Pronto Waste, Inc.MIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
TO:
FROM:
DATE:
AUDIT:
PERIOD:
Kathie G. Brooks, Interim City~anag r
James J. Sutter, Internal Auditor
August 21, 2012
Pronto Waste, Inc. (Pronto Waste)
March 2009 to May 2012
INTERNAL AUDIT REPORT
This report is the result of a scheduled audit of the Roll-off Fee Returns for Pronto Waste, Inc.
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 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%.
Pronto Waste has been operating in the City of Miami Beach since June 2003. Their majority lines
of business are demolition contractors, concrete cutting, excavation & land clearing, trucking &
lowboy service, equipment rental. In addition, Pronto Waste provides Roll-off services as a
supplemental line of business.
Background
Previoulsy, Internal Audit conducted an audit of Pronto Waste for period of May 2006 to February
2009. Our audit dated March 30, 2009 produced an audit assessment of $9,372.82. This
assessment was attributed to under reporting of Roll-off revenues. Pronto Waste has paid the total
amount of the audit assessment.
OVERALL OPINION
Pronto Waste has not fully complied with the City Codes as it relates to reporting requirements for
Roll-off contractors. As a result, a number of gross receipts were under reported and the franchise
fees were not paid to the City. The following items were noted during audit:
• Gross receipts in the amount of $28,243.20 were not reported. Therefore, Pronto Waste
owes the City $6,688.99 in franchise fees. (including interest and late filing charges)
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
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
Pronto Waste, Inc.
August21, 2012
the City, and the contractor was in compliance with designated sections of the City Code and related
Ordinances.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSE
1. Finding ~ Unreported Gross Receipts
City Code Section 90-221 defines gross receipts as "the entire amount of the 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 and overload should be included in reported gross receipts.
Out of 39 months audited gross receipts, Pronto Waste filed returns for 12 months to the
City of Miami Beach resulting in $3,325.14 in franchise fees for $20,482.01 in reported gross
receipts. Pronto Waste collected an additional amount of $28,243.20 in gross receipts for
roll-off waste removal services within the city limits and was not reported. Therefore, Pronto
Waste is not in compliance with the City Code.
The following table summarizes audited gross receipts and the amount due from Pronto
Waste for our audit period:
2009 2010 2011 2012 TOTAL
(Mar-Dec) (Jan-May)
Audited Gross Receipts $9,768.22 $23,560.79 $10,016.20 $5,680.00 $49,025.21
Less Report Gross (9,768.22) (9,878.79) ($1 '135.00) (0.00) (20, 782.01) Receipt
Unreported Revenues 0.00 13,682.00 8,771.20 5,790.00 28,243.20
Roll-off fees due 0 2,462.76 1,578.82 1,042.20 5,083.78
Interest 0 428.73 101.84 24.64 555.21
Late 0 400.00 450.00 200.00 1,050.00
Total Due 0 $3,291.49 $2,130.66 $1,266.84 $6,688.99
Recommendation(s)
Pronto Waste should remit the amount of $6,688.99. All subsequent roll-off fees return
should be filed in a timely manner and remit any franchise tax due.
2. Finding -Required Reporting
Pronto Waste did not submit the following documents in accordance with the listed City
Code sections during the audit period:
a. 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." Pronto Waste has not provided the city
manager and the sanitation director with a current list of names and addresses of each
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Internal Audit Report
Pronto Waste, Inc.
August 21, 2012
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. However, a listing of customer names was provided during the audit.
Recommendation(s)
Pronto Waste must comply with the designated sections of the City Codes by submitting a
list of accounts annually.
EXIT CONFERENCE
Audit findings were e-mailed on August 7, 2012 to Nancy Arencibia, Pronto Waste Services, Inc.
(Manager) We confirmed her agreement to our findings on August 20, 2012.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC011-12\REPORTS-FINAL\PRONTO WASTE.doc
cc: Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Nancy Arencibia, Pronto Waste Services, Inc. (Manager)
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