Department of Business Affairs and Consumer Protection Business License Process Audit

Executive Summary

The purpose of the audit was to review, test, and evaluate activities performed to determine whether BACP had effective and efficient operations, as well as adequate policies and procedures related to the issuance of business licenses.

Based upon the results of the audit, IGO auditors determined BACP operations were effective and efficient as related to the issuance of business licenses. In fact, most licenses are issued within one month of a business owner’s initial inquiry to the City.

Our sole recommendation stems from BACP’s underutilized online licensure system. Only 10- 15% of new business applications were filed online. According to BACP, this stems from budget constraints. Currently, there isn’t enough funding to upgrade their system to:

1) Allow for electronic processing for each type of business license required by the City

2) Allow for electronic processing of emailed or scanned licensure documents

3) Enable the system to accept submissions in multiple languages

It is also important to note what this audit did not include. First, this audit does not delve into the construction permitting process, and should not be construed as commenting on the effectiveness or efficiency of that process. Second, the audit does not qualify or judge licenses issued by the City; it simply measured the efficiency of the City’s business licensure process.