CBD Program Level 2 Audit Guidance | Commercial Building Disclosure

CBD Program Compliance and Quality Assurance.

Ensuring the integrity, transparency and accountability of the CBD Program is a top priority of the Department of Climate Change, Energy, the Environment and Water (the department). Tenancy Lighting Assessments (TLA) and exemption applications undertaken by CBD Accredited Assessors should accurately represent the performance of the rated premises. CBD Assessors should carry out their duties with diligence, ensuring compliance with the Building Energy Efficiency Disclosure Act 2010 (BEED Act).

To guarantee this and provide a quality-assurance and continuous improvement measure, the department has established the CBD Auditing Program, which is underpinned by the CBD Program Auditing Policy. This Guidance Note provides information about the CBD Program Level 2 Audit process.

What does auditing achieve?

The CBD program routinely undertakes two levels of audit. A Level 1 Audit is conducted in 100 per cent of TLA, BEEC and Exemption applications. Level 1 Audits are a quality assurance process undertaken internally by CBD team in order to ensure that CBD Assessors have correctly completed ratings, have not made apparent data-entry errors, and have correctly applied the TLA Rules while undertaking the rating.

A Level 2 Audit is conducted on five per cent of ratings by external Auditors appointed by the department. A Level 2 Audit is a quality-assurance peer review process that delivers a complete re-rating of the rated premises, using the documentation relied upon by the CBD Assessor in conducting the original rating.

By re-calculating TLA ratings under the Level 2 Audit scheme, the department can identify whether the original rating was a true representation of the actual performance of the rated premises; as well as whether the CBD Assessor who undertook the initial rating is performing with the expected level of diligence and professionalism.

CBD applications can be revised or withdrawn as a result of a Level 2 Audit, and CBD Assessors can also receive a wide array of sanctions based on the level of performance identified as part of the audit.

Selection of ratings for audit and parties involved

In order to guarantee a fair, transparent and accountable approach to auditing, most Level 2 Audits are randomly selected. The department can also select a number of ratings for audit based on identified or suspected risk. CBD Assessors will be informed when one of their ratings has been selected for a Level 2 Audit, at which point the audit process commences.

Audit timeframes and what to expect

Level 2 Audits can be completed within different timeframes depending on a number of variables, such as the type and level of complexity of the original rating; the quality and completeness of the documentation provided for audit; and the level of cooperation of the Assessor during the different stages of the audit process. The average timeframe for an audit to be completed is six weeks.

Assessors whose rating is selected for audit are expected to fully cooperate with the department in the timely provision of documentation and responses throughout the different stages of the audit process. Assessors who fail to cooperate or meet audit timeframes may be temporarily prevented from lodging additional ratings for certification until the audit is completed. A Level 2 Audit is a serious quality-assurance and accountability exercise and must be met with the due level of diligence by CBD Assessors.

CBD Assessors are responsible for their ratings and are required to keep all documentation used for a particular application for seven years. The department expects that documents used for all ratings are readily available to be provided in the event of a Level 2 Audit.

A note for rating clients, building owners and tenants

A Level 2 Audit may result in the revision or withdrawal of the original Tenancy Lighting Assessment or granted Exemption. Such a measure can bear a number of significant consequences to the rating clients, building owners and/or tenants of the rated premises. These parties are expected to fully cooperate with the CBD Assessor with access to premises during rating (and possibly during audit), provision of full and compliant documentation from the onset of a rating, and assistance in sourcing potential additional documentation needed during audit.

If there are recurring concerns about an assessor’s conduct or an investigation finds instances of possible collusion to subvert the assessment methods and standards, the Level 2 audited TLA or exemption may be escalated to a Level 3 audit. This will include an on-site audit conducted by an auditor to verify the application details and evidence previously provided.

Contacting the CBD Compliance team

The NABERS website has additional information regarding their processes including rating audit programs.