What a Difference a Day Makes

Last night we learned or council has no concerns about accepting an audit by a 5-0 vote that raises more questions than it answers about the state of the city's finances.

We learned that our mayor and his fellow council members believe that since they hire financial experts they don't feel an obligation to do any homework or question the experts.

We learned that Council Woman Brenda Knight believes that since the city has been audited by multiple grand juries, the district attorney for Riverside County, and State agencies that all is well and Beaumont has a higher standard to live up to.

We heard, once again, that the council is comfortable with the standard financial audit and with the recommendation of their auditing firm, Moss, Levy, and Hartzeim (MLH), they will not consider any other audits.

Then we learn or financial experts, MLH, settled a law suit a few months ago with The City of Los Banos for failing to stop an embezzler of taking $1.7 million under their noses. The firm's defense was the financial audit was not a forensic or internal control audit and therefore not responsible for missing fraud or theft.

And finally, today, the California State Controller's office released a list of local governments who are violating state requirements by taking too long to close their books. The SCO promised to begin enforcing fines and auditing the internal controls of the habitual offenders. The press release provided a list of 8 cities that are more than a year behind. Beaumont is in the list along with the bankrupt City of Stockton.

We may get an internal controls audit after all.

Click here to read the complete press release