By: Libi Uremovic| Original Article at Patch.com
In the City’s latest attempt to deceive the public a mock internal controls review committee was presented with Beaumont Finance Director, William Aylward, in control. Apparently Council is so ignorant of internal controls that they don’t understand that Aylward can’t be part of a procedure for which he is the focus.
Internal Controls are the checks and balances established in accounting to prevent theft. An Internal Controls Report is included each year with the Financial Statements along with the GAAP Audit and Managers’ Report. The State of California has additional laws established to ensure the separation of power in government agencies.
Some violations in internal controls must be uncovered by accountants because it involves the tracking of funds. But other internal controls violations are glaringly obvious and within the scope of Council to repair.
CHANGE AUDITING FIRMS: Best business practices suggest that auditing firms are changed every 3-5 years. The Auditing Firm of Moss Levy Hartzheim and the City refuse to state exactly how many years Moss Levy has been auditing the City, but it is well over a decade.
The Auditing Firm of Moss Levy Hartzheim presented the 2013 Financial Statements six months after they were paid and 13 months after the close of the Fiscal Year. Hadley Hui appeared before Council, read a statement, promised to return at the next council meeting to answer questions, and never returned. The City had to be sued before they would release the Internal Controls Report that should have been presented with the GAAP Audit.
We now know that the financial information in the City of Beaumont’s Audits is fraudulent. Audits verify the information. The LAIF Account information is false. The Investment information is false. And the millions listed every years as ‘Sewer Machinery and Equipment’ is false.
With blatant material misstatements; It is not possible that the Auditing Firm of Moss Levy Hartzheim properly audited the City of Beaumont’s books.
Because all of the documentation needed by the Auditng Firm to properly conduct an audit are processed by the City Clerk; It is not possible that the Auditing Firm of Moss Levy Hartzheim didn’t notice that Beaumont had no City Clerk.
A proper Internal Controls Report would document that the Offices of the City Manager and Finance Director have been combined.
A proper Internal Controls Report would document that all of Beaumont’s Management is illegally funneling money out of the City through their own privately held companies.
HIRE A CITY CLERK: State Law mandates that government agencies maintain three separate departments to ensure proper checks and balances: The City Manager, Finance Director, and City Clerk. City Clerks are educated, licensed, and paid $100,00/year to stand equally and separately from the Offices of the City Manager and Finance Director.
State Law requires that all government documents received and transmitted are processed by the City Clerk. The Agenda is prepared by the City Clerk. Council Meetings are recorded by the City Clerk. All Public Record Requests are submitted to and released from the City Clerk.
In the past the position of Beaumont City Clerk has been an elected position. The elected City Clerk was paid $34.50 to show up at Council Meetings. The City Clerk did not have access to any public records nor was the City Clerk included in Council Meeting proceedings. The Beaumont Office of the City Clerk is such a joke that no one even bothered to run in the last election.
Currently public record requests are signed ‘City of Beaumont’ with no signature or human verification. Shelby Hanvey performs the other functions of the City Clerk. Hanvey is the Personal Assistant of City Manager Alan Kapanicas and Live-in girlfriend of Finance Director Bill Aylward.
Beaumont’s new Council will have six months to prepare the 2015-2016 Budget, but Council will need a clean audit of the past year before they can set the budget for the future year that will include funding for a City Clerk.