§ 5-03 Record Keeping; Customer, Financial and Other Reporting Requirements.
RCNY § 5-03
(a)Except as provided in subdivision a-1, a licensee must maintain records concerning its business including but not limited to: (i) bills and purchase invoices (with notations identifying whether the bill or invoice was paid and, if so, the check number and date), (ii) deposit slips, (iii) copies of checks received from payors, (iv) bank statements, (v) cancelled checks, (vi) tax returns (copies of Federal, State, and Local returns with all supporting schedules), (vii) copies of accountants' workpapers, (viii) insurance policies, (ix) drivers' route trip sheets, (x) collective bargaining agreements, (xi) petty cash disbursement records, (xii) IRS W-2 forms, (xiii) IRS W-4 forms, (xiv) IRS 1099 forms, (xv) I-9 forms, (xvi) internal memoranda concerning the licensee's finances or one (1) or more customers or prospective customers of the licensee, (xvii) customer contracts and invoices, (xviii) documents concerning route sales and contract assignments, (xix) waste surveys, (xx) rate schedules, (xxi) discount rate lists, (xxii) documents concerning mergers, acquisitions, subcontracts, and asset sales, (xxiii) copies of cash receipts, (xxiv) documents reflecting electronic fund transfers, (xxv) written correspondence, (xxvi) lists of collection routes and schedules, (xxvii) submissions to and notices from the Commission, (xxviii) a schedule of contributions, gifts, and grants received by the licensee, (xxix) dump tickets, scale tickets, invoices, and receipts from transfer stations, material recovery facilities, and compost facilities, and (xxx) all documents supporting, evidencing, or used to create the reports, books, journals, registers, and ledgers that the licensee is required to maintain, pursuant to this section.
(a-1)A micro-hauler licensee must maintain only the records set forth in paragraphs (i) - (vi), (viii), (xvii), (xix), and (xxviii) - (xxx) of subdivision a.
(b)A licensee must provide each payor with a written receipt for all cash payments setting forth the name and address of the licensee, the license number of the licensee, the date of the payment, the amount of the payment, and the identity of the payor. Each such receipt must be signed by the licensee or the licensee's authorized agent. A duplicate copy of the receipt must be kept by the licensee as part of its books and records. For the purposes of this section, the term "payor" means any person who remunerates the licensee for any purpose.
(c)A licensee must not make any payment in excess of one thousand dollars ($1,000) in cash or by check made payable to "Petty Cash." A licensee must not make any check payable to "Cash." (d) A licensee must maintain a complete and accurate set of books of account reflecting the operation of the licensee's business. Such books may be maintained on a computerized accounting system and must be kept on either a cash or an accrual basis of accounting in accordance with Generally Accepted Accounting Principles. The books must be kept on a quarterly or monthly basis and must be brought up to date no later than thirty (30) days after the end of each preceding quarter or month. The books must include the following journals and ledgers: (1) Cash Receipts Journal showing for each payment received: (A) the date payment was received; (B) the identity of the payor; (C) the amount of the payment; (D) the check number; and (E) a brief explanation of the purpose of the payment. Payments for routes or contracts sold must be described in detail.
(2)Cash Disbursements Journal showing for each payment made: (A) the date payment was made; (B) the identity of the payee; (C) the amount of the payment; (D) the check number; and (E) a brief explanation of the purpose of the payment. Payments for routes or contracts purchased must be described in detail.
(3)Disposal Expense Subsidiary Journal showing: (A) details of all expenses incurred; (B) credits (including cash) obtained in connection with disposing or recycling collected waste including: (C) the name of the disposal facility or vehicle or recycling facility, (D) the type of disposal or recycling facilities used (e.g., landfill, transfer station, or recycling center), (E) the complete address of each disposal facility or vehicle or recycling facility, (F) the date on which the disposal or recycling occurred, (G) the date on which payment was made, (H) the check number, (I) the invoice number, (J) the type of collected waste, (K) the amount of collected waste that was delivered to such disposal or recycling facility or facilities (in compacted cubic yards and tons), (L) the rate charged per cubic yard or ton, (M) the total amount billed by the vehicle or facility, and (N) the amount paid. The monthly or quarterly closing must include a total of the amount of collected waste that was delivered to each disposal or recycling facility or vehicle (in compacted cubic yards and tons), a total of the amount billed by each disposal or recycling vehicle and facility, and the amount paid and must also include a total for each of these categories for all of the vehicles and facilities; (4) Payroll Journal showing: (A) the name of the employee; (B) job title and position of the employee; (C) the home address of the employee; (D) the social security number of the employee; (E) gross pay; (F) deductions; (G) net pay.
(5)General Journal showing all non-cash transactions including adjusting entries, reversing entries, correcting entries, and reclassifying entries with explanations.
(6)General Ledger maintaining an account for each kind of asset, liability, capital, income, and expense accounts. Each posting to an account must include date, folio page, and amount. Balances of each account must be updated on a monthly basis.
(7)Customer Subsidiary Ledger must include a separate account for each customer, arranged alphabetically, showing: (A) the name of the customer; (B) the address(es) where the waste is collected; (C) the customer's billing address; (D) telephone number; (E) the current negotiated rate per cubic yard or per one hundred (100) pounds charged; (F) the actual weekly or monthly charges; and (G) the date, check number, and amount of payments.
(8)Fixed Assets Subsidiary Ledger must include an account or record for each kind of fixed asset, including trucks, containers, and other waste removal equipment, showing: (A) the date the asset was acquired; (B) the amount paid for the asset; (C) a description of the asset including the serial number, VIN number if applicable, make, year of manufacture, capacity, and type; (D) estimated life of each asset; (E) estimated salvage value of each asset; and (F) method of depreciation, additions and disposals, invoice number, and check number.
(9)Accounts Payable Subsidiary Ledger must show the following for each account: (A) the date of purchase; (B) the name of the vendor or supplier; (C) the amount payable; and (D) a brief explanation.
(10)Other Subsidiary Ledgers must be kept for accounts that are not maintained elsewhere, including 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).
(e)A licensee must maintain annual financial statements in a form or computer format prescribed by the Commission. The Commission may require that such financial statements be audited by an independent certified public accountant who is not employed by or related to the licensee or any principal of the licensee and has no financial interest in the licensee or any principal of the licensee. 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 licensee is a sole proprietorship or partnership) capital. The auditor shall render an opinion as to whether the financial statements accurately reflect the financial position of the licensee as of the balance sheet date and the results of its operations and cash flows for the year ended, except that the auditor need not opine on Paragraphs (3) and (4) of this Subdivision. The auditor shall also issue a supplemental opinion on the licensee's compliance with the financial record-keeping and reporting requirements of the Commission. Such supplemental opinion shall detail each and every variance or deviation from the Commission's requirements noted during the auditor's examination of the licensee's financial books and records. The licensee must certify, and the principal responsible for the licensee's financial affairs must swear under oath upon penalty of perjury, that the financial statement accurately reflects the licensee's accounts and financial operations. At the completion of the audit, the licensee must obtain from the auditor copies of the accountant's work papers and must retain such papers with the licensee's records. Except that a micro-hauler licensee may satisfy the requirements of this subdivision by maintaining tax returns prepared by a certified public accountant. The Commission is not precluded from requiring a micro-hauler licensee to prepare a financial statement required by this subdivision upon the Commission's request.
(1)The balance sheet must include the balance for each group or type of asset, liability, and capital amount at the end of the accounting period.
(4)Operating, administrative, and general expenses must be summarized and must include schedules as follows: (A) a payroll analysis with details of drivers' and helpers' wages, mechanics' wages, workers' compensation insurance, disability insurance, payroll taxes, and pension and welfare fund payments; (B) a truck and container analysis with details of garage, rent, gas, oil, tolls, truck insurance, repairs, maintenance, truck rental, license plates, license fees, truck mileage taxes, depreciation, and other related expenses; (C) a disposal analysis with details of all expenses incurred, and credits (including cash) obtained in connection with disposing or recycling collected waste including the name of the disposal facility or vehicle or recycling facility, the type of disposal or recycling facilities used (e.g., landfill, transfer station, or recycling center), the complete address of each disposal facility or vehicle or recycling facility, the amount of collected waste that was delivered to such disposal or recycling facility or facilities (in compacted cubic yards and tons), the rate charged per cubic yard or ton, the total amount billed by the vehicle or facility, and the amount paid; (D) a compensation schedule for officers, directors, and owners; (E) a revenue analysis; (F) an analysis of interest paid and received; and (G) an amortization expense analysis.
(f)On or before June 30 of each year but not later than six (6) months following the end of the licensee's fiscal year, all licensees must file a report on a form or computer format prescribed by the Commission, provided, however, that a micro-hauler licensee may satisfy this requirement by submitting such licensee's tax returns prepared by a certified public accountant. If the Commission requires a revision of the report after 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. The Commission may require that the annual report include the financial statement described in Subdivision (e) of this section and other information and documents concerning the licensee's operations, including but not limited to: financial information reported on a calendar year basis, the management letter issued by the licensee's auditor to the licensee, and information concerning: affiliations with other licensees; organization and control of the licensee, corporate control over the licensee; corporations controlled by the licensee; officers and directors of the licensee; allocation of recyclables and non-recyclables; security holders of and voting powers within the licensee; subcontracting, management, engineering, and contracts of the licensee.
(g)A licensee must maintain a complete and accurate Customer Register on a form or in a computer format approved by the Commission.
(h)A licensee must maintain a register of all complaints that such licensee receives from customers or prospective customers.
(i)A licensee must maintain written policies and procedures regarding compliance with all of the laws, rules and regulations of Federal, State and Local government authorities having jurisdiction over any of the licensees' activities concerning vehicle specifications, sanitary requirements, handling, transport, receipt, transfer or disposal of trade waste, regulated medical waste or waste containing asbestos or other hazardous, toxic or dangerous material.
(j)A licensee must maintain all Report of Motor Vehicle Accident (MV-104) forms and any other forms that the licensee is required to file with the New York State Department of Motor Vehicles related to a crash. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this subdivision in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this subdivision.
(k)A licensee must maintain all determinations by any Federal, State, or Local governmental agency or authority against such licensee, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority.
(l)A licensee must maintain accurate time records for each vehicle operator and worker who handles trade waste. Such time records must identify the worker by name and job title, and for each day reflect the time the worker reported to work; the route, truck number or other information used to identify the worker's daily work assignment; any off-duty breaks; the time the worker was released from duty; and the total number of hours worked per week.
(m)A licensee must maintain copies of all inspection and certification of repair forms required by 17 RCNY § 5-10(e) for at least five (5) years, and copies of such forms (paper or electronic) must be available in the corresponding vehicles at all times for six (6) months. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this subdivision in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this subdivision.
(n)A licensee must maintain copies of all daily inspection reports required by 17 RCNY § 5-10(f) for at least five (5) years, and copies of such reports (paper or electronic) must be available in the corresponding vehicles at all times for fourteen (14) days. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this subdivision in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this subdivision.
(o)A licensee must maintain records demonstrating compliance with 17 RCNY § 5-14 that include, at a minimum, the date training was provided, the names of each employee that received the training, and each employee's job duties. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this subdivision in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this subdivision.
(p)All records, receipts, documents, journals, ledgers, registers, and books that must be maintained, pursuant to this section must be maintained for five (5) years unless the Commission directs otherwise. This period for record keeping shall 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 detailed and/or frequent record-keeping and reporting requirements and may require the retention of identified records for more than five (5) years.
(q)All records, receipts, documents, journals, ledgers, registers, and books that must be maintained, pursuant to this section be made available for inspection and audit by the Commission. The Commission may conduct such an inspection or audit at the licensee's place of business or, at the Commission's discretion, at the offices of the Commission. The licensee must cooperate with the representatives of the Commission conducting any such inspection or audit.
(r)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 7/7/2016, eff. 8/6/2016; amended City Record 3/6/2018, eff. 4/5/2018; amended City Record 10/17/2018, eff. 11/16/2018; amended City Record 7/7/2021, eff. 8/6/2021; amended City Record 8/1/2024, eff. 8/31/2024)
