In 1998, the County of Santa Barbara entered into a 10-year agreement with a solid waste contractor for the processing and marketing of residential commingled recyclables. The contractor and the County share revenues from the sale of these recyclable materials. In 2005, the County notified the contractor regarding concerns about the reported recyclable material prices used in revenue sharing calculations, and the contractor subsequently restated its revenue sharing calculations for a 4-year period.
HF&H Solutions
The County of Santa Barbara retained HF&H to review the supporting documentation, assumptions and methodologies used in preparing these revised reports. The scope of work for the review included the following:
Reviewing the reasonableness of the contractor’s procedures for determining the County’s share of residential commingled recyclable revenue sharing; and,
Reviewing the accuracy of the available supporting documentation for the contractor’s revenue sharing payments.
Results
The HF&H revenue sharing review from the inception of the contract through 2004 found that the contractor underpaid the County for its share of the recyclables revenue by more than $1 million.
County of Santa Barbara