Newberry Springs Community Alliance
files for Newberry CSD records
Senior association seeks another government bailout!
Local inquiry is launched over alleged misappropriation of funds.
November 10, 2012
The Newberry Springs Community Alliance filed a California Public Records
Act request with the Newberry Community Service District (CSD) on November 8, 2012 for the
production of documents related to approximately $33,000 in contracted services allegedly performed
by the Newberry Springs Senior Service Association, Inc.
The senior association allegedly received the funds for services that
the association was to perform for the benefit the community.
The first funding said to be $13,000 was made about six years ago when
the senior association, lacking operational funds, made a request to the CSD for assistance.
That request was later followed by a second request that netted a reported $20,000. The
seniors were back again in October 2012 making a repeated request and seeking up to $30,000.
According to senior association spokesperson Brian Fisher, the senior
association currently is in arrears and needs another bailout. Bills need to be paid.
The senior association is a private organization and the CSD cannot
give away government controlled funds to a private entity unless it is for the purchase of
specific services that can be valued and documented; or for a tangible product.
Previous CSD funding for purported services by the senior association
were apparently given without a formal bid process or any direct CSD oversight.
Although the previous two monetary bailouts were under a contract for
services, the CSD and senior association have lacked documentation of whether those services were
ever performed; and if they were, did the community receive compensatory value for the $33,000?
Or were the funds illegally used to first payoff debt that had arisen from hidden mismanagement?
If the CSD board approves the $30,000 proposal listed on the CSD board's
October 2012 General Meeting agenda, that would bring CSD total gifts to the senior center to
The IRS does not look at a business that constantly loses money as a
business; but rather a hobby. And that is what the senior center appears to have become.
The CSD cannot legally give funds to the senior association to cover the
general operational overhead of the association; yet illegal conversion of the funds to cover
general operating costs is suspected.
As of the time of this news release, an empty visit to the senior center
and an earlier voicemail call to the treasurer of the senior association seeking access to the
association's public records have not been responded to.
The association is an IRS recognized
tax exempt organization; and as such, it is required under the law to maintain its public records
at its principle place of business and to allow them to be open for public inspection during regular
business hours. Lack of such transparency is another act of critical mismanagement that
seriously jeopardizes the senior center's IRS tax exempt status.