natural resources, biodiversity and ecosystem services • Principal 6: Best Practice • Principal 7: New Planting 12.30pm Lunch 1.00pm Continue Audit Process (Document review, local law compliances, Safety and