Greener Waste Services, Inc.(9 MIAMIBEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
TO:
FROM:
DATE:
AUDIT:
PERIOD:
Jimmy L. Morales, City Manag~~ ~
James J. Sutler, Internal Audit~
June 21, 2013
Greener Waste Services, Inc. (Greener Waste)
October 2009 to March 2013
INTERNAL AUDIT REPORT
This report is the result of a scheduled audit of the Roll-off Fee Returns for Greener 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 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.
Greener Waste has been operating in the City of Miami Beach since November 2008. Their line
of business is the rental of roll off containers.
BACKGROUND
Previously, Internal Audit conducted an audit of Greener Waste for period of November 2008 to
September 2009. Our audit assessment report dated January 28, 2010 produced an audit
assessment of $628.17 which was paid by Greener Waste.
OVERALL OPINION
Greener Waste has not complied with the City Codes as it relates to reporting requirements for
Roll-off contractors. Gross receipts in the amount of $5,054.00 were not reported resulting in
the owing of $1,480.27 in delinquent roll-off franchise fees (including interest and late filing
charges) to the City.
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 and safety to all who live, work, and play in our vibrant, tropical, historic community.
Internal Audit Report
Greener Waste Services, Inc.
June 12, 2013
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 -Required Reporting
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.
Greener Waste did not file returns to the City of Miami Beach resulting in $5,054.00 of
unreported gross receipts. Greener waste collected franchise fees on Miami Beach
customers and failed to remit these fees. Therefore, Greener Waste owes the City the
amount of $1 ,480.27. (Including interest and late fees) Greener Waste is not in
compliance with the City Code.
The following table summarizes audited gross receipts and the amount due from
Greener Waste for our audit period:
Page 2 of 3
Internal Audit Report
Greener Waste Services, Inc.
June 12, 2013
2009
(Oct-Dec.)
Audited Gross $600.00 Receipts
Less Report 0.00 Gross Receipt
Unreported 108.00 Revenues
Interest 34.56
Late Filing 50.00
Total Due $192.56
Recommendation( s)
2010
(Jan-Dec.)
$959.00
0.00
172.62
37.29
100.00
$309.91
2011 2012 2013
(Jan-Dec.) (Jan-Dec.) (Jan-Dec.) Totals
$1,839.00 $1,656.00 $0.00 $5,054.00
0.00 0.00 0.00 0.00
331.02 298.08 0.00 909.72
44.70 4.00 0.00 120.55
200.00 100.00 0.00 450.00
$575.72 $402.08 0.00 $1,480.27
Greener Waste must remit the amount of $1 ,480.27. All subsequent roll-off fees return
should be filed in a timely manner and remit any franchise tax due.
2. Finding -Required Reporting
Greener 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
Roll-off container or construction dumpster." Greener 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.
EXIT CONFERENCE
Audit findings were e-mailed on June 5, 2013 to Greener Waste. We confirmed their agreement to
our findings on June 12, 2013.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC012-13\REPORTS -AUDIT FINAL REPORT\GREENER.doc
cc: Eric Carpenter, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Daniel R. Guanche, (President of Greener Waste, Inc.)
Page 3 of 3