Waste Pro of FloridaMlAJ\/\IBE CH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
To:
Via:
From:
Date:
Jorge M. Gonzalez, City Manager (}
Kathie G. Brooks, Budget and Perfor.!;1~c;e Improvement Director !lj)
James J. Sutter, Internal Audito~p
January 6, 2012
Audit:
Period:
Waste Pro of Florida, Inc. (Waste Pro)
June 2010 to September 2011
This report is the result of a scheduled audit of the Roll-Off Fee Returns for Waste Pro of Florida, Inc.
(Waste Pro).
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.
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%.
Waste Pro has been operating in the City of Miami Beach since June 2010. Their line of business is the
rental of Roll-offs.
A review of the company's invoices showed that franchise fees were charged and collected throughout
the audit period. Waste Pro's records showed that franchise fees were remitted timely to the City of
Miami Beach. In addition, we reviewed and noted no discrepancies on confirmations with Waste Pro's
customers who paid for Roll-off services. The following gross receipts were reported and fees paid
during the audit period:
2010 2011 TOTAL Jun-Dec. Jan-Sept.
Audited Recei~ts $1,493.20 $6,131.82 $7,625.02
Roll-off Fees Paid (18%) $268.78 $1,103.75 $1,372.53
We are committed to providing excellent public service one/ safety to all who live, work, one/ ploy in our vibrant, tropical, historic community.
Internal Audit Report
Waste Pro of Florida, Inc.
January 6, 2012
OVERALL OPINION
Waste Pro has complied with the provisions of the City Code's during the audit period. As a result,
gross receipts were properly reported and franchise fees were paid to the City. Therefore no additional
fees are owed.
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 Returns were timely and correctly recorded in the City's
Financial System.
EXIT CONFERENCE
Audit findings were e-mailed on December 9, 2011 to Waste Pro of Florida. We confirmed their
agreement to our findings on January 4, 2012.
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Internal Audit Report
Waste Pro of Florida, Inc.
January 6, 2012
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC011-12\ AUDIT FINAL REPORT FOR WASTE PRO OF FLORIDA.doc
cc: Duncan Ballantyne, Assistant City Manager
Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Steve Cade, Division Manager for Waste Pro of Florida
Cynthia Gonzalez, Office Manager for Waste Pro of Florida
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