Minnesota's Auditor Exposes "Systemic Effort" To Manufacture Fake Records

Minnesota Auditor Caught Tim Walz’s DHS Fabricating Documents After Audit Started

Tim Walz couldn't run fast enough from Minnesota's exploding fraud crisis.

He dropped out of the race hoping to make the scandal disappear.

Minnesota's Department of Human Services got caught red-handed creating backdated paperwork to fool auditors investigating $425 million in behavioral health grants.

Legislative Auditor Judy Randall dropped a bombshell during testimony before state lawmakers — her team discovered DHS employees manufactured documents for monitoring visits that supposedly occurred in May 2024, October 2024, and January 2025.

The paperwork didn't exist until February 2025, created only after auditors demanded proof the visits happened.

Auditors found missing progress reports, incomplete financial records, and zero documentation for required monitoring visits. Then they discovered something worse — freshly minted paperwork backdated to look like BHA had done its job all along.

Read about the rest of the fraud...

Pushing for 2020 General Election Audits

Pushing for Audits of 2020 election

The left has been doing whatever it can to attempt to convince the American people that the election of 2020 was free and clear of any fraudulent activity. However, we know (and DEMOCRATS know) that is far from the truth considering so many of us stayed up late that night to witness the crime occurring in real-time.

Since that fateful evening, the mainstream media has continued to gaslight 74 PLUS million Americans telling us we were wrong and that we are just sore losers, but we know the truth and so does Donald J Trump.

Thankfully, many Republicans are pushing for audits to help restore faith in the election process considering that the 2022 midterms are not that far off. [dailyheadlines]

Where's the 2017 Audit for Lake Worth?

Where's the audit that is produced by our External Auditors?

It seems to get later and later every year. Our fiscal year ended September 30, 2017.  So, how many months is that and we still don't have the audit?  What's  the hold-up? AGAIN?!

The external auditor just audits information provided to him/them  BY the city. They don't do any investigative work to see if the numbers jive but if they see any irregularities or illegal acts they will make a written report to the Finance Director. (We don't have a finance director yet!)

Last year's Audit found $7 million in questioned costs at Lake Worth Water Utility

It was reported by this blog over two years ago that the inspector General was investigating Lake Worth. At that time, the city manager Michael Bornstein gave an explanation as to why he didn't respond to the IG's survey of 2014: “I’m on my fourth finance director in 4½ years,” Bornstein said. “Organizationally, we’re still not where we need to be … but we’re improving.” It's amazing that we get so much bull.

The City has so much money to account for now with the General Obligation Bond and all the rest of the funky stuff like Siemens. Commissioner Maxwell doesn't like the word "transparency"...believes it's abused. Well, I can't find one audit on the city's web site for any year. Are you interested in the Audit, commissioners? And on top of that, there are no minutes this year for the Citizens Advisory Committee-Road bond, a committee that rarely meets to review all expenditures from the bond proceeds for improving local roadways

And where is our Internal Auditor? He's like a gossamer wing--unnoticeable. We never hear from this guy. And we still do not have a Finance Director so that makes it five directors Bornstein has lost? I wrote to the Assistant Finance Director to inquire about the Audit for 2017 and was told that it is not finalized yet.

Siemens Industry - Energy Audit for Lake Worth to grab $20 million of your money

Comment Up

Well, it's probably not a scam but it definitely is being sold by an expert salesman who makes big bucks to convince deep pocketed municipalities to partner up. The only thing that will be "energized" will be your "walking wallet," a phrase coined by Peter Timm.

A. Hector Samario, Siemens Industry, Inc., (a salesman) will be at a city of Lake Worth tonight to give a 26 page Power Point presentation in order to provide an update on Energy Performance Contracting Services. They will try and convince this commission to take on a partner to implement their ideas on how Lake Worth can be more energy efficient. This is about SMART GRIDS and SMART METERING.

"Mr. Samario is on the Board of Directors of the USGBC South Florida as Vice President. Hector Samario, LEED AP, a Senior Project Executive with Siemens Industries, Inc., works with municipalities, counties and school districts to develop energy and water conservation strategies aimed at reducing utility consumption, greenhouse gas (GHG) emissions and the overall cost of operations. Moreover, the strategies developed have the additional focus of creating and/or maintaining "green" jobs in the local economies." Their targeted and lucrative market has the deep pockets from taxpayers.

Back on April 1, 2014, every single commissioner voted to hire Siemens Industry to conduct an audit on energy efficiency--Peter Timm, the resident this commission loves to muzzle, spoke out saying we could not afford this $148,000 audit.  Siemens only charged the County $89,000 for an audit. Suzanne Squire said that we paid $199,400 for Energize Lake Worth (a study by Lewis, Longman and Walker) for the same service (Read the PBPost article) and asked that city money not be wasted. Bornstein brought it to the table and now it appears that the audit might be complete.  If the plan is accepted, we are obligated to enter into an energy performance contract and/or pay the $148,000 audit fee. 

Siemens says that its guarantee ensures energy consumption savings throughout the contract period. If the agreed upon energy goals are not met, Siemens pays the shortfall. If your energy savings surpass the Guarantee goals, you receive 100 percent of the excess savings – an unbeatable formula they say. After the initial implementation is done, in a sense, free of charge, with the payment coming from the percentage of the energy savings collected by a financing company or the ESCO.

Now nothing is free.  That's my take on it. This all would have to be paid by the taxpayers in some form and Siemens is there to "help" the city to that end when this crack jack administration (that already wasted $200,000 of your money on Energize Lake Worth) decides to implement their audit findings. That's the only way you might come out ahead. You can't save money until you implement their suggestions.  And you can't save money until you go into debt. Until you do that, you owe them. And how much is this contract?

Scope of Work
$20M - $25M Project
Annual Guaranteed Savings $2M - $2.5M 

So, this is about borrowing $20 to 25 million over approximately 20 years or putting it on your tax bill. They can help our new finance director craft financial options that meet the city's  requirements and get as creative as the last idea (still on the table), the general obligation bond for infrastructure.  Remember, that finance director disappeared in the middle of the night?

• Standard general obligation bonds
• Revenue bonds
• Tax-exempt municipal leases
• Capital leases
• Energy services off-balance sheet agreements

In June 2005, the GAO released a report, “Energy Savings: Performance Contracts Offer Benefits, But Vigilance Is Needed To Protect Government Interests. The Office of the Under Secretary of Defense for Technology, Acquisition, and Logistics agreed with the GAO findings. “While these complicated contracts are structured to ensure that savings will exceed costs,” the DOD noted, “we recognize that our measurement and verification procedures must be improved to confirm estimates with actual data.” Unverified savings, often stipulated rather than proven, do not put more oil in the ground, take CO₂ out of the air or reduce operating budgets.

You've heard that old saying--If it sounds too good to be true, it probably is.  Energy and Carbon Management says that the biggest barrier is the lack of appropriate, low-cost, long-term financing.  The biggest problem here is that the city continues to have pipe dreams to spend millions that they do not have.

And we can't even fix a pothole.

Hacking Smart Meters  of a Utility
 

Lake Worth to hire new External Auditors

Comment Up

We are hiring a new external auditor.  TCBA Watson Rice LLP has been with us for years.  The external auditor just audits information provided to him/them  BY the city. They don't do any investigative work to see if the numbers jive but if they see any irregularities or illegal acts they will make a written report to the Finance Director (he left mysteriously in the middle of the night), the city manager and to the commission. TCBA knows the inner workings of our departments and all the staff but the city is hiring a new firm.

The City’s contract for financial auditing services with TCBA Watson Rice LLP expired at the conclusion of the Fiscal Year 2012-2013 annual financial audit. The City issued a request for proposals for financial audit services and received seven proposals. These proposals were evaluated based on technical qualifications, audit approach and fees. The proposals received were reviewed and three firms short-listed. The firms short listed were (alphabetically) TCBA Watson Rice LLC, Cherry Bekaert LLP and Keefe McCullough. These firms made their presentations to the staff Audit Committee on July 22, 2014. After the presentations concluded the staff Audit Committee discussed the presentations and ranked the firms. Keefe McCullough received the top ranking. Negotiations by City staff proceeded with the top-ranked firm.

MOTION:
I move to approve/disapprove an Agreement with Keefe McCullough (out of Ft. Lauderdale) for auditing services for: 1) an initial three year agreement with fixed fees of $82,500 for Fiscal Year 2014, $84,500 for Fiscal Year 2015 and $86,500 for Fiscal Year 2016; and 2) upon mutual agreement of both parties, optional renewal of two additional one year terms. Option Year One at a fixed fee of $88,500 and Option Year Two at a fixed fee of $90,500.

Pam Triolo goes to Washington

Comment Up

Mayor Pam Triolo

16 hours ago

I'm headed to Washington DC tomorrow for some very important meetings over two days. I'll be meeting with FEMA to discuss the nearly 5 Million they say we owe back to them from the hurricanes of 2004-2005. Yes, 10 years later! Then I'm meeting with the US Department of Energy to talk about Electric Utility programs including the possibilities of Photovoltaic and compressed natural gas programs. You might remember the natural gas line we've been paying handsomely for? Also follow up meetings are scheduled with Senators and Congressmen and women regarding infrastructure funding to help offset our costs of fixing the roadways. Senator Clemens was very clear in a recent commission meeting what was at stake. I appreciate very much his commitment to help us! We are being proactive so we don't have to deal with issues like these again. Keep me in your prayers. I'll report back when I return.

UPDATE ON FEMA from the newly released FY 2013 CAFR (Audit) that was prepared by the Lake Worth Financial Department and audited by WatsonRice, our external auditors.  These figures are somewhat different than the FEMA reports of November and December 2012 as previously mentioned and there is no mention of the original questionable amounts, $470,244 and $6,998,095 in this report. Staff back then was turning in receipts for all sorts of personal items such as medicine and goods from Sam's Club.

If you want to see the facts and figures, Click here

It's no wonder they need to grab all that money!

Update on FEMA grants from Lake Worth's CAFR

UPDATE ON FEMA from the newly released FY 2013 CAFR (Audit) that was prepared by the Lake Worth Financial Department and audited by WatsonRice, our external auditors.  These figures are somewhat different than the FEMA reports of November and December 2012 as previously mentioned and there is no mention of the original questionable amounts, $470,244 and $6,998,095 in this report.

C. FEMA Grants
The City worked with FEMA to finalize all of the claims filed by the City related to Hurricanes Jeanne, Francis and Wilma in 2004 and 2005. Amounts received or receivable from FEMA are subject to audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability to the City. The City received initial determination letters for all large projects (those with a cost of more than $57,500) in late December of 2011. The net questioned costs for the three storms were approximately $2.8 million. The City has availed itself of the appeal opportunities afforded under 44 CFR, Sec 206.206 Federal Regulations which allows for two appeals. That appeal process will not likely be resolved until FY 2014. Resources for any ultimately disallowed costs are available from the City’s $5.2 million emergency reserve.

City of Lake Worth, Florida 81 The U.S. Department of Homeland Security, Office of Inspector General (DHSOIG) conducted an audit of FEMA Disaster Declarations Nos. 1545 (Hurricane Frances), 1561 (Hurricane Jeanne) and 1609 (Hurricane Wilma) between January and May 2012. The purpose of this was to review the findings of the FEMA/State of Florida closeout audits. DHSOIG issued reports to the FEMA Regional Director in November 2012 and December 2012. In July of 2013, the City was notified by the State that there were additional net questioned costs for the three storms which were approximately $1.2 million. The City has availed itself of the appeal opportunities afforded under 44 CFR, Sec. 206.206 Federal Regulations which allows for two appeals. That appeal process will not likely be resolved until FY 2014. Reserves for any ultimately disallowed costs are available from the City’s $5.2 million emergency reserve.

Expense Pro-Forma - Lake Worth Casino

Comment Up

Kenneth Oakes, City of Lake Worth Internal Auditor

Facts are important, are they not?

When speaking of our new Casino building at the Lake Worth beach, Kenneth Oakes, our internal auditor, was quoted in Sunday's Palm Beach Post:  "The common area maintenance fee was set at about $7 a square foot. The fee estimation was made before the casino opened its doors, by someone who is no longer here. (Finance director) Steve Carr has done his own analysis, and I think he estimated more than double that was needed. Now the question is, how can we change it?"

Now, the statement  suggests that someone who is no longer in the city's employ is responsible for the low estimate on casino CAM.   This is not Mr. Oakes' fault as he goes by what his bosses tell him. Who are his bosses?  Why the present city commission, driven by politics, that wants to blame the past City Manager and City Commission for just about everything wrong with this city. So, just who is responsible? 

In March 2009, the city received the report from Fishkind and Associates on its pro-forma analysis on the casino redevelopment that included a finance plan.  Mark Bates was the finance director then and Bob Baldwin was the city manager. This plan was for the purpose of going out on a loan or bond for our casino construction. Fishkind's estimate on expenses was $6.98 per s.f.   Baldwin finally left the city. In April 2009, Susan Stanton was hired as City Manager and she soon hired Steve Carr as finance director. The finance plan was thoroughly discussed on numerous occasions and later moved into many commission presentations and discussions. Even the Finance Advisory board got into the act. Everyone relied on our finance department and the projections it made at the time.  A final meeting of the commission was on August 13, 2010 on the finance plan. Who was the Finance Director during all of this?  Steve Carr.

The plan was to borrow $6 million from the City and then after rents start, repay the City the $6 million plus interest of approximately 2.5% per annum for the 16 months it borrowed the money. The City would then go out on a 20 year bank loan at 7.25% interest. By borrowing $6 million from the City’s Cash Portfolio, which has a balance of $60 million of unrestricted funds, the City would save $400,000. As everyone knows, it has  been recommended by the finance director that we don't pay ourselves back this year as expenses were much higher than estimated.

I would imagine that Mr. Oakes did not know the above when he said the expense projection was made by someone no longer here. The final was presented by our finance department whose director is still with the city of Lake Worth. Steve Carr did the best he could do with the data given to him. There was no possible way under the sun of being accurate in expense estimates as the casino had no history under its belt other than the old casino that was totally neglected by the city. Now it has the information, one year later.  One good thing, rents are at a much higher rate than originally suggested.

Truth can and often is re-written and sometimes facts are camouflaged by politics.

FEMA Fraud

Comment Up

When talking about the City of Lake Worth, through the years there have always been some who have said, "Where's the FBI?"  And then we have always had the same politicos here saying, "Where's the corruption?" Now with the FEMA scandal that Lake Worth kept from the residents with  a staggering figure of over $7 million in money that we can't prove we deserved,  the thought of "where is the FBI" has reached a whole new decibel.

As most of the FEMA money involved the Utility, we now can understand why the Internal Auditor's focus was diverted from the Utility and rerouted to the code enforcement department. If you recall, auditing the Utility was the original intent of the Commission but this messy FEMA stuff was going on unbeknown to us. Of course, we still don't get any report from the Commission as to what the Internal Auditor is actually doing. Everyone is silent on this, even the public.

In a case involving FEMA fraud:

Three South Florida Defendants Sentenced for Kickback Scheme in Hurricane Wilma FEMA Fraud

On June 4, 2012, in Miami, Fla., Jeffrey Wayne Aunspaugh, a Port St. Lucie electrical contractor, his wife, Angela Aunspaugh, and Christopher Hale, his brother-in-law, were sentenced for their roles a kickback scheme involving Hurricane Wilma disaster relief FEMA payments. Jeffrey and Angela Aunspaugh were each sentenced to 63 months in prison and two years supervised release.  Hale was sentenced to 30 months in prison and two years supervised release.  In March 2012, the Aunspaughs were convicted of conspiracies to commit honest services mail fraud, money laundering and structuring financial transactions to evade currency reporting requirements. Hale pleaded guilty to receiving kickbacks. According to evidence presented at trial, Jeffrey and Angela Aunspaugh, owners of Ener-Phase Electric, Inc., obtained more than $1 million from subcontracts with Glades Utilities Services, Inc. for storm-related repairs following Hurricane Wilma in 2005. The Aunspaughs paid more than $200,000 in cash kickbacks to their brother-in-law, Christopher Hale, who was the general manager of Glades Utilities Services, Inc., to obtain the contracts.

The City of Lake Worth's Sub-Regional System Audit

Comment Up

Last night, Finance Director, Steven Carr was given kudos for doing a wonderful job for Lake Worth.  Even one of the Friends of the Gulfstream, who loves to speak on all subjects great and small, laid compliments upon him.  I like Steve Carr. He was hired by Susan Stanton and it was brought to Stanton's attention that our sub-regional sewer customers owed us over $10 million bucks. We had audit after audit during that period. The City pursued the monies owed. Now there is a complete reversal. What gives?

The City of Lake Worth's Sub-Regional System audit--

What happened?  How did we go from cities owing us millions to us owing them thousands?

Notes to Fiscal Years:
1. City records did not include sufficient information to permit a calculation of over (under)-billings for the 2006-07 fiscal year.

2. Notes A, C, I, J, K, and L under the Types of Deficiencies in City Records, relate to the first half of the 2008-09 fiscal year. Notes A, B, D, F, G, I, J, K, and L relate to the second half of the 2008-09 fiscal year. Over (under)-billing amounts are for the first half of the 2008-09 fiscal year. City records did not include sufficient information to permit a calculation of over (under)-billings for the second half of the 2008-09 fiscal year.

Here is a list of all the "incompetence"--
Notes to Types of Deficiencies in City records:

A. Contracts between the City and System Customers were not sufficiently detailed as to the methodology for determining renewal and replacement costs to be billed to and paid by System Customers.
B. City records did not evidence how Sub-regional System renewal and replacement (R&R) costs were calculated.
C. City records did not evidence why the City used budgeted depreciation as the sole basis for calculating Sub-regional System R&R costs.
D. City records did not evidence what portion of the flow rate billed to System Customers was attributable to the East Central Regional Water Reclamation Facility
(ECRWRF).
E. City records did not evidence whether or not State Revolving Fund (SRF) loan costs were included in ECRWRF flow rate calculations
F. City records did not evidence what portion of the flow rate billed to System Customers was attributable to the Palm Beach County Joint Transmission Facility
(PBCJTF).
G. City records did not evidence how the flow rates stated in a consultant’s rate study were determined.
H. City records did not evidence how the flow rates stated in revenue sufficiency analyses were determined.
I. City records did not evidence the flow rate calculation for the Village of Palm Springs.
J. City records did not always sufficiently demonstrate that Regional Sewer Funds expenditures were recorded in the correct amount and were related to the Sub-regional System.
K. City records did not evidence the basis upon which allocation percentages, used to allocate budgeted salaries of Sub-regional System employees to the City’s local sewer system, were established.
L. City records did not evidence the methodology used to allocate any indirect costs to the Regional Sewer Fund and, as such, did not demonstrate that a systematic and reasonable approach was used to allocate such costs.

Re-locate to Lake Worth - We are poorer than Dirt

Comment Up


Last night's commission meeting was not too long. None of them are very long since this commission was elected and Michael Bornstein became city manager, which should make everyone wonder what is being decided out-of-the-sunshine.

Essentially we had only three or so citizens speaking last night--you could feel the tension in the air.  Mr. Timm spoke, and I have been agreeing with him on everything lately. Next there was the little woman in the first row who likes to speak on just about everything. She coaches the dais from the front row and even before the meeting told me never to speak to her again, that I was evil.  She denied knowing anything about the banner being re-erected on the Gulfstream. It does have her Pac's disclaimer on it. That special interest side certainly gets things twisted.

The City Commission voted in a new marketing approach:  Come and invest in Lake Worth, the poorest city next to Belle Glade. From the map that was shown, even the nicest neighborhoods will be part of an Enterprise Zone and just as property values are starting to rise...hmmmm. One side of politics is always accusing the other on wanting to keep property values low.  I have never figured out that one or where it made the least bit of sense but they keep using that ridiculous propaganda.. They just voted the opposite of their beliefs last night. Anything for business at the expense of single family and residential neighborhoods. Enterprise Zones are to attract business so I am confused about designating residential family neighborhoods as enterprise zones. Here we are trying so hard to rise from the ashes with a new casino and beach redevelopment, re-doing our golf course to attract tourism,  and they just acted on an enterprise zone telling the world that you don't really want to come here and buy a property as you will be living and eating in the dirt.

The Commission settled with our regional sewer customers. It certainly is curious.  In 2005, it was discovered by our Finance Department that 7 entities owed us money for our failure to bill for Renewal and Replacement charges. According to them at the time, these cities owed us $10,418,237 with Lake Worth customers owing $3+million. It was brought to Susan Stanton's attention soon after she was hired and she wanted to collect. We sued them in 2010. The cities balked because they never got a bill.

The Florida Auditor General became involved and it was determined that the customers of the Sub Regional system (includes Lake Worth) overpaid $4.5 million with the City of Lake Worth customers overpaying $3.8 million of that amount.  How can this be?  Was our Finance Department totally out of whack on its numbers, its billing, its methodology and calculations to advise a city manager that we were owed double digit millions only to learn that we now owe the cities? The Village of Palm Springs is the only city that owes us and it is a measly $52,708. We got into trouble through another bad contract and staff incompetence.

Mr. Timm spoke to the issue and was alarmed that the city was not going to give the money back to Lake Worth customers. Bornstein said, "You are out of line," that the issue has not yet been presented to the commission. Well, there was a big settlement and an agreement to pay our customers with the money coming out of Reserves last night.  Why wasn't there discussion or recommendations on the same thing to Lake Worth customers? Lake Worth customers will probably end up eating dirt.

Lake Worth's Internal Auditor Agreement being signed tonight

On tonight's city commission agenda is the employment agreement for the Internal Auditor, Kenneth Oakes.

For services rendered under this Agreement, the City will pay Employee on the same schedule that it pays other employees, in equal payments determined by dividing One Hundred and Five Thousand Dollars ($105,000) by the number of pay periods in a calendar year. City shall also provide and pay for the costs of employee benefits that are provided and paid for any other employee within employee’s City salary range. Said salary amount may be increased by the City without opening and/or amending this Agreement and/or Section.

My only question is, why didn't you offer this same salary to highly qualified Robert Marksmeier?

As one former applicant said, "I got the feeling that the Internal Audit Plan should not contain anything of what Management desires but should contain 100% of what the Commission desires to be done. That would not be a risk based internal audit plan because the Internal Auditor would not be able to identify risk with City Management even though City Management knows where the risks are much more than a governing body would."

Internal Auditor Appointed in Lake Worth

Comment Up

Kenneth Oakes is our new auditor for the City of Lake Worth. He won't have far to travel as he lives in the unincorporated area of Lake Worth.

He has an MBA in Accounting combined with over 18 years of experience in Financial Controls and Project Management. Proven record of accomplishment working with diverse corporations in Restaurant Chain/Hospitality, Entertainment, Retail, and Financial Services.

EDUCATION:

HOFSTRA UNIVERSITY, Hempstead, New York
Master of Business Administration in Accounting
SUNY at Stony Brook, Stony Brook, New York
Bachelor of Arts in Psychology

CERTIFICATIONS:

Certified Public Accountant, CPA (New York State)
Certified Fraud Examiner
Certified Internal Auditor

Internal Auditor for Lake Worth to be Chosen tonight

Steven Wolkomir

29 years as an internal auditor--

School districts, Citizens Property Insurance and for various cities.

Accounting, CPA, Member of IIA, ALGA and other professional groups.
 He is well experienced in internal auditor start-ups
 and describes himself as a generalist.
 Gives objective and constructive appraisals
 and mentioned auditor accountability and independence.
 Used to working with politicians in his career.
Back in April he was ranked in the top 5 by all 5 commissioners
and narrowed down to the last two.

I will be very surprised if Mr. Wolkomir does not get the nod tonight but the City has a way of running off highly qualified people. To get along you have to go along--the creed of the past. This must change and the Internal Auditor must be totally independent.

Lake Worth Utility - The Black Hole

Comment Up

The City continues to put costly items on Consent Agenda for immediate approval by the city commission. It continues to send out RFP's on various purchases, sometimes without the commission's knowledge such as the RFP for an exclusive caterer at our Casino.

Tonight it is for the purchase of various three-phase pad mount transformers, single-phase pad mount distribution transformers, and overhead distribution transformers for a whopping total of $307,247 for Lake Worth Utilities.

The Motion:
1) I move to approve/disapprove the purchase from HD Supply Corporation in an amount not to exceed $151,790 for three-phase pad mount transformers, the purchase from Howard Industries in an
amount not to exceed $46,479 for pad mount distribution transformers and the purchase from HD Supply Corporation in an amount not to exceed $108,978 for overhead distribution transformers.

As the commission is ultimately responsible and is supposedly a watchdog of our money, is it not reasonable to have any expenditure over $15,000 under New Business so that there can be discussion and explanation of the expenditure?  We couldn't even hire an Internal Auditor, Robert Marksmeier, whose focus was going to be on our Utility.

It's still a black hole.

Where's the Internal auditor?

Comment Up

What happened to the highly qualified internal auditor, Robert Marksmeier, that the commission voted on unanimously to hire? Back on March 20, the city commission ranked their top candidates for Internal Auditor based only on the application and resume. Later they narrowed their choices  after interviews. On May 1, there was a public interview and Robert Marksmeier was chosen.

What REALLY happened?

All we know is that Vice Mayor Maxwell was the negotiator and he wouldn't budge over a $98,000 offer. Why not?

Miami is in a pickle

A 2½-year investigation by federal authorities has concluded that the city of Miami misled investors about the city's financial health as it sold hundreds of millions of dollars worth of bonds dating back to 2007. Read more...

This is why we keep harping on transparency in government. This is why we don't understand why the vice mayor could not negotiate with Robert Marksmeier, the appointee for Lake Worth internal auditor, an extremely highly qualified individual or why the negotiating process took over two months and ended up in a dead zone.

From now on, the commission needs to have a skilled negotiator when it comes to contracts.

Internal Auditor Appointee Withdraws because of stalled negotiations

Comment Up

The "negotiator," Vice Mayor Scott Maxwell, flubs another one--
This is very unfortunate. Mr. Marksmeier was approved 5-0 by the commission and was a position that was filled following requests from the public. It begs the question - why could terms not be agreed upon? Commissioner Maxwell negotiated the city manager's contract in a very short period of time. Commissioner Maxwell should have updated the commission if there were any issues with this important position. He did not.

From: Robert Marksmeier [robertmarksmeier@gmail.com]
Sent: Monday, July 09, 2012 11:59 AM
To: Scott Maxwell; scottmaxwell1@bellsouth.net; Mark Farrington; Elaine Humphreys; bobbyma@miamidade.gov
Cc: Pam Triolo; Christopher McVoy; Suzanne Mulvehill; Andy Amoroso; Silvina Donaldson; Joni Taurosa; Sarah Fargo; Human Resources
Subject: City of Lake Worth Internal Auditor

Good morning Vice Mayor Maxwell, Mr. Farrington and Madam Attorney

Want to thank you, the Mayor, the Board of City Commissioners and the City of Lake Worth for the opportunity afforded to me by selecting me as the City’s Internal Auditor/Director at the May 1, 2012 Regular Commission Meeting, contingent upon the successful negotiation of an employment agreement (Agenda Item 10A).  However, to this date we have not been able to come to terms on this agreement/employment contract.

Therefore at this time, I am withdrawing from the negotiations and appreciate the opportunity afforded to me. It truly has been an honor to have met each of you and the citizenry of Lake Worth.

As stated in the Lake Worth City Charter, “… an Internal Auditor is to be amongst the designated roles in the city along with the City Manager, City Attorney, City Clerk and other such officers…”. This is an important and vital position in any organization and/or government.  The Internal Auditor is an independent assurance activity designed to add-value and improve an organization’s operations, risk management, control and governance process.

I truly wish you the best in your search to fill this important position and role in protecting the city’s assets, public's interest, and government transparency.

Sincerely,
Robert Marksmeier

Where is the Internal Auditor?

Comment Up
Back on May 1, the Lake Worth City Commission voted to hire an Internal Auditor. We had to hear from the public for two years that this was an important hire. It is something that the politicos used against the former city manager when she did not put the position into the budget.

To this day, over two months later, we still do not have Robert Marksmeier in our employ. What is the stall?  The citizens have the right to know.  The Vice Mayor, Scott Maxwell, is the "negotiator."  Does he not want an internal auditor afterall?  If there is a salary range, fit all the requirements of Mr. Marksmeier into that range. Asking him to move to Lake Worth is not unreasonable. Commuting from Miami would be ridiculous.

All those people who commented on this and screamed for two years remain silent now. Let's all of us ask why the stall.

Lake Worth Electric Utility Advisory Board

Comment Up

There has been much complaining about Lake Worth's electric rates over the years. Everyone knows that $10 million is taken from our Utility in order to operate our city and the city says that it still does not have enough money to do all that it wants to do because of the drop in ad valorem. Staff has even suggested that we rob from a trust fund to keep our library opened.

No one has ever known whether Lake Worth Utilities has been operating efficiently...it is the Black Hole. In order to try and get a handle on it all, this new Visionary City Commission, after much persuasion behind the scenes, led the way and voted on establishing a Utility Board comprised of people with absolutely no knowledge of municipal power companies. They were politically appointed for the claimed purpose to advise the City Commission, on behalf of and for the benefit of the citizens and residents of the City of Lake Worth, on electric utilities policies, plans and programs.

They will probe around, ask questions and demand a lot of support documentation to present a case of some sort. I am assuming that they want to ascertain if the former city manager, the former Utility Director or anyone else at the Utility has absconded with funds, spent our money inappropriately and where all the money went. Sort of like the beach fund that we had years back during Boyer's employment with $3.5 million in it that just went "poof." Monies were transferred here and there, spent on legal fees for various cases, who knows.

The mission statement says that the Board will offer advice to the City Commission on the establishment of fair and equitable policies, plans and programs that are consistent with customer needs, legal mandates, public policy, operational requirements and the long-term financial stability and viability of the electric utilities. Personally, an advisory board consisting of no qualified people to offer this sort of advice is incredible. It is there to serve a political purpose and has an agenda of which is unknown to most of the citizens.

Part of that agenda, I would suppose, is to find a way to lower rates to make Lake Worth more attractive to businesses and future development, something they feel is the key to Lake Worth's prosperity, heights and all. They believe that the Conservation program, as did the Financial Advisory Board, is unnecessary and once we exit All Requirements with FMPA, that department will most likely be history and save an immediate $1.5 million.

The description on the Lake Worth web site further states that the board shall meet at least once per month. A seven member board composed of at-large appointments by each of the four District Commissioners (that was changed when certain commissioners could not find people to volunteer from their District), one appointed by the mayor, one City business owner, and one at large member representing Lake Worth Utilities. However, the Ordinance reads that there will be one At-Large member appointed by the City Commission representing the utility service area of or in a portion of the Village of Palm Springs. This appointment was made.

In the meantime, where is our new highly qualified Internal Auditor who was going to concentrate on the Utility as his first focus? Why is this dragging on?