By: Libi Uremovic | Original Article at patch.com
At the March 23rd Beaumont Audit Workshop Finance Director William Aylward claimed the LAIF misstatements were due to the addition of PASIS (Public Agency Self Insurance System).
Aylward acknowledged at the Audit Workshop that the only investments the City has is the LAIF Account.
Page 80 of the GAAP Audit FYE 2014 is a list of the Agency Funds. These funds are not the City’s assets. The City is only the custodian of these Fund Accounts.
So, NO. The PASIS is not the City’s assets.
Page 80 states the following fund accounts as of June 30, 2014:
CFD Cash and Investments: $10,207,168
CFD Cash and Investments in Fiscal Agent: $22,152,443
CFD Investment in CFD Bonds: $216,046,830
Anthony Martinez Fund: $11,954
BFA Sales Tax: $16,578
PASIS: $5,734,010
Evidence Fund: $21,507
Charitable Foundation: $11,278
AB 109: $2,196,401
The $10 Million CFD is what is used to operate the City, so that money’s gone.
The City is the custodian of the remaining $8 Million; hence the problem of pooling all assets. The City claims to have the funds, but when asked to ‘show all their cards’ the City doesn’t have the money to cover all the fund accounts.
CFD Cash and Investments with a Fiscal Agent and Investments in CFD Bonds are also listed on Audit Page 34 in Note 3 Cash and Investments, but as Aylward confirmed at the Audit Workshop; these are not the City’s Assets.
147:45 Aylward: We don’t have any investments in government security mutual funds, our investments are in LAIF.