City of Beaumont Audit VI – Checks & Balances

Thousands of dollars missing in deposits and expenses every month.

Our government is designed with a system of checks and balances to guard against corruption and misuse of tax payer dollars. It is the legal and moral duties of our elected & appointed officials to work within the constraints given, not to find ways around them. Many are using the economy as an excuse to reduce checks & balances, but Beaumont illustrates how checks & balances pay for themselves.

Money Coming In: In most businesses, public or private sector, the money is counted and recorded by one person and deposited in the bank by another person. City Governments have City Clerks as an additional check on the People's money.

The August, 2011 Bank Statement shows twelve (12) deposits recorded at '$0.00, $.01, or $0.02'. Page 8 of the Bank Statement shows four (4) deposits in a row made on 08/08/11 for $0.01.

Let's get the visual of four Citizens paying $0.01 on their bill/fee in four different departments on the same Monday in August. That is not a likely scenario. When compared to the general ledger, there is no comparison. I can find 'some' deposits on the bank statement that are the same amounts as on the general ledger, but most have discrepancies. There are no journal entries for $0.00, $0.01, or $0.02.

Money Going Out: The General Ledger shows transaction # 210058 on 06/01/12 issues check # 79820 for $7,164.26 to 'Republic Its'. On 06/05/12 transaction # 210064 records check # 79821 for $809.09 to Wyvona Sibole.

But the General Ledger also shows the following additional transactions:

210059 - $487.83

210060 - $488.28

210061 - $42,591.00

210062 - $23,813.73

210062 - $39,293.68

210062 - $322,660.81

210062 - $51,428.81

These transactions total $480,764.14, but can not be found on the Check Warrants or Bank Statements. The 'Payee' line of the General Ledger is blank. Similar transactions can be found throughout the General Ledger and average $1/2 million each month.

In city governments there are three (3) positions designed to oversee taxpayer monies: Finance Director, City Manager, and City Clerk. In the City of Beaumont the Office of the City Clerk is ceremonial only. City Clerks make over $100,000/yr because of the responsibilities assigned to the position and the additional prison time assigned to for failure to perform duties. The City Clerk in Beaumont is only paid $34.40 every two weeks.

The City Clerk duties include verifying all financial transactions, authorization all communications to the public to assure accuracy. Shelby Hanvey holds the job title of Administrative Services Manager, but is performing the duties of the City Clerk. The City and/or Ms. Hanvey's theory that she is not liable for all duties of the City Clerk because she doesn't hold that specific job title is incorrect.

Next Layer of Checks & Balances:  Our system of government also has additional layers of control to assure the People's money is secure.  Taxpayer money pays for controls on a local, state, and federal level.  

On a Federal Level - I have notified the F.B.I in Los Angeles, Palm Springs, and Riverside.

On a State level - I have notified the Controller's office, the Board of Accountancy, & the Worker's Comp Medical Unit Division. 

On a local level I have notifed the Riverside District Attorney Special Operations unit and the Grand Jury.  I meet with the Grand Jury on the 31st. 

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Washy January 25, 2013 at 06:09 PM
There seems to be lots of accounting/coding mistakes/misplacements and a second check book.....
Libi Uremovic January 25, 2013 at 06:17 PM
it can't all be 'fat fingers' gene...there are accounting errors, but we can see where the errors are reversed... on 08/08/11 the city recorded a total $30,092.16 in deposits on the General Ledger....but only $888.87 made it to the bank.... it could be that someone in the bank is pocketing the deposit money and recording it several thousands less ... and it could be that the original amount of tax payer money is only $888 and the city is forging the general ledger to look like it collects more than it actually does.... ...but i've seen the fees/taxes/charges levied against the people of beaumont....much more likely that they collected $30 thousand and only turned in a $ 8 hundred... it is the job of the finance director to oversee the operations...every time there are deposits made they are several thousands dollars less than the corresponding bank statements...over and over....month after month.... it is someone's job to reconcile the bank statements... and they would only have to reconcile them one time to see that the data is not even close to correct.... and let's be clear that the only way a line worker could be embezzling the money is if they are doing every procedure themselves and no one is checking...
Victor S Dominguez January 25, 2013 at 06:36 PM
Lance Armstrong did not break the law, says his supporters. Tiger Woods would never cheat on his wife. Oh, our government does not steal from taxpayers. When the City Leaders are busted and start pointing fingers at each other to save their own reputations, I can guarantee you this, I will be their with facts pointing out where members of this community stood on this issue! Educating the voter ;)
Libi Uremovic January 25, 2013 at 06:36 PM
'...Possibly money is being siphoned between accounts to cover up performance mistakes made in certain areas?...' yea, they're covering up their 'performance' of paying the massive debt they've accumulated.... the d.a.'s office asked me where the money is going.....but it doesn't matter where the money is going - they can't alter the financial records or falsify employee expenses ... there's a reason why the gaap audit clearly states at the top of page two: ''the financial statements .... do not present fairly... the financial position of the governmental activities of the City of Beaumont...' do not ...that's the key word... http://www.ci.beaumont.ca.us/DocumentCenter/View/16409
Ken January 28, 2013 at 01:26 AM


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