Beaumont’s actual FYE 2015 Assets are $34,256,662; Liabilities are $93,473,723; and Total Net Position is a Negative $276,052,775
At the August 15, 2017, Beaumont City Council Meeting the Council will ‘Receive and File’ a version of the 2015 Audit: https://beaumont.civicweb.net/…
There is no version of the Audit included with the City’s Staff Report, but it is assumed that the Council will ‘Receive and File’ the 2015 Audit that was altered. The Staff Report is given by Melana Taylor and states:
“After the Draft was presented to the City Council it was determined by the auditor that the investments must be recognized because the BFA, as a component unit of the City, would have no ability to repay the bond holders if it did not record the CFD bond investment.”
Recording the Debt as an Asset is not a requirement to pay the Debt. Furthermore; GASB 63 Requires the Debt to be Recorded on the Statement of Net Position as of 2012. GASB 63, 9. The net investment in capital assets component of net position gives direction on how to record the bonds:
“The net investment in capital assets component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisitions, construction, or improvement of assets.”
Beaumont’s problem is that the City has acquired $300 Million in Bonds, but embezzled all the money and never built the Infrastructure. There is no Recycled Water Facility, there are no Fire Stations.
The City still has a $212 Million CFD Bond Debt, but only has $22 Million Remaining in the Bond Fund Accounts and $29 Million held in Reserves. There are no Assets to offset the Liabilities.
The City/Auditing Firm of Van Lan Fankhanel are not only Forging Assets on the Statement of Net Position, they doubled Assets and did not Include the City’s $212 Million in Bond Debt.
The City recorded the $22,748,722 that remains in the CFD Bond Fund Accounts, but failed to record the $212 Million CFD Bond Debt. GASB 63 specifically requires the Bond Debt to be recorded on the Statement of Net Position.
The City/Auditors also Recorded the Forged $60 Million Sewer Machinery & Equipment on the Statement of Net Position Twice; Once under ‘Capital Assets, Net of Depreciation’ and again in the Net Position as ‘Net Investment in Capital Assets’.
The City/Auditors claim that the City of Beaumont has a total of $85.7 Million in Assets, $93 Million in Liabilities and a Negative $7.9 Total Net Position.
The City of Beaumont’s actual Assets are $34,256,662; Liabilities are $93,473,723; and Total Net Position is a Negative $276, 052,775.
There is $400 Million missing from the City of Beaumont. The Forging of their Financial Statements to cover up Federal Municipal Bond Fraud has got to stop.