Triple Waste ServicesJ\1\IAMIBEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA:
FROM:
DATE:
Jorge M. Gonzalez, City Manager / ~
Kathie G. Brooks, Budget and~Performance Improvement Director;(jZ>>
James J. Sutter, Internal Auditos ~/}/,1// " ·
/YJfll
Se~ember24,2009 ·
AUDIT:
PERIOD:
Triple Waste Services Inc. (Triple Waste)
December 2007 to August 2009
This report is the result of a scheduled audit of the Roll-off Fee Returns for Triple Waste, 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 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 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%.
Triple Waste has been operating in the City of Miami Beach since December 2007. Their line of
business is the rental of roll off containers.
OVERALL OPINION
Triple Waste has not fully 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 in the amount of $58,497.20 were not reported resulting in the owing of
$11 ,87 4.15 in delinquent roll-off franchise fees (including interest and late filing charges) to
the City.
• Triple Waste has submitted the certificate of liability insurance.
• Triple Waste has not filed list of accounts upon renewal. A listing of accounts was provided
during the audit.
vV~· ore commifled to providing oxcellenf public scm•ico and safetY' to o/1 who live, work, and pia}' in our vibronf, tropical, historic communi f)'.
Internal Audit Report
Triple Waste, Inc.
September 24, 2009
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 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 21 months audited gross receipts, Triple Waste filed returns for 8 months to the City
of Miami Beach resulting in franchise fees for $14,304.90 reported gross receipts. Triple
Waste did not file returns for 13 months. As a result an additional amount of $58,497.20 in
gross receipts for roll-off waste removal services within the city limits was not reported.
Therefore, Triple Waste is not in compliance with the City Code.
The following table summarizes audited gross receipts and the amount due from Triple
Waste for our audit period:
2007 2008 2009 TOTAL
(Dec) (Jan-Aug)
Audited Gross Receipts $420.45 $66,403.00 $5,978.65 $72,802.10
Less Report Gross (420.45) (12,054.45) (1 ,830.00) (14,304.90) Receipt
Unreported Revenues 0.00 54,348.55 4,148.65 58,497.20
Roll-off fees due 0.00 9,782.74 746.76 10,529.50
Interest 0.00 887.20 7.45 894.65
Late Filing 0.00 450.00 0.00 450.00
Total Due $0.00 $11,119.94 $754.21 $11,874.15
Recommendation( s)
Upon notification of our audit finding, Triple Waste paid $10,529.50 for the unreported gross
receipts during the audit. The late fees and interest totaling $1,344.65 should be billed by
the City and paid by Triple Waste. All subsequent roll-off fees return should be filed in a
timely manner and remit any franchise tax due.
2. Finding -Required Reporting
Triple Waste did not submit the following documents in accordance with the listed City Code
sections during the audit period:
Page 2 of 3
Internal Audit Report
Triple Waste, Inc.
September 24, 2009
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 setvice, the permit number and capacity of each Roll-off
container or construction dumpster as per account and the address setviced by each
Roll-off container or construction dumpster." Triple Waste 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.
b. City Code Section 90 -1961ists the insurance coverage that must be maintained by Roll-
off waste contractors. Triple Waste provided proof of the required insurance during the
audit.
Recommendation(s)
Triple Waste must comply with the designated sections of the City Codes by submitting a list
of accounts annually and insurance.
EXIT CONFERENCE
Audit findings were e-mailed on September 22, 2009 to Triple Waste. We confirmed their
agreement to our findings on September 23, 2009.
JJS: CD
Audit performed by Carmin Dufour
F:\obpi\$AUD\DOCOB-09\REPORTS-AUDIT FINAL REPORT\TRIPLE WASTE.doc
cc: Fred Beckmann, Public Works Director
Alberto Zamora, Sanitation Director
Patricia Walker, Chief Financial Officer
Sandra Gosine, (V.P for Triple Waste Services, Inc.)
Page 3 of 3