Rapid Carting Services Corp.MIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
To: Jorge M. Gonzalez, City Manager
INTERNAL AUDIT REPORT
VIA:
From:
Date:
Kathie G. Brooks, Budget and P~rfor anc. e Improvement Director
James J. Sutter, Internal Auditor .. / /J /£.,
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March 31 , 2008
Audit: Rapid Carting, Corp.
Period: May 2005 to January 2008
This report is the result of a scheduled audit of the Roll-Off Fee Returns for Rapid Carting Services
Corp., (Rapid Carting).
INTRODUCTION
A roll-off is defined as a container with a minimum capacity of ten cubic yards designed to be
transported by a motorized vehicle. They are typically used for the purpose of removing construction
debris, which include rock, metal and other materials used in connection with a construction project or
for the removal of large quantities of trash and bulky waste.
Approximately thirty companies currently possess business tax receipt to operate roll-offs within the
City's boundaries. In return, they are required to abide by the terms outlined in the City Code. This
includes the remittance of franchise fees equaling 16% of Miami Beach gross receipts to the City's
Finance Department by the end of the subsequent month, filing various reports, maintaining sufficient
insurance, etc.
Rapid Carting's majority line of business is to provide waste services and the rentals of roll off
containers. Since April 2005, Rapid Carting has been registered with the City to perform roll off
services and has paid the City's annual business tax.
OVERALL OPINION
Based upon the examination of both Rapid Carting's and City's records, we have confirmed that the
company has not performed any roll off services within the City. Therefore monthly reports were not
required during this period. Rapid Carting has complied with the provisions of the City Code's during
the audit period.
PURPOSE
The purpose of this audit is to determine whether all roll-off waste contractor billings were correct, and
whether all City revenues were correctly calculated, received timely and accurately recorded by the
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Internal Audit Report
Rapid Carting, Corp.
March 31, 2008
City, and the contractor was in compliance with designated sections of the City Code and related
Ordinances.
FINDINGS
Rapid Carting has paid the City's annual business tax since April 2005 and the tax has been currently
renewed for $545. During this time the company has not filed any monthly roll off franchise returns due
to not performing any roll off business with the City. Per inquiry from the company's owner, the
business tax has been renewed with the anticipation of conducting business within the City.
Operational procedures and internal control used for the delivery of roll off containers, scheduling pick-
ups, processing invoices, collecting of payments and terminating of accounts were evaluated to ensure
that all revenues were being reported on the company's records. We then reviewed the company's
master vendor listing records and tested a sample of invoices for the location of roll-off services
provided by the company. From our review, we could not find any services with addresses in the City of
Miami Beach for roll offs. Furthermore, a review of the City's Permit Plus system did not reveal any roll
off permits issued by the Sanitation department or violations issued by Code Enforcement.
We verified that Rapid Carting have obtained the required business tax receipt to operate roll off in the
City of Miami Beach during the audit period. We received the required insurance certificate from Rapid
Carting and had Risk Management approved the insurance certificate naming the City as additional lien
holder.
In conclusion, Rapid Carting records and documents showed that they had no roll off container services
in the City of Miami Beach during the audit period. We will continue to monitor gross receipts returns
for compliance.
JJS:CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC07-08\REPORTS-\RAPID CARTING CORP. FINAL REPORT.doc
cc: Robert Middaugh Jr., Assistant City Manager
Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Rolando Cuellar, Rapid Carting, Corp. (Owner)
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