Denver Fire Department OF CONTENTS EXECUTIVE SUMMARY 1 Finding 1: Denver Fire Department Lacks...
Transcript of Denver Fire Department OF CONTENTS EXECUTIVE SUMMARY 1 Finding 1: Denver Fire Department Lacks...
Dennis J. Gallagher
Auditor
Office of the Auditor
Audit Services Division
City and County of Denver
Denver Fire Department Performance Audit
February 2011
The Auditor of the City and County of Denver is independently elected by the citizens of Denver. He is
responsible for examining and evaluating the operations of City agencies for the purpose of ensuring the
proper and efficient use of City resources and providing other audit services and information to City
Council, the Mayor and the public to improve all aspects of Denver’s government. He also chairs the
City’s Audit Committee.
The Audit Committee is chaired by the Auditor and consists of seven members. The Audit Committee
assists the Auditor in his oversight responsibilities of the integrity of the City’s finances and operations,
including the integrity of the City’s financial statements. The Audit Committee is structured in a manner
that ensures the independent oversight of City operations, thereby enhancing citizen confidence and
avoiding any appearance of a conflict of interest.
Audit Committee
Dennis Gallagher, Chair Robert Bishop
Maurice Goodgaine Robert Haddock
Jeffrey Hart Bonney Lopez
Timothy O’Brien
Audit Staff
John Carlson, Deputy Director, JD, MBA, CIA
Chris Wedor, Internal Audit Supervisor, MBA
Kelan Kelly, Lead Internal Auditor, MPA
Anna Hansen, Senior Internal Auditor, CICA
Travis Henline, Senior Internal Auditor
You can obtain free copies of this report by contacting us at:
Office of the Auditor
201 W. Colfax Avenue, Dept. 705 Denver CO, 80202
(720) 913-5000 Fax (720) 913-5026
Or view an electronic copy by visiting our website at: www.denvergov.org/auditor
To promote open, accountable, efficient and effective government by performing impartial reviews and other audit
services that provide objective and useful information to improve decision making by management and the people.
We will monitor and report on recommendations and progress towards their implementation.
City and County of Denver 201 West Colfax Ave., Dept. 705 Denver, Colorado 80202 720-913-5000 FAX 720-913-5247 www.denvergov.org/auditor
Dennis J. Gallagher
Auditor
February 17, 2011
Chief Joseph L. Gonzales, Division Chief, Fire Prevention & Investigation
Denver Fire Department
City and County of Denver
Dear Chief Gonzales:
Attached is the Auditor’s Office Audit Services Division’s report of their audit of the Denver Fire
Department for the period January 1, 2009 through December 31, 2009. The purpose of the audit
was to determine if fire inspection fees were structured to allow for full cost recovery for services
provided, to evaluate revenue generating procedures, and to determine whether internal
controls in place were adequate to safeguard assets.
Audit work determined the Denver Fire Department has made significant improvements in the
revenue controls and cash handling processes identified in the previous audit. However, this
audit identified opportunities to improve the completeness of the Department’s fire inspection
database, to enhance the Fire Department’s project planning process, and to develop
processes to comply with Fiscal Rule 4.2 regarding the annual physical inventory of fire
inspection tablets.
If you have any questions, please call Kip Memmott, Director of Audit Services, at 720-913-5029.
Sincerely,
Dennis J. Gallagher
Auditor
DJG/ect
cc: Honorable Bill Vidal, Mayor
Honorable Members of City Council
Members of Audit Committee
Mr. Jack Finlaw, Chief of Staff
Mr. David Fine, City Attorney
Mr. L. Michael Henry, Staff Director, Board of Ethics
Ms. Lauri Dannemiller, City Council Executive Staff Director
To promote open, accountable, efficient and effective government by performing impartial reviews and other audit
services that provide objective and useful information to improve decision making by management and the people.
We will monitor and report on recommendations and progress towards their implementation.
City and County of Denver 201 West Colfax Ave., Dept. 705 Denver, Colorado 80202 720-913-5000 FAX 720-913-5247 www.denvergov.org/auditor
Dennis J. Gallagher
Auditor
AUDITOR’S REPORT
We have completed our audit of the Denver Fire Department for the period January 1, 2009
through December 31, 2009. The purpose of the audit was to determine if fire inspection fees
were structured to allow for full cost recovery for services provided, to evaluate revenue
procedures related to fire inspections, and to determine whether sufficient internal controls were
in place to safeguard Fire Department physical assets.
This performance audit is authorized pursuant to the City and County of Denver Charter, Article
V, Part 2, Section 1, General Powers and Duties of Auditor, and was conducted in accordance
with generally accepted government auditing standards. Those standards require that we plan
and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis
for our findings and conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our findings and conclusions based on our audit
objectives.
The audit identified opportunities to improve the Department’s fire inspection database, to
enhance the Fire Department’s project planning process, and to develop processes to comply
with Fiscal Rule 4.2 regarding the annual physical inventory.
We extend our appreciation to the Denver Fire Department and personnel who assisted and
cooperated with us during the audit.
Audit Services Division
Kip Memmott, MA, CGAP, CICA
Director of Audit Services
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
Finding 1: Denver Fire Department Lacks Complete Fire Inspection
Records Resulting In Lost Revenue and Increased Safety Risks 1
Finding 2: Denver Fire Department Should Develop an Implementation
Plan for Electronic Tablet Inspection Devices 2
Finding 3: Opportunities Exist for the Denver Fire Department to
Improve Physical Asset Controls 3
INTRODUCTION & BACKGROUND 4
City and County of Denver Fire Department 4
SCOPE 7
OBJECTIVE 7
METHODOLOGY 7
FINDING 1 8
Denver Fire Department Lacks Complete Fire Inspection
Records Resulting In Lost Revenue and Increased Safety Risks 8
FINDING 2 10
Denver Fire Department Should Develop an Implementation
Plan for Electronic Tablet Inspection Devices 10
FINDING 3 12
Opportunities Exist for the Denver Fire Department to
Improve Physical Asset Controls 12
RECOMMENDATIONS 13
TABLE OF CONTENTS (cont’d)
EXHIBITS 14
Exhibit A – Building Fire Safety Inspection Report 14
Exhibit B – Fire Permit and Inspection Fee Summary 15
Exhibit C – Fire Safety Permit Fee Increase Announcement 16
Exhibit D – Excerpt from Memo Regarding Identifying Potential
Revenues 17
Exhibit E – Fiscal Accountability Rule 4.2 18
AGENCY RESPONSE 20
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DFD’s incomplete FireHouse
database exposes the people
and property of the City and
County of Denver to a
potential safety risk.
EXECUTIVE SUMMARY
Finding 1: Denver Fire Department Lacks Complete Fire
Inspection Records Resulting In Lost Revenue and Increased
Safety Risks
The FireHouse Permit Inspection Database is Incomplete
In 1999 electronic fire inspection and permit
records for the City and County of Denver were
lost and irrecoverable due to the failure of the
database that housed the inspection and permit
records. As a result, the Denver Fire Department
(DFD) had to build a new database called
FireHouse® (FireHouse).1 Audit work determined
the FireHouse database does not include all
property addresses which require fire inspections.
As part of sound safety practices and as required by the Denver Fire Code, all property
addresses requiring a fire inspection should have a fire inspection completed annually.2
Audit work identified six addresses that were not in the database nor inspected resulting
in lost revenues to the City and potential safety issues. Based on the results of our testing,
the likelihood of additional uninspected properties is high. Additionally, an internal
memorandum from DFD management identifies evidence of the incomplete FireHouse
database and revenue loss. The incomplete database exposes people and property
within the City and County of Denver to potential safety risks and results in lost revenue.
The Number of Incomplete Inspections is Increasing
A fire inspection is considered complete when firefighters inspect the property and the
resident signs the Inspection Report.3 The FireHouse database indicated 274 property
addresses scheduled for inspection in 2009 were not completed. Furthermore, a review
of the past three years indicates the number of complete and incomplete inspections
has increased. The number of properties requiring inspections has increased during this
time while the total number of completed inspections, as a percentage, has decreased
from 99.40% to 98.96%; however, the number of firefighters available to complete the
inspections has not significantly changed. Incomplete inspections expose people and
property within the City and County of Denver to potential safety risks.
1 FIREHOUSE Software is designed to make records entry and records management as easy as possible for fire departments and
EMS agencies of all sizes. http://www.firehousesoftware.com/aboutFH.php retrieved on September 27, 2010. 2 2008 Denver Amendments to the 2006 International Fire Code, Section 101.2(1), page 1: Inspection of permanent and
temporary building, processes, equipment, systems, and other fire, and safety-related situations, at intervals established by the fire code official but not to exceed once every 12 months. 3 See Exhibit A for an example of a Building Fire Safety Inspection Report.
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DFD spent over $343,000
on electronic tablets that
are not currently used to
complete fire inspections.
Finding 2: Denver Fire Department Should Develop an
Implementation Plan for Electronic Tablet Inspection Devices
Audit work noted DFD lacks a thorough and comprehensive implementation plan for
electronic tablets purchased for fire inspection activities.
By 2008, the Fire Safety Inspections program had been using Personal Digital Assistants
(PDAs) for inspection activities for six years, exceeding their projected life span.
Firefighters using PDAs for inspections lost confidence in them as a result of equipment
failures and limitations, such as short battery life, small screens, and loss of data before
download into the FireHouse database.
Due to the system limitations with the PDAs, DFD conducted a pilot program to
determine the viability of using electronic tablets to perform inspections.4 The pilot
program resulted in the purchase of 114 electronic tablets for $343,000 plus $2,500 for an
extended battery warranty.
Audit work determined there was no planning for electronic tablet implementation,
training, maintenance, or required infrastructure.
Additionally, based on Auditors’ observations, fire
inspectors did not use the electronic tablets
because they did not realize the expected
efficiency benefits. DFD is still not utilizing the
electronic tablets for fire inspections. Furthermore,
lack of proper project planning resulted in $2,500
spent unnecessarily on additional battery
warranties as the original warranties had lapsed.
In addition, auditors observed that, Firefighters continue to utilize paper-based
documentation for fire inspections. This is a result of poor project planning, training and
electronic tablet deployment.5
DFD should develop an implementation plan to fully realize the value of these electronic
tablets. The plan should include the following elements:
- The individual(s) responsible for completing the objective;
- The timelines for objectives and projects;
- Resources (monetary or manpower) needed for project completion;
- Input from other affiliated agencies;
- Performance measures that will help determine the success or failure of an
objective or project; and
- A review process to ensure objectives are met and projects are completed
timely.
4 Auditors requested documentation on the pilot program; however, DFD was unable to locate and provide auditors with any
documentation regarding the effectiveness or results of the pilot program for electronic tablets. 5 See Exhibit A – Building Fire Safety Inspection Report
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Finding 3: Opportunities Exist for the Denver Fire Department to
Improve Physical Asset Controls
DFD’s fixed asset tracking and monitoring process does not comply with the City and
County of Denver’s Fiscal Accountability Rule (FAR) 4.2-8. This rule provides that an
annual physical inventory of all fixed assets must be performed, the inventory process
documented, and the results submitted to the Controller's Office.
Fixed assets are real or personal property that is tangible in nature and has an expected
useful life longer than one year. FAR 4.2 and its associated Fixed Assets Procedure
establish written criteria requiring City agencies to inventory, account for, and safeguard
each fixed asset under their control. City agencies and the Controller’s Office share
responsibility for maintaining an accurate inventory of the City’s fixed assets.
Audit work determined DFD did not conduct an annual physical inventory in 2009 to
account for PDAs. Auditors determined DFD’s inventory custodian does not physically
verify each asset assigned to DFD. The inventory custodian stated this was due to lack of
available time. Instead, the inventory custodian relies on information provided by
personnel at each fire station. DFD’s asset inventory procedures were not documented
at the time of our fieldwork. Furthermore, DFD did not have their 2009 inventory results.
The non-verification of assets could lead to theft, loss, or misuse of assets.
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INTRODUCTION & BACKGROUND
City and County of Denver Fire Department
The Denver Fire Department (DFD) protects the Denver community
and its citizens by providing emergency medical and fire services.
DFD also conducts a variety of prevention efforts and public
education programs to promote fire safety and emergency
preparedness throughout the City. The Department is organized
into two sections: Fire Administration and Fire Operations; and six
divisions: Administration, Fire Prevention and Investigation, Technical
Services, Safety and Training, Suppression (Operations), and Airport
Fire and Rescue.
DFD is dedicated to providing quality, timely, and professional emergency services to
those who live in, work in, and visit the City and County of Denver; respecting each other
through trust, pride, diversity, integrity, and training; and working together to achieve the
highest levels of preparedness, prevention, and community involvement with a
dedication to purpose.6
In addition to core services offered on fire rescue, firefighters attend required training
sessions, instruct and educate citizens, and perform fire inspections. The Fire Prevention
unit manages DFD’s Fire Safety Inspection program, assists with annual safety inspections
involving approximately 26,000 properties, and issues permits. While not all properties
require permits, these 26,000 properties require an annual fire inspection. Permits are
required for a variety of business activities including those with hazardous materials or
flammable and combustible materials on-site. Finally, the Fire Prevention unit schedules
and maintains all records, invoicing, and collections related to the program.
The Fire Prevention and Investigation Division is authorized to inspect land, buildings,
structures, utilities, installation, equipment, devices, illegal processes, and material for fire,
explosion, and other emergency hazards and to investigate and ascertain the causes of
fires, explosions, releases of hazardous material, false alarms, any unsafe conditions that
relate to the protection of the public and/or property and other emergencies.7 The
Manager of Safety is authorized to adopt an inspection fee schedule necessary to cover
administrative costs of inspections and record keeping under this code.8
Fire inspections are conducted on an annual basis by Denver firefighters assigned to
individual fire stations, and by fire prevention personnel, stationed at the Fire Bureau
headquarters in downtown Denver. An annual inspection is conducted to ensure that (1)
all life-safety factors at a given property are in compliance with Denver’s Fire Code,
6 City and County of Denver 2009 Budget Book, page 293.
7 2008 Denver Amendments to the 2006 International Fire Code, Section 104.1, page 3.
8 2008 Denver Amendments to the 2006 International Fire Code, Section 106.5, page 19.
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including such components as exits, structural condition of the building, fire apparatus
access, fire safety systems, and many more; (2) any hazardous processes or operations
have appropriate, up-to-date permits in place; and (3) the local firehouse crew is aware
of any fire hazards in case of an emergency at the property.9
Loss of Fire Inspection Data
In 1999, the Fire Safety Inspections database, at that time maintained by the Office of
Safety Information (OSI), failed. As a result, thousands of electronic property records
related to fire inspections and permits throughout the City were permanently lost.
Coincidentally, this loss of information occurred at the same time there was a national
trend by municipalities to collect fees for fire safety inspections. DFD subsequently
determined to collect inspection fees to help defray increasing administrative costs. DFD
decided to:
- Re-collect all property data and rebuild the database manually, and
- Charge fees for Fire Safety Inspections.
DFD utilized FireHouse software to rebuild the database. FireHouse enables DFD to
schedule, track, and bill for inspections, permits, and other revenue generating activities.
Currently, DFD is notified of new and changed property uses through pre-construction
coordination meetings and periodic comparisons with the Assessor’s Office property
database.
Increase of Fire Permit and Inspections Fees
In 2008, the City’s Budget Management Office (BMO) completed a cost recovery
analysis at the request of DFD.10 The purpose of the analysis was to determine the
necessary fee structure that would allow DFD to
recover operating costs related to fire permits and
inspections. Most of DFD’s permit fees had not been
raised since their creation in the 1960s. Inspection fees
had remained the same since they were initially levied
in 2002.11 As a result of the analysis, DFD announced
both fees would be increased in 2009. The fee
increase allows DFD to recover approximately 94% of
direct and indirect costs.
Technology Used to Complete Inspections
By 2008, the Fire Safety Inspections program had been using Personal Digital Assistants
(PDAs) for inspection activities for six years, exceeding their projected life span.
Furthermore, firefighters using PDAs for inspections had lost confidence in them as a result
of equipment failures and limitations, such as short battery life, small screens, and loss of
9 Excerpt from the 2008 Denver Fire Department 2008 Annual report, retrieved from
http://www.denvergov.org/Portals/286/documents/Annual_Reports/2008%20Annual%20Report.pdf. 10
See Exhibit B for the fee analysis summary completed by the Budget Management Office. 11
See Exhibit C for the memo announcing the increase to fire safety permit fees.
DFD permit and
inspection revenues
cover 94% of permit
and inspection expenses
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data before successful download into the FireHouse database. Also, the PDAs did not
have an electronic signature (e-signature) feature.
An updated FireHouse version offered many features, such as e-signature, hazardous
material module, and pre-fire planning modules. Those features, however, were not
compatible with the PDAs. Therefore, DFD decided to retire the obsolete PDAs and
purchase fourteen electronic tablets. DFD conducted a pilot program by assigning these
initial tablets to the fire station staffed with the most computer-savvy inspectors. The
purpose of the pilot program was to determine the viability of using electronic tablets.
The pilot program resulted in the purchase of 100 additional tablets totaling $343,000 plus
$2,500 for an extended battery warranty.
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SCOPE
The DFD audit was originally initiated as part of the City Fees audit to determine if
selected City fees are properly structured to allow for full cost recovery for services
related to fire inspections. During fieldwork, auditors identified areas of concern in the fire
inspection process. Auditors expanded the scope to include reviewing internal cash
control processes, verifying the completeness of the FireHouse database, assessing
inventory controls, and evaluating fire inspection fees for the period January 1, 2009
through December 31, 2009.
OBJECTIVE
The audit objective was to determine if fire inspection fees were structured to allow for
full cost recovery for services provided, assess revenue generating procedures, and
evaluate the effectiveness of the Fire Department’s fire inspection and inventory
management processes.
METHODOLOGY
Auditors utilized several methodologies to achieve the audit objective. Evidence
gathering techniques included, but were not limited to:
Reviewing the 2008 Amendments to the 2006 International Fire Code
Examining the 2009 International Fire Code
Analyzing the City Charter, the Denver Revised Municipal Code (D.R.M.C.),
and legal requirements
Reviewing applicable Denver Fire Department policies and procedures
Reviewing prior audits completed on the Denver Fire Department
Evaluating internal controls related to revenue collection, recording, and
reporting
Evaluating the Budget Management Office’s analysis of fee structure and
cost recovery
Observing the fire inspection process
Interviewing Fire Chiefs, firefighters, and Fire Department finance personnel
Analyzing cash handling procedures and reconciliations
Reviewing the accuracy of property data contained within FireHouse
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FINDING 1
Denver Fire Department Lacks Complete Fire Inspection Records
Resulting In Lost Revenue and Increased Safety Risks
The FireHouse Database is Incomplete
Electronic fire inspection and permit records for the City and County of Denver were
destroyed in 1999 due to a catastrophic failure of the fire inspection database. As a
result, the Denver Fire Department (DFD) had to manually recreate a new database
which is now backed up on a daily basis, by Technology Services, to limit potential future
data loss. Audit work determined the new FireHouse database did not include all
property addresses requiring a fire inspection. As part of sound safety practices and as
required by the Denver Fire Code, all property addresses requiring a fire inspection
should have a fire inspection completed annually.12
Table 1 – Selected Test Streets
From the 2009 scheduled
inspection lists for Fire
Stations #8 and #23,
auditors randomly selected
sections of seven streets
(Table 1) and counted every
property along these
sections to verify the
completeness of the lists.
Audit work identified a total
of 208 properties, both
commercial and residential,
along these street sections.
Of this total, auditors
identified 29 properties that
were not on the 2009
inspection lists. Twenty-three
properties had legitimate
reasons for exclusion from the lists. For example, the property had been converted to a
private residence.
However, six of the twenty-nine property addresses identified should have had an
inspection in 2009, but did not. Lost revenues to the City for these missed inspections
totaled $1,813. Auditors reviewed a very small sample of the City’s property addresses.
Based on the number of properties city-wide, the likelihood of additional uninspected
properties is high. To further corroborate auditors’ assertion that the FireHouse database is
12 2008 Denver Amendments to the 2006 International Fire Code, supra note 2, at 1.
Street Name Properties Observed
East 10th Avenue 59
North Pearl Street 25
West Florida Avenue 77
West Maple Avenue 15
South Navajo Street 16
Tejon Street 6
West Alameda Avenue 10
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incomplete, an internal memorandum from DFD management to the BMO indicated
inspections of properties not currently in the system could increase revenues between
$95,000 and $130,000 annually.13
An incomplete database results in an unsafe environment for the individuals who live
and work at these property addresses and lost revenues for the City and County of
Denver.
The Number of Incomplete Inspections is Increasing
A fire inspection is considered complete when firefighters inspect the property and the
resident signs the Inspection Report. Fire safety inspections are assigned each year based
on district location. The FireHouse database indicated 274 property addresses scheduled
for inspection in 2009 were not completed. Furthermore, a review of the past three years
indicates the number of complete and incomplete inspections has increased. Table 2
provides a detailed summary of the years 2007 through 2009.14
Table 2 – Number of Inspections by Year
Year Number of
Fire Fighters
Inspections
Completed
Inspections
Not
Completed
Total
Inspections
% of
Inspections
Completed
2007 914 24,203 145 24,348 99.40%
2008 916 25,268 163 25,431 99.36%
2009 916 26,044 274 26,318 98.96%
Source: FireHouse Database and 2009 and 2010 City and County of Denver Budget Book
Furthermore, the number of firefighters available to complete the inspections has not
increased significantly.15 The 2009 City and County of Denver Budget Book revealed a
fire inspection completion goal of 95%. This goal appears to be contrary to the Denver
Fire Code, which states permanent and temporary buildings, processes, equipment,
systems, and other fire and safety related situations, should receive inspections at
intervals established by the fire code official but not to exceed once every 12 months.16
While DFD is exceeding its stated goal for fire inspection completion, incomplete fire
inspections result in increased safety risk for the individuals who work, live, and visit those
uninspected properties within the City and County of Denver. Furthermore, the non-
completion of these required fire inspections results in lost revenue for the City.
13 See Exhibit D identifying areas of potential revenue increases.
14 Total inspections represented in Table 2 do not accurately represent the potential number of properties requiring inspection
due to the incomplete FireHouse database. 15
See Table 2 – Number of Inspections by Year 16
2008 Denver Amendments to the 2006 International Fire Code, supra note 2, at 1.
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FINDING 2
Denver Fire Department Should Develop an Implementation Plan
for Electronic Tablet Inspection Devices
Audit work noted DFD lacks a thorough and comprehensive implementation plan for
electronic tablets purchased for fire inspection activities.
The lack of an implementation project plan for these devices resulted in:
- DFD’s inability to adapt and plan for the electronic tablets;
- Lack of oversight and ownership for the roll out of the electronic tablets;
- People and property exposed to unnecessary safety risks within the City and
County of Denver;
- DFD’s inability to accomplish their goals and objectives;
- A lack of periodic permit and inspection fee adjustments; and
- Frustration of firefighters as they were unable to utilize electronic tablets and
experience their anticipated efficiencies.
Prior to investing in new electronic tablets, DFD conducted a pilot program to test the
usefulness and functionality of the devices. Based on the results of this program, DFD
made the decision to purchase the electronic tablets.17 After the tablets were received,
it was determined not all fire stations had the necessary IT infrastructure in place to utilize
the tablets.18 Technology Services (TS) provided DFD with options to resolve this issue. DFD
evaluated these options and decided to equip each fire station with wireless
capabilities. DFD paid $343,000 for the electronic tablets in addition to $2,500 for
extended battery warranties. However, DFD is currently not using these devices for
inspections.
Audit work determined there was no planning for electronic tablet implementation,
training, maintenance, or required infrastructure.
In addition, audit work determined the tablets distributed to various fire stations were not
used for fire inspections because inspectors:
- Could not logon to the devices;
- Did not receive adequate training to properly operate the devices;
- Did not experience the expected efficiency benefits; and
- Found them more difficult to operate compared to handwritten inspection forms.
17 Pilot Program, supra note 4, at 2.
18 IT infrastructure did not allow the new electronic tablets to sync data to the FireHouse database via data cables or wireless.
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The implementation of the electronic tablets would have been more effective had a
comprehensive implementation plan been utilized.
Further review indicated an additional area for improvement. DFD management has not
indicated a need for additional fire personnel staff to accommodate the increase in fire
inspections. Audit work revealed the number of completed fire inspections increased by
1,841 from 2007 to 2009. However, only two additional full-time equivalents have been
added to DFD for the same time period.
DFD should develop an implementation plan to fully realize the value of these electronic
tablets. The plan should include the following elements:
- The individual(s) responsible for completing the objective;
- The timelines for objectives and projects;
- Resources (monetary or manpower) needed for project completion;
- Input from other affiliated agencies;
- Performance measures that will help determine the success or failure of an
objective or project; and
- A review process to ensure objectives are met and projects are completed
timely.
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FINDING 3
Opportunities Exist for the Denver Fire Department to Improve
Physical Asset Controls
DFD’s fixed asset tracking and monitoring process does not comply with City Fiscal
Accountability Rule 4.2. City Fiscal Accountability Rule 4.2 states an annual physical
inventory of all fixed assets shall be performed, the inventory
process shall be documented, and the results submitted to the
Controller's Office.19
Auditors determined DFD’s inventory custodian does not physically
verify each asset assigned to DFD. The inventory custodian stated
this was due to lack of available time. Instead, the inventory
custodian relies on information provided by personnel at each fire
station. DFD’s asset inventory procedures were not documented
at the time of our fieldwork. Furthermore, DFD did not have their 2009 inventory results.
Auditors attempted to test the accuracy of DFD’s personal digital assistant’s (PDAs) asset
listing. Auditors obtained an asset list from Technology Services (TS) and a second asset
list from DFD. Technology Services’ list contained 150 PDAs compared to 175 on DFD’s list.
Auditors were unable to determine which list was correct since DFD was unable to
provide the reconciliation between the master purchase order and the asset list.
DFD personnel indicated all PDAs were returned to TS. However, when performing ride-a-
longs, auditors discovered five PDAs were still at Fire Station #23. The inability to
effectively track and monitor fixed assets results in increased risks of asset
misappropriation and theft.
19 See Exhibit E for Fiscal Accountability Rule 4.2.
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RECOMMENDATIONS
1.1 Fire Inspectors should physically identify all property addresses requiring a fire
inspection and ensure the property address is located within the FireHouse
database.
1.2 The Denver Fire Department, working with the City Attorney, should seek the
necessary Charter amendment to require property owners to notify the Fire
Department when changes are made to the configuration of properties.
2.0 The Denver Fire Department should prospectively develop an implementation
plan for electronic tablet inspection devices. The project plan should be specific
and include:
2.1 The individual(s) responsible for completing the objective
2.2 The timelines for objectives and projects
2.3 Resources (monetary or manpower) needed for project completion
2.4 Input from other affiliated agencies
2.5 Performance measures that will help determine the success or failure of
an objective or project
2.6 A review process to ensure objectives are met and projects are
completed timely
3.1 The Denver Fire Department should ensure all assets are physically inventoried in
accordance with Fiscal Accountability Rule 4.2. This should include maintaining
an accurate inventory list.
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EXHIBITS
Exhibit A – Building Fire Safety Inspection Report
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Exhibit B – Fire Permit and Inspection Fee Summary
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Exhibit C – Fire Safety Permit Fee Increase Announcement
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Exhibit D – Excerpt from Memo Regarding Identifying Potential
Revenues
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Exhibit E – Fiscal Accountability Rule 4.2
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Exhibit E – Continued
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AGENCY RESPONSE
CITY AND COUNTY OF DENVER
Department of Safety Fire Department
Fire Prevention Division
P.O. Box 40385 Denver, CO 80204
p: 720.913.3474 f: 720.913.3587
January 19, 2011
Mr. Kip R. Memmott, MA, CGAP, CICA
Director of Audit Services
Office of the Auditor
City and County of Denver
201 West Colfax Avenue, Dept. 705
Denver, Colorado 80202
Dear Mr. Memmott:
The Office of the Auditor has conducted a performance audit of Denver Fire Department for
the audit period beginning January 1, 2009 through December 31, 2009.
This memorandum provides a written response for each reportable condition noted in the
Auditor’s Report final draft that was sent to us at 1545 hours on January 5, 2011. This response
complies with Section 20-276 (b) of the Denver Revised Municipal Code (DRMC).
AUDIT FINDING 1:
Department Lacks Complete Fire Inspection Records Resulting In Lost Revenue and
Increased Safety Risks
RECOMMENDATION 1.1:
Fire Inspectors should physically identify all property addresses requiring a fire inspection
and ensure the property address is located within the FireHouse database.
RESPONSE/ACTION PLAN:
The Department agrees with this recommendation and will take efforts to ensure that all
properties are in the database and inspected.
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State your agreement or
reason for disagreement
with Recommendation
Target date to complete
implementation activities
(Generally expected within
60 to 90 days)
Name and phone number of
primary individual responsible
for implementation
Agree. During 2011 Fire
Prevention will attempt to
identify and inspect (or
schedule for Operations
Division inspection of) all
properties.
Assess the problem and
develop a plan: 90 days.
Implement plan: by last
quarter 2011.
Joseph L. Gonzales, Division
Chief of Fire Prevention, 720-
913-3462
RECOMMENDATION 1.2:
The Denver Fire Department, working with the City Attorney, should seek the necessary
Charter amendment to require property owners to notify the Fire Department when
changes are made to the configuration of properties.
RESPONSE/ACTION PLAN:
The Department agrees with this recommendation and will pursue discussions/seek counsel with
staff in the City Attorney’s Office.
State your agreement or
reason for disagreement
with Recommendation
Target date to complete
implementation activities
(Generally expected within
60 to 90 days)
Name and phone number of
primary individual responsible
for implementation
Agreed. We will look at the
approved legal mechanism to
require property owners to
notify the Fire Department
when changes are made to
property configurations.
Will discuss with City
Attorney within 30 days.
Implementation plan within
a year.
Joseph L. Gonzales, Division
Chief of Fire Prevention, 720-
913-3462
AUDIT FINDING 2:
Department Should Develop an Implementation Plan for Electronic Tablet Inspection
Devices
RECOMMENDATION 2.0:
The Denver Fire Department should prospectively develop an implementation plan for
electronic tablet inspection devices. The project plan should be specific and include:
2.1 The individual(s) responsible for completing the objective
2.2 The timelines for objectives and projects
2.3 Resources (monetary or manpower) needed for project completion
2.4 Input from other affiliated agencies
2.5 Performance measures that will help determine the success or failure of an
objective or project
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2.6 A review process to ensure objectives are met and projects are completed
timely
RESPONSE/ACTION PLAN:
State your agreement or
reason for disagreement
with Recommendation
Target date to complete
implementation activities
(Generally expected within
60 to 90 days)
Name and phone number of
primary individual responsible
for implementation
The Department agrees with
this recommendation and will
work with City TS to ensure
that the distribution of all
tablets, the installation of all
network infrastructure in fire
stations, and training of all
Operations Division
personnel will be completed
within 30 days and a plan for
performance measures will
be developed and
implemented within 90 days.
Tablet distribution,
completion of network
infrastructure in fire stations,
and training of all Operations
Division personnel will be
complete in 30 days.
Plan for performance
measures to be developed and
implemented within 90 days.
Joseph L. Gonzales, Division Chief
of Fire Prevention, 720-913-3462
AUDIT FINDING 3:
Opportunities Exist for the Department to Improve Physical Asset Controls
RECOMMENDATION 2.0:
The Denver Fire Department should ensure all assets are physically inventoried in
accordance with Fiscal Accountability Rule 4.2. This should include maintaining an
accurate inventory list.
RESPONSE/ACTION PLAN:
State your agreement or
reason for disagreement
with Recommendation
Target date to complete
implementation activities
(Generally expected within
60 to 90 days)
Name and phone number of
primary individual responsible
for implementation
We agree that all assets must
be accounted for. We will
work with City TS to ensure
Fire Department assets are
accounted for.
(Responsibility for the tablet
computers was transferred to
City Technical Services in
2008.) We will also discuss
90 days Steve Garrod, Division Chief of
Fire Technical Services, 720-
913-3474
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with City TS the need for
more careful accounting of
tablets that are sent out for
replacement or sent back to
the shop and make sure
responsibility for tracking is
clear.
The Auditor’s Office staff members who conducted the performance audit dated January 2011,
Anna Hansen, Marcus Richardson and Travis Henline, were very professional, direct and
thorough. Please extend our sincere appreciation to them for their efforts to learn about and
understand our operations and to make the audit process as smooth for us as they did.
Please contact me at 720-913-3462 with any questions.
Sincerely,
Joseph L. Gonzales, Division Chief
Denver Fire Department – Fire Prevention
JLG:ms (Audit Response–Final 1-19-11)
cc: Mel Thompson, Deputy Manager, Department of Safety
Beth Machann, Controller, Office of the Controller