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WASTE MANAGEMENT, INC. OF FLORIDA
STATEMENT OF REVENUES COLLECTED AND FRANCHISE FEES
PAID FOR THE FRANCHISE AGREEMENT WITH THE
CITY OF SEBASTIAN, FLORIDA
For The Year Ended December 31, 2017
Carr, Riggs & Ingram, LLC
C A R R 215 Bayeee Drive
RIGGS &
R Melbourne, Florida 32940
■ � I INGRAM (321)255-OD88
CPAs and Advisors (321) 259.8648 (tax)
w .eflcpa,Com
INDEPENDENT AUDITORS' REPORT
To the Management of Waste Management, Inc. of Florida
All
We have audited the accompanying special purpose statement of revenues collected and franchise fees
paid — modified cash basis for the City of Sebastian, Florida's, Franchise Agreement with Waste
Management, Inc. of Florida for the year ended December 31, 2017, and the related notes to the
financial statement.
M Management's Responsibility for the Statement of Revenues Collected and Franchise Fees Paid
Management is responsible for the preparation and fair presentation of this statement of revenues
., collected and franchise fees paid in accordance with the modified cash basis of accounting described in
Note 2; this includes determining that the modified cash basis of accounting is an acceptable basis for
the preparation of the financial statement in the circumstances. Management is also responsible for the
'■ design, implementation and maintenance of all internal control relevant to the preparation and fair
presentation of the statement of revenues collected and franchise fees paid that is free from material
misstatement, whether due to fraud or error.
..
Auditors' Responsibility
Our responsibility is to express an opinion on this statement of revenues collected and franchise fees
paid based on our audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the statement of revenues collected and franchise fees
paid is free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the statement of revenues collected and franchise fees paid. The procedures selected depend on the
a. auditors' judgment, including the assessment of the risks of material misstatement of the statement of
revenues collected and franchise fees paid, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity s preparation and fair
.,, presentation of the statement of revenues collected and franchise fees paid in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit
.. also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the statement of revenues collected and franchise fees paid.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
we
M Opinion
MR In our opinion, the statement of revenues collected and franchise fees paid referred to above presents
fairly, in all material respects, the revenues collected and franchise fees paid for the Franchise
Agreement Waste Management, Inc. has with the City of Sebastian, Florida for the year ended
M December 31, 2017, in accordance with the modified basis of accounting described in Note 2
Basis of Accounting
We draw attention to Note 2 of the statement of revenues collected and franchise fees paid, which
describes the basis of accounting. The financial statement is prepared on the modified cash basis of
accounting, which is a basis of accounting other than accounting principles generally accepted in
the United States of America. Our opinion is not modified with respect to that matter.
M Emphasis of Matter
As described in Note 1 to the financial statement, the accompanying statement of revenues collected
" and franchise fees paid is prepared for complying with the Solid Waste and Recycling Collection
Agreement with the City of Sebastian, Florida and is not intended to be a complete presentation of the
Company's revenues and expenses. Our opinion is not modified with respect to that matter.
Melbourne, Florida
so April 26, 2018
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Waste Management, Inc. of Florida
Statement of Revenues Collected and Franchise Fees Paid for the Franchise
Agreement with the City of Sebastian, Florida
For the year Ended December 31, 2017
Gross
Revenues
Collected
Franchise Fee
Amount Paid
January 2017
$ 146,249
$ 8,775
$ 8,775
February 2017
55,978
3,359
3,359
March 2017
161,434
9,686
9,686
April2017
146,204
8,772
8,772
May 2017
59,478
3,569
3,569
June 2017
92,660
5,560
5,560
July 2017
207,731
12,464
12,464
August 2017
71,288
4,277
4,277
September 2017
82,733
4,964
4,964
October 2017
215,432
12,926
12,926
November 2017
68,123
4,087
4,087
December 2017
178,635
10,718
10,718
Total
$ 1,485,945
$ 89,157
$ 89,157
The accompanying notes are an integral part of this statement.
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Waste Management, Inc. of Florida
^ Notes to the Statement of Revenues Collected and Franchise Fees Paid for the
Franchise Agreement with the City of Sebastian, Florida
^
NOTE 1: NATURE OF OPERATIONS
^ Waste Management Inc. of Florida (the "Company") is a subsidiary of Waste Management Holdings,
Inc. (a Delaware corporation). The parent is Waste Management, Inc. ("WMI") (a Delaware
corporation). The Company is operated by the local district office located in Vero Beach, Florida,
which oversees the contract.
In June 2013, Waste Management, Inc. of Florida entered into a Franchise Agreement (the
^ "Agreement") with the City of Sebastian, Florida, to provide residential solid waste collection
service, residential recycling collection service, commercial collection service and certain
construction and demolition debris service, for a term of five years. This agreement began July 1,
` 2013, and automatically renews for an additional term ending June 30, 2023. On May 10, 2017 the
automatic renewal was agreed upon and the agreement will expire June 30, 2023. The
_ accompanying statement includes only those revenues and expenses applicable to the Agreement
(see Note 3).
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statement was prepared for the purpose of complying with Article 13.2
OR of the Agreement. The accompanying statement has been prepared in accordance with accounting
principles generally accepted in the United States of America.
no Financial Statement Presentation
Revenues under the Agreement are recognized upon collection of payment for services rendered
^ (i.e., modified cash basis of accounting).
^ NOTE 3: BASIS OF REVENUES AND FRANCHISE FEES APPLICABLE TO THE AGREEMENT
The Franchisee's results of operations include the operations accounted for under the Agreement
` as well as the operations accounted for under other non-exclusive solid waste collection contracts.
The accompanying statement of revenues collected and franchise fees paid includes only those
revenues and franchise fees applicable to the Agreement.
r
Franchise fees are calculated in accordance with the Agreement as 6%of revenues collected.
NOTE 4: SUBSEQUENT EVENTS
Subsequent events have been reviewed through the date of the auditors' report, which is the date
the statement of revenues collected and franchise fees paid was available to be issued.
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