World Waste Recycling, Inc.MIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
TO:
INTERNAL AUDIT REPORT
VIA:
FROM:
Jimmy L. Morales, City Manager
John Woodruff, Budget and Performance Improvement Directort:diJ
James J. Sutter, Internal Audito~f ~
August 28, 2015 / ...--DATE:
AUDIT: World Waste Recycling, Inc.
PERIOD: October 2014 to July 2015
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 twenty two 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.
World Waste has been operating in the City of Miami Beach since October 2014. Their line of
business is the rental of Roll-offs, Recycle Materials. This audit was schedule as a result of our
division's monitoring of monthly franchise fees filings according to Sec. 90-278. This account had
not been recently filing returns. Historically the lack of non-filing of franchise returns has led to the
discovery of not reporting revenues to the City. Therefore, we scheduled our audit to confirm
whether this account is in compliance. A review of the company's invoices showed that franchise
fees were charged and collected throughout the audit period. World Waste's records showed that
franchise fees were remitted timely to the City of Miami Beach. The following gross receipts were
reported and fees paid during the audit period:
2014 2015 TOTAL Jan-Dec. Jan-Feb.
Audited Receipts 0.00 $680.00 $680.00
Roll-Off Fees Due (18%) 0.00 $122.40 $122.40
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
World Waste Recycling, Inc.
August 28, 2015
OVERALL OPINION
World Waste has complied with the provisions of the City Code's during the audit period. We
reviewed the company's records and they did not have much business with the City of Miami Beach
during the entire audit period. However, the company has a small amount of gross receipts and we
verified the accuracy of the amount. 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 World Waste; therefore no additional fees
are owed.
• World Waste 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
World Waste Recycling, Inc.
August 28, 2015
EXIT CONFERENCE
Audit findings were e-mailed on August 27, 2015 to World Waste and they concurred with our
findings.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC014-15\AUDIT FINAL REPORT REPORT FOR WORLD WASTE RECYCLING.doc
cc: Eric Carpenter, Director of Public Works
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Melissa Rodriguez, Director of World Waste, Inc.
Page 3 of 3