Audit Report on the Department of Buildings’ Controls over the Inspection of Amusement Devices

Executive Summary

The Department of Buildings (DOB) promotes the safety of all people that build, work, and live in New York City (City) by regulating the lawful use of over one million buildings and construction sites across the five boroughs.

DOB’s Elevator Inspection Unit is responsible for ensuring the operational safety, reliable service and lawful use of elevators, escalators, amusement rides and other “devices” throughout the City.   According to Section 3005 of the Rules of the City of New York (RCNY), DOB is responsible for performing inspections of amusement devices.

Amusement park operators are required to obtain an individual license from the Department of Consumer Affairs (DCA) for each amusement device they intend to operate.  The RCNY classifies amusement devices as permanent,^[1] temporary,^[2] portable,^[3] and inflatable.^[4]  Under the RCNY, prior to receiving the DCA license, devices must pass an inspection performed by DOB’s Elevator Unit, which focuses on the mechanical safety of the device.^[5]  The RCNY states that permanent devices must receive two periodic inspections from DOB for devices operating from the spring to the fall and three periodic inspections for devices operating year round.  A DCA license for a permanent device is valid for one year.  Temporary devices, which are used primarily at street fairs, must receive an initial inspection from DOB each time they are set up at a location and upon renewal of the DCA license; the DCA license for these types of devices is valid for up to 14 days.  Portable devices are inspected and tested once a year by DOB.  The focus of our audit was on DOB’s Elevator Unit.

During each periodic inspection, a DOB inspector is required to complete an Amusement Ride Inspection Checklist, which indicates individual items that must be checked on the devices and marked “pass” or “fail,” and whether the device passed or failed the overall inspection.  For devices that pass their inspections, the DOB Elevator Unit issues the park operators Certificates of Compliance (green cards)—one per device—to indicate that the devices are safe to operate.^[6]

In addition to the periodic inspections, in accordance with DOB’s internal procedures, its Elevator Unit performs random survey inspections (spot checks) for permanent and temporary devices, which are performed while a device is in operation.  Spot checks serve to ensure that the device is being operated safely and that the device operator is complying with safety requirements (e.g., not talking on a cell phone, ensuring that riders lock their seatbelts, and that they meet height requirements).  According to Buildings Information System (BIS) data received from DOB, 95 percent of amusement device inspections performed by the Elevator Unit are spot checks.  These inspections are performed solely during inspectors’ overtime hours, mostly on weekends and holidays, for which they receive additional compensation above their hourly rate.  During spot checks, DOB procedures state that inspectors are to complete a Spot Check Inspection Checklist.

As per DOB’s procedures, inspection results are required to be noted on green cards after the inspection has been performed.  DOB procedures also require inspectors to record the inspections conducted for all devices on a daily route sheet.  DOB does not record inspection data for temporary and portable devices in BIS or in any other system.

According to data provided by DOB, there were 126 active permanent amusement devices in the City as of August 14, 2018.  According to BIS and DOB NOW data, DOB conducted 9,640 inspections—387 periodic and 9,253 spot checks for permanent devices—from January 1, 2016 through December 31, 2018.

In addition, we note that, while not required by the RCNY, DOB’s internal policy calls for its inspectors to receive National Association of Amusement Rides Safety Officers (NAARSO) approved training and to take the certification exam.  NAARSO certification helps to ensure that DOB’s inspectors are qualified to perform inspections.

Audit Findings and Conclusion

DOB does not have adequate controls over the inspection of amusement devices performed by its Elevator Unit, specifically with regard to the tracking and recording of inspections completed.  Although the overwhelming majority of inspections performed are spot checks, the spot checks are rarely recorded on the devices’ green cards, which makes it difficult for DOB to identify and verify the specific devices for which such inspections were performed.  Of the 1,857 spot check inspections recorded in BIS for the permanent devices sampled, we found that only 267 (14 percent) were recorded on the green cards of the devices in question.  Since DOB does not ensure that the results of these inspections are adequately documented, neither we nor DOB are able to reasonably ascertain the number of spot checks that were actually performed on any of our sampled devices.

Moreover, while according to DOB officials at least one spot check of each device per location is required, DOB’s records do not reflect that all of the required spot check inspections had been made.  Based on a review of spot checks recorded in BIS for permanent devices from January 1, 2016 through October 23, 2018 we found that:

• For the 119 active devices in 2016, 37 (31 percent) devices had no record of a spot check.
• For the 124 active devices in 2017, 23 (19 percent) devices had no record of a spot check.
• For the 114 active devices in 2018, 15 (13 percent) devices had no record of a spot check.

Furthermore, DOB has a significant longstanding backlog of inspection results that have not been entered into BIS.  Consequently, inspectors are unable to rely on BIS to confirm whether a device needs to be inspected, whether it has received the required number of mandatory periodic inspections, or if any spot checks have been performed while a device was in operation.  This weakness in DOB operations increases the risk that unnecessary inspections may be performed, which is an inefficient use of resources, or that necessary inspections might not be performed.

In addition, we found that DOB incorrectly reported that multiple spot checks were performed for a device that had been removed and was no longer in operation at the times it was supposedly inspected.  We subsequently found that the device was incorrectly identified in BIS as “active.”  In addition, when we compared the DOB listing of “removed” devices to the inspection data recorded in BIS, we identified an additional 16 devices that had records of periodic or spot check inspections totaling 294 inspections, notwithstanding these devices having been listed as “removed.”  Given our finding that the data in BIS is unreliable, we cannot tell if the devices were incorrectly classified in BIS or whether inspections were inappropriately recorded in BIS for devices that were removed.

We also found that DOB did not document all deficiencies identified during its inspections or the corrective actions taken by park operators.  In addition, the inspection checklists are not designed to allow for inspectors to indicate when a specific check on a device was not made because it is inapplicable to the device.  This lack of clarity makes it harder for DOB to determine if a required inspectional step was not performed.  The checklists also lack evidence that they had been reviewed by supervisors to ensure that all required steps are documented as having been taken.  Consequently, the degree to which DOB can place reliance on the reported results of the device inspections is limited.

Further, our review also found that DOB did not consistently record amusement device accidents and their related inspections on green cards, in the devices’ accident log books, in BIS, and on accident reports as required by DOB policy.

Finally, although not required by the RCNY, DOB’s internal policy calls for its inspectors to receive NAARSO approved training.  While we found that all 16 inspectors who performed amusement device inspections from January 1, 2017 through December 31, 2018 received such training and took the certification exam, only 10 passed the exam.  DOB does not require its inspectors to have a NAARSO certification; however, they are required to take the training.

We believe that, to a significant extent, many of the issues identified are due to DOB’s failure to establish adequate procedures over the inspection process to help ensure that inspectors are aware of their responsibilities and that inspections are conducted in a consistent manner.  As a result of these deficiencies, DOB is unable to reasonably ensure that all required inspections are performed and that any deficiencies found are appropriately addressed.

Audit Recommendations

Based on the audit, we make 18 recommendations, including:

• DOB should require individual inspection records to be completed for each device that receives a spot check and require inspectors to sign the green card of each device inspected.
• DOB should generate periodic reports of spot checks to ensure that all devices are receiving at least one spot check annually, and to ensure that resources are being used efficiently.
• DOB should ensure that inspectors are entering the inspections into DOB NOW on the day they are conducted, implement a plan to eliminate the entry backlog for amusement device inspections, and ensure that going forward inspections are recorded timely.
• DOB should periodically review and update device statuses in DOB NOW and reconcile devices with inspections recorded in DOB NOW and create an “inactive” status for devices that are not operational, but that have not been removed from their location.
• DOB should require all deficiencies to be recorded on deficiency lists regardless of when they are corrected and enforce the requirement that actions taken to correct deficiencies be documented.
• DOB should ensure that supervisors review and approve inspection checklists.
• DOB should ensure that all accidents are documented on the device’s green card, in DOB’s Accident Logbook, on an accident report, and in BIS or DOB NOW.
• DOB should consider providing training and/or tutoring assistance to inspectors who fail the NAARSO certification exam so as to increase their proficiency in weak areas and their prospect of passing a subsequent exam and receiving a NAARSO certification.
• DOB should develop more detailed written procedures for its inspectors when performing amusement device inspections.

Agency Response

In its response, DOB agreed to implement 14 recommendations and partially agreed to implement the remaining 4 recommendations.  The full text of DOB’s response is included as an addendum to the report.

[1] Permanent devices are those that are intended to remain in place and in operation for longer than 14 calendar days from the date of the issuance of a Certificate of Compliance (green card).

[2] Temporary devices are those that are intended to remain in place and in operation for 14 calendar days or less from the date of the issuance of a Certificate of Compliance (green card).

[3] Portable devices are devices that can be relocated by being mounted on a motor vehicle or trailer.

[4] Inflatable devices are designed for uses that may include, but are not limited to bouncing, climbing, sliding, or interactive play and are kept inflated by continuous airflow.  Inflatable devices are not tested or issued green cards.  Instead, park operators are issued a Certificate of Competency (COC) by DOB for these devices.

[5] DOB’s Electrical Unit also conducts inspections for devices that have an electrical component.  For permanent devices, only one inspection per season is required (conducted at the beginning of the season).  For temporary devices, one inspection is required each time the device is set up.

[6] The information indicated on a green card includes the device: name; number; address; and the date range the green card is valid.