Audit Report on the Licensing and Oversight of Sidewalk Cafe’s by the Department of Consumer Affairs.

AUDIT REPORT IN BRIEF

This audit determined whether the Department of Consumer Affairs (DCA) has adequate controls in place to ensure that sidewalk cafés are properly licensed. In accordance with Local Law 8 of 2003 (the City Sidewalk Café Law), DCA encourages the establishment of sidewalk cafés in places where they are appropriate; discourages cafés in places where they are inappropriate; and promotes and protects public health, safety, general welfare, and amenity.

Audit Findings and Conclusions

We determined that DCA has adequate controls in place to identify sidewalk cafés in operation throughout the City. DCA Inspectors perform inspections of sidewalk cafés, issue citations and violations when they identify violators of the Sidewalk Café Law, and perform targeted inspections of cafés during weekends, when cafés are likely to be operating.

However, DCA needs to strengthen its controls over enforcement regarding establishments that it finds do not comply with the City Sidewalk Café Law. DCA does not have adequate procedures in place for following up after it issues citations or violations to sidewalk cafés (both enclosed and unenclosed). As a result, there is an increased risk that establishments will not comply with the Sidewalk Café Law. We visited 183 establishments with sidewalk cafés and found that 159 (87%) were licensed or had pending licenses, and 24 (13%) were operating without a license. Of the 159 establishments with a license or a pending license, 47 had more than the maximum number of tables and chairs allowed in their licenses. In total, 71 (39%) of the 183 cafés we observed were not in compliance with the Sidewalk Café Law.

Audit Recommendations

We made two recommendations to DCA. DCA should:

• Develop written procedures for follow-up inspections of food establishments that were issued citations or violations to help ensure that these establishments take corrective action.

• Ensure that borough offices adhere to the agency’s written procedures for follow-up inspections of establishments that are issued a posting order for operating an unlicensed sidewalk café.

In its response, DCA agreed with the audit’s recommendations.