Great Waste & RecyclingJV\IAJ\;\1 BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
To:
VIA:
From:
Date:
Jorge M. Gonzalez, City Manager ~
Kathie G. Brooks, Budget and P~e·rf~)~_;, c. Improvement Director nv
James J. Sutter, Internal Auditor~:)/~. ./
/
May 14, 2012 ·
Audit:
Period:
Great Waste & Recycling
October 2010 to February 2012
This report is the result of a scheduled audit of the Roll-Off Fee Returns Great Waste & Recycling
(Great Waste)
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 tha't 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.
Great Waste has been operating in the City of Miami Beach since October 2010. Their line of
business is the rental of roll off containers.
OVERALL OPINION
Great Waste has not complied with the City Codes as it relates to reporting requirements for Roll-off
contractors. The following items were noted during our audit:
• Gross receipts in the amount of $2,524.91 were not reported resulting in the owing of
$659.59 in roll-off franchise fees and interest to the City.
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.
We ore commilled to providing excellent public service ond safety Ia all who live, work, and ploy in our vibrant, lropicol, historic community.
Internal Audit Report
Great Waste & Recycling
May 14, 2012
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.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSE
1. Finding -Unreported Gross Receipts
City Code Section 90-221 defines gross receipts as "the entire amountofthe fees collected
by the licensee, exclusive of taxes as provided by law, whether wholly or partially collected,
within the city, for solid waste removal and disposal". Therefore, all monies collected by the
Roll-off waste contractor from Miami Beach service addresses, including dump fees, fuel
surcharges, dry run, overload, extra month fees, relocation and waiting time charges should
be included in reported gross receipts.
Great Waste incurred revenues earned in the City of Miami Beach for four months (October
2011 to February 2012) resulting in $2,524.91 of unreported gross receipts. Therefore, the
amount of $454.49 in franchise fees for roll-off waste removal services within the city limits
was not reported. Great Waste was not in compliance with the City Code.
The following table summarizes audited gross receipts and the amount due from Great
Waste for our audit period:
Page 2 of 3
Internal Audit Report
Great Waste & Recycling
May 14, 2012
Audited Gross
Receipts
Less Reported
Gross Receipt
Unreported
Revenues
Roll-off fees
due
Interest
Late fees
Total Due
2010
Oct-Dec.
0.00
0.00
0.00
0.00
0.00
0.00
$0.00
Recommendation(s)
2011 2012 TOTAL Jan-Dec. _(Jan-Feb)
$525.42 $1,999.49 $2,524.91
0.00 0.00 0.00
525.42 1,999.49 2,524.91
94.58 359.91 454.49
2.44 2.66 5.10
150.00 50.00 200.00
$247.02 $412.57 $659.59
Great Waste must report all gross receipts as per the City code. This includes but is not
limited to dump fees, extra month fees, fuel surcharges, dry run, overload, relocation and
waiting time charges.
EXIT CONFERENCE
Audit findings were e-mailed on 04/12/2012. We confirmed their agreement to our findings on
04/26/2012. On 05/14/2012 we received payment for the audit assessment.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC011-12\REPORTS-\GREAT WASTE. AUDIT FINAL REPORT.doc
cc: Duncan Ballantyne, Assistant City Manager
Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Carlo Piccinonna, Great Waste & Recycling (Owner)
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