Sometimes, in the day-to-day management of buildings, we encounter an audit—an auditor asking questions and observing how we perform our work—and then several questions arise:
- What are you here to do?
- Are you here to add value?
Through this article, we aim to provide a definition of auditing, as well as its multiple scopes and benefits for both the Facility Manager and the property owner, with its main objective being the continuous improvement of quality. Let us first look at its definition.
DEFINITION OF AUDITING
It is the systematic review of an activity or situation to evaluate compliance with the rules, criteria, and objectives to which said activities or situations must conform. Etymologically, it comes from the Latin verb “audire,” meaning ‘to hear,’ which in turn has its origin in the first listeners, who performed their function by judging the truth or falsehood of what was presented to them for verification, primarily through observation. However, it is also said to come from the English verb “to audit,” meaning ‘to review’ or ‘to intervene.’
Another definition is that set by ISO, which describes an audit as a systematic, independent, and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria (regulations, legislation, standards, best practices, etc., against which the evaluation is made) are fulfilled.
The term auditing is best known as the process of inspecting the accounting details of a specific company or institution in order to accurately establish the resources at its disposal. And from there, other derivatives emerged, which is why we refer to…
Different types of audits (energy, IT, environmental…), always maintaining the notion of inspecting, analyzing, and contrasting information to understand its true state, following a methodology based on compliance with regulatory obligations, sound criteria/practices, as well as the policies and guidelines established by the entity itself according to its way of operating and managing itself.
It should be noted that there are several types of audits:
- Second-Party External Audit: This is an external audit of the organization’s facilities and/or suppliers and subcontractors, based on its needs. Its objective is to determine, regarding the facilities, their status and compliance with national and international standards and guidelines, and, regarding suppliers and subcontractors, to evaluate their quality and determine their capabilities to provide resources/services in accordance with specified requirements.
- Certification or Third-Party External Audit: This is an evaluation carried out by a commercial body that is contractually independent of the organization, its suppliers, and its customers. A Third-Party Audit is an evaluation performed by an external entity according to certain specifications, with the aim of determining compliance with them. An example of an external audit is one conducted by an accreditation body to determine if an organization complies with a standard. Therefore, an audit is a systematic and documented process carried out by competent professionals (internal or external to the organization) that aims, through audit evidence, to detect opportunities for improvement and add value to the process.
SCOPE OF AN AUDIT
The scope of an audit, such as energy, accounting, or environmental audits, is regulated, but others are adapted to the requester and their objectives, allowing for the auditing of an area, a process, a work procedure, or the management system as a whole. This also applies to a specific type of installation for a particular building or all those included in a contract.
In Facility Management, this scope is determined by the requester, and an audit may be required to guarantee results at any point in a building’s life cycle. Therefore, the Facility Manager may opt for an audit under any circumstance, with the following objectives:
- To monitor the service being provided or contracted.
- To add value to your work, the organization, and/or the condition of the facilities.
- To detect improvements in your operational processes, organization, and/or facilities.
- To serve as an additional input channel to evaluate the best management model for the organization.
- Validation of KPIs.
- To provide veracity to the data recorded in a CMMS.
To perform audits that meet the aforementioned objectives, it is necessary to hire competent auditors, which can be done by Facility Management personnel who are experts in the field through internal audits.
BENEFITS OF AN AUDIT
The benefits of performing an audit can be many, depending on the objective of the audit to be carried out. Some of them may include the following:
- Guaranteeing the success of management decisions adopted. Having truthful and objective information about the area of responsibility as a clear starting point for the state of a situation.
- Real Estate, Properties. Confirming that the lease agreements where the real estate activity takes place are appropriate and comply with minimum aspects (Licenses, Validity, Facilities, and Sustainability…). They are suitable and meet the minimum requirements (Licenses, Terms, Facilities, and Sustainability…).
- Facilities. Confirming that the facilities the property has are those required by the organization and guarantee 24/7 business continuity. Details for each type of property use where facilities differ: offices, Data Centers, commercial, industrial, HVAC installations, electricity (TS, GS, UPS, Panels, super-immunized, capacitor banks, etc.), FPP, etc. As well as their obsolescence, useful life, and the type of maintenance contract performed.
Spaces and Occupancy. Obtaining inspiring, up-to-date spaces that retain talent and are productive, where the maximum number of workstations permitted by regulations can be installed; considering new ways of working, with desk sizes where employees can choose where to sit each day. And with adequate facilities for meeting, resting, working alone or in groups, having a coffee, or eating. In all of this, image is very important and must correspond to the company culture where employees develop professionally and personally.
- Equipment and Furniture. Appropriate in terms of space, cost, design, and ergonomics of chairs and computers. Up-to-date and compliant with OSH (Occupational Safety and Health) standards.
- FM Services (Facility Management): facility maintenance, cleaning, security, etc. Ensuring that the contracted scope is correct, with the best providers, at the best price, awarded according to scope, region, criticality, etc.
- Innovation and anticipating the future by analyzing and implementing new processes, automating, and digitizing to be the best and focusing on what adds value. Improving profitability objectives with effective management adapted to the needs of each company and its culture, to improve the return on investment for shareholders, while simultaneously helping people and giving them the opportunity to work in their organizations and develop professionally and personally. Improving the reliability of facilities/services by obtaining evaluation results of the facilities and/or services through external audits carried out by an entity independent of the organization, ensuring the objectivity of the results.
- Reputation improvement, by having a management system certified by an independent certification body, which certifies regulatory compliance for three years.
Performing an audit is a guarantee of success and improved economic results.
As a result, better decisions will be made and costs will be optimized, as the decisions to be adopted will be fair and necessary to ensure business continuity. Strictly necessary investments or improvements will be made, resulting in an improvement in the property’s expense account by contracting the services that each organization needs at the best price.
It is the opportunity, with the support of the Steering Committee, to develop a work methodology among all departments and areas of the company, where the result will be highly satisfactory for everyone.
