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The Washington Times ^ | April, 1999 | By August Gribbin

Posted on 01/08/2003 8:41:53 PM PST by Uncle Bill

$3,400,000,000,000 Of Taxpayers'
Money Is Missing

By August Gribbin
April, 1999

$3,400,000,000,000(Trillion) of Taxpayers' Money Is Missing - Thread 1


The U.S. Government can't balance its books and can't properly explain how it spent $1.8 trillion last year or account for $1.6 trillion in such assets as parks, buildings, missile launchers, tanks and paper clips.

That's $1,800,000,000,000 in dollars and $1,6000,000,000,000 worth of things--a grand total of $3,4000,000,000,000.

The upshot is that, "once again, billions of taxpayer dollars were lost to waste, fraud and mismanagement," says Rep. Steve Horn, California Republican.

Mr. Horn, chairman of the House government reform and oversight subcommitte on government management, information and technology, gave that assessment yesterday as his subcommitte reviewed the government's attempt to produce a Consolidated Financial Statement.

It was the second time in U.S. History that the government has tried to comply with a 1994 law requiring it to account in a businesslike way for the revenues, expenditures and assets of the 24 Cabinet-level departments and agencies--a total of 70 agencies with some 2000 components.

And for the second time, the statement failed to meet accounting standards acceptable to the General Accounting Office, Congress' investigative arm and the government's official auditor.

The accounting failure means the government doesn't employ common business safeguards to know how much money actually has been wasted or stolen. Some lawmakers believe the figure could be in the billions.

In general, the GAO concluded that "because of the serious deficiencies in the government's systems, record-keeping, documentation, financial reporting and controls, amounts reported in the financial not provide a reliable source of information for decision-making by the government or the public."

Mr. Horn calls the accounting performance "dismal." And Rep. Pete Sessions, Texas Republican, who has been working for management reform in the executive branch, said the lack of reliable information has made him feel "like a doctor performing surgery with a blindfold on."

Still, the government's accounting has improved. Last year, the GAO approved audits of just 11 agencies. This year it's expected to give "unqualified opinions" to 13.

Comptroller General David M. Walker said that although "major obstacles need to be overcome...considerable effort is being made by agencies...and steady improvements in financial accountability are occuring."

G. Edward DeSeve, deputy director for management of the Office of Management and Budget, concurred. "The [Clinton] administration supported and created the bill to cause these [accounting] requirements and in time they will provide a tremendous management tool," he said.

For that to happen, the executive branch must "properly account for and report billions of dollars of property, equipment, materials and supplies," Mr. Walker testified.

It also must correctly estimate the costs of environmental and nuclear cleanups and determine the amount of such liabilities as veterans and health benefits.

The executive branch must bolster "serious and widespread computer security weaknesses," as well as figure out the "full extent" of the estimated billions of dollars improperly paid in major programs.

And finally, Mr. Walker said, the government must "accurately report" a basic fact for the first time--the net cost of running the government.

Courting the Presidential Cons
""Trillions are missing from federal agencies. That's right, gone. Poof! As in, "Nowhere to be found." People familiar with government accounts have charged off the record that in 1996 a concerted and intentional effort began with the support of the Office of Management and Budget and Treasury to strip agencies of honest officials and internal financial controls."

THE WAR ON WASTE - Rumsfeld Says 2.3 Trillion Dollars Missing
"On Sept. 10, Secretary of Defense Donald Rumsfeld declared war. Not on foreign terrorists, "the adversary's closer to home. It's the Pentagon bureaucracy,"

1.1 Trillion Dollars Missing At Defense Department


Comptroller General of the United States


David M. Walker became the seventh Comptroller General of the United States and began his 15-year term when he took his oath of office on November 9, 1998. As Comptroller General, Mr. Walker is the nation's chief accountability officer and the head of the General Accounting Office (GAO), a legislative branch agency founded in 1921. The GAO helps the Congress maximize the performance and assure the accountability of the federal government for the benefit of the American people.

Immediately prior to his appointment as Comptroller General, Mr. Walker was a partner and global managing director of Arthur Andersen LLP's human capital services practice and a member of the board of Arthur Andersen Financial Advisors, a registered investment advisor. He also served as a Public Trustee for Social Security and Medicare from 1990 to 1995 while he was a partner with Arthur Andersen. Prior to joining Arthur Andersen, Mr. Walker was Assistant Secretary of Labor for Pension and Welfare Benefit Programs and Acting Executive Director for the Pension Benefit Guaranty Corporation. His earlier technical, professional and business experience was gained with Price Waterhouse, Coopers & Lybrand, and Source Services Corporation.

Mr. Walker is a certified public accountant. He has a BS in accounting from Jacksonville University and a Senior Management in Government (SMG) Certificate in Public Policy from the John F. Kennedy School of Government at Harvard University.




OCTOBER 5,1998



1.     Name: David Michael Walker

2.     Position: Comptroller General of the Unites States

3.     Date of the Nomination: October 5,1998

4.     Address: 997 Peachtree Battle Avenue, Atlanta, Georgia, 30327 (Home) Arthur Andersen LLP, 225 Peachtree St. NE, Suite 1800, Atlanta, Georgia, 30303-1731 (Office)

5.     Date and place of birth: October 2,1951; Birmingham, Alabama

6.     Marital status: Married to the former Mary Etheredge of Jacksonville, Florida for over 27 years.

7.     Names and Ages of Children: Carol Marie Walker Williamson (24) and James Andrew Walker (21)

8.     Education: B.S. in Accounting, Jacksonville University (5/73) S.M.G. in Public Policy, JFK School, Harvard University (8/86)*

* - Not a degree

Numerous professional education and credentialing programs involving accounting, finance, investments, human resources, information technology, legal, management, negotiations, strategic planning, fiduciary, governance and other topics.

9.     Employment record (Employer, dates, most recent city and primary position): Arthur Andersen LLP (7/ 89-Present), Atlanta, GA, Partner - U.S./ Americas Managing Director, Human Capital Services Practice; U.S. Department of Labor (8/ 85-6/ 89), Washington, DC, Assistant Secretary of Labor for Pension and Welfare Benefit Programs; Pension Benefit Guaranty Corporation (10/ 83-8/ 85), Washington, DC, Acting Executive Director and Chief Negotiator; Source Services Corporation (7/79-10/83), Washington, DC, Eastern Regional Manager; Coopers & Lybrand (8/75-7/79), Houston, TX, Regional Director of Practice Management; Price Waterhouse & Co. (5/73-8/75), Jacksonville, FL, Exp. Auditor.

10.    Government experience: Public Trustee of the Social Security and Medicare Trust Funds (10/90-5/95); Co-Chairman of the Mayor's Pension Review Task Force, City of Atlanta, GA (1994); Vice-Chairman of the Secretary of Labor's ERISA Advisory Council (1989-1992); Assistant Secretary of Labor for Pension and Welfare Benefit Programs (1987-1989), Deputy Assistant Secretary of Labor for Pension and Welfare Benefit Programs (1985-1987); Acting Executive Director of the Pension Benefit Guaranty Corporation (1985) and, Deputy Executive Director and Chief Negotiator of the Pension Benefit Guaranty Corporation (1983-1985).

11.     Business relationships: None

12.     Memberships: Arthur Andersen Financial Advisors (Board of Directors); Association of Private Pension and Welfare Plans (Executive Committee and Board of Directors); Womens' Institute for a Secure Retirement (Board of Directors); American Institute of Certified Public Accountants (Past Committee Chairman), several state societies/institutes of CPA's; Council for Excellence in Government; Kiwanis International (Past Vice-President); Southern Employee Benefits Conference (Past Committee Vice-Chairman); International Foundation of Employee Benefit Plans; National Academy of Social Insurance; the Concord Coalition; the International Platform Association; and, the Carter Center. I have also served on a number of national commissions and task forces addressing a variety of retirement security and related issues. Examples include the Committee for Economic Development's (CED's) Private Pension and Social Security Reform Task Forces, the Milbank Memorial Fund's Task Force on Pension Portability for State and Local Governments, the Center for Strategic and International Studies' (CSIS') National Commission on Retirement Policy and various other Congressional, governmental, not-for-profit and private sector task forces or committees addressing a range of retirement and health security reform issues (e.g., womer@s pension equity, pension education and assistance initiatives, negotiated rule making).

13.    Political affiliations and activities:

a. Offices held - Republican Executive Committee - Duval County, Florida (1975-1976); Democratic Executive Committee - Duval County, Florida (19741975).

b. Memberships and services rendered (Past five years) - Republican National Committee and various related organizations - Campaign Council, Presidential Task Force, Senatorial Committee and Congressional Committee; Georgia Republican Party; Virginia Republican Party - AU memberships. I have not held any offices or rendered any services to political organizations during the past ten years. c. Political contributions (Est. totals for the past five years) - Republican National Committee and various related organizations - Campaign Council, Presidential Task Force, Senatorial Committee, Congressional Committee, Candidate Trust ($6,750); Republican Party of Georgia ($500); Republican Party of Virginia ($100); Sen. Paul Coverdell, R-GA ($2,750); Dole for President, R-KS ($1,000); Alexander for President, R-TN ($500); Dave Baker for PSC, R-GA ($500); Guy Millner for Governor, R-GA ($250); Cong. John Linder, R-GA ($500); Sen. Don Nickles, R-OK ($250); Cong. Earl Pomeroy, D-ND ($500); Atlanta Mayor Bill Campbell, D-GA ($650); Sen. Bob Kerrey, D-NE ($250); Sen. John Breaux, D-LA ($250); Sen. Judd Gregg, R-NH ($250); Cong. Charlie Stenholm, D-TX ($250); Cong. Jim Kolbe, R-AZ ($250); Sen. Bob Graham, D-FL ($500); Arthur Andersen PAC, D/R ($2,@,@0); Arthur Andersen,. Atlanta Office Candidates Action Fund, D/R ($750).

Importantly, I have not made any political contributions to any political organizations or candidates since October 1997. As Comptroller General, I would refrain from involvement in or contributions to any political party or candidates.

14.    Honors and awards: Who's Who in the World (Publication pending); Who's Who in America; Who's Who of Emerging Leaders in America; Who's Who in Finance and Industry; Who's Who in the East; Who's Who in the South; Notable Personalities in America; American Biographical Institute's Presidential Seal of Honor; Pension World Public Policy Award; Council on Employee Benefits - Most Outstanding Government Official Award; and, Secretary of Labor's Outstanding Achievement Award.

I also frequently receive invitations from a number of organizations and groups to participate in various invitation-only conferences and events, including the Renaissance Weekend program.

15. Published writings: Retirement Security - Understanding and Planning Your Financial Future (John Wiley & Sons - 10/96); Delivering on the Promise Attracting, Managing and Retaining Human Capital (The Free Press - 10/98); HR Director - The Arthur Andersen Guide to Human Capital (Profile Pursuit - 1997 and 1998); Audits of Employee Benefit Plans training course (AICPA- annually since 1990) and, numerous articles on pensions, employee benefits, investments, retirement security/planning, fiduciary, governance, accounting, auditing, human capital and other matters.

16. Speeches: I am a frequent speaker on a variety of pension, employee benefits, investments, retirement security/ planning, fiduciary, governance, accounting, auditing, human capital and other matters. I do not believe that any of these present a conflict or problem in connection with my serving as Comptroller General.

17. Selection:

a. I have been advised by several White House officials that the President and his advisors felt that I was the best qualified candidate of those referred by the Congress for appointment as Comptroller General.

b. I have a broad range of functional and leadership experience in both the public and private sectors. I have successfully served as head of two federal agencies, which like the GAO, were comprised of a significant number of multi-disciplinary professionals (e.g., attorneys, CPAs, economists, actuaries, social scientists, statisticians). I have relevant professional credentials (e.g., CPA) and a track record of making a positive difference in the public and private sector organizations for which I have held leadership responsibilities. I have a proven track record of being able to address difficult operational and policy issues in a professional, objective and non-partisan manner (e.g., Public Trustee of Social Security and Medicare, CSIS National Retirement Policy Commission).

Return of the 'Audits From Hell'

Former Critics of IRS in Congress Now Clamor for Tough Enforcement
Sen. Charles Grassley, Chairman, Senate Finance Committee:

Oct. 1, 1997:

March 25, 2002:

7 Years Of Hell At Hands Of IRS

Uncle Sam's Audit Gap

Government Fails Fiscal-Fitness Test

Advanced Enron Accounting Methods

Looking for more cooked books? Try U.S. government

America's biggest crook

No criticism, please, we're bureaucrats

Forget Enron - Congress is even worse

Corporate responsibility: Joseph Farah finds federal thieves dislike Enron competition

U.S. Government is Unrivaled Champion at Cooking the Books

Washington masks deficits using accounting tricks

U.S. Federal Government Accounting Methods

HUD Missing 59 Billion

Billions Lost By Feds

Cooking The Books At The Department Of Education

TOPICS: Crime/Corruption
KEYWORDS: cookingbooks; fraud; lawbreaking; mismanagement; spending; stealing; usgovernment; waste
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To: nunya bidness
"There's a Republican in the White House, the U.S. House is still run by the GOP and the country is in a recession, but that didn't stop Congress and the president last year from passing 136 laws that will cost taxpayers $733 billion – more money than ever before."
41 posted on 01/09/2003 12:24:48 AM PST by Uncle Bill
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To: Uncle Bill
Un freakin' believeable - You always seem to find and post some of the most obscure but interesting expose's on the government. This should be plasted all over the front page.

To me, this is probably the biggest threat to America - and it's the waste, corruption, mismanagement and unaccountablility right under our nose.

Awesome post - I just wish America would wake up and get our leaders to do something about it.
42 posted on 01/09/2003 12:33:33 AM PST by M. Peach
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To: Uncle Bill
43 posted on 01/09/2003 12:34:20 AM PST by A CA Guy
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To: Sandy
A $21 Trillion Tax Cut
44 posted on 01/09/2003 12:36:58 AM PST by Uncle Bill
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To: Uncle Bill
Uncle Bill, The size and scope does make it uncontrollable, I agree 100%.
We need to get all the fat out of the system.

In the process many people with make-work jobs in government will be fired.
Unfortunatly, this will cause a growth in unemployment benefits.

Some nights you can't win!
45 posted on 01/09/2003 12:39:22 AM PST by A CA Guy
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Bush's Trillions
46 posted on 01/09/2003 12:43:24 AM PST by Uncle Bill
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To: Uncle Bill
47 posted on 01/09/2003 12:55:30 AM PST by Bullish
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Comment #48 Removed by Moderator

To: gubamyster
Ag Dept. seeks $100 million to find missing billions

Private businesses file bankruptcy, government just steals more money

Is Congress blindfolded on the Economy? - "come with me now to the inner sanctum of government decision making and let me show you one of Uncle Sam’s dirty little secrets. Officially, it’s called “scoring” but it would be more truthful to refer to it as “fortune telling.” They do it behind closed doors on Capitol Hill and in the federal bureaucracy. ...Now, here’s the dirty little secret – the JCT insists on using the static scoring method, even though there is growing professional, corporate, academic and political support for using dynamic scoring instead. In fact, all of the federal government’s tax scoring groups, including the Congressional Budget Office and the U.S. Treasury’s Office of Tax Analysis, doggedly stick with static scoring. Why? Because static scoring is a key tool Washington politicians use to keep taxes high and government spending growing."

49 posted on 01/09/2003 1:03:02 AM PST by Uncle Bill
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To: skull stomper
"I don't have it, honest."

It doesn't matter skull. They know where they can keep getting more.

50 posted on 01/09/2003 1:14:18 AM PST by Uncle Bill
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To: Askel5
CONGRESS: America's Criminal Class:

From Wife-beaters To Drunk Drivers, Congress Is A Crime Wave, Study Says

September 2, 1999

WASHINGTON, DC -- A new investigation reveals an astonishingly large number of wife-beaters, drunks, shoplifters, check-bouncers, business failures, and drug abusers in the U.S. House and Senate -- which ought to make Americans think carefully before turning to Washington, DC for moral leadership, the Libertarian Party said today.

"Mark Twain once said Congress may be America's only 'distinct criminal class' -- and this new study suggests he was correct," said Steve Dasbach, the party's national director. "If even half these charges are true, expecting Congress to serve as a moral role model is like asking Bill Clinton to serve as a poster boy for monogamy."

According to an investigation by Capitol Hill Blue, an online publication that covers federal politics, a remarkable number of U.S. Representatives and U.S. Senators may have spent as much time in a jail cell as on Capitol Hill.

After researching public records, newspaper articles, civil court transcripts, and criminal records, Capitol Hill Blue discovered that:

Capitol Hill Blue did not list the names of all the individual members of Congress accused of the various crimes, but did note that some were "serial offenders" with extensive tracks records of fraud or violence.

For example, reported Capitol Hill Blue, Rep. Corrine Brown (D-FL) has a "long, consistent record of deceit," including tens of thousands of dollars in unpaid bills, allegations of bribery, and numerous lawsuits against her. And Rep. Jim Moran (D-VA) faces charges that he beat his wife, has a history of barroom brawls while mayor of Alexandria, and has publicly stated that he likes "to hit people."

"With a rap sheet like that, you have to wonder why Americans expect Congress to solve the problem of crime -- since Congress seems to be causing so much crime," said Dasbach. "In fact, if this study is correct, the best way to cut crime may be to lock up Congress and throw away the key."

And given the obvious economic incompetence of so many Senators and Representatives, you have to wonder why voters trust them with the federal budget, he said.

"Here are politicians who routinely bankrupt businesses, write bad checks, engage in fraudulent practices, and have bad credit," said Dasbach. "That could explain why the country is more than $5 trillion in debt, why federal programs are so wasteful, and why taxes are always going up. Are these really the kind of economically illiterate people we want to trust with our money?"

If nothing else, said Dasbach, the Capitol Hill Blue investigation may help puncture the myth that Senators and Representatives are somehow superior to ordinary Americans, or better equipped to solve the nation's problems.

"By its very nature, politics tends to attract venal people who crave power, who want to control the lives of other people, and who think they are above the law," he noted. "This study makes that point clear -- and illustrates that when it comes to politicians, the only thing worse than their voting records are their criminal records."

List of Convicted Criminals Serving in Congress

51 posted on 01/09/2003 1:49:27 AM PST by Uncle Bill
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To: sarcasm
American Indians Say Government Has Cheated Them Out of Billions - $137.2 billion - January 6, 2003
"For its part, the Interior Department filed a brief today that shows only how it intends to overhaul trust fund management and account for the money in the fund.

Over the last several years, Judge Royce C. Lamberth has come down hard on the side of the Indians, saying he has never seen greater government incompetence than the department has displayed in administering the Indians' money and in representing itself in court.

When the government appealed his 1999 order for a full accounting, the Court of Appeals resoundingly upheld Judge Lamberth and accused the department of "malfeasance."

52 posted on 01/09/2003 2:20:04 AM PST by Uncle Bill
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To: Uncle Bill
I am going to write them a check to ASAP.
53 posted on 01/09/2003 2:36:36 AM PST by Jimbaugh
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To: Uncle Bill
Perhaps it was funneled towards more "Assault Hammers" and "Anti-Terrorist Toilet Seats"?

Although if you calculated the total expense of keeping the frequent treatment for STDs accumulated during the Clinton administration when the raving syphilitic himself and his staff occupied the White House, we might have a clearer picture of what happened here.</p.

54 posted on 01/09/2003 2:38:15 AM PST by Caipirabob (Tag line? I can be obnoxious in two spots at once? How efficient!)
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To: Uncle Bill
Arthur Andersen? Why do you thing Clinton appointed him? He needed someone to hide the Virtual Assets the evil dums had created.
55 posted on 01/09/2003 2:53:30 AM PST by marty60
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To: Jimbaugh
Use invisible ink. They do. 8-)

Taxpayers, tax takers: Linda Bowles wants to scrap income levy, IRS entirely
"It is morally wrong to allow non-income taxpayers to vote to raise the income taxes of others -- and benefit from doing so. It is morally wrong in this sense: While most Americans would never dream of seizing money or property that belongs to a neighbor, many Americans see nothing wrong in giving government and politicians a mandate to do it for them.

Once we reach the point where those who depend and thrive on higher taxes and bigger government are in the majority, we will no longer be able to correct inequities and change course via the ballot box. The proponents of limited government, lower taxes and the Constitution will have lost.

The founders were horrified that something like this would happen in America."

56 posted on 01/09/2003 3:00:34 AM PST by Uncle Bill
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To: marty60
"Arthur Andersen? Why do you thing Clinton appointed him? He needed someone to hide the Virtual Assets the evil dums had created."

The Justice Department has stated that help is on the way.

57 posted on 01/09/2003 3:04:36 AM PST by Uncle Bill
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To: Yakboy
"Perhaps it was funneled towards more "Assault Hammers" and "Anti-Terrorist Toilet Seats"?


"Tucked into an emergency-appropriations bill for homeland security is $2 million to ensure the safe storage of the Smithsonian's National Worm Collection and other specimens preserved in alcohol."

58 posted on 01/09/2003 3:33:36 AM PST by Uncle Bill
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To: dalebert
"And the government thinks it can spend my money wiser than I can."

Siphoning off Social Security For Illegal Aliens - ""illegal aliens from Mexico would also become eligible for Social Security benefits."

“And one of my promises is there’s going to be Social Security reform, and you bet we need to take a trillion dollars out of that $2.4 trillion surplus. Now, remember, Social Security revenue exceeds expenses up until 2015. People are going to get paid. But if you’re a younger worker, if you’re younger, you better hope this country thinks differently, otherwise you’re going to be faced with huge payroll taxes or reduced benefits. And you bet we’re going to take a trillion dollars of your own money and let you invest it under safe guidelines to get a better rate of return on the money than the paltry 2 percent that the federal government gets for you today. That’s one of my promises.” - George W. Bush

1. Social Security Reform: Give Illegal Aliens Money.

2. Surplus: There never was a surplus.

3. Let you: He's going to let you invest your money.

59 posted on 01/09/2003 4:03:59 AM PST by Uncle Bill
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To: Uncle Bill
If you think Ashcroft is responsible for the missing money your sadly mistaken. Not EVERYONE that worked for AA is corrupt. If anything, the recent problems they have had may make them even more dilligent. To many eyes watching. It's not a good idea to smear everyone just because you don't like one person. If the actual people doing the review are corrupt then you have a point. but at least get their names and investigate. The fact remains these losses were amassed and an AA exec was hired before the Virtual assests BS was made public. A little sunlight kills a lot of germs.
60 posted on 01/09/2003 4:08:37 AM PST by marty60
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