Fund 37 – RDA Debt Service
The Budget states this fund is used: “ to account for the tax increment received for the redevelopment project area and the related expenditure on the debt incurred.” This fund is used to account for revenue collected through RDA and payments made to other government agencies.
2010-2011 Budget projects revenue at $2,260,000. The 2011 RDA GAAP Audit lists revenue at $2,759,063. The General Ledger lists actual revenue at $3,283. The GAAP Auditors 'missed' a $2 million discrepancy.
2011-2012 Budget project revenue at $752,000. The 2012 GAAP Audit has yet to be released. The General Ledger lists revenue at $1,682,672.49, but $1,679,359.49 is transferred in and out on 01/13/12 leaving actual revenue at $3,313 FYE 2012.
2012-13 Budget has no revenue or expenses listed. The General Ledger lists no revenue in Fund 37 for the first six months of the 2012-2013 budget and only one expense - $988,826.35 to the Riverside County Auditor/Controller.
In the last two fiscal years this account was used to pay eight ( 8 ) different government agencies. Payments were made on 10/22/10, 05/24/12, and 06/01/12 totaling $1,339,763.26. The payments were made through this account, but the money was transferred in from the General Fund instead of using the tax revenue that is specifically allocated for the debt.
Beaumont Library District - $55,494.06
Beaumont Cemetary District - $374,176.75
Beaumont Unified - $443,021.18
Mt. San Jacinto Jr. College - $124,822.24
Riv Co Super of Schools - $142,873.99
Riv Co Flood Control - $99,422.97
San Gorgonio - $51,602.17
San Gorgonio Pass - $48,349.90
Fund 37 also has various random entries listed:
Account Number 7010 - CUR SECURED PERS PROP - This account is located in the General Fund Administration accounts, but in 2010-2011 a total of $2,795,950.12 was transferred through Fund 37 in eleven (11) transactions. In 2011-2012 there were two (2) transactions totaling $1,307,334.43 coded to the PERS fund. As of February there is only one entry listed FYE 2013 in Fund 37 - payment to the Riverside Auditor/Controller for $988,826.35. This close to million dollar payment was not disclosed to the Public or listed on the Check Warrant.
Transaction 207206 - Fund 37 has the following 207206 transactions added to the account:
Cash added - $15,136,625.42
Cash removed - $15,796,555.81
Account Payable added - $645,569.25
Unreserved Fund Balance added - $56,242.64
Unreserved Fund Balance added - $56,242.64 – this entry is repeated twice
Debt Service – The City also laundered $1,700,000 through this account on 06/30/11 by adding to Cash and removing it through code 6900 – Debt Service. There is also $270,727 in Contract Services that is unexplained.
Fund 38 – RDA Low/Moderate Housing
Budget describes this fund's use: “to account for the 20% tax increment received for low/moderate income housing in the redevelopment project area”.
2010-2011 Budget lists revenue & expenses at $760,000 each; 2011-2012 Budget lists revenue & expenses at $2,251,000 each, and the 2012-13 Budget list no revenue or expenses in this department.
2011 GAAP Audit lists Fund 38 revenue at $699,131 and expenses at $659,987.
General Ledger lists 2011 revenue at $10,186.10 and accounted for the money as 'Interest'. There is also $691,000 transferred through this fund using account 7010 - Cur Secured PERS Prop.
This Account had only one Contract Services Expense in 2011: $39,144.60 to Beaumont Electric on 05/05/11.
Fund 38 also has four 207206 transactions:
Cash in - $139,161.51
Cash-Interfund out - $1,908,229.02
Unreserved Balance - $1,387,404.04
Unreserved Balance - $1,387,404.04 – this transaction is entered twice.
2012 Budget lists revenue & expense at $2,251,000. The last transactions in Fund 38 are made in January, 2012. The General Ledger FYE 2012 lists $10,186 cash into the account and $2,292,031.52 transferred out. The General Ledger also shows FYE 2012 there was $71,910.63 paid to Urban Logic Consultants, $306,508.85 transferred through Cur Secured PERS Prop, and $2,281,845.52 for Contract Services, but Payee is not listed.
Fund 39 – Not Listed On Budget.
Fund 39 is not listed on the budget or financial statements, but there are transactions coded to fund 39 in the General Ledger. FYE 2011 on 09/10/10 $62,764.18 was transferred into this account and paid to 'Beau-Cherry Valley' as 'Deposit'. On 06/30/11 $263,092.48 Cash was taken from this account and credited to 'Deposits', but this account has no cash or funding.
This account also has three (3) 207206 transactions:
Cash out - $874,774.22
Cash interfund in - $156,411.81
Deposits in - $718,359.41
A total of $959,202.78 was spent through Fund 38 in the year 2011-2012 - $120,421.73 Cash taken from the fund and $838,781.05 transferred through the fund to pay $583,916.27 to Christian Brothers Engineering; another $185,272.84 to Beau-Cherry Valley Water Authority; and $69,591.94 to an Unknown Recipient. These transactions are listed on the Check Warrants. Beaumont-Cherry Valley Water Authority Checks #077248 notes 'Improvement Plan' and #077662 notes 'Capital Improvements' instead of 'Utilities'.
From 06/30/11 to 05/24/12 total of $2,159,830.66 was moved through this fund account:
Christian Brothers Engineering $561,581.60
Beaumont-Cherry Valley Water $339,963.63
Unknown Recipient $1,258,285.43
Funds to Pay Christian Brothers & Beaumont-Cherry Valley were transferred in from the General ledger. Of the Unknown Recipient $874,771.22 is a 207206 Transaction and $383,514.21 Cash came from an unknown source.