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 $63,000.

      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.