New York City Department of Consumer Affairs


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NYS Comptroller


Taxpayers' Guide to State and Local Audits

New York City Department of Consumer Affairs
License Fee Revenues (Follow-Up)

Issued: September 05, 2013
Link to full audit report 2013-F-6
Link to 30-day response

To determine the extent of implementation of the five recommendations included in our initial audit report, License Fee Revenues (Report 2010-N-1).

The New York City Department of Consumer Affairs (Department) is responsible for ensuring that consumers and businesses benefit from a fair and vibrant marketplace. The Department issues licenses and permits for certain businesses operating and collects associated fees. For the fiscal year ended June 30, 2013 the Department collected $8.1 million in license fees, $10 million in franchise fees, and fines totaling $14.3 million. We found that the methods used by the Department to identify unlicensed businesses were not sufficient, and that some businesses continued operating many years after their licenses expired. We concluded that the Department could likely generate additional revenue if it used better methods to identify businesses that operate without a required license. The objective of our follow-up was to assess the extent of implementation, as of July 30, 2013 of the five recommendations included in our initial report.

Key Finding

  • Department officials have made significant progress in addressing the matters identified in our initial report as all five prior audit recommendations have been implemented.

Key Recommendation

  • Officials are given 30 days after the issuance of the follow-up review to provide information on any actions that are planned to address the unresolved issues discussed in this review.

Other Related Audits/Reports of Interest

NYC Department of Consumer Affairs: License Fee Revenues Report (2010-N-1)

State Government Accountability Contact Information:
Audit Director: Frank Patone
Phone: (212) 417-5200; Email:
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236