S&S National WasteMIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
TO: Jimmy L. Morales, City Manager
VIA: John Woodruff, Budget and Perfor
FROM: James J. Sutter, Internal Auditor
DATE: September 25, 2014
AUDIT: S&S National Waste, Inc.
PERIOD: March 2011 to February 2014
· ERNAL AUDIT REPORT
rovement Director~
This report is the result of a regular scheduled audit of the Roll-Off Fee Returns for S&S National
Waste, Inc. (S&S).
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.
BACKGROUND
Previously, Internal Audit conducted an audit of S&S for the period of January 2001 to September
2004. Our audit report dated March 14, 2005 produced an audit assessment attributed to the under
reporting of gross receipts relating to grappling services. This matter has been referred to the City
Attorney's Office and is still pending.
Internal Audit conducted a subsequent audit dated October 2008 whereby S&S has been reporting all
grappling services with roll-off services. However, the company under reported fees associated with
fuel surcharges from November 2004 to May 2005 and delivery charges for the entire audit period.
While the audit assessment amounted to $3,284. 73, the company has made better efforts to stay
compliant with the ordinance. The audit assessment has been paid.
Internal Audit performed another audit of S&S for the period of March 2008 to February 2011. Their
records showed that franchise fees were remitted timely to the City of Miami Beach. There was no
audit assessment.
We are committed to providing excellent public seN1ce and safety to all who live, work, and play in our vibrant, tropical, historic community
Internal Audit Report
S&S National Waste, Inc.
September 25, 2014
OVERALL OPINION
A review of the company's invoices showed that franchise fees were charged and collected throughout
the audit period. The following table summarizes the audited gross receipts from roll-off services:
20011 2012 2013 2014 TOTAL Mar-Dec. Jan-Dec. Jan-Dec. Jan-Feb.
Audited $113,492.33 $192,163.09 $210,962.60 $27,865.10 $544,483.12 Receipts
Roll-Off
Fees Due $20,428.62 $34,589.36 $37,973.27 $5,015.72 $98,006.97 (18%)
S&S has generally complied with the provisions of the City Code's during the audit period. However,
there is a finding relating to not reporting current list of accounts and providing annual statement of
gross receipts certified by an independent certified public accountant.
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 were timely and correctly recorded in the City's
Financial System.
Page 2 of 3
Internal Audit Report
S&S National Waste, Inc.
September 25, 2014
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
Finding -Required Reporting
S&S 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."
S&S has not provided the City Manager and the Sanitation Director with a current list of names
and addresses of each 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 or construction dumpster. However, a list of accounts was provided during the audit.
b. Section 90-278 (4) states "The licensee shall on or before 30 days following the close of its
fiscal year deliver to the Finance Director and the City Manager a statement of its annual gross
receipts generated from accounts within the city certified by an independent certified public
accountant reflecting gross receipts within the city for the preceding fiscal year". S&S did not
provide a statement of its annual gross receipts generated from accounts within the city
certified by an independent public accountant reflecting gross receipts within the city for the
preceding fiscal year. Effective October 1, 2008 the ordinance requires that contractors having
an annual gross receipts reported to the City over $200,000 shall, on or before 60 days
following the close of their fiscal year, deliver to the Finance Department a statement of annual
gross receipts generated from accounts within the city certified by an independent certified
public accountant reflecting gross receipts within the City for the preceding fiscal year. For the
calendar year 2012 & 2013, S&S exceeded the threshold amount for requiring certified
statements of gross receipt.
Recommendation (s)
S&S must comply with the designated sections of the City Codes by submitting reports to the City
Manager and Sanitation Director listing of accounts and certified annual statements of gross receipts
for the year exceeding the reported threshold.
EXIT CONFERENCE
Audit findings were e-mailed on 07/30/2014 to Janna Wheeler, S&S National Waste, Inc. We
confirmed her agreement to our findings on September 22, 2014.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC013-14\ FINAL REPORT FOR S&S NATIONAL WASTE .doc
cc: Eric Carpenter, Director of Public Works
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Janna Wheeler, CEO for S&S
Page 3 of 3