The City of Beaumont closed their books on 06/30/12. How long should it take to 'close the books'? It varies; a couple weeks is normal. A well run company will close their in books 7-10 days. Three weeks is too long, even for a large corporation.
California Government Code Section 53891 requires the City Clerk to submit a Financial Transactions Report to the State and to issue a Public Notice within six (6) weeks of the end of the fiscal year. I requested a copy of this report on 02/12/13. On 02/22/13 the City published the Financial Transactions Report in the 'Record Gazette' newspaper and released a copy to the Public.
The accounting firm contracted to perform the GAAP audit should also receive the financial reports withing six weeks. A GAAP audit would normally be completed 4-6 weeks after receiving the financial reports. The City of Beaumont 2010-2011 GAAP Audit was dated August 1, 2012 – thirteen months after closing the books.
On February 19, 2013 representatives of the accounting firm Moss, Levy, & Hartzheim GAAP attended the Beaumont City Council meeting and stated that the GAAP audit had been performed, the cost was $30,000, and aside from lack of funds; the Auditors assured Council that Beaumont was financially sound.
On 03/07/13 I requested from the City Clerk a copy of the GAAP Audit for 2011-2012. On 03/11/12 the City Manager replied: “The 2012 City GAAP Audit is not available.”
On 03/19/13 I called the City to request the GAAP Audit from the Beaumont City Manager and Finance Director. I was told: “Everyone's in a meeting”. I left a message, but my call was not returned. I called the Auditing Firm of Moss, Levy, & Hartzheim requesting the GAAP Audit they stated was complete. My call was not returned.
Department 1050 – City Council
Page 16 of the 2011-2012 Budget lists the City Council and Charitable Foundation on the same budget. This is incorrect. The City has set up 'Fund 19' which is not listed on the budget to account for all of the charitable revenue and expenses. The Council Department's budget for 2011-12 was $138,000. The Financial Transactions Report lists Council expenses at $107,287.
Total expenditures listed on the General Ledger are:
Deferred Comp $4,428.76
Vision Care $354.34
Life Insurance $176.00
Telephone Credit $608.51
Office Supplies $198.74
Discretionary Spending $2,369.61
Travel,Training, Meetings $18,414.56
Contract Services $150.00
The Discretionary Spending is from 'Jostens', which the Mayor has stated was for 'Commemorative Pins'.
Of the Travel,Training,Meeting account a total of $1,800 was used by the individual Councilmen as per diem payouts and individual expenses. Diners Club expenses total $10,171.76. Over $2,000 was paid to 'Elan Financial Services', and $1,385 without identifying the Payee.
$49,000 Cigna expense charged to the Council's $26,000 salary. It is not mathematically possible to have more deductions than salary. On the Financial Transactions report Summary the City lists 'Health' as $5,791,430 Expenses and $8,123,689 Revenue. It seems that the City is attaching additional health care expenses to the department budgets, depositing the money into another account, and calling it revenue.
Based on the General Ledger the Department of the Council expenses are $58,000 for the fiscal year 2011-2012. An audit of the Charitable Foundation will be separate.