Audit Report On Fire Department Controls Over The Laboratory Unit’s Inspections Of Establishments That Contain Hazardous Materials

 Audit Report In Brief

Our audit determined whether the New York City Fire Department (FDNY) has adequate controls over the Laboratory Inspections Unit’s (the Lab Unit) inspections of establishments that store, handle, and use hazardous materials to ensure that inspections and their results are properly recorded and reported, and that the inspections are performed in a timely manner.

There are many types of hazardous materials. Depending on their quantities and use, the establishments containing them may be required to obtain annual permits issued by FDNY. These establishments include but are not limited to high schools, colleges, hospitals, and nursing homes. The Lab Unit is responsible for inspecting these establishments. If no violations are found, the inspection will be approved. If violations are found, the Lab Unit issues a Violation Order (VO) if an imminent hazard exists; if no imminent hazard exists, the Lab Unit issues a Notice of Violation (NOV). Conditions cited on a VO must be corrected within 30 days of issuance and requires a follow-up inspection. The conditions cited on a NOV must be corrected within 35 days of issuance. The establishments must file a self-certification with FDNY attesting that conditions were corrected.

During Fiscal Year 2009, the Lab Unit consisted of a Deputy Chief Inspector, a Supervising Inspector, five inspectors, and a clerk. According to FDNY’s Fire Prevention Information Management System (FPIMS), as of December 2009, a total of 5,967 inspections were recorded as having been conducted by the Lab Unit from July 1, 2008, through June 30, 2009.

Audit Findings and Conclusions

FDNY lacks adequate controls over the Lab Unit’s inspections of establishments that store, handle, and use hazardous materials. FDNY management’s insufficient controls resulted in some type of problem in virtually every area we examined. FDNY’s shortcomings cited in this report have potentially dangerous consequences for the safety of the public, since the establishments contain hazardous materials, including flammable liquids and solids, corrosive acids, and compressed gases.

We found that the establishments for 27 of the 30 accounts in our sample were operating with expired permits during at least one of the three fiscal years of our review. The audit also found that the supervisors of the Lab Unit failed to comply with their oversight responsibilities regarding supervisory and post inspections. Additionally, a number of important inspection procedures are not included in the Lab Unit’s procedural manual, and those requirements that are included are not all being followed. Finally, the record-keeping and reporting practices of the Lab Unit are inadequate. The inspection data entered in FPIMS appears unreliable, and the number of inspections reported for Fiscal Year 2009 as having been conducted by the Lab Unit in the Laboratory Inspection Unit Field Activity Report and the number in The Mayor’s Management Report Fiscal 2009 (MMR) are inconsistent.

Audit Recommendations

Based on our findings, we make 15 recommendations, including that FDNY:

• Ensures that the Lab Unit takes steps to reduce the backlog of permit renewal and follow-up inspections.
• Ensures that Lab Unit personnel comply with the procedures outlined in the Lab Unit Manual, including but not limited to those relating to the issuing of VOs for conditions posing imminent hazards; the conducting of post inspections within the required time frame; the scheduling of inspections by supervisors; and the implementation of an annual rotation program.
• Ensures that adequate written procedures are developed and implemented for the Lab Unit inspectors to follow in carrying out inspections of establishments containing hazardous materials.
• Ensures that the Lab Unit takes steps to reduce the backlog in entering inspection data in FPIMS.
• Requires that officials responsible for the preparation and review of internal and external statistics regarding the number of inspections conducted by the Lab Unit attest that the data is adequately supported and that it has been reviewed for accuracy and completeness.

In their response, FDNY officials stated that they agreed with and intend to implement all of the audit’s recommendations, noting that they have already begun to take steps to do so.