§ 6-04 Records and Reporting Requirements.
(a) Definitions. For the purposes of this subchapter, the following terms apply:
(1) The term "payor" shall mean any person who reimburses the broker for any purpose.
(2) The term "customer" means an entity who engages a trade waste broker to either
(i) represent the entity for the purpose of securing trade waste removal by a licensed or registered provider, or
(ii) to analyze the entity's waste stream to recommend a cost efficient means of waste disposal or to make other recommendations with respect to related business practices.
(b) A trade waste broker shall maintain any records concerning its business including but not limited to: bills and purchase invoices (with notations identifying whether the bill or invoice was paid and, if so, the check number and date), deposit slips, copies of checks received from payors, bank statements, cancelled checks, tax returns (copies of Federal, State, and local returns with all supporting schedules), copies of accountants' work papers, insurance policies, petty cash disbursement records, IRS W-2 forms, IRS W-4 forms, IRS 1099 forms, I-9 forms, internal memoranda concerning the trade waste broker's finances or one or more customers or prospective customers of the broker, contracts, copies of cash receipts, documents reflecting electronic fund transfers, written correspondence, contract assignments, waste stream analyses, rate schedules, documents concerning route sales, discount rate lists, documents concerning mergers, acquisitions, subcontracts and asset sales, and all documents supporting, evidencing, or used to create the reports, books, journals, registers, and ledgers that the broker is required to maintain pursuant to this section.
(c) A trade waste broker must provide each payor with a written receipt for all cash payments. These receipts must include the name and address of the broker, the registration number of the broker, the date of the payment, the amount of the payment and the identity of the payor. The broker or the broker's authorized agent must sign the receipt. The broker must then keep a duplicate copy of the receipt as part of its books and records in accordance with the requirements of subdivision (e).
(d) A trade waste broker must not make any payment in excess of one thousand dollars ($1,000) in cash or by check made payable to "Petty Cash". A trade waste broker must not make any check payable to "Cash".
(e) A trade waste broker must maintain a complete and accurate set of books of account reflecting the operation of the broker's business. Such books may be maintained on a computerized accounting system. The books must be in accordance with Generally Accepted Accounting Principles and be kept on either a cash or an accrual basis of accounting. The books must be kept on a quarterly or monthly basis, as provided in this subdivision, and be brought up to date no later than thirty days after the end of each preceding quarter or month. The books shall include the following journals and ledgers:
(1) Cash Receipts Journal showing for each payment received:
(i) The date payment was received;
(ii) The identity of the payor;
(iii) The amount of the payment;
(iv) The check number; and
(v) A brief explanation of the purpose of the payment.
(2) Cash Disbursements Journal showing for each payment made:
(i) The date payment was made;
(ii) The identity of the payee;
(iii) The amount of the payment;
(iv) The check number; and
(v) A brief explanation of the purpose of the payment.
(3) Payroll Journal showing:
(i) The name of the employee;
(ii) Job title and position of the employee;
(iii) The home address of the employee;
(iv) The social security number of the employee;
(v) Gross pay;
(vi) Deductions; and
(vii) Net pay.
(4) General Journal showing all non-cash transactions including adjusting entries, reversing entries, correcting entries, and reclassifying entries with explanations.
(5) General Ledger maintaining an account for each kind of asset, liability, capital, income and expense accounts. Each posting to an account must include the date, folio page and amount. Balances of each account must be updated on a monthly basis.
(6) Customer Subsidiary Ledger including a separate account for each of the broker's customers, arranged alphabetically, showing:
(i) The name of the customer;
(ii) The customer's billing address;
(iii) Telephone number;
(iv) The name, billing address and phone number of any licensee or registrant who will be removing customer's waste;
(v) A description of the services provided to the customer;
(vi) Monthly charges to each customer;
(vii) Monthly collections from each customer;
(viii) The rate collected from customers (per cubic yard or ton where applicable);
(ix) The date, check number and amount of payments received;
(x) If the broker has arranged agreements between consumers and providers of trade waste removal, collection or disposal services, the name, billing address, and license or registration number of the provider of trade waste removal, collection or disposal who will serve the customer; and
(xi) If the broker has arranged agreements between consumers and providers of trade waste removal, collection or disposal services, the rate the provider of trade waste removal, collection or disposal is paid to remove, collect or dispose of customer's trade waste.
(7) Accounts Payable Subsidiary Ledger showing for each account:
(i) The date of purchase;
(ii) The name of the vendor or supplier;
(iii) The amount payable; and
(iv) A brief explanation of the accounts payable item.
(8) Other Subsidiary Ledgers must be kept for accounts that are not maintained elsewhere. This includes subsidiary ledgers for Loans and Notes Payable and Loans and Notes Receivable (which must include details of each loan and note including the date of the payment, the identity of the debtor or creditor, the form of the payment, and the check number, if applicable).
(f) (1) A trade waste broker must maintain an annual financial statement in a form or computer format prescribed by the Commission. The financial statements must include a balance sheet, an income statement, a statement of cash flows and a statement of retained earnings or (if the broker is a sole proprietorship or partnership) capital.
(2) The broker must retain the following records:
(i) The balance sheet, including the balance for each group or type of asset, liability, and capital amount at the end of the accounting period.
(ii) The income statement including the balance of each group or type of income and expense for the accounting period.
(3) The following schedules must be included in the financial statement in support of the balance sheet and income statement:
(i) A schedule of investments;
(ii) Allowances for doubtful accounts;
(iii) Prepaid expenses;
(iv) Miscellaneous current and other assets;
(v) Fixed assets, depreciation and accumulated depreciation;
(vi) Notes payable and receivable;
(vii) Taxes prepaid and accrued;
(viii) Miscellaneous current and accrued liabilities;
(ix) Capital stock;
(x) Additional paid-in capital;
(xi) Retained earnings;
(xii) Intangible assets and accumulated amortization; and
(xiii) Records related to any waste stream analysis performed.
(4) Operating, administrative and general expenses must be summarized and shall include schedules as follows:
(i) A payroll analysis with details of employee wages;
(ii) A compensation schedule for officers, directors and owners;
(iii) A revenue analysis;
(iv) An analysis of interest paid and received; and
(v) An amortization expense analysis.
(g) No later than six (6) months following the end of the trade waste broker's fiscal year, all brokers must file a report on a form or computer format prescribed by the Commission. Such annual report must include the financial statement described in subdivision (f) of this section and other information and documents concerning the broker's operations, including but not limited to: financial information reported on a calendar year basis, the management letter issued by the broker's auditor to the broker, if any, information concerning affiliations with other licensees and brokers; information concerning the organization and control of the broker, corporate control over the broker, corporations controlled by the broker, officers and directors of the broker, and security holders of and voting powers within the trade waste broker's business; and management, engineering and other contracts of the broker. The trade waste broker must certify, and the principal responsible for the broker's financial affairs must swear under oath upon penalty of perjury, that the financial statement accurately reflects the broker's accounts and financial operations.
(h) In the event that a revision of the report is required by the Commission subsequent to review by an auditor on the Commission's staff, an amended report must be submitted to the Commission no later than the date specified by the Commission.
(i) The Commission may require that the financial statements required under this section be audited by an independent certified public accountant. The certified public accountant must not be employed by or related to the trade waste broker or any principal of the broker and must not have any financial interest in the broker or any principal of the broker. The auditor shall render an opinion regarding:
(1) the results of the broker's operations and cash flows for the broker's fiscal year end and
(2) whether the financial statements accurately reflect the financial position of the broker as of the balance sheet date. The auditor need not opine on paragraphs (3) and (4) of subdivision (f) of this section. The auditor must also issue a supplemental opinion on the broker's compliance with the financial record-keeping and reporting requirements of the Commission. The supplemental opinion must detail every variance or deviation from the Commission's requirements noted during the auditor's examination of the broker's financial books and records. The trade waste broker must certify, and the principal responsible for the broker's financial affairs must swear under oath upon penalty of perjury, that the financial statement accurately reflects the broker's accounts and financial operations. At the completion of the audit, the broker must obtain from the auditor copies of the accountant's work papers.
(j) A trade waste broker must maintain a complete and accurate Customer Register on a form or in a computer format approved by the Commission, and file the Customer Register with the Commission as provided in paragraph (3) of this subdivision.
(1) The Customer Register must contain a list of all customers currently served by the broker. This list must include the customer's name and the name of an authorized representative of the customer, any trade name of the customer, the customer's address(es) of service and billing address, the customer's telephone number, the date on which services commenced, the total charge to the customer per month, and such other information as may be specified by Commission directives. Where, pursuant to 17 RCNY § 6-03, a trade waste broker collects fees from a commercial establishment for trade waste removal by a trade waste removal business required to be licensed pursuant to this chapter, such broker shall include in the customer register a description of the other services provided for the customer as required by 17 RCNY § 6-03(a)(iii) and shall retain for inspection by the Commission a copy of the customer's request for such collection service as required by 17 RCNY § 6-03(a)(ii) and the contract governing the agreement to provide services.
(2) If the broker has secured a contract or agreement between a customer and a provider of trade waste removal, collection or disposal services, the Customer Register shall state the name, billing address and license or registration number of the provider. Additionally, the Customer Register must include the date on which services commenced, the total charge to the customer per month, including the charge for brokering services, and such other information as may be specified by Commission directives.
(3) A complete and up-to-date Customer Register must be filed twice each year: on January 31 for the period from June 1 through December 31, and on July 31 for the period from January 1 through June 30, or as often as ordered by the Commission. In the event that the Commission grants a new registration, the newly registered trade waste broker must submit its first Customer Register to the Commission no later than 90 days after the granting of its registration, unless otherwise directed by the Commission.
(k) A trade waste broker must maintain a register of all complaints that such broker receives from customers, licensees or registrants.
(l) All records, receipts, documents, journals, ledgers, registers, and books required by this section, must be maintained for five years unless the Commission directs otherwise. This period for record keeping will only be reduced if the Commission so directs in a specific case in writing. The Commission may in specific instances, in its discretion, require more or less exacting record-keeping and reporting requirements and may require the retention of identified records for a period of time exceeding five years.
(m) All records, receipts, documents, journals, ledgers, registers, and books that must be maintained pursuant to this section, must be made available for inspection and audit by the Commission. The Commission may conduct an inspection or audit at the trade waste broker's place of business or at the offices of the Commission. The broker shall cooperate with the representatives of the Commission conducting any such inspection or audit.
(n) If any due date under this section falls on a weekend or City holiday, the due date shall be deemed to be the first business day following such weekend or holiday.
(Amended City Record 8/1/2024, eff. 8/31/2024)
