Lopefra Corp.MIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
To:
VIA:
From:
Date:
Jorge M. Gonzalez, City Manager 4._
Kathie G. Brooks, Budget and Performance Improvement Director //
James J. Sutter, Internal Audito~
February 6, 2008
Audit: Lopefra Corp.
Period: January 2004 to September 2007
This report is the result of a scheduled audit of the Roll-Off Fee Returns for Lopefra, Corp. (Lopefra)
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 thirty companies currently possess occupational licenses 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 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.
Lopefra's majority line of business is equipment rental, dump trucks, fill materials, and mason sand. In
addition, Lopefra provides roll-off waste services.
A review of the company's invoices showed that franchise fees were charged and collected throughout
the audit period. Lopefra's records showed that franchise fees were remitted timely to the City of Miami
Beach. In addition, we reviewed and noted no discrepancies with confirmations with Lopefra
customers who paid for roll-off services within the City. The following gross receipts were reported and
fees paid during the audit period.
Jan-Dec Jan-Dec Jan-Dec Jan-Sep TOTAL 2004 2005 2006 2007
Audited I Reported Gross $221,650.00 $187,360.00 $269,625.00 $172,425.00 $851 ,060.00 Receipts
Roll-off Fees (Paid) $35,464.00 $29,977.60 $43,140.00 $27,588.00 $136,169.60
OVERALL OPINION
Lopefra has complied with certain provisions of the City Code's during the audit period. As a result,
gross receipts were reported and franchise fees were paid to the City. The following items were noted
\•Ve ore cornmillod /o providing excollonl public .service ond sofoly /o oil who live, w~;•rk, ond ploy in our vibronl, lropicol, hi.sloric cornrnunily.
Internal Audit Report
Lopefra, Corp.
February 6, 2008
during our audit:
• Verified gross receipts were properly reported by Lopefra; therefore no additional fees are
owed.
• Lopefra has submitted the certificate of liability insurance.
• Lopefra has not filed list of accounts, however a listing of customer names was provided during
the audit.
• Lopefra has not filed the required CPA annual 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.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding -Required Reporting
Lopefra 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." Lopefra did not provide 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 or construction dumpster. However, a listing
of customer names was provided during 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".
Lopefra did not provide a statement of its annual gross receipts generated from accounts
within the city certified by an independent public accountant reflecting gross receipts within
the city for the preceding fiscal year.
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Internal Audit Report
Lopefra, Corp.
February 6, 2008
c. City Code Section 90 -196lists the insurance coverage that must be maintained by Roll-off
waste contractors. Lopefra provided proof of the required insurance during the audit.
Recommendation (s)
Lopefra must comply with the designated sections of the City Codes by submitting reports to the City
Manager and Sanitation Director listing of accounts and certified annual statements of gross receipts.
EXIT CONFERENCE
Audit findings were e-m ailed on 01/25/08 to Rosemary L. Hartigan, In-House Counsel for Lopefra Corp.
We confirmed her agreement to our findings on 02/04/08.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC07-08\REPORTS-\ LOPEFRA CORP. FINAL REPORT.doc
cc: Robert Middaugh Jr., Assistant City Manager
Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Rosemary L. Hartigan, Lopefra Corp. (In-House Counsel)
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