Waste Plus, Inc.MIAMJBEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA:
FROM:
DATE:
AUDIT:
PERIOD:
Jimmy L. Morales, City Manager &1:)
John Woodruff, Budget and Performance Improvement Director ~
James J. Sutter, Internal Audit~~
June 4, 2015 ////#
Waste Plus Inc.
February 2014 to May 2015
This report is the result of a scheduled audit of the Roll-Off Fee Returns for Waste Plus Inc. (Waste
Plus)
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 twenty one 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.
Waste Plus has been operating in the City of Miami Beach since February 2014. Their line of business
is the rental of Roll-offs containers.
OVERALL OPINION
Waste Plus did not comply with certain reporting provision sections in the City Code during the audit
period. The following items were noted during our audit:
• Gross receipts in the amount of $9,950.00 were not reported for the entire audit period.
Therefore, Waste Plus owes the City $2,275.10 in franchise fees. (including interest and late
filing charges)
• Waste Plus has not filed list of accounts, however a listing of customer names was provided
during the audit.
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
Waste Plus Inc.
June 4, 2015
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 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 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 fuel/environmental surcharge,
overload, delivery, dry run, tire surcharge, disposal, and live load wait time, should be included
in reported gross receipts. For the entire 16 months audited period, Waste Plus collected
revenues and franchise fees for services rendered within the City of Miami Beach and failed to
report Roll-off returns. For the same period, Waste Plus did not report to the City of Miami
Beach $9,950.00 in gross receipts resulting in franchise fees due for the amount of $1, 791.00.
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Internal Audit Report
Waste Plus Inc.
June 4, 2015
The following table summarizes audited gross receipts and the amount due from Waste Plus
for our audit period:
2014 2015 TOTAL
Mar-Dec. Jan-May
Audited Gross
Receipts $5 950.00 $4 000.00 $9 950.00
Less Report Gross
Receipt 0.00 0.00 0.00
Unreported Revenues (5 950.00) (4 000.00) (9 950.00)
Roll-off fees due 1 071.00 720.00 *1 791.00
Interest 78.40 5.70 84.10
Late fees 300.00 100.00 400.00
Total Due $1 449.40 $825.70 $2 275.10
*Waste Plus paid $1,791.00 for Roll-off fees due dunng the audit.
2. Finding-Required Reporting
Waste Plus did not submit the following documents in accordance with the listed City Code
sections during the audit period:
Section 90-278 (3) states" The licensed contractor shall provide the City Manager 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 dumpster as per account and the address serviced by each Roll-off
container or dumpster. Waste Plus has not provided the City Manager 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 dumpster as per account and the address serviced by each Roll-off
container or dumpster. However, a listing of customer names was provided during the audit.
Recommendation (s)
Waste Plus remitted the amount of $1,791.00 for franchise fees during the audit. However, the interest
and late fee in the amount of $484.10 must be paid. Going forward, monthly reports with supporting
revenues earned should be filed on a monthly basis. In addition, Waste Plus must comply with the
designated sections of the City Codes by submitting listing of accounts to the City Manager and the
Sanitation Director.
EXIT CONFERENCE
Audit findings were e-mailed on June 2, 2015 to Mr. Beny Krasner (Waste Plus). We communicated with Mr.
B. Krasner on June 2, 2015 and he acknowledged that Waste Plus will pay the City the interest and late fees.
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Internal Audit Report
Waste Plus Inc.
June 4, 2015
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC014-15\REPORT-\WASTE PLUS INC. FINAL REPORT.doc
cc: Eric Carpenter, Director of Public Works
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Beny Krasner, Waste Plus Inc. (Owner)
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