Purpose

To determine whether the Department of Labor (Department) is assessing and collecting all required fees and penalties. Our audit covered the period April 1, 2008 through July 31, 2011.

Background

The Department assesses and collects a wide range of fees for various licenses/certificates issued and services rendered. The Department also assesses and collects a variety of fines such as those levied on employers for their failure to pay fees in a timely manner or comply with workplace safety rules. We reviewed the three Department fees with the highest reported revenue: boiler inspections, public work enforcement and asbestos abatement.

Key Findings

• The Department does not assess and collect all required fees and fines. In total, the Department did not collect about $3.8 million, including associated penalties, for the three fee categories we reviewed.
• The Department does not have accurate records to show who is required to pay boiler inspection and asbestos-related project fees. As a result, the health and safety of New York State residents may be at risk and potential revenue is not realized.

Key Recommendation

• Increase oversight of the assessment and collection of fees and penalties identified in this report.

Other Related Audits/Reports of Interest

Department of Labor: Oversight of Revenue Contracts (2009-S-16)
Department of Health: Oversight of Revenue Contracts (2009-S-17)