A.F. Recycling and Waste, Inc.MIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
To:
From:
Date:
Audit:
Period:
Kathie G. Brooks, Interim City Man~~
James J. Sutter, Internal Auditor -p/7'
September 26, 2012
A.F. Recycling & Waste, Inc. (A.F Recycling)
October 2007 to July 2012
INTERNAL AUDIT REPORT
This report is the result of a scheduled audit of the Roll-Off Fee Returns for A.F. Recycling. (A.F.
Recycling)
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 demonstrating that they
operate Roll-offs within the City's boundaries. They are required to abide by the terms outlined in
the City Code. This includes the remittance of franchise fees calculated by using the applicable
percentage of Miami Beach gross receipts. Reports are to be submitted to the City's Finance
Department by the end of the subsequent month. Effective October 2008 the Roll-off franchise fee
was increased from 16% to18%.
BACKGROUND
Previously, Internal Audit conducted an audit of A. F. Recycling for period of July 2006 to September
2007. A.F. Recycling properly reported gross receipts resulting in no assessment.
OVERALL OPINION
Out of 58 months audited gross receipts, A. F. Recycling incurred gross receipts in 9 months totaling
to $109,674.02 within the City of Miami Beach and paid $18,846.43 franchise fees to the City. For
the remaining 49 months, gross receipts in the amount of $26,662.58 were billed to several
companies for services rendered in the City of Miami Beach from A. F. Recycling. Unfortunately, the
companies failed to remit payments to A.F.Recycling. Therefore, A.F. Recycling was not required to
submit franchise fees for these uncollected accounts. At present, A.F. Recycling has several
lawsuits against these companies for failure to provide payments. Hence, we obtained the legal
documents for record keeping and to follow-up as to when payments are made from these
companies. Once payments are remunerated for the gross receipts owed from these companies,
· A. F. Recycling should submit payments to the City of Miami Beach for franchise fees due.
The following table summarizes audited gross receipts reported and fees paid during the audit
period:
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community.
Internal Audit Report
A.F. Recycling & Waste
September 26, 2012
Oct.-Dec.
2007
Audited I
Reported Gross $107,420.87
Receipts
Roll-off fees $17,187.34 paid
Jan-Dec. Jan-Dec.
2008 2009
$4,864.38 $800.00
$875.59 $144.00
Jan-Dec. Jan-Dec. Jan-Jul. TOTAL 2010 2011 2012
$2,452.76 $1,100.00 $0.00 $116,638.01
$441.50 $198.00 $0.00 $18,846.43
A.F. Recycling complied with the City's ordinances and properly reported all collected revenues
to the City, therefore no franchise fees are due.
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.
SCOPE
1. Review waste contractor's books and records to confirm that their billings were correct; their
gross receipts were correctly calculated and support the monthly franchise fee submitted to
the City.
2. Confirm that the private waste contractor timely sent the City the required reports in
adherence with the terms listed in the City Code.
3. Confirm that the private waste contractor is timely sending the required Monthly Report of
Gross Receipts along with their remittance to the City.
4. Confirm that the private waste contractor timely obtained their required annual business tax
receipt.
5. Confirm that the private waste contractor timely submitted their annual Certified Public
Accountant (CPA) Statements of Gross Receipts to the City (If applicable).
6. Confirm that the private waste contractor has obtained the required insurance in adherence
with Section 90-196 of the City Code.
7. Confirm that all monthly Roll-off Fee Return and were timely and correctly recorded in the
City's Financial System.
EXIT CONFERENCE
Audit report was a-mailed on September 25, 2012 to A.F. Recycling and they concurred to the
report.
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Internal Audit Report
A.F. Recycling & Waste
September 26, 2012
JS:CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC11-12\REPORTS - \ A.F. RECYCLING FINAL REPORT.doc
cc: Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Beny Krasner, A.F. Recycling & Waste, Inc. (President)
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