Southeastern Recycling Corp.MIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
To:
VIA:
From:
Jorge M. Gonzalez, City Manager £J.
Kathie G. Brooks, Budget and ~e~ance Improvement Directoi)Vp
James J. Sutter, Internal Audita/~ /"
Date:
Audit:
Period:
July 02, 2008
Southeastern Recycling Corp.
December 2006 to January 2008
This report is the result of a scheduled audit of the Roll-Off Fee Returns for Southeastern Recycling
Corp. (Southeastern)
INTRODUCTION
A roll-off is defined as a container with a mtntmum 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.
Southeastern has been operating in the City of Miami Beach since December 2006. Their majority line
of business is recycling. In addition, Southeastern provides roll-off waste service as a supplemental
line of business.
A review of the company's invoices showed that franchise fees were charged and collected throughout
the audit period. Southeastern's records showed that franchise fees were remitted timely to the City of
Miami Beach. The following gross receipts from roll-off services were reported and franchise fees paid
during the audit period.
Dec. Jan-Dec. Jan.
2006 2007 2008
Audited I Reported Gross 0 $4,483.47 0 Receipts
Roll-off Fees (Paid) 0 $717.36 0
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Internal Audit Report
Southeastern Recycling
07/02/08
OVERALL OPINION
Southeastern has generally complied with the provisions of the City Code's during the audit period.
Gross receipts were reported and franchise fees were paid to the City. The following additional items
were noted during our audit:
• Verified gross receipts were properly reported by Southeastern; therefore no additional fees are
owed.
• Southeastern has not filed list of accounts, however a listing of customer names was provided
during the audit.
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
City, and the contractor was in compliance with designated sections of the City Code and related
Ordinances.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding -Required Reporting
Southeastern did not submit the following documents in accordance with the listed City Code
sections during the audit period:
Section 90-278 (3) states "The licensed roll-off waste contractor shall provide the city manager
and the sanitation director with a current list of the names and addresses of each account, upon
initial application and upon application for renewal of its business license, the frequency of
service, the permit number and capacity of each roll-off container or construction dumpster as
per account and the address serviced by each roll-off container or construction dumpster."
Southeastern did not provide the city manager and the sanitation director with a current list of
names and addresses of each account, upon the initial application and upon application for
renewal of its business license, the frequency of service, the permit number and capacity of
each roll-off container or construction dumpster. However, a listing of customer names was
provided during audit.
Recommendation (s)
Southeastern should comply with one designated section of the City Codes by submitting listing
of accounts to the City Manager and Sanitation Director.
EXIT CONFERENCE
Audit findings were emailed on 06/10/08 and confirmed by John Szkolnik, CEO for Southeastern
Recycling Corp.
Page 2 of 3
Internal Audit Report
Southeastern Recycling
07/02/08
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC07-08\REPORTS-\SOUTHEASTERN RECYCLING. FINAL REPORT.doc
cc: Robert Middaugh Jr., Assistant City Manager
Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
John Szkolnik, Southeastern Recycling Corp. (CEO)
Page 3 of 3