“Federal Truth in Accounting”

When the Government Accountability Office issued its audit report on the federal government’s financial statements for fiscal 2014 recently, it started out in this chilling way:

The federal government’s serious material internal control weaknesses, along with significant uncertainties, and other limitations continued to prevent the U.S. Government Accountability Office (GAO) from rendering an opinion on the federal government’s consolidated financial statements.

The report specifically blamed:

Serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable.

The federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal entities.

The federal government’s ineffective process for preparing the consolidated financial statements.

The federal government’s finances are an “unauditable” mess. The government flunked the audit in the worst possible way! Again!!

The DOD has been singled out again! An excellent example of this debacle at the DOD is the F-35 jet. The projected cost of that program is $1.5 trillion, but… “We don’t know where all the money is going,” we learn in this brief bone-chilling video with cool footage of the thing flying, landing vertically, etc. …. F35, The Jet That Ate the Pentagon

If an auditor of a US corporation put this kind of statement into its opinion that is part of every audited annual report, the stock would tank and might be delisted, other penalties and scourges would hail down on the company, and a slew of class-action lawyers would instantly sink their teeth into its soft parts.

What happened to the federal government? No one noticed.

So here is Andrew Goecke, of Truth in Accounting, walking the streets of Chicago and asking some questions. This short tragic-comedic video was produced by Dannie Mahoney, Truth in Accounting:

That’s just the federal government. But here are our wonderful states. Read…  The 10 Worst “Sinkhole States” in America

Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate. I appreciate it immensely. Click on the beer and iced-tea mug to find out how:

Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

  3 comments for ““Federal Truth in Accounting”

  1. Julian the Apostate says:

    Now Wolf. They can’t be out of money. They have a printing press. Don’t cloud the issue with the facts. Pesky things!

  2. Michael Gorback says:

    I’ll bet they can’t find ANYONE who’s going to be responsible for this mess. A chorus of crickets and Sgt Schultz.

  3. robnume says:

    Way to go USSA! Part of the blame can certainly be laid at the door of the FASB. Bunch of liars and crooks.

Comments are closed.