Posted on 10/04/2001 8:45:35 AM PDT by Brookhaven
IS "FUNGIBLE" A DIRTY WORD?
Granted it s not a word that often comes up in every day conversation, but this writer has been using it for over five decades. Yet, when I consulted my dictionary (Webster s New World Dictionary and Thesaurus 1996 by Simon & Schuster) for an exact definition, it was not there.
That is a significant omission. The word should be a part of every person s vocabulary for it is the key to understanding the scams being perpetrated by government at every level and even some well respected charities and other organizations. (On further reflection, maybe that s why it has been dropped from some dictionaries.)
Often, an example is more useful than a definition. If you and I each pour one glass of water into a pitcher, we now have the combined volume of each of our contributions in the pitcher. Is it now possible for either of us to retrieve the same water we poured into the pitcher? Of course not. While we could get back the same amount of water, it will not be the same water originally put into the pitcher. It will be a mixture of the two. That is because water is "fungible." It loses its unique identity when combined with other quantities of water.
So it is with money. When government collects various taxes and throws the money into one big "pitcher" called the general fund, can it say which of its numerous expenditures came from a particular type of tax? No. No more than you can say you got the same water back from the pitcher that you put in.
Yet the federal government pretends it can identify how money collected from Social Security taxes, (which goes into the general fund) is spent. (The so-called "trust" fund is nothing but a bookkeeping entry with Iou s in it.)
It s not that the politicians don t understand "fungibility" as the so-called "Mexico City language" on abortion funds proves. That language, adopted by the Reagan administration, dropped by Clinton and reinstituted by the current administration bars funds to organizations that perform or promote abortions. This in recognition of the "fungibility" principle that any aid facilitates all of the programs of an organization to one degree or another.
Do they think the public is stupid? They count on it!
The Michigan Education Fund is a combination of general fund money, sales taxes, lottery money and the new state property tax. Who can say which taxes are supporting which programs?
The United Way charities (national in scope) receive and distribute donations on a regional basis. They tell donors they can "designate" which charity they want to receive their donation. But the distribution to the various charities is based on "budgets" developed independently from "designated" contributions. Since so few donors name a particular charity, the designations are meaningless.
In response to these attacks, United Way and The New York Community Trust have established The September 11th Fund. Your contribution will be used to help respond to the immediate and longer-term needs of the victims, their families, and communities affected by the events of September 11.
Please note, 100% of your contribution will be used to support these efforts. United Way and The New York Community Trust are underwriting all administrative costs.
Sound familiar, comrade?
The Peer Group Collective of the Human Resources Department strikes again.
Cheers to American charnal houses and their charitable giving.
It's heart breaking to know of the brutal end thousands of similar children receive every week in this country.
I will never donate a penny to any organization that supports Planned Parenthood.
Naive is in the dictionary....wierd isn't
Eye-opener, to say the least.
Gorbachev likes to call it "corporate governance" with a "great feminine soul".
I can imagine you are indeed relieved no longer to be part of the Compliance Program where it is your duty to report.
A pity our government FORCES you to contribute to them.
Quick lesson on what most accountants don't want you to know: most normal people think that all accounting is the same, they are wrong. There are actually 3 methods of accounting used in America (with slight variations all over the world); there is Financial Accounting which is what most of us think of when we hear the word accounting, there is Cost Accounting which is primarily used by bad managers to make bad business descisions (Cost Accounting is not inherrently evil, but evil people really like it), and there is Fund Accounting (aka Public Sector Accounting).
Now, all the math for all the methods are pretty much the same, the difference is in how it's recorded, traced and analyzed. Fund accounting is all about dividing you "business" (all accounting talks about businesses even if it's public sector) into identifiable untils (funds) and subunits (often functions, and programs, other stuff can be applied). In essence fund accounting is just like financial accounting with a thyroid condition and executed by speed freaks. It's very minute in it's detail. Tracking money from a specific source to a specific destination is actually pretty easy (in the relative sense, nothing is really easy in fund accounting) in fund accounting. Even though all the income usually goes into and comes out of the same bank account (technically schools are supposed to use one bank account for payroll and one for everything else, what they usually do is keep nothing in the PY bank account and transfer enough money into there from the general account to cover each payroll when it's processed), because of how fund accounting works you know exactly which section of your business was the source and exactly where it went.
Yes, even if the money cycles through the general fund (there is always a general fund) it's still pretty easy to trace because you have an exact account code that was the revenue source, and part of that account code tells you where the money is intended to be expended and if the two don't match up it's really easy to spot.
Money if fungible, the author is quite correct. That fungibility is exactly why Luca Pacioli in the 15th century invented what is functionally identical to financial accounting today. Then malfeasance during the depression convinced some government officials that his invention wasn't quite good enough to catch the theives so fund accounting was born. Properly used fund accounting removes almost all fungibility from money.
Of course the most recent GAO reports (only part of the government you actually should trust) say the books are a mess. Things could be right back to square one.
Once that freed up dollar is back into the general fund, it can then be redesignated to go to any other organization supported by the United Way, including Planned Parenthood.
fun·gi·ble (f![]() ![]() ![]() ![]() adj.
n.
[Medieval Latin fungibilis, from Latin fung ![]() fun ![]() ![]() |
In general I always recommend to people to NEVER give to UW. All of the places they send money to are valid charities so giving the donation directly to them is still a deduction. Even if you agree with all of the organizations UW feeds (I'm not sure ANYBODY agree with the ALL, but it's theoretically possible) you still shouldn't give to them because they add operating expenses that get taken off of the donations from the top. Even if, by a fluke of fate, the $100 you gave them really went to the charity you indicated at least $10 of that stays within UW for operating expenses (before the great purge only 40 cents out of every dollar given UW actually went to charity, they're percentage is up from there now). If you want Charity X to have 100 of your dollars then give them 100 of your dollars, don't give them to UW or any other "clearing house" charity. It does mean that those of us that are very charitable wind up writing more checks and your paperwork increases at tax time, but all of the money actually goes where you want it to.
I guess what I'm struggling to point out is that the fault isn't in the general fund, or even how the general fund gets used. The fault is in the overall methodology of the organization. I'm very anal about the meaning of words (that's why I'm good at my job), and "general fund" has a very specific meaning in fund accounting and the general fund has specific uses. How you're using the words is accurate outside the world of fund accounting (ie what most people think when you say "general fund"); but this is about the government and government funded charities and in that world the meaning is quite different, in this world the term would more accurately be "non-focused (or unallocated) expenditures" or something on those lines. This is important because you can (sort of) look at the books of these places, and if you do you'll find that almost every dollar that goes through does a layover in the general fund at some point, but that doesn't mean they were hiding anything, it just means it's a lot easier to know how much money you have in the bank if there's only a couple of account codes to look at. The trick is to look at where the money was before and after it hit the general fund.
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