Trash Be Gone 08-23-2017MIAMI BEACH
OFFICE OF INTERNAL AUDIT
Tel . 305-673-702
TO :
FROM :
DATE :
AUDIT :
PERIOD:
Jimmy L . Morales, City Manager /J ~
James J. Sutter, Internal Audit ~
August 23, 2017
Trash Be Gone , Inc.
October 2016 to May 2017
INTERNAL AUD IT REPORT
This report is the result of a regular scheduled audit of the Roll-Off Fee Returns for Trash Be Gone,
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 rece ipt 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.
OVERALL OPINION
This audit was schedule as a result of our department monitoring of monthly franchise fees filings
according to Sec. 90-278. This account had not been recently filing returns . Historically the lack of
non-filing of franchise returns has led to the discovery of not reporting revenues to the City. Therefore ,
we scheduled our audit to confirm whether this account is in compliance.
Trash Be Gone 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 $10,746.40 were not reported . Therefore , Trash be Gone
owes the City $2 ,641.04 in roll-off franchise fees (including penalties & interest charges).
PURPOSE
The purpose of th is 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 o re committed to p ro vid ing excellent p ub li c service and sa fe ty to a ll w ho live , work, and p lo y in o ur vib rant, trop ical, his toric commun ity.
Internal Audit Report
Trash Be Gone, Inc.
August 23, 2017
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 Jaw, 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 7 months audited gross receipts, Trash be Gone
did not file returns to the City of Miami Beach resulting in $10,746.40 of unreported gross
receipts. Therefore, the amount of $1,934.35 in franchise fees for roll-off waste removal
services within the city limits was not reported. The owner of Trash Be Gone stated that the
company was not aware that monthly gross receipts reports and franchise fees had to be
remitted to the City.
The following table summarizes audited gross receipts and the amount due from Trash Be
Gone Roll-off for our audit period:
Page 2 of 3
Internal Audit Report
Trash Be Gone, Inc.
August 23, 2017
Audited Gross Receipts
Less Report Gross Receipt
Roll-off Fees Due
Interest
Penalties
Total Due
Recommendation(s)
2016
Oct.-Dec.
$3,842.00
3,842.00
691.56
50.03
345.78
$1,087.37
2017
Jan-Jun. TOTAL
$6,904.40 $10,746.40
6,904.40 10,746.40
1,242.79 1,934.35
39.56 89.59
271.32 617.10
$1,553.67 $2,641.04
Going forward, Trash Be Gone must report all gross receipts and franchise fees on a monthly
basis as per the City code. This includes but is not limited to dump fees, extra month fees, fuel
surcharges, dry run, overload, relocation and waiting time charges.
EXIT CONFERENCE
Audit findings were e-mailed on July 19, 2017 to Trash Be Gone. We confirmed their agreement to our
findings on July 25, 2017.
JJS: CD
Audit performed by Carmin Dufour
F:\AUD\DOC016-17\FINAL REPORT FOR TRASH BE GONE .doc
cc: Eric Carpenter, Director of Public Works
Alberto Zamora, Sanitation Director
John Woodruff, Chief Financial Officer
Sergio Salazar, President for Trash Be Gone, Inc.
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