- Would you like to cover an article on the CAFR, Comprehensive
Annual Financial Report? The CAFR is local government's Annual Financial
Statement, of which has been the standard for the last 35 years across
the country. The true accounting of local governments. Local governments
promote the Budget each year and hold back disclosure of their financial
statement.
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- A PERSONAL EXAMPLE FOR YOUR COMPREHENSION OF THE ISSUES:
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- You have a budget to operate your house right? Let's
say your budget is $30,000 per year, of which you put $30,000 aside to
cover your budget and this year you spend $40,000 which now means you have
a $10,000 budget deficit. You also are telling everyone you are $275,000
in debt already from the past. So what are you going to do to make up that
$10,000 shortfall.
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- A. Knock on your neighbor's door and say I am short $10,000
on my budget, and I am $275,000 in debt, can I borrow $10,000 from you?
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- B. Sell your house possessions to raise the cash to meet
the $10,000 shortfall?
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- C. Cut back on half of your budget expenses next year
($15,000) and hope you catch up by the following year?
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- D. Ignore the $10,000 shortfall and hope someone else
bails you out next year?
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- Does the above sound familiar when listening to your
local government official(s)?
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- If you were a shareholder in a public Corporation, and
they said they had a shortfall on their budget this year and they could
not pay dividends, and the value of your stock in their corporation was
being cut by 45% of value, would you look at their budget report to verify
this, or would you look at their Financial Statement? You would look at
their Financial Statement, right?
-
- In fact, a public Company's Annual Financial Statement
is required by SEC law to be provided to every shareholder. A local government's
Annual Financial Statement is the Comprehensive Annual Financial Report,
or CAFR for short.
-
- Now back to the above example of a $10,000 shortfall
in your operating budget.
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- If you had a Financial Statement prepared in accordance
with accounting standards and existing laws that apply, your financial
statement as shown for this example would show your $30,000 operating budget
for your house and let's say the following:
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- 1. Your personal gross annual income -------------------------------------
$75,000.00 2. Your investment assets---- (you have invested for years)
-- $1,400,000.00 3. Your advance tax liability accounts -(tax liability
20K/year)-- $300,000.00 4. Your self insurance funds --- ($30,000 required)
---------------- $215,000.00 5. Your advance forward debt account for repayment
of debt --- $350,000.00 6. Your IRA account ------------- ($400,000 needed)
----------------- $2,275,000.00 7. Sub Corp. operation income owned by
you but operating separately from your direct personal gross income -------------
$515,000.00 8. Your total gross debt -----------------------------------------------------
( $275,000.00)
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- Now, upon review of your Financial Statement we have
learned:
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- a. Your true debt is: #(8.) [$275,000] - #(5.) $350,000
= $75,000 (positive) Or an asset of $75,000 and no debt. b. Your true total
gross income #(1.) 75K + #(7.) 515K = $590,000 c. Your tax liability being
$20,000 per year #(3.) -- advance payment account balance of $300,000 Gives
you a standing asset of $280,000.00 positive. d. Your self insurance fund
has 185K over true liabilities, or an asset of $185,000 e. Your IRA account
has $1,875,000 over your required $400,000 per year requirement. f. Your
investment account(s) have the ability of paying for your house operating
budget, and you would still have at a 10% return, $100,000 left over after
paying for this year's $40,000 house operating budget. g. Your total Net
Worth is: 75K + 590K + 280K + 185K + 1.475K + 1.400K + 100K - (40K This
year's actual annual operating budget) = a NetWorth of $3,975,000.00
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- Now Upon review of your financial statement, and now
knowing that others have reviewed or are looking to review your Financial
statement. People that you approached to borrow $10,000 from, as you cried
poverty, do you:
-
- 1-A. Quickly spend your excess net worth on yourself,
family, and friends to justify being $10,000 short on your operating budget?
-
- 1-B. Hire a good accountant to shift and move your assets
some where else so that they don't appear on your financial statement so
that your report of being $10,000 short on your budget appears to be correct?
-
- 1-C. Exert influence to change the accounting standards
so that the Financial report you prepare does not reflect your true net
worth and thus you can show a negative of $10,000?
-
- 1-D. Pay the $10,000 dollar budget shortfall from your
$3,975.000 NetWorth?
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- 1-E. Ignore the fact that others now know about your
true net worth and hope the problem of this knowledge disappears or has
no impact on you?
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- 1-F. Create a serious distraction that is so over powering
and prevalent, that no one will be able to divert attention away from the
promoted distraction to be able to even glance at your true net worth,
let alone address or take action towards the issue?
-
-
- Well, Folks:
-
- National Public disclosure for the first time started
coming out as of June 8th 1998 regarding all local governments promoting
their Budget and holding back for over 45 years their Financial Statement,
the CAFR.
-
- It took up until 2000-01 before enough people were reached
to have significant impact, and those seeing now started comprehending
what was taking place right under their noses each and every day. [They
couldn't see the forest through the trees.]
-
- It appears that Government's response to the public's
new found knowledge has been to follow steps 1-A, 1-B, 1-C, 1-F above with
emphasis given to 1-F.
-
- MAKE SURE TO SECURE PAST ISSUES OF THE CAFR FROM 1999
and BEFORE. COMPARE A 1974 CAFR TO WHAT YOUR LOCAL GOVERNMENT HAS DEVELOPED
INTO FROM A VIEWING OF A 2001 CAFR. THE GROWTH OF REVENUE TAKEN BY GOVERNMENT(S)
HAS BEEN OBSCENE.
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- YOU WILL NOT GET A STRONGER WAKE UP CALL IN YOUR LIFETIME.
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- Link to download most State CAFRs:
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- http://members.aol.com/_ht_a/cafr1/Listings.html
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- The personal example above is slightly exaggerated to
give a clear showing of some techniques used. There are many techniques
used to turn an asset through investment or claimed liability into a debt
so that it is not shown as an asset.
-
- The bottom line is, that if a public corporation played
the same shell game(s) with its share holders, holding back disclosure
of its true NetWorth, every one of the directors that participated would
be indicted by the SEC, convicted, and sentenced to very long prison sentences
in a Federal penitentiary.
-
- Here we have our local governments across the land doing
the same and they are in charge of policing, investigating, and indicting
themselves.
-
- Will those responsible for this theft from you be held
accountable? Probably not.
-
- Can those that are currently stealing from you be held
accountable? Probably Yes.
-
- Can the situation be corrected were in the future those
that steal in this fashion are held accountable? Definitely yes!
-
- What needs to be done!
-
- 1. Full public review of the existing NetWorth's of all
local government entities, on a case by case basis.
-
- 2. A standard must be set in place limiting government's
personnel and revenue holdings to a specific and set size in relativity
to the population and total gross income of that population. Ten Percent
(10%) would be a good standard verses the current 45% to 60% of the wealth
being held by government that currently is in place in many states. When
this country was started the standard maintained for over 100 years at
between 3% to 5%. Currently, in the state of Washington, 1 out of every
4 people in the work force is a local or federal government employee receiving
an average annual salary of $30,100.00 - SOURCE: Statistical section of
the 1999 Washington State CAFR. <A HREF="http://www.ofm.wa.gov/cafr/1999/cafr99toc.htm">
http://www.ofm.wa.gov/cafr/1999/cafr99toc.htm</A> Tennessee State
government increased their gross income by 600% in 15 years while the non-government
workers personal income increased by 68% for the same time period. The
total poulation increased very little. Statistical section of the Tennessee
State CAFRs. <A HREF="http://www.state.tn.us/finance/act/cafr.html">
http://www.state.tn.us/finance/act/cafr.html</A>
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- 3. When bringing government back to a standard by forced
mandate of the public, a standard where I think we all were much happier
with government, the current NetWorth of those local governments will be
utilized to make government self sufficient utilizing the investment principles
that are well in place and proven, for those local governments to meet
their annual operating budgets without any form of taxation needed. This
is basic fundamental application.
-
- A good pension fund management team being properly motivated
could write a prospectus for a TAX ELIMINATION RETIREMENT FUND to accomplish
this for any State, City, or County. We as workers participate with a Pension
Fund to pay our salaries upon retirement, the same method can be applied
to meet government's annual operating budgets and thus retire all taxation.
Again, this is basic fundamental application, and it can happen overnight
if applied with a strong hand by public mandate.
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- NOTE: As the public 401K plans got eaten alive over the
last 2 years, government investment management on the general front faired
quite well. The management teams were and are professional short players
using derivatives. (They make big money as markets collapse.) Look at the
State Pension Fund CAFRs for the last 2 years. I can guarantee you on average
they did quite well on net performance compared to the dismal performance
of the public's 401K plans.
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- 4. The general public will gladly authorize up to seven
figure bonuses to the administrators of government solely for being within
compliance with the stated objectives and maintaining a satisfaction rating
from the public as to services provided. (Gives the Foxes plenty of chickens
to eat, and now for all of the right reasons.)
-
-
- Can steps 1., 2., 3., and 4. be accomplished? Yes.
-
- Can they be accomplished without civil war and blood
shed? Hopefully yes.
-
- Who would be the best allies to the general public to
put this into motion and secure its implementation? The Insurance Companies,
Investment Houses, and the Commercial Banks.
-
- Will these institutions willingly help? Only if the ship
is at the dock, and is ready to sail without them.
-
- What is required at this time? The standard to be put
into place in just one (1) county in the land for the rest to follow.
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- What County should it be? A County with a population
of less than 400,000, that is well established for over 100 years.
-
- Should the general public ask the county government,
or any government officials to help with the implementation of the standard?
No! The current and past administrations have held back their financial
records, and true disclosure of their NetWorth. You do not ask foxes to
help secure the hen house from foxes eating chickens.
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- The foundation of the American Public is the Ranchers,
Farmers, and private Workers of this land. Most have been to busy supporting
and feeding their families to have become foxes. A consortium of the general
public must target, prepare, and implement the standard in the chosen county
by forced mandate and not by choice of the foxes.
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- When will the standard begin? The hour and the day We
The People make it happen!
-
- If the standard is implemented, will we the people be
better off? Oh, yes indeed! If the standard is implemented, will the country
be better off? Anyone ever hear of the millennium, a thousand years of
prosperity for all? The answer is definitely yes.
-
- All that exists on this planet started with an idea,
then the implementation of that idea with effort and resources applied,
and then the fruits of that idea are harvested.
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- Today, is a good as day as any to make it happen. Well?
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- Those reading this have several choices.
-
- A. Reflect shortly, and then see if there is a good movie
playing that you can watch to entertain you.
-
- B. Reflect shortly, then say to yourself, the problem
is to big, it will never be able to be corrected, why bother.
-
- C. Reflect shortly, and if you are a fox, send this communication
to all the other foxes so that they can prepare a strategy to prevent the
implementation of the standard.
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- D. Reflect shortly, and say to yourself, I can't understand
this, and channel hop on your TV.
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- F. Reflect, digest, and then pick up the phone making
one call after another to build a coalition of responsible individuals
from your community, with resources to push forward to make the standard
happen in one county so that all of the others from the country can follow
the model created.
-
- NOTE: Three Coalitions formed and united as one can make
it happen in one county. It is not important as to which county is the
first, but it is important that the first county be implemented into the
guidelines of the standard as soon as possible.
-
- We The People must act in unity, with one common goal,
and not allow ourselves to be distracted by the foxes until the standard
is in place and secured in the county selected. If the consortium of coalitions
adds on to the constitutional amendment submitted for vote to the residents
of the selected county, that the consortiums costs for bringing the standard
forward will be paid if and when the standard is approved by the residents,
this will protect and replenish the resources applied by the consortium
to effect implementation of the standard. Serious resources can be applied
to make it happen.
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- Many counties can be quickly polled to select the first
county for implementation of the standard. A County where the polling results
show that most of the residents will camp out to be the first to cast their
yes vote. This will allow the politically entrenched counties (Many hard-nosed
foxes) to fall into line for the implementation of the standard in their
county, following the first model applied elsewhere. I guarantee many of
We The People will be requesting that model standard implemented in the
first county selected for implementation where they are...
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- Yours Truly,
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- Walter J. Burien, Jr. P. O. Box 2112 St. Johns, Arizona
85963
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- email: WalterBurien@aol.com
-
- PS: Methods to provide resources to move forward: 1.
PayPal.com To: WalterBurien@aol.com 2. Wire Transfer Wells Fargo Bank
(inquire) 3. Mail: Address listed above.
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