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A Citizen's Share of the "Missing Money" by State, May 1, 2002

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  • David Crockett Williams
    From: Catherine Austin Fitts To: David Crockett Williams Subject: Solari Action Network: A US Citizen s
    Message 1 of 1 , May 2, 2002
      From: "Catherine Austin Fitts" <catherine@...>
      To: "David Crockett Williams" <gear2000@...>
      Subject: Solari Action Network: A US Citizen's Share of the "Missing Money"
      by State, May 1, 2002
      Date: Thursday, May 02, 2002 4:38 PM

      David:

      Would you be willing to send this to your network? This story has matured
      and it is now
      gathering a lot of momentum --- I suspect in part because we have primaries
      and then
      an election in November that is very much focused on Congressial issues.

      The budget is always a very unifying issue.....

      Thanks.

      Catherine

      ==================================================================

      HOW MUCH OF YOUR MONEY GOES TO
      BOOKS "COOKED" BY FEDERAL GOVERNMENT CONTRACTORS?

      by

      Catherine Austin Fitts
      www.solari.com

      For more, see Kelly O'Meara's "missing money" series in Insight Magazine:
      http://www.insightmag.com/news/246188.html

      ===================================================================

      USA AVERAGE

      Residents (April 2000 census):
      1999 IRS Individual Taxes: $ 1.6 trillion
      Taxes Per Resident: $ 5,688
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,835


      IF YOU LIVE IN ALASKA

      Residents (April 2000 census): 626,932
      1999 IRS Individual Taxes: $ 2.7 billion
      Taxes Per Resident: $ 4,290
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$3,750

      IF YOU LIVE IN ARIZONA

      Residents (April 2000 census): 5,130,632
      1999 IRS Individual Taxes: $ 19.2 billion
      Taxes Per Resident: $3,749
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$3,234

      IF YOU LIVE IN ARKANSAS

      Residents (April 2000 census): 2,673,400
      1999 IRS Individual Taxes: $ 12. 3 billion
      Taxes Per Resident: $ 4,598
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$3,983

      IF YOU LIVE IN CALIFORNIA

      California Residents (April 2000 census): 33,871,648
      1999 IRS Individual Taxes: $185.2 billion
      Taxes Per Resident: $5,467
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,724

      IF YOU LIVE IN COLORADO

      Colorado Residents (April 2000 census): 4,301,261
      1999 IRS Individual Taxes: $ 29.4 billion
      Taxes Per Resident: $ 6,833
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$5,916

      IF YOU LIVE IN FLORIDA

      Residents (April 2000 census): 15,982,378
      1999 IRS Individual Taxes: $ 76.5 billion
      Taxes Per Resident: $4,787
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,136

      IF YOU LIVE IN GEORGIA

      Residents (April 2000 census): 8,186,453
      1999 IRS Individual Taxes: $43,590,023
      Taxes Per Resident: $5,324
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,595

      IF YOU LIVE IN KENTUCKY

      Residents (April 2000 census): 4,041,769
      1999 IRS Individual Taxes: $ 14.8 billion
      Taxes Per Resident: $ 3,671
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$3,182

      IF YOU LIVE IN LOUISIANA

      Residents (April 2000 census): 4,468,976
      1999 IRS Individual Taxes: $ 13.6 billion
      Taxes Per Resident: $3,034
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$2,630

      IF YOU LIVE IN MARYLAND & DC

      Residents (April 2000 census): 5,868,545
      1999 IRS Individual Taxes: $ 44.9 billion
      Taxes Per Resident: $7,658
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$6,622

      IF YOU LIVE IN MASSACHUSETTS

      Residents (April 2000 census): 6,349,097
      1999 IRS Individual Taxes: $ 50.9 billion
      Taxes Per Resident: $8,022
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$6,926

      IF YOU LIVE IN MICHIGAN

      Residents (April 2000 census): 9,938,444
      1999 IRS Individual Taxes: $ 63.7 billion
      Taxes Per Resident: $6,406
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$5,538

      IF YOU LIVE IN MINNESOTA

      Residents (April 2000 census): 4,919,479
      1999 IRS Individual Taxes: $ 42.8 billion
      Taxes Per Resident: $ 8,694
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$ 7,506

      IF YOU LIVE IN MISSISSIPPI

      Residents (April 2000 census): 2,844.658
      1999 IRS Individual Taxes: $ 8.0 billion
      Taxes Per Resident: $ 2,824
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$2,430

      IF YOU LIVE IN MISSOURI

      Residents (April 2000 census): 5,595,211
      1999 IRS Individual Taxes: $33.2 billion
      Taxes Per Resident: $ 5,926
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$5,116

      IF YOU LIVE IN NEW JERSEY

      Residents (April 2000 census): 8,414,350
      1999 IRS Individual Taxes: $69.4 billion
      Taxes Per Resident: $8,250
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$7,133

      F YOU LIVE IN NEW MEXICO

      Residents (April 2000 census): 1,819,046
      1999 IRS Individual Taxes: $5.5 billion
      Taxes Per Resident: $ 3,007
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$2,584

      IF YOU LIVE IN NEW YORK

      Residents (April 2000 census): 18,976,457
      1999 IRS Individual Taxes: $ 145.8 billion
      Taxes Per Resident: $7,681
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$6,639

      IF YOU LIVE IN NEVADA

      Residents (April 2000 census): 1,998,257
      1999 IRS Individual Taxes: $ 9.6 billion
      Taxes Per Resident: $ 4,811
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,152

      IF YOU LIVE IN NORTH CAROLINA

      Residents (April 2000 census): 8,049,313
      1999 IRS Individual Taxes: $35.4 billion
      Taxes Per Resident: $4,394
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$3,797

      IF YOU LIVE IN OHIO

      Residents (April 2000 census): 11,353,140
      1999 IRS Individual Taxes: $ 66.7 billion
      Taxes Per Resident: $5,876
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$5,079

      IF YOU LIVE IN OREGON

      Residents (April 2000 census):3,421,399
      1999 IRS Individual Taxes: $ 16.1 billion
      Taxes Per Resident: $ 4,687
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,042

      IF YOU LIVE IN PENNSYLVANIA

      Residents (April 2000 census): 12,281,054
      1999 IRS Individual Taxes: $70.6 billion
      Taxes Per Resident: $5,751
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,966

      IF YOU LIVE IN TENNESSEE

      Residents (April 2000 census): 5,689,283
      1999 IRS Individual Taxes: $ 29.4 billion
      Taxes Per Resident: $5,175
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,472

      IF YOU LIVE IN TEXAS

      Texas Residents (April 2000 census): 20,851,820
      1999 IRS Individual Taxes: $104.4 billion
      Taxes Per Resident: $5,007
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4,324

      IF YOU LIVE IN UTAH

      Residents (April 2000 census): 2,233,169
      1999 IRS Individual Taxes: $ 8.8 billion
      Taxes Per Resident: $ 3,934
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$ 3,406

      IF YOU LIVE IN VIRGINIA

      Residents (April 2000 census): 7,078,515
      1999 IRS Individual Taxes: $ 40.1 billion
      Taxes Per Resident: $5,667
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$4904

      IF YOU LIVE IN WASHINGTON

      Residents (April 2000 census): 5,894,121
      1999 IRS Individual Taxes: $ 38.4 billion
      Taxes Per Resident: $6,521
      2002 Proposed Appropriations to Federal Agencies Without Reliable
      Financial Systems and/or Audits per resident...$5,631

      BASED ON

      Audited reports and testimony by federal agency Inspector Generals and the
      General Accounting Office for federal fiscal 1998-2000, "report cards" from
      Congressman Horn's subcommittee in the House Government Reform committee
      and Chairman Thompson's report in Senate Governmental Affairs committee
      "Government on the Brink."

      For more, see Kelly O'Meara's "missing money" series listed at:
      http://www.insightmag.com/news/246188.html
      http://www.solari.com/gideon/articles%20by%20caf.htm

      AND TO MAKE MATTERS WORSE, YOU HAVE ALREADY LOST.....

      Two of the agencies that can not produce working financial systems,
      DOD and HUD, have reported $3.3 trillion missing for fiscal 1998, 1999
      and 2000. The audited financials for 2001 are expected this month.
      That works out to about $11, 700 per US resident, based on an April
      2000 census of 281,421,906 Americans.

      Would you like your state added? Just e-mail your state to Catherine
      at catherine@... and she will add your state to the list.

      ========================================================













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      Reference

      Issue Date: May 20, 2002
      Government Fails Fiscal-Fitness Test
      Posted April 29, 2002
      By Kelly Patricia O'Meara



      If America learned anything from the Enron mess it is how easily the books
      can be cooked. After spending weeks reviewing the audits of federal
      departments and agencies, INSIGHT is convinced the U.S. government doesn't
      cook its books - your government is honest enough to admit that it just
      doesn't know where the money went.

      The point of the annual audit reports is to inform Congress and the American
      people how, where and why their hard-earned tax dollars were spent during
      the previous year. The audits are a barometer that tells Congress whether a
      particular agency or department is fiscally responsible and whether it
      should be entrusted with additional funds.

      But this is an age of euphemism, so the money being provided to the
      government by taxpayers is called everything but money, becoming assets and
      transactions in vague imitation of business. The government also has its own
      terms for missing money, including "unsupported entries," "material-control
      weakness," "adjusted records," "unmatched disbursements," "abnormal
      balances" and "unreconciled differences."

      While INSIGHT consistently has reported money problems plaguing the
      government - and in particular the Department of Defense (DoD) - this year
      DoD has been the recipient not only of its annual budgeted appropriations
      but of additional tens of billions of dollars to fight the war on terrorism.
      It therefore seems appropriate to take a look at how the federal defense
      establishment is handling your money.

      According to U.S. Comptroller General David Walker, "To date, none of the
      military services or major DoD components have passed the test of an
      independent financial audit." Walker continues, "DoD faces
      financial-management problems that are pervasive, complex, long-standing and
      deeply rooted in virtually all business operations throughout the
      department."

      In a report to the DoD comptroller, Undersecretary of Defense Dov Zakheim,
      acting Assistant Inspector General for Auditing David Steensma wrote: "We
      reported that DOD processed $1.1 trillion in unsupported accounting entries
      to DOD Component financial data used to prepare departmental reports and DOD
      financial statements for FY2000. For FY2001 we did not attempt to quantify
      amounts of unsupported accounting entries; however, we did confirm that DOD
      continued to enter material amounts of unsupported accounting entries to the
      financial data."

      What this gibberish means is that the DoD still cannot account for at least
      $1.1 trillion from fiscal 2000 under former president Bill Clinton, and the
      assistant inspector general of DOD wouldn't even touch the unsupported money
      expenditures for fiscal 2001 because "material amounts" still couldn't be
      accounted for properly in the year George W. Bush came to power. The
      trillion-dollar question is how much is "material amounts"? Because the
      auditor would not "quantify" the amount, some fear it's worse than the
      previous year's unaccounted for $1.1 trillion.

      Of course the Department of the Army, headed by former Enron executive
      Thomas White, had an excuse. In a shocking appeal to sentiment it says it
      didn't publish a "stand-alone" financial statement for 2001 because of "the
      loss of financial-management personnel sustained during the Sept. 11
      terrorist attack."

      So where is that missing $1.1 trillion? Traditionally the top dogs at the
      Pentagon haven't liked the word "missing." The rationale at DoD has been
      that just because the money can't be accounted for doesn't mean it is lost,
      stolen or strayed. According to Susan Hansen, a spokeswoman for DoD: "These
      are unsupported entries. When the auditors go to audit the books and they
      look at the balance sheet for the year, someone has entered in an adjustment
      because they made an error somewhere."

      You see, continues Hansen: "They don't carry the transaction across; there's
      no way they can track it to where the adjustment first came from. These are
      called 'unsupported' adjustments. In auditing you have to follow the trail
      from the first time that the entry first enters the system to the time it
      leaves it. In the Defense Department it means that if you bought a piece of
      equipment and it moved from the Army to the Navy to the Air Force over the
      course of years, you have to be sure that piece of equipment and its dollar
      value is the same piece of equipment."

      Hansen concludes that the problem is with "the way the Defense Department's
      records systems were set up . They weren't set up to do this kind of
      commercial bookkeeping. So what people have done is added up all of these
      adjustments, entries or auditor's notes on the side of the audits and have
      come up with these huge amounts. And somehow along the way, in the course of
      conversations, it has been referred to as 'missing' money. It's not missing.
      It just cannot be supported with our current systems in a standard
      bookkeeping system."

      VoilĂ ! It's the accounting systems that don't account for the vanished money
      that are responsible for the inability of anyone at DoD to find $1.1
      trillion that's, well, missing.

      Despite its unique position of never having been able to produce a credible
      audit, DoD is not the only governmental agency to have money problems. For
      example, the comptroller general further reported that, "as in the four
      previous fiscal years, we were unable to express an opinion on the
      governmentwide consolidated financial statements because of certain material
      weaknesses in internal control and accounting and reporting issues. These
      conditions prevented us from being able to provide the Congress and American
      citizens an opinion as to whether the consolidated financial statements are
      fairly stated in conformity with U.S. generally accepted accounting
      principles."

      In other words, the top auditor is saying that the agencies and departments
      of the federal government couldn't properly account for the money each was
      entrusted with and, therefore, he couldn't produce a legitimate consolidated
      financial statement.

      Comptroller General Walker did mention that several agencies are working
      diligently to put reliable financial-management systems in place. For
      example, Secretary of Defense Donald Rumsfeld has set aside $100 million to
      fix the Pentagon's accounting system. And the Department of Housing and
      Urban Development (HUD), which under Andrew Cuomo couldn't account for $59
      billion in its fiscal 1999 audit, again has changed course on its accounting
      system (see "Why Is $59 Billion Missing from HUD?" Nov. 6, 2000, and "Inside
      HUD's Financial Fiasco," June 25, 2001). Rather than scrap the notoriously
      flawed HUD Central Account and Program System (HUDCAPS), the department now
      has decided to keep it until a review can be completed.

      An ironic twist to the problems HUD is having with its financial-management
      system is that American Management Systems (AMS), which has the contract for
      HUDCAPS, recently reported increased profits. Despite the fact that HUDCAPS
      seemingly doesn't work, and hasn't since the day it was installed, AMS still
      is getting paid - leaving many critics to wonder if there should be a
      federal lemon law for bum financial-services contractors.

      But not to worry, HUD apparently has learned how to work around
      "unreconciled differences." According to the most recent audit, "an
      immaterial difference exists between HUD's recorded fund balance with the
      U.S. Treasury and the U.S. Department of Treasury's records. It is the
      department's practice to 'adjust' its records to agree with Treasury's
      balances at the end of the fiscal year."

      In other words, if HUD's checkbook reflects a balance of $1 billion and
      Treasury reflects HUD's balance as $2 billion, HUD just accepts Treasury's
      balance and moves on as if everything were just fine. The unaccounted for $1
      billion is regarded as "immaterial."

      Overall, the federal government earned a grade of "D" from its auditors for
      financial management in fiscal 2001; 16 of the 24 federal agencies received
      lower grades than the previous year. More important is that year after year
      key information continues to be missing from the audits - beginning with
      which companies have federal contracts for designing, bringing online and
      maintaining those financial systems that consistently are blamed for
      producing unauditable books.

      In October 2001, Rep. Steve Horn (R-Calif.), chairman of the House
      Government Reform subcommittee on Government Efficiency, Financial
      Management and Intergovernmental Relations, told INSIGHT that "if some
      government contractors are unable to develop systems that can provide that
      type of information, Congress needs to know it, and we're asking GAO [the
      Government Accounting Office] to look into it."

      To date, no audit from any government agency or department lists or even
      mentions the contractors getting paid hundreds of millions of dollars to
      produce reliable accounting systems. And despite the fact that Congress has
      oversight of agency spending, and every year tells the agencies to get their
      financial houses in order, even Congress says it doesn't know which
      companies have the contracts to put reliable accounting systems in place.

      Because none of the information provided to the comptroller general is
      reliable enough to form an opinion of the government's financial standing,
      next year Congress may want to scrap the financial grading system it put in
      place for the agencies and instead require a "contractor" grade card. If
      those contractors continue to fail, the agencies have no hope of succeeding.
      That is, assuming the financial accounting systems really are responsible
      for the fact that trillions of dollars can't be ac-counted for and that the
      bureaucrats aren't just cooking the books.

      ----------------------------------------------------------------------------
      ----

      Tracking the Money
      Recent articles on Federal Finance by Kelly Patricia O'Meara

      Why Is $59 Billion Missing From HUD?
      Nov. 6, 2000

      Inside HUD's Financial Fiasco
      June 25, 2001

      A Financial Fiasco Is in the Making
      July 30, 2001

      Rumsfeld Inherits Financial Mess
      Sept. 3, 2001

      Total Lack of Trust
      Sept. 17, 2001

      Wasted Riches
      Oct. 22, 2001

      Bureaucrats Circle Their Wagons
      Dec. 31, 2001

      All That Glitters Is Not Gold
      March 4, 2002

      Kelly Patricia O'Meara is an investigative reporter for Insight.

      email the author

      Email Story to a Friend
      Printer Friendly Version

      Forum:

      -----------end forwarded post

      David Crockett Williams, C.L.U., B.S.
      661-822-3309
      General Agent, Chartered Life Underwriter, Activist
      http://www.GeneralAgencyServices.com
      Tehachapi, California
      CLU degree 1971 American College
      BS degree with honors, Chemistry 1969 CSUN

      For the direct cause of true peace with harmony among all life and
      free natural abundance as paradise on Earth via a future global
      computer network psibernetics program called Torahk.
      http://www.angelfire.com/on/GEAR2000/vision.html

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      Science and Technology in Society and Public Policy
      http://groups.yahoo.com/group/dcwilliams
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