Archive for December 2010
U.S. GOVERNMENT’S 2010 FINANCIAL REPORT SHOWS SIGNIFICANT FINANCIAL MANAGEMENT AND FISCAL CHALLENGES
WASHINGTON (December 21, 2010) – The U.S. Government Accountability Office (GAO) cannot render an opinion on the 2010 consolidated financial statements of the federal government, because of widespread material internal control weaknesses, significant uncertainties, and other limitations.
“Even though significant progress has been made since the enactment of key financial management reforms in the 1990s, our report on the U.S. government’s consolidated financial statement illustrates that much work remains to be done to improve federal financial management. Shortcomings in three areas again prevented us from expressing an opinion on the accrual-based financial statements,” said Gene Dodaro, Acting Comptroller General of the United States.
The main obstacles to a GAO opinion were: (1) serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable, (2) the federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies, and (3) the federal government’s ineffective process for preparing the consolidated financial statements.
In addition GAO was unable to render an opinion on the 2010 Statement of Social Insurance because of significant uncertainties, primarily related to the achievement of projected reductions in Medicare cost growth. The consolidated financial statements discuss these uncertainties, which relate to reductions in physician payment rates and to productivity improvements, and provide an illustrative alternative projection to illustrate the uncertainties.
Dodaro also cited material weaknesses involving an estimated $125.4 billion in improper payments, information security across government, and tax collection activities. He noted that three major agencies—DOD, the Department of Homeland Security, and the Department of Labor—did not get clean opinions. Nineteen of 24 major agencies did get clean opinions on all their statements.
“Given the federal government’s fiscal challenges, it’s imperative that Congress, the administration, and federal managers have reliable, useful, and timely financial and performance information. Improved accuracy and transparency in financial reporting are urgently needed,” Dodaro said.
Dodaro commended the commitment and professionalism of the Inspectors General across government who are responsible for auditing the annual financial statements of individual federal entities each year.
The fiscal year 2010 Financial Report of the United States Government, which includes financial information from the 24 major federal departments and agencies along with GAO’s audit report, is being released today by the Treasury Department. The report is also available on GAO’s web site at http://www.gao.gov/financial.html.
For more information, contact Chuck Young, Managing Director of GAO’s Office of Public Affairs, at (202) 512-4800.
The federal government released its 2010 financial statements as prepared according to Generally Accepted Accounting Principles (GAAP) a few days before Christmas. The public isn’t clamoring for this information and the government’s numbers don’t seem to be keeping anyone awake at night.
For those looking for numbers to wash down with their bubbly on New Year’s Eve, according to GAAP, the government’s deficit in 2010 was $2.08 trillion, a considerable widening from the $1.254 trillion deficit in 2009.
If these numbers weren’t bad enough, the U.S. Government Accountability Office says it can’t render an opinion on the federal government’s financials “because of widespread material internal control weaknesses, significant uncertainties, and other limitations.”
Specifically the GAO won’t weigh in because of three areas: “(1) serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable, (2) the federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies, and (3) the federal government’s ineffective process for preparing the consolidated financial statements.”
Gene Dodaro, acting comptroller general of the United States cited material weaknesses involving an estimated $125.4 billion in improper payments, information security across government, and tax collection activities. Dodaro noted that three major agencies, the Department of Defense, the Department of Homeland Security and the Department of Labor, could not provide good enough numbers to get clean opinions and said, “Improved accuracy and transparency in financial reporting are urgently needed.”
The government’s balance sheet is in the hole $64 trillion when all obligations are taken into account, according to the faulty official numbers that the GAO won’t express an opinion on. John Williams, who scrutinizes the numbers at shadowstats.com, claims the hole is more like $76.3 trillion and explains, “The federal government cannot cover such an annual shortfall by raising taxes, as there are not enough untaxed wages and salaries or corporate profits to do so.”
Williams is of the opinion that all of this government spending will lead to hyperinflation. Money manager and trader Victor Sperandeo sees it the same as Williams. America’s debt rolls over every 49 months to the tune of $4.3 trillion a year, according to Sperandeo. “A nation needs to inspire a lot of confidence to keep that kind of Ponzi scheme alive,” he writes.
Sperandeo wrote in Barron’s that when a government borrows 40 percent or more of its annual expenditures over an extended period of years, its lenders shy away from extending more credit and the central bank will fill the breach by printing money to buy the bonds and fund the deficits.
The last two years Uncle Sam has borrowed more than 40 percent of its expenditures and it appears this percentage will only grow.
Williams says the U.S. is on a collision course with “a hyperinflationary great depression” with the dollar completely collapsing, along with the financial system, causing an end to “the normal stream of U.S. commercial and economic activity.”
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Posted December 28, 2010on:
Posted December 28, 2010on:
December 27, 2010
As we predicted, Homeland Security and national security state officialdom are in the process of expanding the police state and citizen humiliation grid from airports to hotels and shopping malls.
Posted December 20, 2010on:
NATURAL SOLUTIONS FOUNDATION
“Eternal vigilance is the price of liberty…”
“No one’s life, liberty, or property are safe while the legislature is in session.”
Sunday, December 19, 2010
This Page Tiny URL: http://tinyurl.com/GOPbetrayal
The betrayal Sunday night of the Health and Food Freedom movement [and the Tea Party, Liberty, Farm/Ranch/Garden groups working with us] by the GOP in passing S.510/HR.2751 back to the House with an unrecorded Unanimous Consent vote is unacceptable. We condemn the GOP for this betrayal.
Revised Action item:
According to The Hill:
“The Senate unexpectedly approved food safety legislation by unanimous consent Sunday evening, rescuing a bill that floated in limbo for weeks because of a clerical error.”
Our so-called friends in the Senate had assured us they would object to any effort to pass S.510, the fake “food safety” (really, “food control”) in the last days of the lame-duck congressional session. We feel betrayed. We pledge not to forget! S.510 has been attached to HR.2751 and has the unconstitutional revenue raising clause removed.
The office of Sen Coburn, who failed to live up to his pledge to refuse unanimous consent, tells us the majority party had enough GOP support to close off debate and force the bill through. We say, that’s no excuse! Sorry Senator, the GOP has lost our trust.
ONE LAST CHANCE TO STOP FASCIST FOOD CONTROL IN THE HOUSE!
THE HOUSE NEXT MEETS TUESDAY…
48 HOURS TO SAVE FOOD FREEDOM!
The critical moment is now, during the last couple days before the Holiday recess.
KEEP ON PUSHING BACK!
PLEASE USE THE NEW ACTION ITEM EVERY DAY…
OFTEN! And Forward It to Your Contacts!
Natural Solutions’ Trustee Ralph Fucetola JD’s personal take on this: