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Load It Away, LLC(9~ MIAMIBEACH BUDGET AND PERFORMANCE IMPROVEMENT Internal Audit Division INTERNAL AUDIT REPORT To: VIA: FROM: Jimmy L. Morales, City Manager ~ John Woodruff, Budget and Performance Improvement Director ~ James J. Sutter, Internal Audi~~- April11, 2014 ("'/" DATE: AUDIT: Load It Away, LLC. PERIOD: June 2013 to February 2014 This report is the result of a scheduled audit of the Roll-Off Fee Returns for Load It Away, LLC. 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 receipts 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. Load it Away has been operating in the City of Miami Beach since June 2013. Their line of business is the rental of Roll-offs, Equipment Services, Recovered Recycle Materials, Scrap Metal, On Call Site Cleanup, Solid Waste, Bulk Waste and Yard Waste. A review of the company's invoices showed that franchise fees were charged and collected throughout the audit period. Load It Away'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 Services customers who paid for Roll-off services within the City. The following gross receipts were reported and fees paid during the audit period: 2013 2014 TOTAL Jan-Dec. Jan-Feb. Audited Receipts $10,091.81 $7,043.61 $17,135.42 Roll-Off Fees Due (18%) $1,816.53 $1,267.85 $3,084.38 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 Load It Away, LLC April11, 2014 OVERALL OPINION Load It Away has complied with the provisions of the City Code's during the audit period. As a result, gross receipts were reported and franchise fees were paid to the City. The following items were noted during our audit: • Verified gross receipts were properly reported by Load It Away; therefore no additional fees are owed. • Load It Away has submitted the certificate of liability insurance. 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. Page 2 of 3 Internal Audit Report Load It Away, LLC April11, 2014 EXIT CONFERENCE Audit findings were e-mailed on April8, 2014 to Load It Away. We confirmed their agreement to our findings on April 9, 2014. JJS: CD Audit performed by Carmin Dufour F:\OBPI\$AUD\INTERNAL AUDIT FILES\DOC13-14\REPORTS-FINAL\Load It Away LLC.doc cc: Eric Carpenter, Director of Public Works Alberto Zamora, Sanitation Director Patricia Walker, Chief Financial Officer Gaetano Alessi, JR. (Owner of Load It Away, LLC) Page 3 of 3