08 - CR&R AUDITCOSTA MESA SANITARY DISTRICT
Protecting our community’s health by providing solid waste and sewer collection services cmsdca.gov COSTA MESA SANITARY DISTRICT . . .an Independent Special District Memorandum To: Operations
Committee From: Scott Carroll, General Manager Date: September 18, 2012 Subject: CR&R Audit Summary According to Section 41 of the contract with CR&R Environmental Services, the District
has the right to audit any facet of CR&R’s performance that includes access rights to CR&R’s facility and equipment, books and records relating to the business operations and the right
to demand an independent certified audit at CR&R’s cost. Staff Recommendation That the Operations Committee recommend the Board of Directors authorize staff to proceed soliciting an
RFP for auditing services of CR&R Environmental Services. Analysis The purpose of the audit is to verify compliance with the following terms of the contract between CMSD and CR&R. 1.
Verify the accuracy of the additional container revenue distributed to CMSD by CR&R (Section 11.C.3). a. Review source documentation b. Test revenue allocation method c. Review calculations
2. Verify disposal and diversion tonnage reported to CMSD by CR&R and recalculate diversion percentage (Section 30). a. Agree internal reports to reports submitted to CMSD b. Agree reports
submitted to CMSD to Orange County Landfill reports. c. Agree disposal tickets to internal tonnage reports
Board of Directors September 18, 2012 Page 2 of 2 3. Audit Recycling Revenue (Section 34) a. Review source documents and agree to internal revenue reports 4. Document findings Strategic
Element & Goal This item will achieve the objective and strategy of CMSD’s Strategic Plan Element 2.0, which states: Objective: “Our objective is to manage the collection and recycling
of residential trash in the most economical and environmentally friendly way” Strategy: “We will do this by looking for ways to improve efficiencies, achieve high customer satisfaction,
and considering prudent new recycling methods.” Legal Review Not applicable Financial Review The cost to prepare and solicit the RFP is minimal (less than $1,000). The cost to perform
the audit will be paid by CR&R. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the September 18, 2012 Operations Committee
meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not perform the contract performance audit.