Councilman Nancy Carroll stated to Chair Elaine Morgan: “I’d like to NOT put it on the next Agenda”
S.E.C. Complaint: Beaumont Audit and Finance Committee
1934 SEC Section 58 requires all government agencies that acquire Federal Municipal Bonds to form Audit Committees: ‘for the purpose of overseeing the accounting and financial reporting processes of the issuer and audits of the financial statements of the issuer.”
Beaumont acquired its first Municipal Bond in 1993, but the status of an Audit Committee is unclear. At the January 21, 2014 Beaumont City Council Meeting Councilman David Castaldo stated: “Mayor Berg appointed us to the Financial Committee several years ago. We looked over the checks very regularly and to my knowledge I did not see a check go out to GGMS other than your paycheck that was issued. If you remember seeing a check let me know.”
For which Councilman Brenda Knight stated: “No.”
Beaumont Elected & Appointed Officials lie more often then they tell the truth, so it is unknown if an Audit Committee was ever formed. The Auditing Firm of Moss Levy Hartzheim was the City’s Auditor for over 20 years
On December 14, 2015 the Beaumont City Council Approved Ordinance No. 1062 to form a ‘Standing Financial Committee’: http://www.ci.beaumont.ca.us/D…
The First Standing Finance Committee Meeting was held January 26, 2016: http://www.ci.beaumont.ca.us/D…
The first Agenda of the Finance and Audit Committee Formed listed the following Roll Call:
City Treasurer Nancy Carroll
Mayor Mike Lara
Mayor Lloyd White
Della Condon (Councilman from 01/2016 to 11/2016)
Elaine Morgan
Rebecca Carr
Jennifer Burnett
Rey Santos
Eseta Mamea
Jenero Jordon
Diana Harris
Leah Perez
Joseph Johnson
Paul Bricker
John Halliwill
The second Meeting held on February 1, 2016 listed the following Roll Call:
City Treasurer Nancy Carroll
Councilman Mike Lara
Mayor Lloyd White
Jennifer Burnett
Elaine Morgan
Rey Santos
John Halliwill
Diana Harris
Rebecca Carr
The February 17, 2016 Standing Financial Committee added two Alternatives to the Roll Call, both of which are employed by Developers:
Richard Bennecke
Sean Balingit
At the behest of Judy Bingham; on August 1, 2016 the ‘Standing Financial Committee’ changed its name to ‘Audit and Finance Committee’ to emphasize the ‘Audit’: http://www.ci.beaumont.ca.us/D…
On April 3, 2015 the Audit Committee Approved the Contract with the Auditing Firm of Van Lank Fankhanel to Audit the City of Beaumont Financial Statements for Fiscal Year Ending June 30, 2015: http://www.ci.beaumont.ca.us/D…
On December 19, 2016, the Auditing Firm of Van Lant Finkhanel Presented Beaumont’s 2015 Audit to the Committee, the Roll Call consisted of the following:
Councilman Mike Lara
Mayor Lloyd White
Elaine Morgan
Rey Santos
John Halliwill
Diana Harris
Jennifer Burnette
Richard Bennecke
On August 7, 2017, the Members of the Beaumont Audit and Finance Committee Roll Call were:
Councilman Mike Lara
Councilman Nancy Carroll
Elaine Morgan
Rey Santos
John Halliwill
Diana Harris
Jennifer Burnette
Richard Bennecke
Steve Cooley
Joann Roberts
Stephen Martino
John Chamberlin
Sharon Geiser (now City Treasurer)
Andreanna Pfeiffer (now City Clerk)
15 USC 7265 Section 407 et seq. requires the Audit Committee Members to include a ‘Financial Expert’. Beaumont’s Audit and Finance Committee is specifically established to preclude anyone with financial knowledge.
15 USC 78j-1.(2) directs oversight of Auditors to the Issuer’s Audit Committee. Section 4 specifically directs the Committee to establish a procedure to receive and process Complaints.
On August 7, 2017, Judy Bingham explained to the Beaumont Audit and Finance Committee that the 2015 Audit that was presented to the Committee had been Altered with the $216 Million Debt recorded as an Asset and provided the Committee with backup documentation. The Committee ignored Mrs. Bingham’s Complaint.
At the end of the Meeting Committee Chair Elaine Morgan asked the other Committee Members for suggestions of Future Agenda Items. John Halliwill requested that Judy Bingham’s concerns about the legality of the 2015 Audit be put on the next Agenda.
After some talk Councilman Nancy Carroll stated to Chair Elaine Morgan: “I’d like to not put it on the next Agenda” to which Morgan stated: “Okay, anything else on Future Agenda?”
Beaumont Audit & Finance Committee August 5, 2017:
1:34:30: Halliwill: I can’t recall everything that happened at the last Council Meeting, but Mrs. Bingham brought up some additional points that I think Melana Taylor might want to discuss with the City Manager relative to some of the duties of this Committee as required by others Statues that we’re not normally looking at. I think those questions need to be looked at and possibly referred to legal counsel.
1:35:00: Morgan: I think that’s something that needs to be done on Council’s Agenda, not something that would come into ours. Do you believe that it’s something we would be involved in? Because w’re working at the direction of Council. We don’t .. .
Halliwill: I’m concerned about her earlier remarks that says we’re not following what we’re supposed to fiducially do as what she understands the law reads.
Morgan. Okay, then that’s something she needs to direct to Council.
Halliwill: And I say that from a standpoint that I, you, and everyone else here wants to make sure that we are doing what we’re supposed to do.
Morgan: We’re not going to get into discussing this; it’s not on our Agenda, so we are going to walk away from this.
1:36:00: Carroll: Didn’t we cover this when we talked about the responsibility of this Committee was in a prior meeting, didn’t we cover this? I thought this was ‘covered’. I’d like to not put it on the next Agenda.
Morgan: Okay, anything else on Future Agenda?