COST CONTAINMENT AUDIT WAS A FRAUD
The Controller & the LMUD Board knew there was never an overpayment . They lied to the public
KWH spoke with Larry Carter, LMUD Claim Administrator for Cost Containment Concepts, on December 28, 2004 and was told that there has never been an "overpayment". LMUD's health benefit policy is self-funding and the $300,000 is a reserve account.
Larry Carter told Bill Stewart, "I don't want to be apart of a political agenda".
This phony audit (of the Cost Containment Concepts account) that the LMUD Board claimed needed to be done (before the 2003/2004 Annual
Audit could be released) was contrived to keep the Audit from being released before the election.
Steve Pezzullo was a party to this phony audit. LMUD paid him, in excess of the $6,000 for an audit that did not need to be done?
The LMUD Board, Cady, Twitchell and Stewart knew before this $6,000 was approved that the $300,000 was a Reserve Account based on "aggregate funding factors".
This Reserve Account has always been there.