Universal Waste ServicesMIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA:
FROM:
Jorge M. Gonzalez, City Manager . ~
Kathie G. Brooks, Budget and Perfo~.a a"nn~ce .. provement Director .-~tr
James J. Sutter, Internal Auditoyp
DATE:
AUDIT:
PERIOD:
September 29, 201 0
Universal Waste Services, LLC. (Universal Waste)
September 2009 to August 2010
This report is the result of a scheduled audit of the Roll-off Fee Returns for Universal Waste
Services, LLC.
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 demonstrating that they
operate Roll-offs within the City's boundaries. 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%.
Universal Waste has been operating in the City of Miami Beach since August 2009. Their line
of business is the rental of roll off containers.
OVERALL OPINION
Universal 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. Gross receipts for the
month of November 2009 and July 2010 were not reported to the City resulting in the owing of
$208.78 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.
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Internal Audit Report
Universal Waste, LLC
September 29, 2010
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 eleven months reviewed during our audit period, Universal Waste had gross
receipts within the City for the two months of November 2009 and July 2010. For the
remaining months, there were no other collected gross receipts within the City. The
gross receipts for these two months amounted to $869. Therefore, the amount of
$156.46 in franchise fees was not remitted and they were out of compliance with the City
Code.
Page 2 of 3
Internal Audit Report
Universal Waste, LLC
September 29, 2010
The following table summarizes audited gross receipts and the amount due from
Universal Waste for our audit period:
2009 2010 TOTAL
(Sept-Dec.) (Jan-Aug)
Audited Gross Receipts $319.23 $550.00 $869.23
Less Report Gross 0.00 0.00 0.00 Receiot
Unreported Revenues 319.23 550.00 869.23
Roll-off fees due 57.46 99.00 156.46
Interest 2.32 0.00 2.32
Late Filing 50.00 0.00 50.00
Total Due $109.78 $99.00 $208.78
Recommendation( s)
Universal Waste must remit the amount of $208.78. All subsequent roll-off fee return
should be filed in a timely manner and remit any franchise tax due.
EXIT CONFERENCE
Audit findings were e-mailed on September 24, 2010 to Universal Waste Services, LLC. We
confirmed their agreement to our findings on September 29, 2010 and we received a check for
the amount owed.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOC09-10\REPORTS-AUDIT FINAL\UNJVERSAL WASTE.doc
cc: Jorge Gomez, Assistant City Manager
Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Paul Badamo (Owner of Universal Waste Services, LLC)
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