I was Wrong. I’m a Liar. Beaumont’s Forged Sewer & Machinery is $60 Million, not $50 Million.
In reviewing and totaling Beaumont’s Sewer Machinery and Equipment list of Fixed Assets I realized that the total amount of plugged numbers is $60 Million, not $50 Million.
Forged Beaumont Sewer Machinery & Equipment Entries
DATE AMOUNT DESCRIPTION
01/01/2005 $1,361,092.90 Sewer Lines
01/01/2006 $ 22,347,928.00 Plant Expansion
01/01/2008 $14,869,744.35 Plant Expansion/Lift Stations
01/01/2009 $8,484,751.63 Plant Expansion/Sewer Lines/Lift Stations
01/01/2010 $4,451,391.41 Plant Expansion/Sewer Lines/Lift Stations
01/01/2011 $2,486,914.90 Plant Expansion/Sewer Lines/Lift Stations
01/01/2012 $2,577,842.21 Plant Expansion/Sewer Lines/Lift Stations
01/01/2013 $2,291,354.45 Plant Expansion/Sewer Lines/Lift Stations
01/01/2013 $72,973.53 Plant Expansion/Sewer Lines/Lift Stations – Auditors
01/01/2014 $1,560,925.11 Plant Expansion/Sewer Lines/Lift Stations
TOTAL $60,504,918.49
The City of Beaumont claims the Sewer Machinery and Equipment is worth $50 Million, which is derived from $75 Million Machinery and $25 Million Depreciation.
With $50 Million in forged Machinery and Equipment Journal Entries the Sewer is worthless, but with $60 Million in forged Machinery and Equipment the City will have to invest $10 Million to be worthless.
The Sewer Machinery and Equipment Journal Entries are dated from 1982 to 2004 lists specific items such as ‘computer’ or ‘ladder’. The last item is ‘computer’ dated January 1, 2004 for $5,479.06.
From the City of Beaumont 2015 Internal Controls Report:
2015-10 Development Impact Fees: “It appears the former finance director maintained Excel spreadsheets (separate from the accounting records) each year, and would then force the DIF fund balances to match its spreadsheet.”