- The Comprehensive Annual Financial Report (CAFR) is local
government's Annual Financial Statement, which has been the standard for
the last 35 years across the country. The true accounting of local governments.
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- Local governments promote the 'Budget' each year but
hold back disclosure of their actual financial statement...which includes
their aggregate net worth and total gross annual income.
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- A PERSONAL EXAMPLE
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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?
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- 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.
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- 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
- 2. Your investment assets---- (you have invested for
years) ----$1,400,000
- 3. Your advance tax liability accounts -(tax liability
20K/year)----$300,000
- 4. Your self insurance funds --- ($30,000 required) -------------------$215,000
- 5. Your advance forward debt account for repayment of
debt ----$350,000
- 6. Your IRA account --- ($400,000 needed) --Balance ------------$2,275,000
- 7. Sub Corp. operation income owned by you but operating
separately from your direct personal gross income --------------$515,000
- 8. Your total (gross) debt-----------------------------------------------------
($275,000)
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- Now, upon review of your Financial Statement we have
learned:
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- a. Your true debt from item #8 above is: [$275,000] minus
item #5 above, $350,000 is a $75,000 (positive) Or a (NET) asset of $75,000
and no debt.
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- b. Your true total gross income from item #1 above is
$75,000 plus item #7 above $515,000 gives you $590,000 in TOTAL GROSS INCOME
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- c. Your tax liability is $20,000 per year as shown in
item #3 above. Your advance tax payment account you established to pay
your future taxes has a balance of $300,000, this gives you a standing
positive asset of $280,000.
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- d. Your self insurance fund has $185,000 over your true
liabilities, or another asset of $185,000
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- e. Your IRA account has $1,875,000 over your required
$400,000 per year funds needed at y our retirement.
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- 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.
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- g. Your total Net Worth is: 75K + 590K + 280K + 185K
+ 1.475K + 1.400K + 100K minus 40K (This year's actual annual operating
budget) gives you a Net Worth of $3,975,000
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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:
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- 1-A. Quickly spend your excess net worth on yourself,
family, and friends to justify being $10,000 short on your operating budget?
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- 1-B. Hire a good accountant to shift and move your assets
somewhere 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?
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- 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?
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- 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?
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- Well, Folks...
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- National Public disclosure first began coming out as
of June 8, 1998, exposing how all local governments promote their 'Budget'
while holding back, for over 35 years, their true Financial Statement,
the CAFR.
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- It took up until 2000-01 before enough people were reached
to have significant impact on this game of financial cat and mouse. Many
began comprehending what was taking place right under their noses each
and every day.
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- It appears that Government's response to the public's
newfound knowledge that is now developing has been to follow steps 1-A,
1-B, 1-C, 1-F above with emphasis given to 1-F.
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- 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 BY THE VIEWING OF ITS STATISTICAL SECTION IN THE 2001 CAFR.
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- 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
employed to turn an asset through investment or claimed liability into
a 'debt' so that it is not shown as an asset.
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- 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 Net Worth, 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.
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- Here we have our local governments across the land doing
the same thing and they are in charge of policing, investigating, and indicting
themselves.
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- Will those responsible for this theft from you in the
past be held accountable? Probably not.
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- Can those that are currently stealing from you be held
accountable? Probably yes.
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- Can the situation be corrected where in the future those
that steal in this fashion are held accountable? Definitely yes!
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- What needs to be done!
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- 1. Full public review of the existing Net Worthies of
all local government entities, on a case-by-case basis.
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- 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 today.
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- When this country was started, the standard maintained
for over 100 years was 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. Socialism / Communism
under the guise of a free market capitalist system, surely does make the
socialists and communists very secure and wealthy, at your deception and
expense!
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- SOURCE: Statistical section of the 1999 Washington State
CAFR. http://www.ofm.wa.gov/cafr/1999/cafr99toc.htm http://www.ofm.wa.gov/cafr/1999/cafr99toc.htm
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- 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 population increased very little.
Statistical section of the Tennessee State CAFRs. http://www.state.tn.us/finance/act/cafr.html
http://www.state.tn.us/finance/act/cafr.html
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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 Net Worth 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.
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- A good pension fund management team could write a prospectus
that is ready for implementation of a TAX ELIMINATION RETIREMENT FUND and
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 of 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.)
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- Can steps 1, 2, 3, and 4 be accomplished above? Yes,
they can!
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- Can they be accomplished without civil war and bloodshed?
Hopefully yes.
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- 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.
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- Will these institutions willingly help? Only if the ship
is at the dock, and is ready to sail without them.
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- 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.
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- 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 Net Worth. 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 too 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!
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- If the standard is implemented, will we the people be
better off? Oh, yes indeed!
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- 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.
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- 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,
ready to get started?
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- Those reading this have several choices.
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- A. Reflect briefly, and then see if there is a good movie
playing that you can watch to entertain you.
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- B. Reflect briefly, then say to yourself, the problem
is to big, it will never be able to be corrected, why bother.
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- C. Reflect briefly, 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 briefly, 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.
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- NOTE: Several 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.
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- 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 consortium's 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
- WalterBurien@aol.com
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- Tel. 480 229-1234
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- Home Page: http://members.aol.com/_ht_a/cafr1/CAFR.html
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