Load Away, LLC 08-23-17MIAMI BEACH
O FFI CE O F IN TERNAL A UDIT
Te l. 305-673-702
TO :
FRO M :
DATE :
AUDIT :
PE RIO D:
Jimmy L. Morales, City Manage¥fA/5
James J. Sutter, Internal Auditor Jf ·
August 23 , 2017
Load It Away, LLC.
April 2014 to May 2017
INTERNAL AUDIT REPORT
This report is the result of a regular scheduled audit of the Roll-Off Fee Returns for Load It Away , 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 twenty two 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 .
Load It Away has been operating in the City of Miami Beach since June 2013 . Their line of business is
the rental of Roll-offs , Equipment Services, Recovered Recycle Materials , Scrap Metal , On Call Site
Cleanup , Solid Waste, Bulk Waste and Yard Waste.
BACKGROUND
Previously, on April 11 , 2014 an audit was performed at Load It Away establishment. Load It Away has
complied with the 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 .
OVERALL OPINION
Load It Away has not complied with the provisions of the City Code's during the audit period . The
following item were noted during our audit:
• Gross receipts in the amount of $70 ,706 .19 were not reported . Therefore , Load It Away owes
the City $17 ,399.21 in roll-off franchise fees (including penalties & interest).
• Load It Away has not filed list of accounts , however a listing of customer names was provided
during the audit.
We ore commilled to pro viding excellent pub lic service and safety lo all who live , work , and play in our vibrant , tropica l historic community .
Internal Audit Report
Load It Away, LLC.
August 23, 2017
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.
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 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 fuel I environmental
surcharge, overload, delivery, dry run, tire surcharge, disposal, and live load wait time, should
be included in reported gross receipts. Out of 39 months audited gross receipts, Load It Away
did not file 7 months returns to the City of Miami Beach resulting in $70, 706.19 of unreported
gross receipts. Therefore, the amount of $12, 727.11 in franchise fees for roll-off waste removal
services within the city limits was not reported. The owner of Load It Away stated "due to lack
of payments not received from customers in a timely manner, the company fell behind by not
remitting the monthly gross receipts reports and franchise fees to the City".
Page 2 of 4
Internal Audit Report
Load It Away, LLC.
August 23, 2017
The following table summarizes audited gross receipts and the amount due from Load It Away
for our audit period:
2014 2015 2016 2017 TOTAL
Apr-Dec. Jan-Dec. Jan-Dec. Jan-Jun
Audited
Gross $58 694.36 $100 845.89 $104 215.90 $42 230.16 $305 986.31
Less Report
Gross 58 694.36 100 845.89 75 739.87 0.00 235 280.12
Unreported
Revenues 0.00 0.00 (28 476.03) (42 230.16) (70 706.19)
Roll-off fees
due 0.00 0.00 5 125.68 7 601.43 12 727.11
Interest 0.00 0.00 471.30 218.01 689.31
Penalties 0.00 0.00 2 562.84 1 419.95 3 982.79
Total Due 0.00 0.00 $8 159.82 $9 239.39 $17 399.21
*Roll-offs franchise fees in the amount of $12,727.11 were paid during the audit.
Recommendation(s)
Roll-offs franchise fees in the amount of $12,727.11 were paid during the audit. However,
interest and penalties amounting to $4,672.10 should be remitted. In addition, Load It Away
must file returns to the City on a monthly basis.
2. Finding -Required Reporting
Load It Away 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 seNice, the permit number and capacity of each Roll-off container or construction dumpster
as per account and the address seNiced by each Roll-off container or construction dumpster."
Load It Away 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.
Recommendation(s)
Load It Away must comply with the designated sections of the City Codes by submitting
reports to the City Manager and the Sanitation Director listing of accounts.
EXIT CONFERENCE
Audit findings were discussed with the auditee on August 23, 2017 and we confirmed their
agreement to our findings.
Page 3 of 4
Internal Audit Report
Load It Away, LLC.
August 23, 2017
JJS: CD
Audit performed by Carmin Dufour
F:\AUD\DOC016-17\FINAL AUDIT REPORT FOR LOAD IT AWAY .doc
cc: Eric Carpenter, Director of Public Works
Alberto Zamora, Sanitation Director
John Woodruff, Chief Financial Officer
Gaetano. Alessi JR., (Owner of Load It Away, LLC.)
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