Reliable Waste Services, Inc.MIAMI,BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
To:
VIA:
From:
Date:
Audit:
Period:
Jorge M. Gonzalez, City Manager
Kathie Brooks, Budget and Pe7~~ce Improvement Director
James J. Sutter, Internal Audita'#'
March 3, 2009 ·
Reliable Waste Services, Inc.
October 2005 to November 2008
This report is the result of a scheduled audit of the Roll-Off Fee Returns for Reliable Waste
Services, Inc. (Reliable 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 equaling 16% of Miami Beach gross receipts to the City's
Finance Department by the end of the subsequent month, filing various reports, maintaining
sufficient insurance, etc.
Reliable Waste has been operating in the City of Miami Beach since June 2003. Their line of
business is the rental of roll off containers.
Background
Previously, Internal Audit conducted an audit of Reliable Waste for period of June 2003 to
September 2005. Our audit report dated August 14, 2005 produced an audit assessment of
$7,737.45. This assessment was attributed to under reporting of roll-off revenues. On January 13,
2006 Reliable paid the total amount of the audit assessment.
A review of the company's invoices showed that franchise fees were charged and collected
throughout the audit period. Reliable Waste's records showed that franchise fees were remitted
timely to the City of Miami Beach. The following gross receipts from roll-off services were reported
and franchise fees paid during the audit period:
Oct-Dec. Jan-Dec. Jan-Dec. Jan-Nov. TOTAL 2005 2006 2007 2008
Audited I Reported Gross $3,452.07 $54,720.60 $83,490.05 $63,006.25 $204,668.97 Receipts
Roll-off Fees (Paid} $552.33 $8,755.30 $13,358.41 $10,081.00 $32,747.04
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Internal Audit Report
Reliable Waste Services, Inc.
March 3, 2009
OVERALL OPINION
Reliable Waste reported all revenues earned in the City, however they did not fully complied with
certain other provisions of the City Code's during the audit period: The following items were noted
during our audit:
• Verified gross receipts were properly reported by Reliable Waste; therefore no additional
fees are owed.
• Reliable Waste has not filed list of accounts upon renewal and the required CPA annual
statement of gross receipts. A listing of accounts was provided during the audit.
• Reliable has submitted the certificate of liability insurance.
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.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding -Required Repoding
Reliable Waste did not submit the following documents in accordance with the listed City
Code sections during the audit period.
a. 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." Reliable Waste did not provide 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 or construction dumpster. However, a listing of customer names was provided
during audit.
b. Section 90-278 (4) states "The licensee shall on or before 30 days following the close
of its fiscal year deliver to the finance director and the city manager a statement of its
annual gross receipts generated from accounts within the city cedified by an
independent certified public accountant reflecting gross receipts within the city for the
preceding fiscal year". Reliable Waste did not provide a statement of its annual gross
receipts generated from accounts within the city certified by an independent public
accountant reflecting gross receipts within the city for the preceding fiscal year.
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Internal Audit Report
Reliable Waste Services, Inc.
March 3, 2009
c. City Code Section 90 -1961ists the insurance coverage that must be maintained by Roll-
off waste contractors. Reliable provided proof of the required insurance during the audit.
Recommendation (s)
Effective October 1, 2008 the ordinance requires that contractors having annual gross
receipts reported to the City over $200,000 shall, on or before 60 days following the close of
their fiscal year, deliver to the Finance Department a statement of annual gross receipts
generated from accounts within the city certified by an independent certified public
accountant reflecting gross receipts within the city for the preceding fiscal year. Reliable
Waste must comply with the designated sections of the City Codes by submitting a list of
accounts annually and submit certified statement of gross receipts providing their annual
returns exceed the required amount.
EXIT CONFERENCE
Audit findings were e-mailed on February 24, 2009 to Norys Altuve, Reliable Waste Services, Inc.
(Owner) We confirmed his agreement to our findings on February 26, 2009.
JJS: CD
Audit performed by Carmin Dufour
F:lobpii$AUD\DOC08-09\ REPORTS-I RELIABLE WASTE AUDIT FINAL REPORT.doc
cc: Robert Middaugh, Acting Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Norys Altuve, Reliable Waste Services, Inc. (Owner)
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