It doesn’t add up (May 24, 2015)

A frequent question used in hiring accountants is ‘What is 2 plus 2?’ A known preferred response is ‘Whatever you want it to be.’ After providing three Public comments statements and e-mail stating that the Town of Apple Valley’s Apple Valley Ranchos Water Company valuation lacked a necessary amount of $12+ million value in the total calculation on the website and seven-page report, they went and changed the appraisal contractor’s submitted report. However, the current financial data reported did not state that it was 17 months old in the March delivery. Now 2014 yearend financials have been reported to the California Public Utilities Commission. Will a revised valuation be made public, which may elevate the valuation by several million dollars AND contain a date of the data being reported is 12 months newer?

The appraiser’s wire transfer payment of $10,000 on signing and an warrant invoice payment for about $13,000 was never included in the warrant schedule for Town Council consideration and approval. The recent $45,000 warrant backup invoices are problematic, lack some detail review analysis and appear to contain inflated work hours being charged. Now an additional warrant for $17,000 is being submitted to complete the $84,000 contract amount. Should more consultant work be awarded?

An agenda item proposes the contracted Town attorney to contract with an environment and planning contractor to perform services in the amount of $80,000, which is a process having been used previously by the Town.

‘Why,’ ask some taxpayers? Should the attorney manage contracting efforts AND should the attorney’s bills contain the sub invoice amounts in the large amount warrants? The Town appears to be more like a carnival with several side shows than a circus which has a main tent and one master of ceremonies.

There is a special Town Council meeting proposed for May 28th.

Wonder what that agenda will contain?

Source: Al Rice, Apple Valley, Daily Press