http://webmail.libionline.net City of Beaumont Audit
 
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The Sewer Fund continues to be an accounting nightmare. The City of Beaumont designates Fund 10 to account for the sewer revenue & expenses, but the sewer revenue is collected through the General Fund. On July 1st, 2013 the City of Beaumont increased Sewer Fees. This audit captures the months of May and June; before the rate increase.

  The total revenue allocated to accounting code '01-0000-0210-0000' Accounts Receivable Sewer/Refuse for the two month period was $1,351,200. This amount is overstated by $1/4 Million.

On May 22nd the City of Beaumont received $244,300 Sales & Use Tax reimbursement from the State of California Board of Equalization. This transaction was recorded twice:

Transaction 236349 debited 'cash' and credited account '01-1200-7155-0000' for 'Sales & Use Tax'.
Transaction 236348 debited 'cash' and credited account '01-0000-0210-0000' for 'Acc Rec Refuse/Sewer'.

1200 is the Administration department. The Sales & Use Tax should not be deposited directly into the department that now houses the City Manager, Finance Director, and acting City Clerk, but the Tax absolutely can not be deposited twice.

Including the Sales & Use tax; the Sewer Fund generated $1.35 Million in a two-month cycle. This amount gave the City the funds to pay for the $1.35 Million in expenses generated during the same period. In viewing Sewer Fund Expenses it's obvious that a large portion of the billing for Urban Logic Consultants has been diverted to the Sewer Fund. The expenses charged to the sewer fund in May & June for Urban Logic Consultants was $221,691.63.

Let's review: City incorrectly deposits $224,000 in Sewer Fund and pays out $221,000 to Urban Logic Consultants. Coincidence? Not likely.

The City of Beaumont Financial Transactions Report lists Sewer Fund Revenue was $4.1 Million in fiscal year 2012. However; if the City was collecting over $1.1 million in a two-month then the total Sewer Fund Revenue should be over $6 Million for fiscal year 2012.

Fees are collected for the basic needs of the Community. It is unreasonable for the Citizens of Beaumont to pay additional sewer fees when the taxes and fees currently collected are not properly used or accounted for.


 


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Contact: libi@libionline.netCity of Beaumont Audit