Deferred compensation is collected just like a medical benefit; the amount is deducted from the individual employee and paid to whatever savings or money market fund is holding the compensation. If the deferred compensation is part of a retirement fund there would be a check issued to the financial institution holding retirement funds.
The City of Beaumont uses the accounting code '3026' to collected deferred compensation in the departments. The City of Beaumont also has a hidden account code – '1195' that is located on the General Ledger after the personal loans and before the individual departments. The amount taken from the departments makes up only 40% of the deferred compensation, the hidden account makes up 60% .
On April 4th, 2013 an appendix to the hidden deferred compensation account was added. '01-0000-1195-0001' was created for Councilman Deforge with the memo: 'loan repayment'. There is no amount of loan noted, so it appears that the loan is for a past transaction that was never repaid.
Most disturbing about the City of Beaumont's accounting methods is that the funds are withdrawn, but they are not being saved in any financial institution.
The Cash account is being credited in a lump sum, but no check is being issued to transfer the money to a financial institution.
On May 10, 2013 the City collected deferred compensation twice:
Transaction # 233811 - $44,656.19
Transaction # 233812 – $44,215.63
Both transactions collected $17,000 from the individual departments and $26,000 from the hidden deferred compensation account. Both transactions are credited to 'Cash', but there was no check issued to transfer the amount to a financial institution.
It is unclear if any city employees are actually in the deferred compensation program or if this is just another method of cooking the books; but what is clear is that the funds are not being saved for the future – they are being exchanged for cash in the present.