At the April 19, 2016 Beaumont City Council Meeting Mayor Pro Tem Lloyd White suggested that City Treasurer Nancy Carroll be one of the Signatures on the Bond Requisition Statements.
City Attorney Pinkney was quick to squash White’s suggestion by stating that signing the Bond Requisitions would greatly increase Nancy Carroll’s exposure to liability.
First of all; wrong answer.
The correct answer is that Checks and Balances require two (2) signatures on the Requisitions from authorized Staff. The duty of the City Treasurer is to monitor and verify the Bond Requisitions.
It is an insanity that not one member of Council or the City Treasurer understand the duties of the treasurer’s office or the concept of Checks and Balances.
But a bigger issue is ‘exposure to liability’.
Last year the City of Beaumont issued bonds naming City Clerk Julio Martinez as a beneficiary of the Bond Funds. When Martinez questioned Pinkney about the City listing his name on the Bonds without his knowledge or approval Pinkney told Martinez: “Don’t worry about it, it’s nothing”.
Listing Julio Martinez on the Bonds implies that Martinez, as Beaumont City Clerk, verified all the Bond’s Documents before the Bonds were issued. Martinez did not verify the documents nor were any of the bonds’ documents processed through the Office of the City Clerk, but Martinez will be indicted along with everyone involved in municipal bond fraud.
After the Raids both City Manager Gibbs-Urtiaga and Councilman Brenda Knight signed the Bond Requisitions authorizing money to be paid to the Crooks that have now all slithered away.
Since the ‘Authority’ and the ‘District’ did not hold public meetings as required by Law, it is assumed that Pinkney had Gibbs-Urtiaga and Knight sign the Requisitions without concern for proper legal procedure or their ‘exposure to liability’.
Beaumont City Council Meeting Transcript April 19, 2016: http://www.ci.beaumont.ca.us/index.aspx?NID=212
2:45:00 Pinkney: The way it works is that Council receives a copy of the Procedures and they would sign off on having read them so the Council’s accountable and the City Attorney’s accountable and the City Treasurer would be accountable.
White: But we’re not signing off on the actual Certificates [Requisitions].
Pinkney: No, this is just Disclosure Procedures that you received and that you’ve read them.
White: I’m suggesting that the Treasurer be signing off on the Certificates, is that not appropriate?
Lara: It seems to me more internal staff doing that.
White: I think that if the Treasurer is elected by the Citizens to provide oversight of financials; this falls right into that area.
Lara: For sign off?
White: Yes.
2:46:00 Lara: I disagree.
Carroll: Could I ask the City Attorney to sort of paraphrase what the difference would be in liability and obligation?
Pinkney: I think with the latter that the liability exposure of the Treasurer would be significantly more. If you’re signing off, if you’re involved in signing off what would ordinarily be the finance director’s responsibility you’re exposure would be greater.