VOLUSIA COUNTY, Fla. – A new internal audit is raising red flags inside Volusia County’s building inspections office — pointing to improperly issued permits, missing approvals and nearly $400,000 in potential revenue loss.
Three employees resigned as part of a human resources investigation stemming from the audit, county officials confirmed. The findings were publicly addressed Tuesday by the Volusia County Council for the first time.
“There were some issues involving permits that were not issued properly — that’s been caught. There was an investigation and they no longer work here,” Councilman David Santiago told News 6.
The audit reviewed 33,700 inspections conducted during fiscal year 2025 — covering everything from buildings to seawalls. Investigators pulled 100 of those inspection reports, more than half selected at random.
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Among the most serious findings was evidence of preferential treatment tied to a county employee. That permit contained several irregularities, including recalculated fees, removed required fees and undocumented approvals — prompting the HR investigation. Three employees resigned before that investigation was completed.
The audit also found more than 8,000 permits have expired since 2008 without a final inspection. Investigators flagged nearly $400,000 in potential revenue loss, though the county’s auditor told council members Tuesday the figure largely reflects a policy decision — not misconduct.
“It’s not that we lost that revenue. It’s a decision to keep the re-inspection fees low so we don’t charge more fees to the people unnecessarily,” Santiago said.
The county manager is now reviewing the audit and is expected to bring forward proposals for new protocols. When asked whether the conduct that led to the resignations could result in criminal charges, Santiago said no — at least as far as county officials have been told.