Dumpster Services, Inc.e MIAMIBEACH
BUDGET At'-ID PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA:
FROM:
DATE:
AUDIT:
PERIOD:
Jorge M. Gonzalez, City Manager
Kathie G. Brooks, Budget and ~~1..2irfo ance Improvement Director
James J. Sutter, Internal Audit"
March 05, 2008
Dumpster Services, Inc. (Dumpster Services)
August 2006 to January 2008
-
. This report is the result of a scheduled audit of the roll off fee returns for Dumpster Services, Inc.
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.
Dumpster Services, Inc. has had a license to do business in the City of Miami Beach since August
2006. Their line of business is the rental of roll off containers. Approximately thirty companies
currently possess occupational licenses to operate roll off 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 equaling 16% of Miami Beach gross receipts to the City's Finance Department by the
end of the subsequent month, filing various reports, maintaining sufficient insurance, etc.
OVERALL OPINION
Dumpster Services has not complied with certain provisions of the City Code's during the audit. As
a result, gross receipts were not reported and the franchise fees were not paid to the City. The
following items were noted during audit:
• Gross receipts in the amount of $6,438.00 were not reported. Therefore, Dumpster Services
owes the City $1,379.60 in franchise fees and interest.
• Dumpster Services has submitted the certificate of liability insurance.
• Dumpster Services has not filed a list of accounts and the required CPA statement of gross
receipts.
PURPOSE
The purpose of this audit is to determine whether all roll off waste contractor billings were correct,
and whether all City revenues were correctly calculated, received timely and accurately recorded by
the City, and the contractor was in compliance with designated sections of the City Code and related
Ordinances.
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Dumpster Services, Inc.
March 05, 2008
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSE
1. Finding -Unreported Gross Receipts
City Code Section 90-221 defines gross receipts as "the entire amount of the fees collected
by the licensee, exclusive of taxes as provided by law, whether wholly or partially collected,
within the city, for solid waste removal and disposal". Therefore, all monies collected by the
roll off waste contractor from Miami Beach service addresses, including dumpster , dump
fees, load of trees, over load, rubbish removal and fuel surcharges should be included in
reported gross receipts.
Out of$ 14,038.00 audited gross receipts, Dumpster Services paid the City of Miami Beach
$1 ,216.00 in franchise fees for $7,600.00 in reported gross receipts. Dumpster Services
collected an additional $6,438.00 in gross receipt fees for roll off rentals. Dumpster Services
did not report these gross receipts for the services performed within the city limits in
compliance with the City Code.
The following table summarizes the amount due from Dumpster Services for our audit
period: ·
2006 2007 2008 TOTAL
(Aug to Dec) (Jan to Dec) (Jan)
Audited Gross Receipts $864.00 $10,310.00 $2,864.00 $14,038.00
Less Report Gross (400.00) (4,800.00) (2,400.00) (7,600.00) Receipt
Unreported Revenues 464.00 5,510.00 464.00 6,438.00
Roll off fees due 74.24 881.60 74.24 1,030.08
Interest 9.13 40.39 0 49.52
Late fees 0 300.00 0 300.00
Total Due $83.37 $1,221,99 $74.24 $1,379.60
Recommendation ( s)
Dumpster Services should remit the amount of $1,379.60. Any past due monthly franchise
fee returns and corresponding late charges occurring outside the audit period should also be
remitted to the city as soon as possible.
2. Finding -Required Reporting
Dumpster Services did not submit the following documents in accordance with the listed City
Code sections during the audit period:
a. 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
Roll off container or construction dumpster." Dumpster Services 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
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Dumpster Services, Inc.
March 05, 2008
off container. However, a listing of customer names was provided during the audit.
b. Section 90-278 (4) states "The licensee shall on or before 30 days following the close
of its fiscal year deliver to the finance director and the city manager a statement of its
annual gross receipts generated from accounts within the city certified by an
independent certified public accountant reflecting gross receipts within the city for the
preceding fiscal year". Dumpster Services did not provide a statement of its annual
gross receipts generated from accounts within the city certified by an independent public
accountant during the audit period.
Recommendation(s)
Dumpster Services must comply with the designated sections of the City Codes and submit
timely lists of accounts, certified annual statements of gross receipt.
EXIT CONFERENCE
Audit findings were e-mailed on 03/05/08 to Christian Johnston, Owner of Dumpster Services, Inc.
We confirmed his agreement to our findings on 03/05/08.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC07-08\REPORTS-\DUMPSTER SERVICES DRAFT REPORT.doc
cc: Robert Middaugh Jr., Assistant City Manager
Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Christian Johnston, Dumpster Services, Inc. (Owner)
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