Audit Report on Fire Department Controls over the Professional Certification Process of the Fire Alarm Inspection Unit

Audit Report In Brief

The Fire Department’s (FDNY’s) Bureau of Fire Prevention (the Bureau) is responsible for conducting public safety activities, such as inspections of bulk fuel, hazardous cargo, range hoods, sprinklers and standpipes, and fire alarm systems. The Bureau’s Fire Alarm Inspection Unit (Alarm Unit) is responsible for conducting initial inspections of fire alarm systems of commercial buildings (e.g., schools, hotels, factories, office buildings, department stores, hospitals) and high-rise residential buildings and issuing Letters of Approval or Letters of Defect. When it finds more severe problems, the unit immediately issues Violation Orders.

To ensure compliance with a Letter of Defect, an inspector is to follow up by either going to the premises or by allowing the building owner to have a registered architect, a professional engineer, or a licensed electrical contractor attest to the proper operation of the fire alarm system (known as a “self” or “professional” certification). Throughout the year, the Alarm Unit selects approved professional certifications for audit.  The Alarm Unit reported that it met its five percent audit goal by auditing 57 (5 percent) of the 1,139 professional certifications that it approved during Fiscal Year 2008.  Our audit determined whether FDNY has adequate controls over the Alarm Unit’s professional certification process to ensure that certifications are timely and legitimate.

Audit Findings and Conclusions

FDNY does not have adequate controls over the professional certification process of the Alarm Unit to ensure that certifications are timely and legitimate.  Collectively, these inadequate controls create an environment in which the likelihood of corruption or the abuse of authority is increased and the risk of danger to the public is heightened.

The following include the areas of concern:  1) property owners for 49 percent of the 51 audited professional certifications that we reviewed failed their inspections, 2) an unreliable system for tracking professional certifications, 3) inadequate procedures for the timeliness of the professional certification process, 4) inadequate procedures for categorizing fire alarm system deficiencies based on their seriousness and for selecting audits, 5) missing hard-copy inspection files, 6) inadequate goal for the audit of professional certifications, 7) lack of an annual rotation program for inspectors and supervisors, and 8) inaccurate billings for audit inspections.

In addition, there were questionable matters that further illustrate the need for FDNY to strengthen its controls, such as inspection files containing all four copies of the official FDNY Letter of Defect, including the building owner’s copy, and a file lacking evidence of an audit inspection that was reported as performed in the Professional Certification Audit Results Report.

Audit Recommendations

Based on our findings, we make 21 recommendations, including:

• Until the new computer system that is in the process of being developed is fully operational by the Alarm Unit, FDNY should ensure that Alarm Unit officials effectively use whichever application (the Fire Prevention Information Management System or Self-Certification Database) is selected to monitor the professional certification process from the receipt of the certifications to their audit and any subsequent enforcement inspections.

• FDNY should develop and implement adequate written procedures that are sufficiently detailed for the Alarm Unit to follow for its professional certification process.  The procedures should include time frames for reviewing professional certifications and conducting audit inspections of professional certifications.  In addition, the procedures should include fire alarm system deficiencies categorized by their seriousness, the circumstances in which the Alarm Unit would not allow a Letter of Defect to be professionally certified, and the factors that should contribute to the Audit Supervisor’s decision to select a professional certification for audit.

• FDNY should comply with its established time frame and cease accepting professional certifications that are submitted later than 90 days of the issuance of a Letter of Defect.

• FDNY should investigate the 10 professional certifications identified in this report for which the building owners may have either been incorrectly billed for inspections that did not occur, not billed at all, or inaccurately billed for inspections that did occur. If warranted, revised bills should be sent to the owners.

FDNY Response

In their response, FDNY officials generally agreed with 16 of the 21 recommendations and disagreed with 4. In addition, the remaining recommendation was no longer applicable because FDNY changed the relevant practice.