OIG No. 20-08: Sanitation Audit of World Waste Recycling, Inc. Roll-off Fee Revenues
April 17, 2020
TO: Honorable Mayor and Members of the City Commission
FROM: Joseph Centorino, Inspector General
RE: World Waste Recycling, Inc. Roll-off Fee Revenues Audit
OIG No. 20-08
Executive Summary
Attached is the Office of the Inspector General’s audit of the of the roll-off fees charged,
collected and remitted by World Waste Recycling, Inc. In addition, their compliance with
selected provisions in the City Code concerning their providing annual business tax
receipts, filing required reports, etc. were also reviewed. This audit was originally
completed by the former Office of Internal Audit on September 30, 2019 and sent to the
City Administration for review but was apparently misplaced and not returned to the Audit
office. Inasmuch as the Office of Internal Audit has now been subsumed within the Office
of the Inspector General (OIG), the final updated report is being released as an OIG audit.
World Waste Recycling, Inc. 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 October 1, 2017 through July 31, 2019 audit period. Despite these positive results,
the following shortcomings were noted during testing that need corrective action:
1. World Waste Recycling, Inc. did not timely submit their list of accounts in
adherence with City Code Section 90-278(3); however, a listing of customer names
was provided during the audit.
2. World Waste Recycling, Inc. has not filed its 2018 and 2019 annual statements of
gross receipts prepared by a Certified Public Accountant as required by City Code
Section 90-278(4) prior to the issuance of this final report.
We would like to personally thank the applicable employees of World Waste Recycling,
Inc. and the Sanitation and Finance Departments for their cooperation and assistance
during this audit process.
Page 1 of 4
: Honorable Mayor and Members of the City Commission
Joseph Centorino, Inspector General
April 17, 2020
World Waste Recycling, Inc. Roll-off Fee Revenues Audit
OIG No. 20-08
October 1, 2017 through July 31, 2019
This report is the result of a scheduled audit of the roll-off fees charged, collected and remitted by
World Waste Recycling, Inc. In addition, their compliance with selected provisions in the City
Code concerning their providing annual business tax receipts, filing required reports, etc. were
also reviewed. This audit was originally completed on September 30, 2019 but the report was
apparently misplaced when sent to the City Administration for review, which has resulted in the
delay in its release.
INTRODUCTION
A roll-off is defined as a container with a minimum capacity of ten (10) cubic yards designed to be
transported by a motorized vehicle. They are typically used for the purpose of removing
construction debris, which includes rock, metal and other materials used in connection with a
construction project or for the removal of large quantities of trash and bulky waste.
Fourteen (14) roll-off companies currently possess business tax receipts authorizing them to
operate within the City’s boundaries. They are required to abide by the terms outlined in the City
Code, which include the remittance of roll-off fees amounting to 18% of the contractor’s total
applicable Miami Beach gross receipts. City Code Section 90-221 defines gross receipts as the
entire amount of fees collected by the contractor (whether wholly or partially collected) for solid
waste collection and disposal within the City, excluding any taxes, and gross receipts from
servicing roll-off and portable containers. Unpaid fees are subject to penalties of 10% per month
up to a maximum of 50%, plus interest of 1% per month during the audit period.
Monthly reports are to be submitted to the City’s Finance Department by the end of the month
subsequent to the month in which the gross receipts were generated. For example, the report for
October 2018 was due by November 30, 2018. 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, prepared by an independent certified public
accountant.
Final Audit Report
World Waste Recycling, Inc. Roll-off Fee Revenues Audit
April 17, 2020
Page 2 of 4
The following table summarizes the gross receipts received from the company’s Miami Beach
roll-off transactions and the corresponding amount of fees paid during the stated twenty-two (22)
month audit period:
2017
Oct.-Dec.
2018
Jan-Dec.
2019
Jan-Jul. TOTAL
Audited Receipts $165,184.56 $231,766.31 $131,677.30 $528,628.17
Roll-Off Fees Due (18%) $29,733.22 $41,717.94 $23,701.91 $95,153.07
BACKGROUND
Previously, an audit of World Waste Recycling, Inc. was conducted for the period of August 1,
2015 to September 30, 2017. The audit report dated January 17, 2018 determined that tested
roll-off fees were properly reported, and no additional monies were owed to the City.
OVERALL OPINION
World Waste Recycling, Inc. 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 October 1,
2017 through July 31, 2019 audit period. Despite these positive results, the following
shortcomings were noted during testing that require corrective action:
• World Waste Recycling, Inc. did not timely submit its list of accounts as required by City
Code Section 90-278(3); however, a listing of customer names was provided during the
audit.
• World Waste Recycling, Inc. has not filed its 2018 and 2019 annual statements of gross
receipts prepared by a Certified Public Accountant as required by City Code Section 90-
278(4) prior to the issuance of this final report.
PURPOSE
The purpose of this audit is to determine whether tested roll-off contractor filings were correct;
whether tested remittances were correctly calculated, timely received, 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 World Waste Recycling, Inc. maintained sufficient books and records to verify
that its billings were correct; and gross receipts were correctly calculated based on the
monthly fees submitted to the City.
2. Confirm that the roll-off contractor is timely submitting the monthly reports of gross receipts
along with its corresponding full remittances to the City.
Final Audit Report
World Waste Recycling, Inc. Roll-off Fee Revenues Audit
April 17, 2020
Page 3 of 4
3. Confirm that the roll-off contractor timely obtained its required annual business tax receipts
during the audit period.
4. Confirm that the roll-off contractor complied with reporting requirements under City Code
Section 90-278 during the audit period.
5. Confirm that the roll-off contractor obtained the required insurance as required by 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 – WORLD WASTE RECYCLING, INC. DID NOT TIMELY SUBMIT ITS
REQUIRED LIST OF ACCOUNTS IN COMPLIANCE WITH CITY CODE SECTION 90-
278(3)
City Code Section 90-278(3) states “Each contractor shall provide the city manager with
a current list of the names and addresses of each account, upon initial application, and
upon any application for renewal, of its permit, the frequency of service, and 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. No property owner may share an account
with another property owner.” Testing determined that World Waste Recycling, Inc. did
not provide the City Manager with this list of accounts during the audit period; however, it
was provided upon request to Office of the Inspector General (OIG) staff. This information
was then used to mail confirmation letters to the identified customers to help verify the
amount of reported gross receipts. The corresponding analysis of all completed and
returned confirmation letters did not identify any material differences.
Recommendation (s)
World Waste Recycling, Inc. should comply with the requirements of City Code Section
90-278(3) by timely submitting its lists of accounts to the City Manager.
2. Finding – WORLD WASTE RECYCLING, INC. HAS NOT FILED ITS 2018 AND 2019
ANNUAL STATEMENTS OF GROSS RECEIPTS PREPARED BY A CERTIFIED PUBLIC
ACCOUNTANT AS REQUIRED BY CITY CODE SECTION 20-278(4) PRIOR TO THE
ISSUANCE OF THIS FINAL REPORT
City Code Section 90- 278(4) states "…Contractors having annual gross receipts reported
to the city over $200,000.00 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 the city) certified by an independent certified public accountant, reflecting gross
receipts within the city for the preceding fiscal year.” World Waste Recycling, Inc.
exceeded the threshold amount for requiring certified statements of gross receipts for the
2018 calendar year, but the required document was not submitted. In addition, OIG staff
verified that the 2019 statement of gross receipts similarly was not submitted prior to the
issuance of this final report.
Final Audit Report
World Waste Recycling, Inc. Roll-off Fee Revenues Audit
April 17, 2020
Page 4 of 4
Recommendation(s)
World Waste Recycling, Inc. should comply with the requirements of City Code Section
90-278(4) by timely submitting its certified annual statement of gross receipts for each
year that exceeds the designated threshold.
EXIT CONFERENCE
This audit report was e-mailed to World Waste Recycling, Inc.’s management which agreed with
the contents herein.
F:\OBPI\$OIG\INTERNAL AUDIT FILES\DOC19-20\REPORTS - FINAL\World Waste Audit Report 04-10-2020.docx
cc: Eric Carpenter, Assistant City Manager
Bradford Kaine, Sanitation Director
John Woodruff, Chief Financial Officer
Melissa Rodriguez, Director of World Waste Recycling, Inc.
Audit conducted by: Carmin Dufour, former Tax Auditor
Juan Ospina, Tax Auditor
Audit reviewed by: Mark D. Coolidge, Chief Auditor