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Posts Tagged ‘CAFRs

The “C” in “Comprehensive Annual Financial Report” Doesn’t Mean “For Nerds Only”! Short Preview/Review Sampler (July 27, 2019).

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This post will be further edited after publishing.  I made a decision to “just publish” July 27, 2019. It has enough content for relevant reading. Links are all present, not all quotes have been included or smoothly formatted towards the end.  Bonus material keeps surfacing…and I am reporting in part on short-term (half-year) Workgroups on Custody (in one state) and trying to encourage all to, if necessary, take crash-courses on CAFRs and how government works, in part because of how it’s been working up til now!

This post came from More, Some Earlier, Sidebar Widgets Now Live Here (+ See Related July 9 post) [This one, Published July 19, 2019](shortlink ends “-ahh”) but you certainly don’t need that excuse to read it.  The terms CAFR, GFOA, GASB are searchable on this blog; look for posts with some of those acronyms in a title.

 

re: ‘TWO HELPFUL LINKS’ — Image from TopRightSidebar, ‘GO TO POSTS’ widget, shows TOC 2019 & 2018 + ‘Key Posts 2012-2017’ (LGH, @ Sept. 1, 2019)

TWO HELPFUL LINKS added Sept. 1, 2019 (for recent subject matter overview):

 Table of Contents 2019, Family Court Matters’ Posts + Pages: January 1 – August 31 (so far). (Shortlink ends “-ayV.”  About 6,300 words,posted August 5, updated Aug. 31) (You can also link to this TOC post any time from the top right sidebar, under”GO TO: All Posts, incl. Sticky, Tables of Contents..” widget, which holds several boxes for navigating to specific important places (posts or pages, incl. the home page), and, 

(Table of Contents2018, Posts and Pages.. (publ. 24Mar2019, short-link ends ‘9y7’)


 

 

This Post is:  The “C” in “Comprehensive Annual Financial Report” Doesn’t Mean “For Nerds Only”! Short Pre-|Review Sampler. (Published July 27, 2019) (short-link ends “-ajs”) (about 8,500 words)

No, it certainly doesn’t.  CAFRs are not just for nerds!


I’ve been working some of these topics long enough that it’s second nature to know where to look and how to find illustrations; I have a labeling syntax, stored folders with date and time (for most), try to save all originating links.  Wrestling text (alone) or text and images into pleasant-looking blog posts is another matter; doing so with a nice, friendly tone and voice isn’t going to happen. Being sweet and friendly, long-suffering and above all patient seems just inappropriate to the situations developing right now in family courts inside and outside the USA.  Some mental lights need to start going on outside the assigned, typically given more “take-it-on-faith” leeway standard experts canvassing the country for recruits and trying to, as ever, federalize and internationalize their pet perspectives on “what happened?!?” when kids are getting hurt by virtue of decisions made within the family court system and NOT made regarding some of the same actions in the criminal system.

Private court divisions and sytems which have only been set up “just in time” for welfare reform are now embedded, so the debate about DIS-embedding them would affect existing political powers in, probably, every state.

Lack of understanding of other countries’ systems or innovators (i.e., private associations featuring civil servants), similar-sounding but different-meaning terms (like “family courts”!) and differences in levels of public accountability (theoretical at least) for private associations a.k.a. foundations/charities/societies), is an issue.

Similarly lack of understanding differences in systems of taxation — i.e., government itself — particularly when it comes to federal vs. state or (Canada) provinces or (UK) the various countries involved blurs the significance of what is taking place now, but which has been set in process decades earlier.  In other words, people who were thinking beyond their own generation of what they wanted the world (and I can speak for, the United States) to look like, are getting what they wanted now — chaos, division, exploitation, and, generally, a population which doesn’t bother or cannot read its own country’s financials, and know when it’s been lied to through withholding, or told the truth.  THAT’s a gullible population which can be prodded into voting against its own best interests nearly any time of day or night. What I’m saying — “it’s a massive cattle drive.”

“News Flash” Businesses charge fees and may charge enough to pay their own taxes (and still make a profit) but it’s governments who have the power to tax.  So businesses will ALWAYS be interested in keeping a hand in and on government affairs.  Businesses are always also interested in profits, which means workers remaining employees — not competitors; so population control, breeding, domestication, and education, are of course going to be key interests.

We can’t (logically) just “bail” on all skills involved in finding and reading financial statements (either public or private) and understanding where one intersects with the other (i.e., organizing principles) and expect to have some form of “justice” long-term.

CAFRs represent the government part.  They have a message to tell; they are not just for nerds.*

* UrbanDictionary definition * Wikipedia

nerd is a person seen as overly intellectual, obsessive, introverted or lacking social skills. Such a person may spend inordinate amounts of time on unpopular, little known, or non-mainstream activities, which are generally either highly technical, abstract, or relating to topics of science fiction or fantasy, to the exclusion of more mainstream activities.[1][2][3] Additionally, many so-called nerds are described as being shy, quirky, pedantic, and unattractive.[4]

Originally derogatory, the term “nerd” was a stereotype, but as with other pejoratives, it has been reclaimed and redefined by some as a term of pride and group identity. ..

Some of the stereotypical behaviors associated with the “nerd” stereotype have correlations with the symptoms of Asperger’s Syndrome or other autism-spectrum disorders.[25]

Looking up Hans Asperger (Austrian pediatrician active during Nazi era, his paper on Asperger’s pre-dated another’s on Autism):  “Hans Asperger, National Socialism, and ‘race hygiene’ in Nazi-era Vienna” by Herwig Czech in Molecular Autism 9: article 29 (2018):  Wow… Read the Abstract! and (not too surprising).


That subject deserves its own post. Apart from the stunning similarities to situations today, the back-story on the article is about the journal it’s in “Molecular Autism”, and the co-chief editors. The co-editor in chief from the UK, who’s made a career, basically developing theories and running centers featuring Autism (with Asperger’s being deemed on the AS — Autism Spectrum), was until 2016 married to a well-known and apparently loved family rights lawyer and “OBE” Bridget Lindley (she died, unfortunately and suddenly, at home, in 2016. That’s not the story but should also be explored for fuller understanding of how these things can still be…)

Illuminating article for sure, and situation, and its formal layout (and being open-access) is definitely appreciated..
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‘Human Ecology’ (Colleges of), Psychology, and Cornell. Why The History of the American University System Still Matters.

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Post title with shortlink, started Feb. 17, 2018, published March 4:

‘Human Ecology’ (Colleges of), Psychology, and Cornell. Why The History of the American University System Still Matters. (shortlink ending “-8F5”)   Post is short (about 6,100 words — can you believe it?!)

Subtitle: Some Historic Problems Design Flaws — or Inherent Design Genius, depending on one’s perspective — with The American University System.


Post Viewing/Navigation: Images which may extend beyond the right margin are probably part of an image gallery.  Click on any one and use the navigation keys.  Unless otherwise notated in a caption and unless your viewing device does this better (as might an iPad or cell phone with touch/swipe functions), outside the galleries, click individual images to enlarge. Content notes: I show some images or sets of images in more than one section of this post.  Related links: This post came from “Where ‘First Five Years’ and the Manic Push for  ever more: Universal Preschool/EARLY Head Start meets the National Fatherhood Initiative’s purposes within TANF …” (a LONG post) and a separate SHORT”preface” page “Understanding University Models…”. Those references will be posted again as they come up in their context.

Here, I discuss where “Colleges of Human Ecology and the intent to “develop” human beings from the start,” based on theories from high-profile psychologists such as the late Urie Bronfenbrenner (whom Cornell University’s center named in his honor credits for having founded, or inspired the massive “Head Start” programming itself), funded through their faculty positions meets “the imported university models” meets the “current US size and tax system” (university financing).


Tags:  I added labels (“tags”) for topics in this post, and included this one — though it’s not discussed below — because the post discussing it is related: “FAF Financial Accounting Foundation (estab. by AICPA ca.1971 Norwalk CT set up GASB+FASB who set the guidelines=acctg rules)(see also “CAFRs”)


Regardless of one’s perspective, the American universities both private and public still have a basic design. That design for each has been historically based on a certain model espoused by their founders, reflecting their values and what kind of economic infrastructure those founders wanted for the country.

MORRILL LAND-GRANT ACTS

(Reference added March 5, 2018): Why the Morrill Act Still Matters, July 16, 2012 by Christopher P. Loss in The Chronicle of Higher Education.  Added here because it’s a short narrative and for the 19 comments below arguing pro/con the whole situation.  The comments are generally well-written and interesting.

Basics: Please read (for review, or if it’s not review) Wikipedia on the Morrill Land-Grant Acts.  These involved federal lands to establish state college right about the time of the Civil War (!) and after the Confederate states had seceded (although they later got theirs, too).  On that article, Cornell’s situation is in paragraphs 7 and 10.  Paras. 6, 7 and 10 quoted here.  Relates to Cornell and MIT.

Under the act, each eligible state received a total of 30,000 acres (120 km2) of federal land, either within or contiguous to its boundaries, for each member of congress the state had as of the census of 1860. This land, or the proceeds from its sale, was to be used toward establishing and funding the educational institutions described above. Under provision six of the Act, “No State while in a condition of rebellion or insurrection against the government of the United States shall be entitled to the benefit of this act,” in reference to the recent secession of several Southern states and the contemporaneously raging American Civil War.

After the war, however, the 1862 Act was extended to the former Confederate states; it was eventually extended to every state and territory, including those created after 1862. If the federal land within a state was insufficient to meet that state’s land grant, the state was issued “scrip” which authorized the state to select federal lands in other states to fund its institution.[7] For example, New York carefully selected valuable timber land in Wisconsin to fund Cornell University.[8]p. 9 The resulting management of this scrip by the university yielded one third of the total grant revenues generated by all the states, even though New York received only one-tenth of the 1862 land grant.[8]p. 10 Overall, the 1862 Morrill Act allocated 17,400,000 acres (70,000 km2) of land, which when sold yielded a collective endowment of $7.55 million.[8]p. 8

…With a few exceptions (including Cornell University and the Massachusetts Institute of Technology), nearly all of the land-grant colleges are public. (Cornell University, while private, administers several state-supported contract colleges that fulfill its public land-grant mission to the state of New York.)

To maintain their status as land-grant colleges, a number of programs are required to be maintained by the college. These include programs in agriculture and engineering, as well as a Reserve Officers’ Training Corps program

This situation, as Wikipedia tells it, also supplanted a more egalitarian (among the states) and earlier “Turner Act,” giving preference for the then more populous eastern states.  Overall, the federal lands represent land grabs from Native Americans originally, anyhow, so a case could be made that the entire situation is based on theft and land-grabs.  Anyhow….
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Profits and Pitfalls of Intergenerational, Family-Controlled Public Corporations (K-V Pharmaceuticals)

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It started here, piddling around* on the —

Business Entities
Then, clicked on “Disclosures search”
Publicly Traded Disclosure Search (California)

*for “piddling around,” that’s part of how I learn. A synonym is “checking this database again,” and the general interest was, how large a sector, really, is involved in public-traded companies in my state? (I’ve spent so much in the nonprofit sector, and how they work in)… It’s a mindset. There is a way to search “All Companies” at the bottom of one of their screens. I found this, looked at it, picked out one, picked out a director’s name, and took off from there.


These are organizations that sell their stock, and are under the SEC regulation. As the public, we get to know what their officers are making, if they’ve in any legal or criminal proceedings (it happens), and in general, take a look at how another half (so to speak) does business, inbetween listening to how those who run the welfare system want believe is a better way to live.


The coincidental find was just too danged interesting, not to report — and again shows how deeply entrenched the pharmaceutical industry HAS to be with government if they want to do business. HOWEVER, this post is close to simply my reading notes; and general FYI info. …WYSIWYG…

I do think about this, after two decades of fighting the same issues (essentially) with the same people, plus some (essentially), when in truth, I’d just rather be working – than listening to people trying the guilt trip on my failure to work around the aggressions, or seek out how to keep or reconnect one basic service or another — like phone, internet, transportation, or to hold it together to get food, barring the ability to (who does this anymore?) raise my own.



I can see that the discrepancy between wage-working public and those running public-traded companies, especially in the Pharmacy business, is pretty remarkable. Pushing drugs via Medicaid or Medicare can be risky, if you have a crook at the top.

My search was so unbelievably random — I just happened to start looking at the list of public traded companies (in California). There are over 13,000 of them.

Preamble (Ramble)

If you don’t like these, just scroll down and read the articles, and the public disclosures.

I found this shed some light on the preachy tone of Congress on how they should centralize operations to better lift the poor out of poverty. Is that how THEY make their wealth?

This ENTIRE conversation is shown in its true colors if one begins to examine the people studying the poor — and contrast how they make their living (which is, off the poor, or studying them in institutions funded by corporations that made their wealth, originally, HOW???…. Ford, Rockefeller, Carnegie, …. HOW??? And closely controlled it thereafter…

The fact is — the general idea is to keep a handy source of low-wage laborers and substandard (at least when compared to the schools of the elite), conditioned to understand their lot in life (competing with overseas), remembering how great America is, while convincing the same masses to give up more and more liberty for less and less “ROI” on the same.

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Chicago/Princeton/Harvard Economics Smart (Professor Edward Glaeser), but with an Unfortunately Large Blind Spot

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A recent comment on this post (not actually on the main subject matter, but nevertheless…) got me looking at it again.  Now I have a temporary problem, called one post, and 16,000 words.

About a year and a half ago (as of this 2014 update), in October, 2012, I wrote:

From Oxford to Harvard, to D.C. — Healing, Fueling, Feeding (and Vaccinating) the World

I’ve become more and more interested in corporate influence on government agencies, such as HHS and HUD (and DOJ) after coming to better understand the court system, and the nonprofit factors.  You can only look at things for so long before the lights start to go on, with or without university exposure and indoctrination in how to.  The difference between doing this individually and the university experience is, obviously, connections, associations, and the dynamic of group momentum which comes from simply rubbing shoulders with leadership.

On the other hand, we now have a problem where leadereship isn’t very interested in rubbing shoulders with followers.  I’m wondering at what point did the concept of participatory and representative government take an exit stage-left?  That answer may be never found precisely — but I WILL say it was many decades ago and that it was, sheds light on whether we should lock-step (with occasional and periodic “Disruptive innovations”) continue marching towards the future unaware of whether its values systems are leading away from or towards things, historically, we are supposed to consider unethical and bad:  Slavery, #1, and Genocide, #2.


Essentially I am talking back to the habit of hero worship of capitalist adventures (such as cities represent) and the Harvard Global Model of Governance (Harvard has of course Oxford Connections, and both institutions tend to mirror each others practices, as well as share professors and personnel). I also have a lot to say bout the concept of “Innovations” when it displays itself in innovative justice programs whose backers just happen to be some of THE major foundations influencing American government today. I want people to consider (REconsider) just how DID the federal government become so powerful, and at what point did we consent to becoming its resource, and not it, individual state’s servant, with citizens/residents of those states being able to actually deal with their state-jurisdiction political leaders and expect to be heard past the many public/private innovation, real estate development, court-transformation, and elite university think-tank models of ….how the world should be?

At any rate, this got out of hand, turning a July 2013 post into a March 2014 monstrosity which, however, does have the material for a new post along my current lines of understanding.


I haven’t had success at turning published posts back into “Draft” so (embarrassing as it is), this is now a post in transition, whose middle needs to be extracted and turned into a new post.  However, if you’re still up for it, the material is good, and good to know about.

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“Mother Says” — Words to the Wise for Women in Custody Challenges

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[Intro paragraphs — some of underlines below are hyperlinks. Publ. 12/27/2012; Rev. 2-19-2013, split in half 06-06-2013, putting Michigan Material in a separate post.]

NOTE: OVERALL THIS BLOG IS FOR BOTH GENDERS, AND TO THE WIDER PUBLIC WHO MAY NOT EVEN BE STRUNG OUT HANDLING DOMESTIC VIOLENCE OR SEXUAL ABUSE (OR SIMPLY FINANCIAL DESTRUCTION) CASES IN THE COURT.

Truth, however framed, is offensive, and my blog certainly will offend plenty. However, I am still more interested in systems, and perhaps the mentality of the people that designed them, tolerate them, staff them, and fund them. Society has to have some labels, and designations, to work as do systems. I think different personalities gravitate to certain portions of certain systems — but there are SOME systems which affect almost everyone. So like it or not, their damages have to be discussed; there is no other way to mitigate them.

Overall, it is an appeal for the public to wake up.  To identify and find ways to quit financing institutions within America that undermine justice (as defined in terms of due process, representative government of ANY sort, and oppose over-centralization of power).  Doing this requires identifying and letting go of significant myths on which the economy** — and from there, most social relationships (in fact, from which society) — is based.

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Written by Let's Get Honest

December 27, 2012 at 7:53 pm

Governments are Corporations. And a Budget is Only a Fraction of their Story…

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Unbelievable….  I have only been looking at some of this for about two days, but because of certain other background, I know it’s  — sensible.

I’m not even going to bother much of an introduction.  This post consists of three articles on the topic — the top one (in a frame) is from 2012, in response, I believe to California having “discovered” $54 million in a special fund after it had threatened to close the parks.  The people who responded to the appeal and donated to keep parks open, want their money back.  The next is 1999 (WorldNetDaily) and I believe the last is from 2000 (also WorldNetDaily).  I am posting them to put some concepts in our // the blogosphere’s head.

LOOK — I blogged AFCC pretty hard (not only me, but I worked at it) and to go to TAGGS.hhs.gov (not that it’s accurate, but it’s an indicator) and to look up tax returns on court-referred nonprofits, and I got as far as, the Income Tax is the problem, creating a dual-class society.

This just takes it up a step:  Enjoy!  

I am sitting here also reflecting on the past years of my life when I was trying to get back in the system, i.e., Dammit, let me back in the workforce, and cut this custody/child support racket.  I didn’t realize at that time that my primary value was not as a worker, but as a breeder for a little social security # (actually, more than one).  Apparently they can be used multiple times from multiple funds….

There are times I’ve been hungry — and close to homeless, or (more often — and to this date) been extorted with the threat of homelessness over the issues of protesting simple matters, and to silence speaking up on it.  Over time (in my microcosm) I came to realize this was about money only (for some) and kids, secondarily.   NOW, I don’t even want back on the system — or to “feed it” any of what remains of my life energies.

Put this together with other material, and it does start to come together, i.e., citizenship in the United States is a contract.  The United States (as we now interact with it, not as we mythologize it) is a corporation.  A very, very large one.

Wars take money, raising money causes debt; after the war, a bankruptcy gets filed causing corporate restructure, while all of us are kind of told nothing has significantly changed — think about 1776, and believe that it’s still that same old USA. . . . .

I’ll shut up.  Just put some of this in your pipe and smoke it – and this ain’t weed:**

**(note:  non-user).

INTRO from “BIO” of Mr. Burien:  Pretty much after this, the blog is not my writing — sources are the links.  Cut and paste, you know how that goes!

 The blackout though from the syndicated media, controlled education, and both primary political parties continues and is diligently enforced due to the symbiotic relationship for the use of the massive wealth  / investment capital involved within the structure of the CAFR. They do what they do due to the money and control involved. Nothing more and nothing less..

Collective government in the USA owns and controls more than any of us knew. Collective totals of investment, gross income, and standing wealth local and Federal government secures, holds, and generates each year is substantially greater than the same from the entire private sector in the USA. Or in other words as Mr. Burien puts it: Russia’s (communism’s) wet dream of the 1940s per control and ownership held by government with a capitalist / fascist twist. The big earth shaker was that two-thirds of government’s gross income was from non-tax sources. Collective standing investment totals held “internationally” from all local and federal government entities in the USA as of 1999 of “liquid” investment assets conservatively as of 1999 exceeded 60 trillion dollars and as of 2010 within its continued growth over 100 trillion dollars has been reached. Did the public or most government employees know this? No, they did not. What about most in the financial arena? No also.. They were not intended to have a cognitive thought on this issue and great efforts were exerted by the control structure to maintain an intentional void and vacuum in the thought processes of the general population not to even think about the issue and specific data was spoon fed the viewers creating a limited view as was intended..

 

http://CAFR1.com/Dale.html
CAFR1 in Reply to Judge Dale’s Comments
by Walter Burien – CAFR1
05/13/12Judge Dale’s comments, even though appearing to be explaining the game going on, are misdirections away from the core reality. The points he brings up are valid but the underlying core reality is left out.Yes, the dollar is a “fiat” currency as most currencies are. They are a bartering tool for HARD ASSETS. The currency has no physical value, it is what is acquired with the currency that has value and those hard assets are convertible into ANY currency or barter tool such as Swiss Frank, British Pound, Gold, or even if a farmer wishes to exchange land or crops if it can be arranged.Judge Dale gives the view of the “curtain” in front of the “Wizard” and at the same time creates a 100% void of the aspect of the Wizard’s actions behind the curtain. The following paragraph pulls back the curtain and qualifies what the Wizard has done here:** The wizard utilizes that fiat currency bartered over the decades for exchange to buy up all of the assets both domestically and globally. Land; buildings; developments; corporations; debt instruments, etc. And said here again, these hard assets can be exchanged for “ANY” bartering tool used globally; dollars, Chinese Yuan, Gold, promissory notes, Mexican Peso, etc. So the issue is not the bartering tool being used, but what is happening with all of the “hard assets” being acquired over the decades. I note the peoples productivity value is also a hard asset being that it is drained from them and then used  to acquire other hard assets.

THE GOVERNMENT’S SECRET SLUSH FUNDS


‘Trillions of dollars hidden,’ finance crusader charges

Published: 06/14/1999 at 1:00 AM in World Net Daily, by Sarah Foster:

All levels of government conceal the existence of these vast sums of
money by keeping and filing what amounts to two sets of financial books
– one for the general public, which shows a very limited revenue
stream, and the second, for political insiders, bond brokers, investors
and the like, which reveals the money hoards and gives an accurate
account of a government’s income.

There’s enough money in these hoards — largely the result of
aggressive investing on the part of government — to pay off the $5.6
trillion national debt and the accumulated state and local debt many
times over, plus cut everyone’s taxes for years to come, according to
Walter Burien, a former Wall Street commodities trader, whose
revelations — on talk radio and the Internet — about government
finance practices have sparked a nationwide firestorm of public outrage
over an arcane, hitherto all-but-ignored subject.

The first set of government books, the budget, projects the flow of
tax money into the general fund for the coming year and directs how it
will be spent. The second is the Comprehensive Annual Financial Report
(CAFR), and not one City Hall watcher in a thousand has ever heard of
it.

“Everyone knows about budgets,” says Burien. “Politicians use the
budget to ask for more money, to try and show that a city or county is
poorer than it is. They’re playing the public for dupes on the budgetary
basis — that is, they only mention the budgetary basis and never
mention the comprehensive annual report that’s the real set of books.”

CAFRs (pronounced “cay-fers”) are financial documents that show,
among other things, the balances of all the funds for a given entity –
e.g., city, a county, school board. CAFRs, says Burien, report a
government’s total income, which is exponentially greater — millions
and even billions of dollars greater — than is shown by the budget.

Burien is essentially charging that many, if not all, governments,
from the lowliest water district to the state legislature to Congress
are significantly underreporting their incomes and overcharging for
their services — and nobody’s calling them on it. The press won’t, he
says, because they’re part of the cover-up.

But is he right?

Reached by telephone at his Arizona home, Burien described how in
1989 he came face to face with a CAFR for the first time. At the time he
had just helped set up a tax protest group called Hands Across New
Jersey, the state in which he was living.

“A governor — Jim Florio — had just been elected on an anti-tax
platform,” said Burien, “but as soon as he gets into office there’s a
$2.2 billion tax increase — the largest in the state’s history — and
the proverbial whatever hit the fan. One local radio station was doing
some rabble rousing and asking people to call in with examples of waste
in government spending. Most examples involved $5,000, $15,000. The
highest was $85,000. And the callers were all furious and foaming at the
mouth at these examples.”

Aware that the state of New Jersey handles billions of dollars,
Burien figured that if there were any waste it would be in the millions,
not thousands, of dollars. He checked the state Annual Budget Report,
which showed the costs of all services to be $17 billion, with the “net
available” (for paying bills) at $24.6 billion.

“Then I asked the question the IRS asks, where are the cash gross
receipts? I added up to at least $44 billion for annual income.”

Burien noticed that certain state agencies — the so-called profit
centers — like the New Jersey Turnpike and the Newark Port Authority
weren’t mentioned, and he called the Office of the Budget for more
information. Posing as a low-level bureaucrat, he said he was preparing
a report for the director and needed figures on the autonomous agency
accounts, interest accounts and investment accounts.

“Oh, you need the comprehensive annual financial report,” he was
told.

“Bingo! That’s the first time I had heard of that,” said Burien,
emphasizing that he had been involved with finances and accounting for
years and knew his way around state and local government agencies — yet
had never heard of a such a report. He arranged for one to be sent to
him.

A self-described “bottom-line kind of guy,” Burien “crunched” some
numbers and came up with some astonishing figures.

“Are you ready for this?” he asked. “Here’s the statement of the
service budget — $17 billion. Yet they brought in $86.799 billion for
the year. New Jersey was charging $87 billion and providing $17 billion
in public services.”

Worse, the CAFR for the fiscal year showed New Jersey had liquid
investment funds of $188 billion; common stocks worth $70 billion; $10
billion due from loans to public and private corporations; and $14
billion in insurance company equity participation. New Jersey, which
claimed less than $25 million in annual income on its budget, was
sitting on $300 billion in cash, stocks, loans and insurance equity,
according to the CAFR.

“On that day, I learned the definition of syndicated organized
crime,” he said. “There was a real scam going on. Costs and expenses for
public services were reported on the budget where taxes and fees paid
100 percent of the bill for the services. Which in New Jersey that year
was $17 billion.

“But, whenever there was a profit center — like the turnpike or the
Port Authority — that generated non-tax revenue, the legislature had
restricted that income from being reported in the budget. Income from
the profit centers was shown only on the CAFR.”

Having heard the wake-up call, Burien today is a man with a mission.
He has been on numerous talk shows. As a result the Internet is humming
with e-mails and reports by activists across the country swapping horror
stories about similar discoveries of hoards of money squirreled away in
obscure fund accounts by “servants of the people” at City Hall . . .

NOTE — there is more to this article, and other points of view or explanations of CAFRs which are worth reading.  About now, my mind — which usually does OK processing basic concepts, and often new concepts — is having a bit of a rough time trying to grasp the significance of this,  let alone application to real-time decision making.  Please note – 1999 was a very long time ago.  However, I believe burien’s basic analysis makes sense, which is found over at CAFR1.com:

_ _ _ Another similar article, in interview format — this is with Geoff Metcalf, found at WND (a conservative site):

Date is August, 2000:  http://www.wnd.com/2000/08/6265/  “THE GOVERNMENT’S SECRET TRILLIONS.”

Metcalf’s daily radio show can be heard on
TalkNetDaily weekdays from 7 p.m. to 10 p.m. Eastern time.

Question: For those who do not already know the story, how did you ever find out about these Comprehensive Annual Financial Reports?

Answer: About 10 years ago, I had been a commodities broker on Wall Street for 15 years. I was one of the first tenants in the World Trade Center. I did an international newsline coast to coast on commodities. I thought I knew what was going on; I thought I was one of those sharp little crackers. I always thought government was maybe hiding 5 to 10 percent maximum of the revenue and not reporting it to the public.

{{then he goes into the situation in NJ and new governor, see above)}}

I have ONE thing to say.  You have to start reading this — and understanding it.  If I can understand it, you can understand it.  Period.  If you can’t understand it here, find somewhere else in which to understand it.  Sorry about my formatting — but, then go get this understanding on a website whose formatting you like better.  And when the local government (which is a corporation) tells you they’re broke, you’ll know — as I pretty well began to understand about a year ago — they’re simply lying.  Oh, not everyone in gov’t may know — but the fact is:  it’s a Goddamn lie.  See Silva v. Garcetti for just a sample, just in one timeframe.

I got it that Friday and started crunching numbers. Here’s a state with a declared service budget of $17 billion showing a net available on their budget report of $24 billion. The year’s totals on the Comprehensive Annual Financial Report: $188 billion.

Q: $188 billion!?

A: Correct. Investment funds, assets and so forth. The income I started looking for was total cash gross receipts — the number one item the IRS asks you for in an audit.

Q: Would this be interest on investments?

A: Total income. Whether it be cash collected by state agencies, federal grants, the whole nine yards — total income. I found it on page 174 of the 1989 Comprehensive Annual Financial Report under cash additions. Here’s a state with a declared service budget of $17 billion that was bringing in, “in cash,” $86,799,000,000. I learned the definition of syndicated organized crime on the spot and the principle of operation. Anything that was a cost and an expense, an outright cost on a budgetary basis, the public footed 100 percent of the bill for 100 percent of the services. Anything that was a substantial profit center was totally restricted by statute from inclusion whatsoever with the budgetary basis.

Q: This is above and beyond the off-budget stuff.

A: Whenever you hear the word “off-budget,” that is something that is inclusive in the budget. When you look at the Comprehensive Annual Financial Report, you will see complete separate areas totally restricted by statute for inclusion with the budgetary basis. A lot of people would refer to it as “two sets of books,” although it’s not exactly two sets of books. The budget report is in one book, and the Consolidated Annual Financial Report is THE book, the showing of the complete pizza pie.

Q: There are two things I want us to make real clear. You conducted your investigation in New Jersey. But this is not unique to New Jersey.

A: I’m going back 10 years. When I found out about New Jersey, especially when I found out they had approximately $80 billion in common-stock ownership, as a commodity trading adviser …

Q: You wanted them as a client.

A: That was actually true to a certain extent. But I was mad more than I was greedy. I said, “How could I have not heard of this?” Here’s New Jersey holding $80 billion in common stock. I was a commodity-trading adviser. I dealt with a lot of the CEOs of some of the major investment firms and I never heard it mentioned — in any circles. I found out when I called the mailroom of the Department of Treasury for New Jersey. It was sent out to every editor of every paper up and down the East Coast. It was sent to the directors and CEOs of ABC, CBS, NBC and CNN. And now I’m getting mad. I was seeing a cooperative effort at non-disclosure and it wasn’t as if it was just created that year and the word hadn’t gotten around.

Q: This Comprehensive Annual Financial Report, is it just a stack of numbers or is it something that has an executive summary and can actually be read and understood?

A: The CAFR is set up to be a simple, quick evaluation book to show: total income, total assets, total investments, total net worth. What’s been going on in this country for the last 65 years is government will always focus the public’s attention — intentionally so — on the budgetary basis of the budget report. And the only thing the budget report is, is their annual operating expenses.

Q: Give me an example.

A: Say it cost us $30,000 a year to maintain our house. Say our salary or income was $100,000 a year and we had a million dollars in investments, and say our total net worth was $3 million. What if we talked about our $30,000 budget as being our net worth? It would be ludicrous.

Q: So this is an intentional scam?

A: You’ve had a shell game played on the public where governments are constantly talking their budget, their budget, their budget. They just happen to leave out the decades and decades and decades of investment wealth that has been building up, the decades and decades and decades of enterprise and venture projects they have created separate from the budgetary basis.

Q: Just how ubiquitous are these Comprehensive Annual Financial Reports?

A: The Comprehensive Annual Financial Report was created by a group called Government Financial Officers Association in 1946. It was a program created to standardize accounting in all local governments so the federal government could easily see what the true picture was. In 1981, the federal government mandated that all local governments prepare a CAFR or, in the alternative, a combined financial statement. To qualify this, there are over 54,000 separate corporations within local government.

Q: What kind of corporations are you talking about?

A: A city is a corporation; a state is a corporation; a school district is a corporation. Each is filing their own separate report, each with their own investments. I’ve had a lot of people looking at their state reports. They see the tens of billions of dollars they never knew existed — and they are floored. Then I bring to their attention: “You’re just looking at the state report.”

Q: Give us an example.

A: I’ll use the state of Washington as an example. It lists $64 billion in liquid investment funds. Now the state of Washington has 2,300 separate local government corporations filing their own separate reports: cities, counties, school districts, authorities. You have 2,300 other reports.

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