On Thursday, August 21st, Controller Christy Brady held a press conference announcing the findings of an audit of the Department of Licenses and Inspections.
The audit focused on L&I’s “internal control policies and procedures for new construction and modifications to existing buildings, and the qualification and the quality of work of city inspectors.”
Brady said the audit identified several areas of concern that weakened the department’s ability to ensure the safety and quality of construction projects throughout the city.
“A year ago, we issued an investigation into the city’s oversight of unsafe and potentially dangerous properties,” Brady said. “At that time, I said that was only the start of our efforts to ensure residents can feel confident that both existing and newly constructed buildings comply with all codes and are built by licensed contractors.”
According to the report, there were various incidents of improper application of city regulations, including:
L&I inspectors did not request the contractors’ licenses during any of the eight site visits we observed, nor did they request documentation supporting the employment status of workers on the construction sites. By failing to review licenses, construction activity may be performed by unqualified individuals. Furthermore, when documentation supporting the employment status of construction workers is not reviewed, the workers may incorrectly be classified as independent contractors, which could prevent them from receiving workplace benefits and allow contractors to evade federal, state, and local taxes.
Eight employees who collectively performed 575 residential fire inspections and 482 commercial fire inspections, did not have the required UCC fire inspector certifications necessary to perform the work. Similarly, four employees who performed 229 residential mechanical inspections did not have the required UCC mechanical and energy inspector certifications.
Of the 6,241 third-party electrical inspections completed during fiscal year 2023, L&I only performed 82 electrical audits, covering only 1.3% of the total third-party inspections. L&I procedures state that reviews should be conducted daily and should include a variety of electrical inspections. Additionally, of the 20 electrical inspection audits selected for testing, 14 audits were performed by a supervisor who was not properly certified to perform or review electrical work, and 13 audits did not contain the required Electrical Inspection Audit Report, a form necessary to ensure that the results of the audits are properly documented and effectively communicated to management.
Of the 40 residential building permits selected for testing, we found that 34 permits did not contain the required comment details and/or photographs required by L&I’s written inspection procedures. Additionally, for 13 permits requiring a total of 73 inspections, we determined that 33 of the inspections were not performed.
Brady said the goal of the audit was to provide recommendations aimed at improving a department’s ability to perform it’s duty.
“We believe L&I is already taking this audit very seriously,” Brady said. “L&I Commissioner (Basil) Merenda had indicated that he and the Administration have already started taking the necessary actions to put our recommendation in motion to improve the department’s oversight of all construction activities.”
Councilmember Mike Driscoll, Chairman of the City Council Committee on Licenses and Inspections, said he believed some of the recommendations can be acted upon quickly.
“Whatever needs to be done, whether it be training, recruiting, or something in the hiring process, (we can work on solving the issue),” Driscoll said. “We want to be a resource for the department and show them that we do care and this this important work for the safety of all the residents of Philadelphia.”
The Mayor’s Office issued a statement “appreciating the audit’s “intent to to strengthen service delivery and accountability and is actively working to address areas identified for improvement.”
This article is a part of Every Voice, Every Vote, a collaborative project managed by The Lenfest Institute for Journalism. The William Penn Foundation provides lead support for Every Voice, Every Vote in 2024 and 2025 with additional funding from The Lenfest Institute for Journalism, Comcast NBC Universal, The John S. and James L. Knight Foundation, Henry L. Kimelman Family Foundation, Judy and Peter Leone, Arctos Foundation, Wyncote Foundation, 25th Century Foundation, Dolfinger-McMahon Foundation, and Philadelphia Health Partnership. To learn more about the project and view a full list of supporters, visit www.everyvoice-everyvote.org. Editorial content is created independently of the project’s donors.
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