J & O Garcia Enterprises Corp. Roll-off Fee Revenues Audit (Period 1-1-17 to 5-31-19) 7-23-19MIAMI BEACH INTERNAL AUDIT REPORT
City of Miami Beach, 1700 Convent ion Center Drive , Miami Beach , Florida 33139, www.miamibeachfl.gov
Office of Internal Audit
Tel : 305-673-7020
TO:
VIA:
FROM :
DATE:
AUDIT:
PERIOD :
Jimmy L . Morales , City Manager
Mark D. Coolidge, Interim Internal
Carmin Dufour, Tax Auditor
July 23, 2019
J & 0 Garcia Enterprises Corp. Roll-off Fee Revenues Audit
January 1, 2017 to May 31, 2019
This report is the result of a scheduled audit of the roll-off fees charged, collected and remitted by J & 0
Garcia Enterprises Corp. In addition, the auditee's compliance with selected provisions in the City
Code concerning obtaining their annual business tax receipts, filing required reports, etc . were also
reviewed.
INTRODUCTION
A roll-off is defined as a container with a minimum capacity of ten (1 0) 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 .
Although it is a dynamic number, fifteen companies currently possess business tax receipts authorizing
them to operate roll-offs within the City's boundaries. They are required to abide by the terms outlined
in the City Code which includes the remittance of 18% roll-off fees of the contractor's total applicable
Miami Beach gross receipts with any fees deemed not paid subject to penalties of 10% per month up to
a maximum of 50% plus interest of 1% per month. The term gross receipts can be defined as the
entire amount of fees collected by the contractor (whether wholly or partially collected) for solid waste
collection and disposal within the City and including, without limitation, but excluding any taxes, and
gross receipts from servicing roll-off and portable containers.
Monthly reports are to be submitted to the City's Finance Department by the end of the subsequent
month of the gross receipts generated during the previous month within the City. For example , October
2018's report was due by November 30, 2018; November 2018's report was due by December 31,
2018 and so on. In addition, the roll-off contractor is to deliver to the City's Finance Department a
statement of annual gross receipts generated from accounts within the City for the preceding fiscal
year, certified by an independent certified public accountant. ·
One of these authorized roll-off companies is J & 0 Garcia Enterprises Corp. whose main offices are in
Hialeah, FL. They have been operating in the City of Miami Beach since October 2015. The following
gross receipts were reported, and fees paid to the City during the listed 29-month audit period:
2017 2018 2019 TOTAL Jan.-Dec. Jan.-Dec. Jan.-May
Audited Receipts 0 .00 0 .00 0.00 0.00
Roll-Off Fees Due (18%) 0.00 0.00 0.00 0.00
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Internal Audit Report
J & 0 Garcia Enterprises Corp. Roll-off Fee Revenues Audit
July 23, 2019
BACKGROUND
Previously, the Office of Internal Audit conducted an audit of J & 0 Garcia Enterprises Corp. for the
period of November 2015 to December 2016. Our audit report dated February 9, 2017 found that
tested roll-off fees were properly reported, and no additional fees were owed. . .
OVERALL OPINION
J & 0 Garcia Enterprises Corp. has complied with the tested provisions of the City Code during the
audit period which includes the charging, collecting and remitting of roll-off fees during the January 1,
2017 to May 31, 2019 audit period. Despite these positive results, the following shortcoming was noted
during testing that is need of corrective action:
• City invoice #70317 for $100.00 issued on October 15, 2015 was not paid until May 30, 2019
but the roll-off contractor incorrectly received their 2016/17 and 2017/18 fiscal year business tax
receipts in contradiction to City Code Section 90-226's terms.
PURPOSE
The purpose of this audit is to determine whether tested roll-off contractor billings and filings were
correct; whether tested remittances were correctly calculated, received timely and accurately recorded
by the City; and whether the contractor was compliant with designated sections of the City Code and
related Ordinances.
SCOPE
1. Confirm that the roll-off contractor maintained sufficient books and records to verify that tested
billings were correct; their gross receipts were correctly calculated and supported the monthly
fees submitted to the City.
2. Confirm that the roll-off contractor is timely submitting their monthly reports of gross receipts
along with their corresponding full remittances to the City.
3. Confirm that the roll-off contractor timely obtained their required annual business tax receipts
during the audit period.
4. Confirm that the roll-off contractor has complied with City Code Section 90-278's reporting
requirements during the audit period.
5. Confirm that the roll-off contractor has obtained the required insurance in adherence with City
Code Section 90-196 during the audit period.
6. Confirm that tested monthly roll-off fee returns were accurately recorded in the City's Financial
System.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding-City Invoice #70317 for$100.00 Issued on October 15, 2015 was Not Paid Until May
30, 2019 but the Roll-Off Contractor Incorrectly Received their 2016117 and 2017118 Business
Tax Receipts in Contradiction to City Code Section 90-226's Terms
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Internal Audit Report
J & 0 Garcia Enterprises Corp . Roll-off Fee Revenues Audit
July 23 , 2019
City Code Section 90-226 states" In order to effectively provide for the collection of the permit
fee by the licensed contractor to the City, any person seeking to renew his/her annual licensed
pursuant to the provisions of Chapter 102, Article V, in addition to the requirements contained
therein , shall provide to the finance director evidence of payment of all outstanding permit fees ,
fines and other charges as a condition to reissuance or renewal of the business license .". J &
0 Garcia Enterprises Corp. was issued the following violation by the City's Code Compliance
Department:
J & 0 Garcia Enterprises Corp.
Fiscal Invoice
Date Issued Year Number Amount Description
10/15/2015 2015/16 70317 $100 .00 Sanitation Violation
Upon notification by Internal Aud it, the roll-off contractor paid this outstanding ba lance in full on
May 30, 2019 . Despite this late payment of invoice #70317 , J & 0 Garcia Enterprises Corp.
was incorrectly issued its 2016/17 and 2017/18 business tax receipts by the Finance
Department's Licensing Section on October 1, 2016 and September 29, 2017 respective ly.
Due to zero bus iness activity in the City of Miam i of Beach, they did not renew the ir current
year's business tax receipt.
Recommendation( s ):
The Licensing Section should not issue business tax rece ipts to businesses such as J & 0
Garcia Enterprises Corp . that owe monies to the City as stated in City Code Section 90-226 .
Management Response (Finance Department):
J & 0 Garcia Ente r prises Co rp. paid for their 2016/17 and 2017/18 business tax receipt. The
2016/17 fiscal year business tax receipt was automatically made active upon payment by the
customer and the 2017/18 fiscal year business tax receipt was released following an automated
review of outstanding monies owed . Upon further review, when the violation for J & 0 Garcia
Enterprises Corp. was converted from Permits Plus to EnerGov, no contact information was
included in the conversion. Additionally, when the City invoice for the violation was created in
Eden, no folio number was added to the record. These extenuating circumstances led to the
automated search on our Lien Research System (LRS) not disclosing the violation .
In order to avoid a similar situation in the future, all Code violations for business tax receipts are
now being linked to their corresponding license. This will ensure roll-off companies owing the
City monies for violations are flagged for business tax receipt matters .
EXIT CONFERENCE
This audit report was e-m ailed to J & 0 Garcia Enterprises Corp. management whereby they agreed to
the contents herein.
F:\OBPI \$AUDIINTERNAL AUD IT FILES \DOC18-19\REPORTS-FINAL\J & 0 Garcia Audit Report 07-2 3-19.doc
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Internal Audit Report
J & 0 Garcia Enterprises Corp. Roll-off Fee Revenues Audit
July 23, 2019
cc: Eric Carpenter, Assistant City Manager
Darrell Caldwell, Sanitation Department Director
John Woodruff, Chief Financial Officer
Manny Marquez, Assistant Director Finance Department
Julio Garcia Milan, Owner, J & 0 Garcia Enterprises Corp.
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