431 is the Accounting Code designated to the Gas Tax and Prop A funding. The monies from these two funds are very restricted. It is only to be used for the city's street maintenance – roads, alleys, sidewalks. The Gas Tax fund is $.18/gal which was recorded on the City Financial Statements FYE 06/30/11 at $740,000. The Prop A is .5 % tax is listed at $1,503,354.
Tax revenue collected from these two funds gave Imperial Beach $2,243,354 to use for City Street Maintenance last year. The Financial Statements FYE show $927,115 expenditures allocated to the 431 Account, but the monies can not be traced.
The Account Payable General Fund shows only $284,646.64 in expenditures for 07/01/10 – 06/30/11 and only $210,719.09 so far this year.
FYE 06/30/11 the expenditures are in 13 categories – two of which do not tie to the budget. The major expense is SDG&E with $118,400 last year & $93,010.49 so far this accounting cycle. $52,434.45 FYE 06/30/11 and $24,184.85 so far this year for 'street signs'.
The Financial Statements claim there was $1,505,895 used last year, but only $284,656.64 can be traced. Where is the rest of the money?
That's still a mystery.
The budget allocates $355,769 employee costs for five employees, but I have yet to receive copies of the Payroll Account or the two other bank accounts that the Finance Director stated to me exists, but he could not recall their use.
I first requested all bank accounts on April 23. On July 6, the City send me an email stating that the Payroll Account and the other two bank accounts 'still to be named' will be ready on July 20.
It's important to note that the Financial Reports FYE 2011 show a balance of $1,588,671 in the Gas Tax Fund and $552,433 available in the Prop A Fund. If they have over $2 million sitting in the bank to use for roads and alleys why don't they repair the roads and alleys?
And then there are the ABC Accounts. What are the ABC Accounts? I don't know - IB does a lot of 'creative accounting'.
It seems to be a way they are hiding expenses by allocating the expense as fixed costs. The ABC Accounts add up to $245,646 on the budget, but the monies can not be traced.
This is state funding. It was the Investigative Agent for the Comptroller's Office that specifically requested the trace on the Gas Tax Fund. The Comptroller's Office is scheduling an audit. At the this point the City would be smart to release the other Bank Accounts because spending $1.25 million on anything would be better than not being able to account for the money at all.
SANDAG is responsible for the Prop A ballot measure and has the Independent Taxpayer Oversight Committee (ITOC) that is suppose to: “...develop recommendations for improvements to the financial integrity and performance of the TransNet program.” The Vice Chair for the SANDAG Board of Directors is our Mayor Jim Janney with Councilmen Lorie Bragg and Jim King also listed on the Board.
A summery of the Accounts can be found at http://libionline.net/follow-the-money-blog.html