Tripple Waste, Inc.<9 MIAMIBEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
TO:
FROM:
DATE:
AUDIT:
PERIOD:
Kathie G. Brooks, Interim City M~na er
James J. Sutter, Internal Auditor 'Ar--P",r
September 11, 2012
Tripple Waste, Inc. (Tripple Waste)
September 2009 to July 2012
INTERNAL AUDIT REPORT
This report is the result of a scheduled audit of the Roll-off Fee Returns for Trip pie Waste Service,
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.
Approximately thirty 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. Effective October 2008 the Roll-off franchise fee was increased from 16%
to18%.
Tripple Waste has been operating in the City of Miami Beach since December 2007. Their line of
business is the rental of roll-off containers.
Background
Previously, Internal Audit conducted an audit of Tripple Waste for period of December 2007 to
August 2009. Our audit report dated September 24, 2009 produced an audit assessment of
$11 ,87 4.15. This assessment was attributed to under reporting of Roll-off revenues. Tripple Waste
has paid the total amount of the audit assessment.
OVERALL OPINION
Tripple Waste has not fully complied with the City Codes as it relates to reporting requirements for
Roll-off contractors. As a result, a number of gross receipts were miscalculated and the franchise
fees were not paid to the City. The following items were noted during the audit:
• Gross receipts in the amount of $1,216.41 were not reported. Therefore, Tripple Waste
owes the City $218.95 in franchise fees. (including interest and late filing charges)
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.
We are committed to providing excellent public service ond safety to all who live, work, and play in our vibrant, tropical, historic community.
Internal Audit Report
Tripple Waste, Inc.
September 11, 2012
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.
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 dump fees, fuel
surcharges, dry run and overload should be included in reported gross receipts.
Out of 39 months audited gross receipts, Tripple Waste incurred gross receipts in 15 months
totaling to $11,953.70 within the City of Miami Beach and paid franchise fees to the City.
Additional gross receipts in the amount of $1,216.41 were found within 6 out of those 15
reported months due to miscalculation on the monthly Roll-off Fee Returns. Therefore, the
amount of $218.95 in franchise fees was not remitted and they were out of compliance with
the City Code.
The following table summarizes audited gross receipts and the amount due from Tripple
Waste for our audit period:
Page 2 of 3
Internal Audit Report
Tripple Waste, Inc.
September 11, 2012
Audited Gross Receipts
Less Report Gross
Receipt
Unreported Revenues
Roll-off fees due
Total Due
Recommendation{ s)
2009 2010
(Sept-Dec.) (Jan-Dec.)
$5,859.00 $3,977.28
(5, 167.49) (3,684.62)
691.51 292.66
124.47 52.68
$124.47 $52.68
2011 2012 TOTAL
(Jan-Dec.) (Jan-Jul.)
$2,226.83 $1,107.00 $13,170.11
($1 ,994.59) (1,107.00) (11 ,953. 70)
232.24 0.00 1,216.41
41.80 0.00 218.95
$41.80 $0.00 $218.95
Tripple Waste should remit the amount of $218.95. All subsequent roll-off fees return
should be filed in a timely manner and remit any franchise tax due.
EXIT CONFERENCE
We had a meeting on 09/10/12 with Tripple Waste. They concurred with our finding and
immediately remitted payment for our assessment.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC011-12\REPORTS-FINAL\TRIPPLE WASTE.doc
cc: Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Sandra Gosine, (President of Tripple Waste Services, Inc.)
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