By: Libi Uremovic, July 29, 2014 | Original Article at Patch.com
The City of Beaumont is still refusing to release the 2013 Internal Controls Report that was released by the Auditing Firm of Moss Levy Hartzeim on June 15, 2014. The official statement from the City Finance Director William Alyward is “the Internal Controls Report is ‘not available’.”
The ‘Financial Statements’ consists of the Audit & Internal Controls Report prepared by the Auditors, and the Management Analysis Report that is supposed to be prepared by City Staff. There has never been a Management Analysis Report prepared by City Management, but the Internal Controls Reports are prepared by the Auditors and released with the Audit.
October 15, 2013 Beaumont City Council Meeting:
80:00 Hartzheim “As far as providing the Internals Control Report; why wasn’t it released. That was the 1st question and the 2nd question by another individual was on those same lines; where is the Internal Controls Report. Our Internal Controls Reports are released to the City. If you’ve asked them for them they should be giving you what you request. I don’t why the hold up.”
The ‘hold up’ is a violation of California Government Code 6250 et seq. From the moment the Financial Statements are released by the Auditors it becomes a Public Record.
The 2012 Internal Controls Reports was 16 pages long:
Deficit Unassigned Fund Balance in General Fund
Deficit Fund Balance in Major Governmental Funds Deficit Cash Balance in General Fund Improperly Transferring Cash
Deficiencies in Internal Control Over Cash Receipts
Deficiencies in Internal Control Over Cash Disbursements
Deficiencies in the Employee Advances & Employee Computer Loan Program
Failed to Submit Fiscal Year 09-10 Agency’s Annual Report to the Respective Legislative Body Within Six Months After End of Agency’s Fiscal Year
Deficiencies in the Cash Disbursements Test of Control
Deficiencies in the Internal Controls Over Payroll
Bank Reconciliation Not Prepared and Reviewed Timely
Lack of Record Retention Implementation Policy
PERS not paid timely
Council approved the 2013 Financial Statements without requesting or reviewing the Audit or Internal Controls Report and of course they didn’t demand their Staff prepare the Management’s Analysis Report.
The Audit, Internal Controls Report, and Management’s Analysis Report are the tools Councils and Boards are provided to evaluate their financial situation and their staff’s performance. Beaumont City Council’s inability/refusal to utilize the tools provided to them is inexcusable.