By: Libi Uremovic | Original Article at patch.com
Beaumont Utility Authority Audit
Fiscal Year 2013-2014
On February 27th Beaumont released their Audits for Fiscal Year 2014. The Audits are dated January 29, 2015. The Financial Statements consist of the Audits, the Internal Controls Reports, and the Management’s Discussion and Analysis, but the City has neglected to release the Internal Controls Audits and of course there is no Management Discussion and Analysis.
Utility Authority Audit Opinion states: “in the Auditors’ opinion, the financial statements present fairly, in all material respects, the financial position of the Beaumont Utility Authority.”
Incorrect.
Page 3: Cash and Investments pooled with City: $2,969,292 Unrestricted and $823,893 Restricted. The City does not have $3.7 Million allocated to the Utility Authority with the City.
Page 3: Machinery and Equipment: $74,169,020 including $1.5 Million for new equipment. This figure has already proven to be forged. The City funneled all the money to Urban Logic Consultants and never purchased machinery.
Page 3: Investment in CFD Bonds $226,528; Note Receivable $331,063. The Sewer bonds are not the City’s investment, they are the City’s liabilities. A Utility Authority ‘note receivable’ is a paper IOU from the City.
Page 3: Deferred loss on debt refunding, net of accumulated amortization: $584,925. The City expected to lose $584,925 on the refinancing of the 2001 Wastewater Bond, but the City was unable to refinance the bond before it was Called.
Page 5: Revenues $7.8 Million. The City recorded Heartland Area 5 Mitigation Fees in the same Account as Property Owners’ monthly Sewer bills to create the illusion of operating profitably. The problem is that the Heartland Mitigation Fees are not being recorded as mitigation fees.
Read Full Audit Here: http://www.ci.beaumont.ca.us/DocumentCenter/View/24002
2010 Operating Revenue $4,454,652
2011 Operating Revenue $4,255,434
2012 Operating Revenue $4,297,012
2013 Operating Revenue $4,495,141
2014 Operating Revenue $7,824,126
2010 Operating Expenses $4,860,941
2011 Operating Expenses $4,979,337
2012 Operating Expenses $5,814,761
2013 Operating Expenses $5,621,489
2014 Operating Expenses $6,017,797
2010 Operating Loss (406,289)
2011 Operating Loss ($723,903)
2012 Operating Loss ($1,588,980)
2013 Operating loss ($1,138,595)
2014 Operating Gain $1,806,329