Double Waste 12-12-2016BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
TO:
VIA:
FROM:
DATE:
AUDIT:
PERIOD:
Jimmy L. Morales, City Manager
Cintya Ramos, Budget and Pe~orm
James J. Sutter, Internal Auditor .
December 12, 2016
Double Waste Services, Inc.
March 2015 to October 2016
INTERNAL AUDIT REPORT
ment Director ~
This report is the result of a scheduled audit of the Roll-Off Fee Returns for Double Waste
Service, Inc., (Double Waste).
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 two companies currently possess business tax receipt to operate Roll-offs
within the City's boundaries. In return, 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.
Double Waste has been operating in the City of Miami Beach since June 2008. Their line of
business is the rental of roll off containers.
BACKGROUND
Previously, Internal Audit conducted an audit of Double Waste for period of January 2013 to
February 2015. Our audit report dated May 12, 2015 produced no assessment. This audit was
schedule as a result of our division's monitoring of monthly franchise fees filings according to
Sec. 90-278. 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.
OVERALL OPINION
A review of the company's invoices showed that franchise fees were charged and collected
throughout the audit period. Double Waste 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:
We are committed to prov1ding excellent publtc servtce and safety to all who live, work, and play in our vibrant, tropical, historic community.
Internal Audit Report
Double Waste Services, Inc.
December 12, 2016
Audited Receipts
Roll-Off Fees (18%)
2015
March-Dec.
$10,995.00
$1,979.10
2016 TOTAL Jan-Nov.
$11,450.00 $22,445.00
$2,061.00 $4,040.10
Double Waste has not complied with the City Codes as it relates to reporting requirements for
Roll-off contractors. The following items were noted during our audit:
• Double Waste has not filed list of accounts upon renewal. A listing of accounts was
provided during the audit.
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.
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Internal Audit Report
Double Waste Services, Inc.
December 12, 2016
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
Finding -Required Reporting
Double Waste 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 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 Rolf-off container or construction dumpster."
Double Waste 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. However, a listing of customer names was provided during the audit.
Recommendation(s)
Going forward, Double Waste must comply with the designated sections of the City Codes by
submitting reports to the City Manager and Sanitation Director listing of accounts on an annual
basis.
EXIT CONFERENCE
Audit findings were discussed with the auditee on December 1, 2016 and we confirmed their
agreement to our finding.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC16-17 \REPORTS-AUDIT FINAL REPORT\DOUBLE WASTE. doc
cc: Eric Carpenter, Assistant City Manager
Alberto Zamora, Sanitation Director
Allison Williams, Chief Financial Officer
Francy Rivero, (Owner for Double Waste Services, Inc.)
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