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Internal audit finds control gaps in Volusia building inspections, estimates $400,000 annual shortfall
Summary
Internal auditor Jonathan Edwards reported gaps in conflict-of-interest procedures, assignment protocols and fee controls in the building inspections division, estimating about $400,000 in annual revenue loss and recommending disclosure forms, permit life‑cycle tracking and fee updates. Council accepted the audit 6-0.
Volusia County's internal auditor told the council that routine controls in the Building Inspections program are insufficient to detect preferential treatment and documentation failures, producing an estimated $400,000 in annual revenue loss.
"In fiscal year 2025, county inspectors conducted 33,705 inspections across residential and commercial properties; we tested 100 of those inspections," Jonathan Edwards said, summarizing the audit findings. He described a tested permit applied for by a then-chief building inspector that showed fees recalculated with no documentation, a $55 application fee not charged, inspectors working outside their normal geographic assignments, and an automatic permit extension triggered by an incorrect inspection code.
Edwards listed three priority recommendations: annual conflict-of-interest disclosure forms; written assignment protocols (with GPS-based review); and permit life-cycle tracking with automatic escalation to code compliance. He said inconsistent coding of inspection results — with many failures recorded as "partial" rather than "fail" — likely accounts for the largest piece of the estimated revenue loss (roughly $382,000). He also flagged a statutory compliance gap that could have allowed up to four times higher reinspection fees in some cases, and noted the AUG occupancy classification remains at $15 per square foot despite comparable rates closer to $27.
Council members pressed for clarity on whether the audit indicated criminal wrongdoing; Edwards said his testing found no evidence of bribery or illegal payments. The audit also documented thousands of permits that had expired without final inspections, including several involving life-safety systems, and recommended a formal quality-assurance program and independent reviewers to sample completed inspections.
Council members praised the audit and directed staff to implement corrective steps. A motion to accept the auditor's report passed 6-0.
