Acme Processor, Inc. (Period 9-1-15 to 30-18) 9-30-18MlAMIBEACH INTERNAL AUDIT REPORT
City of Miami Beach, 1700 Convention Center Drive , Miami Beach , Florida 33139, www.miamibeachfl.gov
Office of Internal Audit
Tel : 305-673-7020
TO:
VIA:
FROM :
DATE :
AUDIT :
PERIOD :
Jimmy L. Morales, City Manager
Mark D. Coolidge, Interim Internal Audio
Carmin Dufour, Tax Auditor vy
September 30, 2018
Acme Processor, Inc.
September 2015 to August 2018
This report is the result of a scheduled audit of Acme Processor, Inc., which recycles used cooking
oils collected from restaurants, to determine their compliance with selected provisions in the City
Code concerning obtaining annual business tax receipts, filing required reports, etc.
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.
Although it is a dynamic number, twenty-two companies currently possess business tax receipts
authorizing them to ~perateroll-offs within the City's boundaries. Tbey are required to abide by the
terms outlined in the City Code which amorig other terms includes the remittance of 18% roll-off fees
of the contractor's total applicable Miami Beach gross receipts with any fees deemed not paid subject
to penalties of 10% per month up to a max imum of 50% plus interest of 1 % per month. The term
gross receipts mean the entire amount of the fees collected by the contractor (whether wholly or
partially collected) for solid waste collection and disposal within the City and including, without
limitation, but excluding any taxes, and gross receipts from servicing roll-off and portable containers.
Monthly reports are to be submitted to the City's Finance Department by the end of the subsequent
month of the gross receipts generated during the previous month within the City. For example,
October 201 ?'s report was due by November 30, 2017; November 201 ?'s report was due by
December 31, 2017 and so on. In addition, the contractor is to deliver to the City's Finance
Department a statement of annual gross receipts generated from accounts within the City for the
preceding fiscal year, certified by an independent certified public accountant.
In addition, Article IV Subdivision Ill of Section 90 states that recycling waste contractors such as
Acme Processors, Inc. must similarly obtain annual business tax receipts, file monthly reports of the
volume of recyclable materials collected by it from each account in the City, etc. Acme Processor,
Inc. has been operating since July 1973. Their primary offices are located at 9950 NW 1161h Way in
Medley, FL.
We ore committed to providing excellent public service and safety to all who live , work, and play in our vibrant, tropical , historic community .
Internal Audit Report
Acme Processor, Inc.
September 30, 2018
OVERALL OPINION
Testing confirmed that Acme Processor, Inc. did not need to remit any roll-off fees to the City as they
only collected and recycled used cooking oils from local restaurants during the thirty-six (36) month
audit period. Although it was subsequently determined that they had obtained their annual business
tax receipts and maintained the required certificate of liability insurance, it was found that they did
not file the required monthly reports detailing the volume of recyclable materials collected from each
account in the City per City Code Section 90-223.
PURPOSE
The purpose of this audit is to determine whether tested billings and filings were correct; whether
tested remittances were correctly calculated, received timely and accurately recorded by the City,
and whether the contractor was compliant with designated sections of the City Code and related
Ordinances.
SCOPE
1. Confirm that Acme Processor, Inc. maintained sufficient books and records to verify that their
billings were correct; their gross receipts were correctly calculated and support the monthly
fees submitted to the City.
2. Confirm that Acme Processor, Inc. is timely submitting the Monthly Reports of Gross Receipts
along with their corresponding full remittances to the City.
3. Confirm that Acme Processor, Inc. timely obtained their required annual business tax receipts
during the audit period.
4. Confirm that Acme Processor, Inc. has complied with City Code Section 90-278's reporting
requirements during the audit period.
5. Confirm that Acme Processor, Inc. has obtained the required insurance in adherence with
City Code Section 90-196 during the audit period.
6. Confirm that tested monthly roll-off fee returns were accurately recorded in the City's
Financial System.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSE
1. Finding -Monthly Returns Detailing the Volume of Recyclable Materials Collected from each
Account in the City were Not Submitted to the Sanitation Department during the Audit Period
City Code Section 90-223 states " ..... Each franchise waste contractor shall deliver to the
finance department, on or before the last day of each month, a true and correct monthly report
of gross receipts generated during the previous month from accounts within the City. This
monthly report shall include the customer names, service addressed, account numbers, and
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Internal Audit Report
Acme Processor, Inc.
September 30, 2018
the actual amount of solid waste and of any recyclable materials collected from each
customer." Testing confirmed that Acme Processor, Inc. did not submit any of these required
monthly reports concerning their recyclable customers and activities in the City during the
audit period.
Recommendation
Going forward, Acme Processor, Inc. should timely remit each month's required report
indicating the volume of recyclable materials picked up from each of their Miami Beach
customers.
EXIT CONFERENCE
This audit report was e-mailed to Acme Processor, lnc.'s management whereby they agreed to the
findings contained herein.
F:\OBPl\$AUD\INTERNAL AUDIT FILES\DOC17-18\REPORTS -FINAL\Acme Processor, Inc. Report 09-30-18.docx
cc: Eric Carpenter, Assistant City Manager
Roy Coley, Public Works Department Director
Ronda McPherson, Interim Sanitation Department Director
John Woodruff, Chief Financial Officer
Mayra Franco, Acme Processor, Inc.
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