2013 – The Year of the Audit

By: Libi Uremovic, December 29, 2013 | Original Article at Patch.com

2013 was the ‘Year of the Audit’ for Beaumont. The first half of the year was spent dissecting the General Ledger and counting the money. The second half of the year’s focus narrowed to the bond debt and Union Bank. Below is a month by month summary of the past years’ audits.

January: The first audits uncovered the obvious – the 2nd checkbook, personal loans, payroll padding, Beaumont Shooting Range, massive transfers of funds to and from UBSOL, lack of checks and balances.

February: 207206 transactions, Utility Bills, Office of the City Clerk. Mayor Berg, Charles Ferrell, ‘Karl’, and a promo for the Beaumont Shooting Range appear in ‘The Patch’. Craig Hartzheim from the Auditing Firm of Moss Levy Hartzheim makes appearance at February 19th Council Meeting.

March: Audits focus on massive debt and private sector companies pillaging City: Urban Logic, Beaumont Electric, and General Government Management Services.

April: The Police Department, RDA Accounts, and the Diners’ Club Card are audited.

May: Portero Bridge, Gas Tax. May 21st City received $10.8 Million Bond. May 22nd State seized $9 Million. May 22nd is also the date I faxed/emailed my letter to the State Attorney General and all other regulatory/prosecution agencies requesting State intervention as I had ‘exhausted all means on a local level’.

June: Analysis of 2014 budget and forensic audit of 2011 Audit City attempts to acquire more bond debt by planning warehouses on Area 5.

July: July 2nd Council meeting where the Citizens stood up and stopped the warehouses and additional bond debt. Audits continue to focus on bond debt and Union Bank.

August: Deferred Compensation, Funneling expenses through Sewer Fund, Riverside DA’s Office. State releases $9 Million from May bond to pay bond premium and interest payments to Union Bank.

September: Bonds’ Cost of Issuance, Discounts, and the hidden bond fund accounts ending in ’07’.

October: 2012 Audit, Hartzheim speaks at Beaumont City Council Meeting, and Writ of Mandate filed in San Francisco Superior Court to compel Union Bank to release bond fund accounts and general ledger of every local government agency they hold as Trustee.

November: Fund 85 showing illegal accounting of tax liability. City releases State mandated 2011 and 2013 Financial Transaction Reports. GAAP Audit Internal Controls Report list ‘Material Mistatements’ eleven (11) times. December General Fund Bank Statement Ending Balance is $800,000.

December: 2012 State Report on Mello Roos Taxes list Beaumont Mello Roos payments at $29 Million/year, the State has been told there are homes on Area 5, and exposes City Manager’s lies regarding delinquent taxes. City refuses to release County Tax List showing who’s Mello Roos taxes have been forgiven by the City. Union Bank attempts ‘Demurrer’ to stop Records Request of local government agencies. Hearing date set for January 9th, 2014. City gives Urban Logic illegal contract.

The past year’s forensic audit of the City of Beaumont has brought an overall understanding of where our tax dollars are going, why massive debt is accumulating, prosecution & regulatory agencies’ role in protecting the taxpayer’s money, and the responsibility of the Citizen to control their government on a local level.