CAFR Confession


A friend and listener to our local AM station took our interview with the mayor of Salt Lake County, where he admits to the county CAFR and over $650 million in extra fund balances. He also included the CAFR pages I read from as reference.

Though I already posted the interview (audio only), I feel like this is the most important public official confession as to the wealth of the government as shown in government’s financial statements.

Please pass this on…

Also, learn more about government Comprehensive Annual Financial Reports (CAFR’s) with CAFR School, here:

Part 1: The State of Wisconsin CAFR –

https://realitybloger.wordpress.com/2011/03/01/wisconsins-real-financial-situation-explained/

Part 2: Introduction to CAFR – City of Aurora, Co –

https://realitybloger.wordpress.com/2011/03/03/cafr-school-a-lesson-in-financial-accounting/

Part 3: Advanced study – State of Minnesota CAFR –

https://realitybloger.wordpress.com/2011/03/09/cafr-school-part-2-minnesotas-state-cafrs-explained/

Now compare these to your own local, county state, and school district CAFR’s.

.

–Clint Richardson (realitybloger.wordpress.com)
–Tuesday, July 12, 2011

 

 

 

 

The Senate: How Much Does It Cost?


I had to laugh out loud…

As I was searching for a glimpse into the unbelievable amounts of taxpayer money that it takes to fund the Federal Government and it’s Executive Departments by viewing its Comprehensive Annual Financial Reports, I came across an interesting report called the “2010 Detail of Appropriations, Outlays, and Balances” report.

This report can be downloaded here: http://www.fms.treas.gov/annualreport/index.html#part%20one

Other Financial Reports for the Departments of the Treasury, Defense, Commerce, The Post Office, The Social Security Fund, and many others can be found here: http://www.fms.treas.gov/finrep/fr_resources.html#agency

This “Appropriations, outlays, and Balances” report included the expense accounts and left over ongoing fund balances that are appropriated to the Senate, the House of Congress, the Library of Congress, the Architect of the Capital, the Botanical Garden, the Capital Police, an on and on…

And, while some of these “appropriations” were funny, some were not.

For instance, let’s look at the Senate…

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-= Senate Appropriations =-

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Did you know that each year the Treasury allots a certain amount of taxpayer money to go to the “Senate Hair Care Revolving Fund”?

Yep… The Federal Government has a fund that was created specifically for the hair care of its Senators! For fiscal year 2010, $33,387 was used to outlay this expense. The word outlay simply means “to spend, an amount expended, paid expenditures”.

There are only 100 Senators – 2 representing each of the 50 states.

This means that on each senator $333.87 in taxpayer money was spent to keep them looking sharp for the cameras, hairpieces and all!

But then, I guess that’s about what you’d expect from a fake Hollywood production like this.

But even more importantly, this “revolving fund” has a balance, which is appropriated solely for this Senatorial hair care. That fund balance, which is invested and gains each year, is $261,117.19. That represents a gain for this fund over fiscal year 2009 of about $36,000.

So we have a quarter of a million dollars designated for Senatorial hair care while many U.S. citizens live in destitute tent cities. It’s kinda funny… and kinda not.

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Farther down the list we have the “Senate Restaurant Fund”, listed as a “Public Enterprise Fund”.

The Senators tapped this fund for $72,370.12 for fiscal year 2010. This left a remaining balance in the “Senate Restaurant Fund” of $49,859.53.

That adds up to about $723.70 per Senator.

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The taxpayers also paid $123,856.74 towards the “Senate Health And Fitness Facility, Architect Of The Capitol”. This left an account balance of $256,380.37.

So taxpayer funded Senatorial gym memberships apparently cost $1,238.56 for each member of the Senate.

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The “Official Mail Costs, Senate” column states that the Federal Government appropriated $300,000 to this cost, adding to the existing balance already appropriated for Senate mailing services of $345,430.58. And after $115,546.71 of this money was actually used for mail, $161,082.59 was “withdrawn or used for other transactions”, the fund balance was left for fiscal year 2010 at $368,801.28 – a gain of a bit more than $22,000.

This represents $2,766.29 per senator for 2010.

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How about the “Senate Gift Shop Revolving Fund, Senate”?

Well, this fund has $2,939,413.53 within it. What this taxpayer money is used for is unclear, but these guys managed to spend $166,673.26 over fiscal year 2010.

This represents $1,666.73 per Senator.

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The “Senate Photographic Studio Revolving Fund, Senate” spent $65,915.24 for the year and shows an ending balance of $798,690.53

There’s $659.15 per Senator.

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The Senate Recording Studio Revolving Fund, Senate” spent $22,722.52, leaving a fund balance of $1,945,771.10.

That’s $227.22 per Senator spent in 2010.

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The “Contingent Expenses, Stationery (paper), Revolving Fund, Senate” spent $298,821.41, leaving a fund balance of $1,078,465.74.

That’s $2988.21 per Senator.

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Ok, so if you are like me, you are probably wondering… WTF?

And about now you may be asking yourself… WTF?

Why is so much money being designated for such trivial things? In a normal business setting, an employee would keep a tally of his expenses and turn in a expense record in order to be refunded that money by the corporation or be given a credit card to be paid off by the company every month. But in governments case, the money is appropriated into accounts or into an individual fund in dollar amounts much larger than are actually being spent.

Dare I say that this money could be used for other things?

But this is just part of the usual shell game, where governmental investment funds and bank accounts are removed from the general use taxpayer fund, which would go to pay or offset other taxes and needed taxpayer budgetary requirements, and put into these accounts and funds which by law must stay in those accounts or be transferred to other such legally appropriated funds. These types of funds happen throughout the entire spectrum of government, from local to district to county to state to Federal government.

But hey, and I hate to tell you this… but we haven’t even scratched the surface yet. These, believe it or not, are the small funds and accounts.

Now let’s look at one of the most outrageous expenses in the Senate (and the Congress).

The average Senator moans and groans about the low salary that he or she is paid, considering the job they are elected to. And the people generally and ignorantly agree. A Senator might mention how noble and altruistic they are for taking on the representation (LOL!) of the people of their state, and that the money that is paid to them for that venture is perhaps inconsequential compared with the honor of the service they are providing to the public (LOL!!!).

But in truth, if one wishes to know how much taxpayer money is earned by each Senator, one would have to go to the main source of that wealth. That source is the individual, tax-exempt expense accounts that each Senator (and congressman) receive.

You see, it is in the best interest of these legislators to keep their base salaries as low as possible. Why? Because those salaries are taxed. Their expense accounts are not!

Listed on this “2010 Detail of Appropriations, Outlays, and Balances” report, under “Contingent Expenses, Senator’s Official Personnel And Office Expense Account, Senate”, we get a more accurate idea of what these crooks are being compensated with in order to be a part of this organized criminal activity working for United States Inc.

The report states that $422,000,000 was appropriated for use in the personal expense accounts of these 100 Senators.

Of that $422 million, $400,590,512.37 was used (outlay) for the personal and office expenses of these Senators.

That represents an average of about $4,005,900 per Senator for “personal” and “office” expenses. Tax free. Spent on anything they want.

The account that holds this appropriated money gained about $13,600,000 over 2009 – leaving the ending account balance at $81,448,251.53.

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Wow! I want to be a Senator! Hell… I’ll do it for no salary. Just lay that expense account on me!!!

Now you are probably really thinking… WTF?

You might be asking yourself, who in the name of all that is Holy would allow these 100 people to be appropriated with almost half a billion dollars for their personal expenses?

Ever heard of the Senate Appropriations Committee? That’s right. The Senate appropriates this money to their own expense accounts! Excuse me while I laugh out load again…

Now, you are probably thinking that this money is being used for “office” expenses much more than the actual “personal” expenses of these Senators, right?

Wrong…

We already know from looking at the above funds and accounts that these separate  expense accounts weren’t used on haircuts, mail, working out, official pictures, restaurants, writing paper with the U.S. Seal embossed upon it, or spent in the gift shop! Actually, I’m sure much of it was spent on wining and dining corporate lobbyists, purchasing fancy suits, and personal grooming and care. But these expense accounts can be used for just about anything. Condos in Tahiti, vacations to Australia, second home purchases for “business purposes”, you name it. All tax exempt!

And as we can see from further examination of this appropriations report, all of the other Senatorial expenses are more than covered by the following other funds and accounts…

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“Contingent Expenses, Expenses Of Inquiries And Investigations, Senate”

$140,500,000.00 – Appropriated for 2010.

$125,780,268.65 – Outlay (spent).

$254,644.79 – Withdrawn or other transactions.

$26,704,079.70 – The ending account balance, a gain of about $2 million over 2009.

$1,257,802 – Average spent per each of 100 Senators based on (outlay divided by 100)

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“Contingent Expenses, Miscellaneous Items, Senate”

$19,909,500.00 – Appropriated for 2010.

$13,524,922.79 – Outlay (spent).

$0.00 – Withdrawn or other transactions.

$49,225,568.72 – The ending account balance, a gain of about $1.2 million over 2009.

$135,249.22 – Average spent per each of 100 Senators.

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“Compensation Of Members And Related Administrative Expenses, Senate”

$23,603,773.00 – Appropriated for 2010.

$20,708,164.76 – Outlay (spent).

$0.00 – Withdrawn or other transactions.

$4,230,079.21 – The ending account balance, a gain of about $1.1 million over 2009.

$207,081.64 – Average spent per each of 100 Senators.

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“Contingent Expenses, Secretary Of The Senate, Senate”

$1,990,000.00 – Appropriated for 2010.

$756,508.92 – Outlay (spent).

$0.00 – Withdrawn or other transactions.

$9,557,875.92 – The ending account balance.

$7,565.08 – Average spent per each of 100 Senators.

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“Contingent Expenses, Sergeant At Arms And Doorkeeper Of The Senate, Senate”

$141,601,000.00 – Appropriated for 2011-2014.

$10,000,000 – Appropriated for 2010.

$90,719,432.93 – Outlay (spent) 2010-2014.

$0.00 – Withdrawn or other transactions.

$60,881,567.07 – The ending account balance as of 2014.

$907,194.32 – Average spent per each of 100 Senators as of 2014.

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“Settlements And Awards Reserve, Contingent Expenses, Senate”

$1,000,000 – The ending account balance as of 2010.

$10,000 – Average spent per each of 100 Senators as of 2014.

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“Congressional Use Of Foreign Currency, Senate”

$4,000,000.00 – Appropriated for 2010.

$4,416,425.52 – Outlay (spent).

$0.00 – Withdrawn or other transactions.

$27,613,635.88 – The ending account balance.

$44,164 – Average spent per each of 100 Senators.

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“Senate Office Of Public Records, Revolving Fund, Senate”

$22,907.00 – Outlay (spent).

$204,092.08 – The ending fund balance as of 2010.

$229 – Average spent per each of 100 Senators as of 2014.

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“Daniel Webster Senate Page Resident Revolving Fund, Senate”

$41,173.33 – Outlay (spent).

$268,265.96 – The ending fund balance as of 2010.

$411.73 – Average spent per each of 100 Senators as of 2014.

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And last, but but certainly not least… we come to the actual salaries that are paid to have this set of 100 Senators.

“Salaries And Expenses, Office Of The Legislative Counsel Of The Senate, Senate” – We see that $7,154,000 was appropriated by the Senate itself for the Senator and staff Salaries. Of that amount, $6,394,041.59 was actually paid out (outlay) to the Senators and staff.

That left a balance in this account of $939,136.37.

That represents $63,940.41 per Senator.

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“Salaries, Officers And Employees, Senate”

$168,217,500.00 – Amount appropriated in 2010.

$150,017,546.99 – Amount paid (outlay) to officers and employees in 2010.

$27,053,492.09 – Account balance end of 2010 fiscal year, an increase of about 5.1 million over 2009.

$1,500,175 – Average amount paid for every Senator.

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“Salaries And Expenses, Office Of Senate Legal Counsel, Senate”

$1,544,000.00 – Amount appropriated in 2010.

$1,050,722.89 – Amount paid (outlay) to “legal counsel” in 2010.

$877,105.95 – Account balance end of 2010 fiscal year, an increase of about $18,000 over 2009.

$10,507.22 – Average amount paid for every Senator.

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“Payment To Widows And Heirs Of Deceased Members Of Congress, Senate”

$174,000.00 – Amount appropriated in 2010.

$174,000.00 – Amount paid to “widows and heirs”

$1740.00 – Average amount paid divided by 100 Senators.

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So what does all of this mean?

Well, what is your definition of wasteful spending?

In order for each state to have two representatives, a total for the country of 100 Federal Employees for which we call “Senators”, and with the understanding that this in no way represents all monies spent on the Senate or the money that each state pays separately for each Senator (employees, office leases, supplies, legal council, etc.), the taxpayers paid at least the following for 2010:

$8,162,563.35 per Senator (in blue above)

$815,257,003.33 spent/outlay (in purple above)

Of course, the actual amount appropriated for these things is always much higher than the actual costs by thousands or millions of dollars. Sadly, this is purposeful. And, the account and fund balances that have accumulated over the years from over-appropriation (assigning too much money) to these funds for 2010 stand at at least a total of:

$297,905,741.83 excess account and fund balances (in red above).

All of this (plus much much more that is not listed here) just to have 100 men and women pretend to represent us. Remember, these are the people who don’t even read the bills presented to them by their corporate lobbyists before they sign them!

That treason costs the taxpayers of America over $815 million dollars, and well over $1 billion if all related expenses were taken into account.

All this to support 100 men in fancy suits. Imagine what the congress costs…?

All this while Americans lose their homes, their jobs, and their lives.

What has America become?

.

–Clint Richardson (realitybloger.wordpress.com)

Monday, April 4, 2011

Conspiracy Theory – A State Of Mind


There is a truth so simple, so obvious, and yet so elusive to those who seek it. It is hidden in plain sight. And it it is verifiable if you can walk a straight line without getting sidetracked by conspiracies. This is not to say that conspiracies aren’t happening all around you. On the contrary, this simple truth I speak of actually verifies these plans between two or more people (the definition of conspiracy).

Now, the hardest part about seeing this simple truth is in fact these 100’s of conspiracies that redirect your conscious thought. Yet subconsciously, the truth sits there and waits for logic and reason to pull you towards it. For, like a grove of aspens, all of these “plans between two or more people” are connected and supported by one central root system, and are dependent on this truth for their secrecy and continuity.

So what is this truth… this central root system?

As we seek the source of these conspiracies, we get distracted by the very conspiracies themselves and by the players involved. And I am by no means immune from this never-ending, reproducing fork in the road. We feel that this truth is constantly in front of us, but these conspiracies keep diverging our focus, and our path forks once again. Our frustration mounts, and we either fall by the wayside or keep trudging through.

When we sufficiently uncover the evidence of one plan, deciding that there is still a higher cabal that is guiding the hand of the perpetrators of that plan, certain shock jocks and even other sincere truth-seekers throw us three more conspiracies, often not even realizing that they are doing nothing more than obfuscating the truth, and creating another fork. But for some, this is an intentional effort.

Then someone like Walter Burien comes along and says, “Here it is… here is the truth that you seek”.

But we ask, “Yeah, but what about the Rothschilds?”

And Walter simply says, “Don’t look right, look straight ahead to the source.”

But we ask, “Yeah, but what about chemtrails?”

And again, Walter states, “Don’t look up, don’t get sidetracked, look straight ahead.  Who funds these weather experiments? Look at the source.”

And as we walk for a few steps on that path, we yet again diverge and ask, “Oh, look over here… what about the Federal Reserve?”

And as Walter smiles with a mix of empathy and frustration, he simply says, “No. Don’t look backwards, look straight ahead at the source.”

But the conspiracies flow like fireflies, distracting us from that path. And we say, “Oh my, what about fluoride in the water supply?”

And once again, Walter says, “Don’t look down either. You cannot change this without looking at who funds and allows this to happen. Will you please look straight ahead at the source.”

And we do, and we know who is responsible, and we know who funds this poison in our water with our own taxpayer dollars. But still we get distracted from this simple truth.

And so we say, “Ah… but what about Bilderberg, Bohemian Grove, the CFR, and the Tri-Lateral Commission? Alex Jones says…”

And Walter in anger says, “Why aren’t you listening? Why aren’t you comprehending? Don’t look left, for that is where you are being fooled into looking. These things are just part of the source. Look at the source. It is straight ahead. Follow the path.”

And then every once in a while, not too often, but every once in a blue moon, someone gets it. They still may stray off the path every once in a while, but once the source is comprehended, all other paths eventually lead to the source. It becomes impossible not to see down the straight path, no matter how many curves and side roads we take.

So again, what is this truth? What is the source.

Well, let’s face it. Nothing happens in this country without some branch of the government knowing, approving, and regulating that thing. No conspiracy happens without government and its spy agencies being a part of it, or at least profiting from it. And no person, corporation, or business can operate within this country without the government knowing about it. Since all corporations are indeed government entities, taking direction from and following the rules of the government, no corporation is above government. This includes the banks, the Federal Reserve, investment companies, and the rest. And they all follow the Federal Law that states that all corporations must file a Comprehensive Annual Financial Report (CAFR), including the banks, the Federal Reserve, and the rest. There are no exceptions.

If a hybrid bank such as the Federal Reserve was above the government, or above the law, they certainly would not hand in a complete audit of themselves every year to the government, now would they? No. They are incorporated within the United States and under the government. They operate within the laws set by government. They are granted the favor of extreme power over the economy. But this is not total power, for they and their assets can be immediately seized at any time by the government. They are but pathetic, dangerous, but fragile men in expensive suits. They are not powerful without the consent of the people through their consent of the government. This is the truth.

Who sprays these chemtrails? Well, these planes would not be allowed to fly over U.S. airspace without government permission, right? Therefore the truth is that the government not only allows this spraying of our skies, but funds and benefits from this strangest of conspiracies. Simple logical deduction. No other theory is needed, only the knowledge of who these planes must get permission from to fly over U.S. airspace. This is the path of knowledge that can only be obtained by focusing straight ahead. Sure, look into the chemtrail theory, but don’t get sidetracked from the truth. This has to be a government or government approved operation. There is no other option.

Ok, let’s take the Rothschild family. So what. What are you going to do about them? They have oodles of money and investments. So what. One is a Senator. Ok. They own banks. Good for them. Those banks operate within the United States with government permission, under Federal charter or law. The Rothschilds’ are not above the government. Now, they may have their Zionist agents seated deep within our government, and indeed we see not only a fervent support for Israel, but a multitude of duel-Israeli citizens being appointed into that Federal Government. But government is still in charge, and it still runs the show. It is the people in that government that are the problem. They do not represent the people. And everything that happens and all of the conspiracies that take place must happen with government approval.

Yes, yes… there is fluoride in the water. Yes, it is a main ingredient in rat poison. Yes, it is the by-product of the aluminum industry. It calcifies the pineal gland of the brain. And yes, it has a calming effect on the people who ingest it, which is the only reason I can think of to explain why people aren’t charging Washington D.C. in droves, with pitchforks and guns and ropes… and Tazors! But the simple truth is that government must approve its use. It funds and owns stock investment in the companies that produce it. Government approves the dumping of this toxic waste into the water supply to save on the costs of properly disposing of this substance, thus improving its majority stock share value. Simple. Logical. No theory needed.

What is Bohemian Grove? It is where government goes to relax. What is the Council On Foreign Relations? It is a think tank funded by government. What is the Tri-Lateral Commission? A government entity. What is the Bilderberg Group? An obscure think-tank meeting of global government. And since it sometimes meets in the United States, and since the U.S. government officials who attend this meeting against multiple Federal laws are not punished for their actions, one must concede to the truth. Government is in control of these officials, and allows them to attend.

I was on this switchback trail for a number of years, turning over one conspiracy only to reveal three more, and never comprehending this simple truth, until fortune or fate brought me to cross paths with Walter Burien.

Now, the truth is clear. I can look at the Comprehensive Annual Financial Report (CAFR) and see the vast stock investments, real estate investments, hedge funds of currency from every nation in the world, gold holdings and gold certificates, Special Drawing Rights, and junk backed securities and derivatives. I can see that government owns it all, through stock investment. I can see that through stock investment, government owns the Fortune 500 and other corporations for which it also regulates.

And so here is the truth…

The government as it stands today is in a complete and utter conflict of interest.

Simple. Logical. Provable by the CAFR.

A body which regulates, deregulates, sets the laws for, polices, audits, and then also owns the controlling interest in the corporate business world it is supposed to impartially oversee, is the biggest conflict of interest in the history of such conflicts.

So, the next time you get distracted from the straight path, from the true nature of government ownership and control of every facet of America and the world, just think of the CAFR. And remember that nothing happens in this country without government approval.

If you want to fix the nation and solve most of the worlds problems… replace government and elect non-corporate poor people in jeans and a tee-shirt, with no assets, no stock investments, or any other interest except in that of the people.

Follow the straight path. Go to the source.

Kill the conflict of interest. Save the world!

.

–Clint Richardson (realitybloger.wordpress.com)

Sunday, April 3rd, 2011

CAFR School Part 2: Minnesota’s State CAFR Explained


Welcome back to CAFR School!

Part 2 will be a more advanced look into the CAFR. In this case, the state CAFR.

This is an explanation of the State of Minnesota Comprehensive Annual Financial Report (CAFR), for fiscal year ending June 30, 2010. This is the basic set up of most state CAFR’s. Most terms are the same throughout government financial reporting.

The report can be viewed here: http://www.mmb.state.mn.us/doc/acct/2010.pdf

Or, you can download the Minnesota CAFR from the states own website, here: http://www.mmb.state.mn.us/cafr-10

(Most of my comments are in red.) – Please follow along in the Minnesota CAFR. This article will not make much sense and you wont figure out how to read these things for yourself if you don’t follow along!

And now, on with the show…

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(Page 9) – Government-Wide Net Assets as listed (not including many funds and “off-balance sheet” investments and monies, as we will discuss further).

Financial Highlights

The assets of the state exceeded liabilities at June 30, 2010, by $10.9 billion (presented as net assets). Of this amount, a deficit of $2.9 billion was reported as unrestricted net assets.

(Note that this is showing only what the Minnesota government outrageously considers liabilities. But these are inevitably future liabilities. This means they are deducting monies as liabilities for things that have not been spent/paid yet. It is a trick that makes it appear that the government is not wealthy. For perspective… If you have $2,000 in your bank account today, do you write in your checking register (your own personal CAFR) that you have already spent money that you haven’t even written a check for yet, for liabilities and future bills that you might not have to pay for until 6 months to 10 years later? No!!!) 

From the CAFR…

Unrestricted net assets represents the amount available to the state to meet ongoing obligations to citizens and creditors. However, many of the resources have internally imposed designations, such as state statutory language, which limit resource use. These assets are not reported as restricted net assets because the limitations are imposed internally by the state, not externally imposed by sources such as creditors or the constitution. For discussion on the variances from prior year, see the Government-wide Financial Analysis section.

§ The state’s total net assets decreased by $1.2 billion (9.9 percent) during fiscal year 2010. Net assets of governmental activities decreased by $761 million (7.5 percent), while net assets of the business-type activities showed a decrease of $439 million (22.6 percent). For discussion on the variances from prior year, see the Government-wide Financial Analysis section.

(So the State claims that it is in the red here by over 2 billion dollars on its “government-wide {on-balance sheet}” statements. Let’s see how many hidden “off-balance sheet” investment funds we can find…)

Fund Level

§ At the end of the current fiscal year, governmental funds reported a combined ending fund balance of $2.8 billion, a decrease of $774 million compared to the prior year. Included in the ending fund balance is a General Fund unassigned deficit of $1.5 billion. For discussion on the variances from prior year, see the State Funds Financial Analysis section.

(But what about the other funds besides these governmental funds? Let’s see…)

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(Page 7) – Fund and Component Unit Definitions:

The state’s three discretely presented major component units are:

§ Housing Finance Agency

§ Metropolitan Council

§ University of Minnesota

The state’s six nonmajor component units are combined into a single column for reporting in the fund financial statements. These nonmajor component units are:

§ Agricultural and Economic Development Board

§ National Sports Center Foundation

§ Office of Higher Education

§ Public Facilities Authority

§ Rural Finance Authority

§ Workers’ Compensation Assigned Risk Plan

(We will come back to these later…)

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State Fund and Component Unit Financial Statements (definition of a “fund”)

A fund is a grouping of related self-balancing accounts used to maintain control over resources that have been segregated for specific activities or objectives. The state of Minnesota, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Fund financial statements present financial information in a format familiar to experienced users of governmental financial statements and reports. The fund financial statements focus on individual parts of the state, reporting the state’s operations in more detail than in the government-wide statements. Fund financial statements focus on the most significant funds within the state.

(Only experienced financial experts can read these reports… or angry citizens with nothing to lose like me!)

The state’s funds are divided into three categories:

Governmental Funds

Governmental funds record most of the basic services provided by the state and account for essentially the same functions as reported in the governmental activities in the government-wide financial statements. Unlike the government-wide financial statements, the fund financial statements focus on how money flows in and out of the funds during a fiscal year and spendable resources available at the end of the fiscal year.

Governmental funds are accounted for using the modified accrual basis of accounting, which recognizes revenues when they are available and measurable. Expenditures are generally recognized in the accounting period when the fund liability is incurred, if measurable. This approach is known as the flow of current financial resources measurement focus. These statements provide a detailed short-term view of the state’s finances that assists in determining whether there are more or less resources available and whether these financial resources will be adequate to meet the current needs of the state. Governmental funds include the General, special revenue, capital project, Debt Service, and Permanent funds.

The focus of governmental funds is narrower than that of the government-wide financial statements. It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By comparing this financial financing decisions.

The basic financial statements include a reconciliation of governmental funds to governmental activities.

These reconciliations follow the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances.

The state maintained 29 individual governmental funds. However, six of these funds were either moved to the General Fund or combined into another fund and one fund was split and a portion of the activity was moved to the General Fund as a result of implementing Governmental Accounting Standards Board (GASB) Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions.”

(So these funds can used and merged in any way that these government crooks see fit.)

Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General and Federal funds, which are reported as major funds. Information from the remaining funds is combined into a single, aggregated column. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements included in this report.

(So they don’t report a major portion of the funds, investments, and wealth in the financial statements published to the taxpayers.)

The state adopts a biennial budget with annual appropriations for the majority of the activity reported in the General Fund. A budgetary comparison statement has been provided for the General Fund activity with appropriations included in the biennial budget to demonstrate compliance with this budget.

Proprietary Funds

When the state charges customers for the services it provides, whether to outside customers or to other agencies within the state, these services are generally reported in proprietary funds. Proprietary funds (enterprise and internal service) utilize accrual accounting which is the same method used by private sector businesses. Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail.

Enterprise funds, a type of proprietary fund, are used to report activities that provide goods and services to outside (non-government) customers, including the general public. Internal service funds are an accounting device used to accumulate and allocate costs internally for goods and services provided by one program of the state to another. Because the activities reported by internal service funds predominantly benefit governmental functions rather than business-type functions, the internal service funds have been included within governmental activities in the government-wide financial statements.

(Enterprise funds are businesses run by the government, and citizens (the general public) are considered nothing more than outside customers!)

(Also, note that it tells us here that only certain funds, in this case the “internal service funds” are reported to the taxpayers; the general public. Make no mistake, government is a for-profit business and the people are just the customers… or chattel!) 

The state maintains 17 individual proprietary funds. The State Colleges and Universities and Unemployment Insurance funds, both of which are considered major funds, are presented separately in the proprietary funds statement of net assets and in the proprietary funds statement of revenues, expenses, and changes in net assets. Information from the 8 nonmajor enterprise funds and the 7 internal service funds are combined into two separate aggregated columns. Individual fund data for each of these nonmajor proprietary funds is provided in the form of combining statements presented in this report.

Fiduciary Funds

Fiduciary funds are used to report activities when the state acts as a trustee or fiduciary to hold resources for the benefit of parties outside the state. The accrual basis of accounting is used for fiduciary funds and is similar to the accounting used for proprietary funds. The government-wide statements exclude fiduciary fund activities and balances because these assets are restricted in purpose and cannot be used by the state to finance its operations. The state must assure that the assets reported in fiduciary funds are used for their intended purposes.

The state maintains 21 individual fiduciary funds. The state’s fiduciary funds are the pension trust funds, the investment trust funds (which account for the transactions, assets, liabilities, and fund equity of the external investment pools), and the Agency Fund (which accounts for the assets held for distribution by the state as an agent for other governmental units, other organizations, or individuals). Individual fund detail is included in the combining financial statements included in this report.

Component Units

Component units are legally separate organizations for which the state is financially accountable. The government-wide financial statements present information for the component units in a single column on the statement of net assets. Also, some information on the statement of changes in net assets is aggregated for component units. The component units’ statements of net assets and statement of changes in net assets provide detail for each major component unit and aggregate the detail for nonmajor component units. Individual nonmajor component unit detail can be found in the combining financial statements included in this report.

(Remember… there is no real law that states these funds cannot be used for anything at all, and they can be transferred or even closed at any time, and the money transferred to other funds or to who knows where!)

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(Page 66) – Investments

The State Board of Investment (SBI) manages the majority of the state‟s investments. All investments undertaken by SBI are governed by the standards codified in Minnesota Statutes, Chapters 11A and 356A. Minnesota Statutes, Section 11A.24, broadly restricts investments of the primary government to obligations and stocks of United States and Canadian governments, their agencies and registered corporations, other international securities, short-term obligations of specified high quality, restricted participation as a limited partner in venture capital, real estate, or resource equity investments, and restricted participation in registered mutual funds.

Funds not invested by SBI are primarily Minnesota State Colleges and Universities‟ funds…

SBI is authorized to establish, and has established, combined investment funds used by participating public retirement and non-retirement funds. Retirement and non-retirement funds may not be commingled. Each investment fund has its own characteristics, including investment objective and risk characteristics. Within statutory requirements and based on detailed analysis of each fund, SBI has established investment guidelines and benchmarks for all funds under its management. These investment guidelines and benchmarks are tailored to the particular needs of each fund and specify investment objectives, risk tolerance, asset allocation, investment management structure, and specific performance standards.

(Isn’t it reassuring to know that the SBI is acting within the laws that it sets for itself? Somehow that just makes this theft seem like a gift from God, doesn’t it? I mean, really, as long as the federal and state laws say that the government can steel trillions and trillions of dollars from the taxpayers without any real public disclosure and then hide that money in these funds, all seems right with the world…)

(Note: This is sarcasm. God wouldn’t like this very much, me thinks.)

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(Page 66) – Synthetic Guaranteed Investment Contract (SGIC): 

State Board of Investment (SBI) maintains a fully benefit-responsive SGIC for the Supplemental Investment Pool – Fixed Interest Account of the Pension Trust and Investment Trust Funds portfolio. The investment objective of the Fixed Interest Account is to protect investors in defined contribution and deferred compensation plans from loss of their original investment and to provide a competitive interest rate. On June 30, 2010, the SGIC had a portfolio of well diversified high quality investment grade fixed income securities with a fair value of $747,887,000 that is $37,692,000 in excess of the value protected by the wrap contract. The Fixed Income Account also includes a liquid investment pool and a guaranteed investment contract with fair values of $214,955,000 and $326,545,000, respectively.  (Total = $1,289,387,000)

(Note: The author (me) is not sure if this is above and beyond what the state has reported in its Pension Fund Totals, so we won’t include this in our final total of this CAFR wealth. We’ll give it an honorable mention though, for sure! Wouldn’t want to double-count…)

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(Page 80 – 82) – Note 5 – Interfund Transactions 

Primary Government

During normal operations, the state processes routine transactions between funds, including loans, expenditures, and transfers of resources for administrative and program services, debt service, and compliance with legal mandates. In the fund financial statements, these transactions are generally recorded as transfers in/transfers out and interfund receivables/payables. Transfers generally represent legally authorized transfers between funds authorized to receive revenue and funds authorized to make expenditures, and do not represent reimbursement of expenditures.

(So monies/investments are allowed to be moved around between funds. They say again here that the –law- says it’s OK to do this. So the question we should be asking our supposedly representative government is… Why don’t you “authorize” or change the legalities (not laws) so that this investment wealth can be used for the benefit of “We, the People” instead of you greedy bankers, attorneys, and politicians? I think that’s a fair question…)

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(Now we will list these funds out, and show where the real money is invested…)

(Note: All figures listed in this CAFR are “in thousands”, meaning I have added 3 zeros {,000} to all totals.)

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(Page 31)“Major Governmental Funds” descriptions:

–General Fund – the fund accounts for all financial resources except those required to be accounted for in another fund.

–Federal Fund – The fund receives and disburses federal government grants and reimbursements. The fund is administered in accordance with grant agreements between the state and federal agencies.

(page 32) – Total for the General fund as listed on the “GOVERNMENTAL FUNDS BALANCE SHEET” is $3,916,496,000 as of June 30,2010.

.

(Note: Remember the Statement of Net Assets from above? It stated that, “Included in the ending fund balance is a General Fund unassigned deficit of $1.5 billion”. And yet here we see the actual balance in the fund is over $3.9 billion!!!)

(The Statement of Net Assets also claimed that, “At the end of the current fiscal year, governmental funds reported a combining ending fund balance of $2.8 billion, a decrease of $744 million compared to the prior year”. Obviously, this is a lie, as the balance of just the General Fund is again 3.9 billion!!!)

.

(page 32) – Total for the Federal fund as listed on the “GOVERNMENTAL FUNDS BALANCE SHEET” is $1,579,194,000 as of June 30,2010.

.

Note that while “Nonmajor Funds” are listed here too, we will be covering those funds individually in a moment…

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(Page 37) – “Major Proprietary Funds” descriptions:

State Colleges and Universities Fund – The fund accounts for the activities of Minnesota State Colleges and Universities (MnSCU). MnSCU is a system of public state universities and two-year colleges and is the largest system of higher education in the state. While the primary activity of MnSCU is to provide educational services, the fund also includes scholarships, student loans, bookstores, student living activities, research, and long-term debt.

Unemployment Insurance Fund – The fund receives unemployment taxes collected from employers and pays unemployment benefits to eligible individuals.

(Page 39) – Total for the State Colleges and Universities Fund as listed on the “STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS” is $1,723,766,000 as of June 30,2010.

(Page 39) – Total for the Unemployment Insurance Fund as listed on the “STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS” is at a negative – $266,135,000 as of June 30,2010.

.

Note that while “Nonmajor Enterprise Funds” and “Internal Service Funds” are listed here too, we will be covering those funds individually in a moment…

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(Page 47)“Major Component Unit Funds” descriptions:

Housing Finance Agency – The agency provides money for loans and technical assistance for construction and rehabilitation of housing for families of low and moderate incomes.

Metropolitan Council – The council is responsible for coordinating the planning and development of the Twin Cities metropolitan area. The council also operates the metropolitan regional sewage treatment and disposal systems and the public transit system. The Metropolitan Sports Facilities Commission, a component unit of the council, operates the Hubert H. Humphrey Metrodome sports facility. 

University of Minnesota – The multi-campus university provides undergraduate and graduate degrees, advanced research opportunities, and an extension service. The university includes several nonprofit foundations that provide resources which benefit the university.

(Note that these are the funds held by these government for-profit businesses (component units) and are NOT referring to the actual buildings, equipment, or other real assets associated with them. These are stating totals for cash and liquid investments.)

(Page 48) – Total for the Housing Finance Agency Fund as listed on the “STATEMENT OF NET ASSETS” is $1,723,766,000 as of June 30,2010.

(Page 48) – Total for the Metropolitan Council Fund as listed on the “STATEMENT OF NET ASSETS” is $1,872,301,000 as of June 30,2010.

(Page 48) – Total for the University of Minnesota Fund as listed on the “STATEMENT OF NET ASSETS” is $4,785,350,000 as of June 30,2010.

.

Note that while “Nonmajor Component Unit Funds”  are listed here too, we will be covering those funds individually in a moment…

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(Page 125 – 127) – Risk Management Fund – Read this for an explanation of Self-Insurance. This is a fund built to pay for any lawsuits or torts brought against the state or its component units. This is the hoarding and investing of taxpayer dollars. So if you sue the state, you will be receiving taxpayer money or the return on this money from investments in this fund. (Total for this fund presented later as a Nonmajor Enterprise Fund.)

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 (Page 131)Budgetary Basis vs. GAAP explanation:

Actual revenues, transfers-in, expenditures, encumbrances, and transfers-out on the budgetary basis do not equal those on the GAAP basis in the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund. This inequality results primarily from the differences in the recognition of accruals, reimbursements, deferred revenue, intrafund transactions, and loan classifications, and from the budgetary basis of accounting for encumbrances. On the budgetary basis, encumbrances are recognized as expenditures in the year encumbered. The modified accrual basis of accounting recognizes expenditures when the goods or services are received, regardless of the year funds are encumbered. A reconciliation of the fund balances under the two basis of accounting for the General Fund is provided in the following table.

(Translation: Some government money and investments are not reported on the taxpayer budget, nor in the Statement of Net Assets we listed above on page 9. There are two different ways of financial reporting, one for the dumbed down masses who can barely balance their checkbook, and one for the elite power brokers in government and the corporate world.)

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(Page 142) – Actuarial Measures of Pension Funding Progress

The state of Minnesota is the employer for five defined benefit single employer plans that are administered by Minnesota State Retirement System (MSRS). MSRS prepares and publishes its own stand-alone comprehensive annual financial report (see Note 1 – Summary of Significant Accounting and Reporting Policies for the address).

(Note: When we look at the separate Pension Fund CAFR we see that the “employer” defined here as the State of Minnesota contributes/matches employee contributions to the pension fund system. So the state puts billions of taxpayer money (the state is supported by taxpayer money) into the pension fund for investment with no benefit for the taxpayers.)

The Elective State Officers Fund (ESOF) is excluded from the single employer plan disclosures since this plan is closed to new entrants and any former active employees have retired, terminated, or elected coverage under another plan.

Required supplementary information of funding progress is provided for the following plans:

§ Correctional Employees Retirement Fund (CERF)

§ Judicial Retirement Fund (JRF)

§ Legislative Retirement Fund LRF)

§ State Patrol Retirement Fund (SPRF)

 

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(Page 147 – 151) – Combining and Individual Fund Statements – Nonmajor Funds

Nonmajor Special Revenue, Debt Service, Permanent and Capital Projects Funds

(Page 151 – Chart) – COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

(Note that these are reported “in thousands”, meaning we must add three zero’s {,ooo} to the end of each figure. These are the supposed totals for all the funds included in these categories.)

SPECIAL REVENUE       

-> $1,975,916,000

DEBT SERVICE

-> $764,447,000

PERMANENT SCHOOL

-> $694,452,000

CAPITAL PROJECTS

-> $205,002,000

TOTAL

-> $3,639,817,000

.

(Note that {in thousands} the “Net Change in Fund Balances” column (fourth row from bottom of graph) shows profits/increases of  – $122,913,000 – $22,378,000 – $64,229,000 – and $108,739,000 – with the total profit for these funds listed at $318,259,000. This is how much money was added to these funds in fiscal year 2010 over fiscal year 2009)

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(Page 152 – 153)gives a description of each “Special Revenue Fund”

Note the difference between the totals of the chart on (page 154 – 157)NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET”…

and the chart on (page 158 – 161)COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES”

On the “COMBINING BALANCE SHEET” we can see that total fund balances are actually in the amount of $2,719,861,000… a difference of over $700,000,000 as compared to what is reported on the “COMBINING STATEMENT” chart.

(Always go with the higher figure, as again they are attaching future liabilities to the money they have today.)

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(Page 169)gives a description of each “Capital Project Fund”

“COMBINING BALANCE SHEET” totals – $253,749,000

“COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES” totals – $205,002,000

So we can add almost $50 million to the total listed, taking the highest figure without “future obligations”. 

(This is the actual holdings at the time of this report.)

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(Page 169)gives a description of each “Nonmajor Enterprise Fund”

(Note that this is a new set of funds, not listed above, and including…)

Behavioral Services Fund

Enterprise Activities Fund

Giants Ridge Fund

Minnesota Correctional Industries Fund

911 Services Fund

Public Employees Insurance Fund

State Lottery Fund

State Operated Community Services Fund

 .

(Page 174 – 175) The “COMBINING STATEMENT OF NET ASSETS” {in thousands} chart shows $45,315,000 in these funds under the Totals column. So we can add that to our hidden wealth totals…

(Page 181)gives a description of each Nonmajor Internal Service Fund, which includes the “Risk Management Fund” that we covered above as a self-insurance fund.

(Page 182 – 183) The “COMBINING STATEMENT OF NET ASSETS” {in thousands} chart shows $320,436,000 in total fund balances, which in this case is the same as the COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS chart.

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PENSION TRUST FUNDS!!! – (Remember, Pension Funds are where the government diverts billions (trillions nationally) of taxpayer money, not just employee money.)

(Page 188 – 189) Minnesota State Retirement System includes… 

–Correctional Employees Retirement Fund

–Elective State Officers Fund

–Hennepin County Supplemental Retirement Fund

–Judicial Retirement Fund

–Legislative Retirement Fund

–Postretirement Health Care Benefits Fund

–State Deferred Compensation Fund

–State Employees Retirement Fund

–State Patrol Retirement Fund 

–Unclassified Employees Retirement Fund 

 .

The Public Employees Retirement Association includes…

–Defined Contribution Fund 

–Minneapolis Employees Retirement Fund 

–Police and Fire Fund 

–Public Employees Correctional Fund

–Public Employees Retirement Fund

–Volunteer Firefighter Retirement Fund

 .

The Teachers Retirement Association includes…

–Teachers Retirement Fund

.

The State Colleges and Universities includes…

–Colleges and Universities Retirement Fund

 .

(Again, these funds where not included above.)

(Page 190 – 193) COMBINING STATEMENT OF NET ASSETS shows totals for these pension funds listed at $45,746,335,000.

(Page 197) This represents an increase (profit) in the fund balances over 2009 of at least $4,336,688,000.

(Yes, yes… these are the retirement funds and they are designated for the employees. We can’t touch those, right? Again, this fund represents billions and billions of dollars of taxpayer money, and the investment return on these fund’s collective investments. This total shown represents the money and investments in the fund AFTER all liabilities to the employees are paid, and after future liabilities are considered. So you tell me whose money this really is… and before you answer that, consider the fact that at any time the President of the United States can create an Executive Order that states that all collective fund balances in the government pension funds are now the property of the Federal Government. If we don’t reclaim this through strict regulation and anti-federal shields in the name of the people and soon, it will be gone with the stroke of a pen. And all of these state employees who are so defensive of their pension funds now will have nothing left to defend. It will all be gone!)

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(Page 199)INVESTMENT TRUST FUNDS”

Supplemental Retirement Fund – The fund provides an investment vehicle for the assets of various public retirement plans and funds.

Investment Trust Fund – The fund provides an investment vehicle for external funds authorized to be invested by the state.

(Page 201) “STATEMENT OF CHANGES IN PLAN NET ASSETS” shows totals for these funds at $482,714,000. 

This is an increase of $30,835,000 over fiscal year 2009, as listed under “Net Increase”.

 ————————————————————–

(Page 203)Agency Funds” description

Agency Fund – This fund accounts for resources held in a custodial capacity for other governmental units, private organizations, or individuals.

Totals listed at $124,220,000

————————————————————–

(Page 205)“Nonmajor Component Unit Funds” descriptions…

(Note that this is not the value of the buildings, equipment, and other hard assets involved with these component units {state-run businesses}, these are the funds that each unit has in investment holdings in (liquid) assets and cash.)

Agricultural and Economic Development Board 

National Sports Center Foundation 

Office of Higher Education

Public Facilities Authority

Rural Finance Authority

Workers’ Compensation Assigned Risk Plan

.

(Page 206 – 207) The “COMBINING STATEMENT OF NET ASSETS” states that the totals for these funds are at $1,488,337,000

(Page 209) “Change in Net Assets” show and increase to these funds of $97,359,000 over fiscal year 2009.

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Last but not least, we have…

(Page 83) – Note 6 – Capital Assets:

Primary Government

The following table shows capital asset activity for the primary government:

(Page 83) – See Chart here entitled“Primary Government Capital Asset Activity Government-wide Governmental Activities”

This is the value stated after depriciation for the following “capital assets”, which represents the physical equity in the following:

Land – Buildings, Structures, Improvements – Construction in Progress – Development in Progress – Infrastructure – Easements – Art and Historical Treasures

Total value listed here for these Capital Assets are $11,982,234,000

(Note: that these are not necessarily salable or liquidate-able assets, and so we will not include them in our total below, which will only represent fund, investment, and cash on hand as of June 30, 2010.)

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END OF REPORT

————————————————————–

So let’s total up what we have found in the Minnesota CAFR, and compare that total to what the state is reporting to its taxpaying citizens on the taxpayer budget report…

General fund                                                    $3,916,496,000 

Federal fund                                                     $1,579,194,000 

State Colleges and Universities Fund     $1,723,766,000

Unemployment Insurance Fund             (- $266,135,000)

Housing Finance Agency Fund                 $1,723,766,000 

Metropolitan Council Fund                       $1,872,301,000 

University of Minnesota Fund                 $4,785,350,000

Special Revenue Funds                               $2,719,861,000

Capital Projects Funds                                   $253,749,000

Enterprise Funds                                             $320,436,000

Pension Trust Funds                                 $45,746,335,000

Investment Trust Funds                                 $482,714,000

Agency Funds                                                     $124,220,000

Nonmajor Component Unit Funds        $1,488,337,000

———————————————————————————

TOTAL FUND BALANCES…                   $66,470,390,000

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.

Again, this is a look at the fund balances for the state, and should not be construed as a total look at what this CAFR has to offer in the form of hidden wealth and investments for Minnesota. It would take a guru of an accountant to figure all of this out…

But I think that we have proven without a doubt that the Minnesota state government is guilty of misrepresentation of its wealth to the taxpaying public when it releases its tax-payer budget every year, and when it states in its “government-wide statement of Net Assets” that it only has $10,865,096,000 in “Total Net Assets” including Capital Assets (chart on page 10).

This financial statement (CAFR) structure will look very similar on most state CAFR’s. The order may different, but the terms and fund group types will be virtually identical. You may have to look for this information, but a bit of logic and reason should get you through. The most difficult thing to succeed at is to push aside all of the redundant and pointless information and graphs in lieu of the real hidden gold.

For more information on the corporate government CAFR system, please visit these sites:

http://thecorporationnation.com/

http://cafr1.com/

http://cafrman.com/

http://taxretirement.com/

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Happy treasure hunting to you and yours…

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–Clint Richardson (realitybloger.wordpress.com)

Wednesday, March 9th, 2011

CAFR School – A Lesson In Financial Accounting


Welcome to CAFR school!

The object of this essay is to teach you to be an informed citizen and taxpayer. We will examine just how to go through your local city, municipal, county, school district, and state government’s Comprehensive Annual Financial Report (CAFR) and come out the other side with millions if not billions of wealth and investments hidden by your government.

I was inspired to write this due to the several requests for myself to help others research and pinpoint their own government’s corruption and hidden wealth.

So here, now, I present to you the CAFR for the city of Aurora, Colorado, a municipal corporation…

First, understand that this report is basically the standard set-up and protocol for the structure of the Annual Reporting system. Therefore, you may apply this same examination to most CAFR’s across the nation and get the same results.

Second, understand that this is just the city (municipal corporation), and does not reflect the county, state, or all of the other incorporated municipal cities and unincorporated towns. it would be necessary to add all of these up to get a total look at the wealth of any county or state.

Also, the school districts and other districts (water, sewer, etc.) will each have a separate CAFR, as they are also not part of the city government (as listed on the CAFR).

That said, I am going to refer to pages on the CAFR report (no particular order, sorry). Remember, we are looking for wealth that could be used for more important things as well as wealth that is not being used for anything at all except capital gains.

You should follow along with me using the Aurora City Comprehensive Annual Financial Report as your reference, which can be downloaded here: https://www.auroragov.org/AuroraGov/Departments/Finance/Annual_Financial_Report/index.htm?ssSourceNodeId=934&ssSourceSiteId=621

Note posted 09/28/2012: Apparently, the City of Aurora doesn’t like the fact that so many people have been downloading their 2009 CAFR, and so it consolidated past years CAFR’s into one download, which after some research I found here: https://www.auroragov.org/CityHall/CityFinancesAndBudget/FinancialManagement/index.htm

And if you like, you can follow along with your local or county CAFR as well, making the adjustments for size and page numbers as you go. Your CAFR should be virtually identical in its structure to this one. If it is not, the key points we are about to cover will be in there somewhere.

(CLUE: Use the “search” function in your (.pdf) or document reader.)

To search for your own local, county, school district, or state CAFR, there are two options…

1) Type your city/county/state/district into your search engine, followed by the words “Comprehensive Annual Financial Report”, followed by the year. (Note that some governments take their sweet time getting these reports out, and so only the previous year may be available for download.) Also, be sure to spell the CAFR phrase out in full.

EXAMPLE:    (Aurora City Comprehensive Annual Financial Report 2009)

2) Go to your city/county/state/district (.gov) website and look for the word “Publications” or the phrase “Financial Statements” or “Annual Reports“. If these aren’t easily found (which not surprisingly they aren’t), most .gov sights have a search option. Be sure and get the CAFR if possible, as the “citizens guide” and the other budget reports are not the full report. Sometimes they are called “Annual Reports” or “Financial Statements” as well, but the majority are called the “CAFR”.

Ok, on to the Aurora City CAFR…


Page 148-150“Golf Fund”

It is very common to hold wealth in these types of funds. Golf courses are owned by local and sometimes other state governments. These are often referred to as business activities in the CAFR statement of liabilities and assets, but are called “Enterprise Operations” in the government circles.

Page 148 – (INCREASE (DECREASE)IN NET ASSETS) – Note that the CAFR reports a loss in assets for this golf fund of $219,398 for 2009. But remember that the CAFR is an accumulative look at assets, and so the fund has more money in it than it did in 2006. In 2007, it earned $389,119.

Page 148 – (NON-OPERATING EXPENSES) – INVESTMENT INCOME, MISCELLANEOUS REVENUE, ETC. – the money in this fund isn’t just sitting there, it is being invested. Thus, “Investment Income” is listed. “Non-Operating Expenses” refer to items happening outside of the care and budgetary obligations of the golf courses. This investment game is why the fund is showing a negative year of $219,398. These types of (+/-) listing of revenue and assets are very deceiving, as we cannot see in this CAFR how the money is invested, what is transferred out of this fund and into other funds, or the day to day investment activity.

Make no mistake, golf courses are businesses that are making profits for the government and for (municipal) corporations.


Net Assets in the “Golf Fund” as of December 31, 2009 $24,927,256


Page 144 – 147“Waste Water Fund”

Once again, the management of water and sewage type of “business activities” are not only a profitable business (and a government monopoly for that matter, and often sold to private corporations to manage under government control), but also have funds created to build a power base of investment wealth.

Page 144Statement of Net Assets for Waste Water Fund – NET ASSETS – DECEMBER 2009 – show that this fund alone has $430,862,335 in wealth, that could be used for other taxpayer budgetary obligations. But as we can see, the INVESTMENT INCOME for this fund is quite nice, at $4,363,954 for fiscal year 2009. About 15 million for the last three years.

This fund grew by $20.89 million (INCREASE IN NET ASSETS) in 2009, even after (TRANSFERS OUT) of over $10 million.

Also, this fund has grown steadily for the last 5 years, from $305 million in 2005, to over $430 million in 2009. Again, the CAFR is the cumulative look at government wealth and investment income. The taxpayer budget released to the people is not.


Net Assets in the “Waste Water Fund” as of December 31, 2009 $430,862,335


Page 137 – 143“Water Fund”

This is the drinking water fund. Similarly with the other funds, this is money that could be used for other purposes. In this case, we start to see the vast wealth the city is hiding within these funds…

Page 137Changes in Net Assets for Water Fund – NET ASSETS – DECEMBER 2009 – show total monies for this fund at $944,082,042 – That’s almost $1 billion dollars for just this fund alone!!!

Again, this fund is investing the money, and shows investment income (return on investments) of over $11 million.

Net assets increased over 2008 totals by $62,555,533 (INCREASE IN NET ASSETS = Profit).

And since December 31, 2005, this fund has grown by over $322 million dollars!!!

Page 140 – Note that the city lists here its top water consumers (TEN LARGEST TREATED WATER CUSTOMERS). If you think about it carefully, you will see how smooth of a business these municipal corporations have carved out for themselves. The “city” is the city’s largest water consumer. But it doesn’t pay for its own water consumption… the taxpayers do! It bills itself, and deducts the bill from taxpayer funds!!! Brilliant.

Come on, you gotta give these guys points for creativity, right?


Net Assets in the “Water Fund” as of December 31, 2009 $944,082,042


Page 135 – 136 – Exhibit C3 (General, TABOR, and Policy Reserve Funds)

Take a quick look at this graph. It gives you an idea of how much the city receives compared to what it has written as the budgetary requirement for what these particular funds service. This shows net assets for the General Fund, the TABOR Reserve Fund, and Policy Reserve Funds

Page 136 FUNDS AVAILABLE DECEMBER 31 (2009) – Look at how the “budget” section is lower than the “actual” section for each year by millions of dollars. In other words, they had money left over, which of course they either reinvest or use elsewhere, or transfer out of the fund (intra-fund transfers notated as due from other funds).

Page 136FUND BALANCE (for these three funds) – At the end of fiscal year 2009 the fund balance was $52,245,924. Again, money available to be spent on taxpayers.

Page 135EXCESS OF REVENUES OVER EXPENDITURES – This states that monies collected (revenues) from the taxpayers in the form of tax, fees, fines, etc… were $24,319,789 more than what was spent. In other words, taxpayers spent way to much money for the services that their government provided, and that money is not refunded back to the taxpayers. Instead, it is placed into these funds we are going over.


Net Assets in the “General Fund”, the “TABOR Reserve Fund”, and the “Policy Reserve Fund” as of December 31, 2009 $52,245,924


Page 123DEMOGRAPHICS AND ECONOMICS

Just throwing this in as a comparative essay, comparing government wealth to the wealth and income of the people of the city.

2009 population of city – 314,326

2009 combined income of city’s population – $4,331,333,727

2009 unemployment rate – 7.5%

We will come back to these figures at the end of this essay…


Page 96“Enterprise Funds”

Just a note that the golf and water funds are called “Enterprise Funds”.

Legal Dictionary
Main Entry: en·ter·prise
Pronunciation: 'en-t&r-"prIz
Function: noun : an economic organization or activity; especially : a business organization
5. a company organized for commercial purposes; business firm.
World English Dictionary:
enterprise (ˈɛntəˌpraɪz) [Click for IPA pronunciation guide]
n
1. a project or undertaking, esp one that requires boldness or effort
2. participation in such projects
3. readiness to embark on new ventures; boldness and energy
4. a. initiative in business
b. ( as modifier ): the enterprise culture
5. a business unit; a company or firm

http://dictionary.reference.com/browse/enterprise


Page 74 – 76PENSION TRUST FUNDS

The city actually has two pension funds.

General Employees Retirement Fund (GERP) – is listed at $280,221,050 in investment assets.

Elected Official’s and Executive Personal Defined Benifit Plan Fund is listed at $3,675,975 in investment assets.

Total monies stashed away in city pension funds – $283,897,025.

Remember, this is extra money in the fund, after all benefits were paid for 2009. This is the investment wealth. Employees have no equity in this money, as it is a private corporate government fund. If Aurora declares bankruptcy or a host of other ploys, this money will be liquidated, and none of that will be returned to the employees or the taxpayers who have been “contributing” it over the years.

A contribution is the act of giving your money away.

Employee contributions totaled – $4,795,873

City of Aurora (taxpayer money to “match”) contributions – $4,790,713

Pension funds are the scam of all scams, and the government employees have been duped into defending them with their souls, not comprehending that it isn’t even their money anymore, once they contribute it to the fund!!!

Taxpayer money is being redirected into these funds at an alarming rate. Some pension funds are called “non-contributory” funds, which means that only the government (taxpayer money) is funding the pension. Employees do not contribute to these funds.


Net Assets in the “Pension Trust Funds” as of December 31, 2009 $283,897,025



Page 71 -73 Internal Service Funds

More funds…

Page 72Statement of changes in net assets – We see the total for the following (3) Internal Service Funds listed as:

Fleet Management Fund
Print Shop Fund
Risk Management Fund

Totals for these funds are stated as $8,112,000

Again, this could be used for other things. The shell game continues…


Net Assets in the “Internal Service Funds” as of December 31, 2009 $8,112,000


Page 60 – 70Non-Major Governmental Funds

These are funds which are used to store revenue before it is spent, and to house that extra revenue that is not spent, and to transfer to other funds and liabilities (usually profitable ones).

They include Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. Read the descriptions of each to get an idea of what they are used for starting on page 60-61.

(Fund balances can be found listed on page 66 – 70, in the chart called COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES” for Nonmajor Governmental Funds.)


SPECIAL REVENUE FUNDS – account for revenues from specific sources that are required legally or by management decision to be used for particular activities.

Gifts and Grants Fund

-> $4,985,909

Development Review Fund

-> $2,082,719

Abatement Fund

-> $1,244,185

Community Development Fund

-> $2,669,399

Enhanced E-911 Fund

-> $5 ,414,600

Conservation Trust Fund

-> $8,585,532

Emergency Contingency Fund

-> $241,172

Parks Development Fund

-> $4,202,949

Arapahoe County Open Space Fund

-> $8,841,223

Recreation Services Fund

-> $171,374

Cultural Services Fund

-> $971,000

Designated Revenues Fund

-> $19,983,620

Policy Reserve Fund

-> $21,332,318

TABOR Reserve Fund

-> $8,778,851

Cherry Creek Fence General Improvement District (GID)

-> $18,095

Aurora Urban Renewal Authority (AURA) General Fund –

-> $71,673


DEBT SERVICE FUNDS – account for the accumulation of resources to pay principal, interest and agency fees on governmental long-term debt.

City Debt Service Fund

-> $1,628,854

Special Improvement District (SID) Debt Service Fund

-> $2 96,371

Surplus and Deficiency Fund

-> $596,081

Aurora Urban Renewal Authority (AURA) Debt Service Fund

-> $1,357,231

Aurora Capital Leasing Corporation (ACLC) Debt Service Fund

-> $17,434,872


CAPITAL PROJECTS FUNDS – Capital Projects Funds are generally used on construction projects, restoration of infrastructure and buildings, etc… But it is important to understand that these funds are being invested. They can sit around for years before the actual project they are “funding” even gets started. Again, they are places to store revenue (taxpayer collections) while making a profit by investing that money. Evil.

City Capital Projects Fund

-> $23,525,670

Bond Proceeds Fund

-> $0.00

Building Repair Fund

-> $1,562,600

Aurora Capital Leasing Corporation (ACLC) Capital Projects Fund

-> $0.00


Page 70 – Fund Balances December 31, 2009 – After listing all of these funds out in detail under the NONMAJOR GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2009, and listed as “Total Nonmajor Governmental”, we see that some are in the positive and some in the negative. But we can see that these funds added together total $135,996,298.


Page 70 – NET CHANGE IN FUND BALANCES – Here we can see that in total, as a collective fund balance, these funds grew by $9,756,515 in 2009, which was considered a bad year for investments and government budgets.


***Note: It is likely that much of these “non-major governmental funds” are actually designated for specific budgetary items, and the government will tell you this to keep you from claiming that they are hoarding the money in these funds. But in reality, there is no law or contract written for most of these funds that require that money to be used for the purposes they claim. Thus, they can close the fund at any time, not use it for its intended purpose, and/or transfer that money to other funds for their own investment fun! This will be a big debate by the government officials that you approach about using these funds for the benefit of the taxpayers. Do not let them get away with this. Ask them for the specific law or contract that proves their claim. Threaten them with treason and lying under oath, and be sure and film your encounter so that you have a record of their lies. Make them prove everything they say by backing it up with code or law. Good times…

You can read about restricted net assets on page 36.


Page 59General Fund Balance – This just states that the general fund has an extra $22,143,755, which was not used in the taxpayer’s interest to meet budgetary requirements for this year. This is a surplus in tax dollars collected.


Page 52RISK MANAGEMENT/CONTINGENT LIABILITIES – Just an explanation of how the money placed into funds is invested with the intent to pay for future obligations, in this case lawsuits. Read this entire paragraph a couple of times for your enjoyment and comprehension…

Also, know that many activities funded by government, including pensions, are actually paid for by the returns from investments by these funds! They even have a fund to pay for “self-insurance” of up to $1,000,000. This means that the city covers their employees with the investment return on some fund somewhere that makes at least a $1,000,000 in profit. And I suppose they transfer money from other funds when there is a bad year. I don’t believe Aurora is one of those cities, because it has a law which limits lawsuit amounts to $150,000 per person and $600,000 per incident. So private insurance from a carrier is better for the city, according to its managers. But that means that the people of this municipality are out of luck if their claim/lawsuit against the “city” is for more than this law allows for. Tyranny at it’s finest, with state laws that prevent a citizen from collecting proper damages from the private government corporation that caused their loss.

Simply stated… This and most other cities, counties, and states have funds for which they stash away and invest taxpayer money called “Risk Management Funds”. This is the money that is used to pay for lawsuits and other damages that are caused to the citizens (taxpayers) within that particular corporate government.

So the taxpayers are suing themselves when they sue the city, and can only acquire the money that is hiding in this fund for the protection of the city.

Lawsuits are paid for by the investment return on this fund! Brilliant!!!


Page 47PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS

Here is the list of actual pension funds offered by the municipality (city). They are bulked into the funds discussed earlier.

The city of Aurora provides the following plans:

-General Employees’ Retirement Plan (GERP)
-Elected Officials’ and Executive Personnel Defined Benefit Plan (EOEP)
-Fire Pension Plan (Old Hire-Fire)
-Police Pension Plan (Old Hire-Police)
-Other Postemployment Benefits (OPEB)
-Fire Department Money Purchase Pension Plan (New Hire-Fire)
-Police Department Money Purchase Pension Plan (New Hire-Police)
-Executive Retirement Plan – Money Purchase Pension Plan (ERP)

Imagine, this is happening all over the country, in every state, county, municipality, district, etc… Each one being funded with taxpayer dollars at least equal to employee dollars, and sometimes up to 7000% more than what the employees are putting in themselves! And some are solely funded by taxpayer money!!!

Walter Burien has estimated that Pension Funds across the country account for $26 trillion dollars.

And none of that belongs to the people or to the employees of the government! A simple Presidential Directive, Executive Order, or the false-flag bankruptcy of a state government, and these funds are gone forever…


Page 37Restricted for Arbitrage – Very Important!!!!

Federal tax law provides that, with the exception of certain “temporary periods”, governments may not invest the proceeds of tax-exempt debt in a higher yielding taxable security. Arbitrage occurs if a government earns more than the yield allowed by law. Excess arbitrage earnings must be rebated to the Federal government. All outstanding bonds and COPs are reviewed annually for potential arbitrage rebate liability and corresponding reserves are established as necessary.

Arbitrage amounts anticipated to be paid with funds held in the City Debt Service Fund – $33,569.

This simply means that when the state, county, city, pension fund, and districts invest their money into certain investments, and then make what you might call an accidental or illegal profit above and beyond what is expected due to a glitch in the market system, that money must be given to the Federal government! This is cheating by the way, taking advantage of a mistake to make a profit – for instance buying and then immediately selling a stock or a currency for a profit that is an error, and will eventually just hurt the rest of the market, which must make up for that mistake somehow. Hard to explain, but the point is that governments across the country all do this, collectively making a fortune for the Federal Government, who does not complain about it much… instead forcing by law that this arbitrage profit be handed over to them! Crime of the century if you ask me…

This is an called an arbitrage profit.

Now imagine every government in the country, more than 185,000, acquiring wealth of this nature and sending it to the Fed…

Here is a good basic definition of arbitrage: http://economics.about.com/cs/finance/a/arbitrage.htm


Page 29 – 30CASH AND INVESTMENTS

Just read this section, as it is just telling us that the city has the “right” by state law (CODE) to invest, and it lists well over $1 billion in investments, much of which we have already covered.

Of course, all investments are not covered. The city makes loans and writes bonds for projects both within and outside of the city. This is listed as a liability, but will of course be an asset when the loan or bond is paid off.

Often the city will put cash in the bank, float a bond off of that cash, invest the money that is still in the bank being used as collateral for the bond, and then charge taxpayers for the debt service of the bond, while making investment profit on the cash that is still in the bank that the bond was backed by.

That’s the shell game…


Page 19 COMPONENT UNITS, Statement of net assets

The city is a business…

These are the side businesses or “joint-ventures” that the city is involved in.


Add an extra $76,611,082 in assets, over $33,000,000 of which is cash and liquid investments (stocks, etc…).


Page MD&A1MANAGEMENT DISCUSSION AND ANALYSIS…

“FINANCIAL HIGHLIGHTS”

And finally, last and actually least, we have the “Management’s Discussion and Analysis”.

This is a very basic statement, which does not include the majority of the wealth that we have uncovered in this report. Here is the Financial Highlights section on page MD&A1(Managers Discussion & Analysis). This is the CAFR for dummies, and is very deceiving because it includes buildings, vehicles, etc… While these are assets, they are not necessarily able to be “liquidated” like the stocks and other investments in the funds. It does include some of the assets we have talked about, but definitely not all by a long shot, since some funds are not required to be reported in this section, like “non-governmental funds”.

But even so, we can see that the city of Aurora is a very wealthy city. The CAFR States…

“The city’s assets exceeded liabilities at the end of 2009 by $4.3 billion (net assets). Of this amount, $362.4 million, or 8.4% was UNRESTRICTED and may be used to meet the city’s ongoing obligations.”

***Note: This is of course seriously and criminally misleading… as we have uncovered over $900 million in just the “Water Fund”, remember?

“Citywide net assets increased $89.4 million in 2009.”

This is why you must not stop at this section of the report, which of course is always the first section of the CAFR. It is the first false signpost you must see past to get an accurate accounting of your governments wealth and investment totals as reflected in the fund balances shown later in the report.

At best, this first section can be used to see capital assets (land, buildings, vehicles, etc…) that are owned by the city, and to see the taxes collected and spent. This is part of what is reported on the “Taxpayer Budget” every year to the people, which invariably always shows a “deficit”.

Obviously, this just isn’t the case. The CAFR never lies…

Well, sometimes!


So let’s add up just what we have uncovered here in these funds and investments:

Golf Fund =                                     $24,927,256

Waste Water Fund =                $430,862,335

Water Fund =                             $944,082,042

General, TABOR Reserve,
and Policy Reserve Funds =     $52,245,924

Pension Trust Funds =            $283,897,025

Internal Service Funds =             $8,112,000

Non-Governmental Funds =  $135,996,298 (This includes the TABOR and Policy Reserve Funds, so – $8,778,851 and $21,332,318 totaling $30,111,169.)
+                                                  So… — $30,111,169   
—————————————————————
TOTAL FUND BALANCES = $1,850,011,711


So, total fund balances which can be used or liquidated to be used for the taxpayer’s benefit = $1.85 billion


In retrospect, the population of this town as stated on the CAFR above is 314,326 people.

$1.85 billion equates to the government holding about $5,885 in cash for each person in the “city”, not including the other assets included in the $4.3 billion stated in the total assets statement (buildings, land, vehicles, etc…).

But these folks are also being taxed by the county, the school district, and the state government. So there is a whole other can of worms…

Also, the CAFR is a cumulative accounting of government wealth, not just one year. So as a comparison, just these fund balances (not including capital assets as listed in the “Financial Analysis”) also represent about 40% of the total income earned in 2009 by the entire population of the city!


——————————End Of Report——————————-


Now, I am no financial expert, so there is much more to these reports than I can tell you here – secrets way too deep for my newly trained eye. And if you go far enough back, you will find “discrepancies” and wonder just what happened to all that money! There are certainly other wealth bases and investments that are eluding me as well. But this is a classic example of most municipalities and counties across the nation.

And remember this is just the city, not the county or districts within, which each have their own separate funds, investments, and report on a separate CAFR. And the state has it’s own government and CAFR as well, for which you pay your taxes to.

I hope that this helps you in your efforts to understand and read the legalese that is the Comprehensive Annual Financial Report. May this be your guide.

And remember…

None are more hopelessly enslaved than those who falsely believe they are free.” –Johann Wolfgang von Goethe

Keep up the good fight!

.

For more information on CAFR’s, please go to these websites:

TheCorporationNation.com

—  CAFR1.com

CafrMan.com (R.I.P. Our hero, Gerald R. Klatt)

.

.

-Clint Richardson (realitybloger.wordpress.com)

Thursday, March 3rd, 2011

Wisconsin’s Real Financial Situation Explained


The following is a list of totals reported in the Wisconsin State Comprehensive Annual Financial Report (CAFR), fiscal year ending June 30, 2010.

The individual funds and investments that make up these totals are listed in detail below these fund “totals”.

All of this is sourced from the state’s 2010 CAFR, which can be downloaded at the state governments website, here: http://www.doa.state.wi.us/subcategory.asp?linksubcatid=374&locid=3

It may also be viewed online here: http://www.docstoc.com/docs/23131666/Wisconsin-Comprehensive-Annual-Financial-Report

Page numbers are listed, so you can follow along in the CAFR for verification, and my comments are in red.

And now, the answer to the question… Is the State of Wisconsin bankrupt?

First, let’s have a look at what Wisconsin has in its investment funds, which is not being reported to the taxpayers of the state or of America…

(See below for explanation)

————————————————————————————————————–

TOTAL PRIMARY GOVERNMENT “VARIOUS FUNDS”

-> $4,403,000,000

TOTAL UNIVERSITY OF WISCONSIN SYSTEM (UW) FUND

-> $365,800,000

TOTAL WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY FUND

-> $1,023,000,000

TOTAL UNIVERSITY OF WISCONSIN AND CLINICCS AUTHORITY FUND

-> $127,400,000

TOTAL STATE FAIR PARK EXPOSITION CENTER INC FUND

-> $200,000

TOTAL WISCONSIN HEALTH CARE LIABILITY INSURANCE PLAN (WHCLIP) FUND

-> $72,000,000

TOTAL UNIVERSITY OF WISCONSIN FOUNDATION FUND

-> $2,006,000,000

TOTAL STATE INVESTMENT FUND (SIF)

-> $6,603,000,000

TOTAL IN THE RISK MANAGEMENT FUND

-> $94,847,000

TOTAL NONMAJOR GOVERNMENTAL FUNDS

-> $664,459,000

TOTAL NONMAJOR ENTERPRISE FUNDS listed as “All Nonmajor Funds”

-> $1,446,072,000

TOTAL INTERNAL SERVICE FUNDS listed as “totals”

-> $350,107,000

TOTAL PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS listed as “Totals”

-> $66,937,157,000

TOTAL INVESTMENT TRUST FUNDS listed as “Totals”

–> $2,606,398,000

TOTAL PRIVATE-PURPOSE TRUST FUNDS listed as “Totals”

–> $2,265,681,000

TOTAL AGENCY FUNDS listed as “Totals”

-> $334,837,000
——————————

TOTAL FUND INVESTMENTS (From above list)

-> $89,299,958,000

————————————————————————————————————–

(LISTED IN TABLE 3 CHANGES IN NET ASSETS)

TOTAL NET ASSETS

-> $11,693,400,000

TOTAL CAPITAL ASSETS (WITHOUT DEDUCTIONS FOR LONG-TERM LIABILITIES)

-> $22,487,900,000
——————————

TOTAL NET ASSETS

-> $34,181,300,000

————————————————————————————————————–

TOTAL ASSETS (CAPITAL AND INVESTMENTS) FOUND IN 2010 STATE CAFR

-> $123,481,258,000

————————————————————————————————————–

Note: This should not be construed to be a representation of all hidden wealth and investments within the state government of Wisconsin, but rather the ones that jump off the page to the semi-trained eye. Revenue bonds and other investment assets and future profits are still beyond my scope of translation.

But to put this state government wealth into perspective… The population of the state of Wisconsin as of 2010 was 5,686,986 people. The above figure of over $123 Billion represents investments and capital net assets, which total $21,712 per person in the state of Wisconsin. Remember… many of those people are kids with no income!

This summary compilation of the wealth of the state of Wisconsin is for one purpose: to show exactly what the Wisconsin state government is holding in cash and liquid investments, and not hiding this wealth by stating what their “future obligations” are. So the above figure is what the state had in actual assets, cash, and investments as of June 30, 2010, after liabilities were already paid, and not what it will spend later (which is just their way to hide this current wealth as reported by attaching its value to future financial obligations). Compare this with your exact personal bank account balance today, not what it will be next week or in 5 years (or once future bills are paid with future checks). This is the balance today, and it includes your savings and investments at their value today, not in the future.

While the State government will tell us that these funds are designated or “restricted” to the funds that house them, there is no law that says this is the case, and they are transferred between each fund (intra-fund) all of the time. Do not let these crooks tell you that these funds and investments are restricted without proof. SHOW US THE LAW!

This is rightly taxpayer money, and it could and should be used for taxpayer purposes. Instead, it is being withheld from the public (taxpayers), invested in these funds, and used for “business activities” within this for-profit corporation known as the “State of Wisconsin”. There is no reason that any government (meaning the people; the public) should be in debt, at all, with this kind of hidden wealth.

The state of Wisconsin is obviously far from bankrupt!

————————————————————————————————————–

***Note: This is just the state corporation (government), and does not include the counties, municipal corporations (cities), towns, school districts, and other corporate governments within the state of Wisconsin. Each of these “governments” has their own investments, funds, and assets, which are listed separately on each of their CAFR’s. The assets of all of these individual government corporations within the state do not appear on the state CAFR.

There are 72 counties in the State of Wisconsin.

There are 190 cities (municipal corporations) in the State of Wisconsin (as of 2006).

There are 1,260 towns in the State of Wisconsin (some the same as cities).

There are 370 school districts in the State of Wisconsin (approx).

All of these are different government corporations. All of these have separate CAFR’s.

Malls, movie theaters, golf courses, most other commercial real estate entities, electric and gas companies, water and sewage companies, universities and colleges, parks and zoos, parking meters and garages, toll roads and bridges, and many other types of government owned businesses are all part of individual governments listed in their CAFRs.

The total wealth of the state of Wisconsin can only truly be measured by adding up the investments, assets, funds, enterprise operations (businesses), and other government wealth and investments within each of these individual corporate governments, through each county and local government Comprehensive Annual Financial Report.

————————————————————————————————————–

***Note: There is a rabid defense of pension funds by the government employees who benefit from them, and of course by the government who controls and profits from them and their investments. But it is important to understand that the money that is being contributed to these pension funds is also taxpayer money. In 2009, the amount contributed to the Wisconsin Retirement System by state employees was $736,689,000. But the amount contributed by taxpayers who are not employees of any state office (ordinary taxpaying citizens) was $632,706,000. In other words, over $632 million in taxpayer money went to support this pension fund system in the form of government employer contributions, which could have gone to support government activities that would support the taxpayers themselves or to pay off debt. Government Employers are funded with taxpayer money. Thus their contributions are coming from taxpayer money. Simple.

The Wisconsin Retirement System pension fund made a $10.5 Billion dollar profit (return on investment) in fiscal year 2009, and a $5.4 Billion dollar profit in fiscal year 2010.

This was after all benefits and liabilities were paid for the year. This money is in no way benefiting the taxpayers of the state. This was pure profit for the fund – the return on investments!!!

***Note: This is what I could find looking at the Wisconsin State CAFR, and represents the assets and investments as reported by the state at the end of fiscal year 2010, which ended June 30, 2010. Thus, these are the totals as of that date (06/30/10) – which is the latest Comprehensive Annual Financial Report available for viewing to the public. This took two full days of reading and research to acquire. While I made every attempt at accuracy, I have no financial background. Crosschecking my accuracy and verifying if I accidentally reported any items twice is suggested. You have the report at your fingertips…

-Clint Richardson-
March 1, 2011

————————————————————————————————————–

The information below is pulled straight from the 2010 CAFR for the State of Wisconsin…

Download here: http://www.doa.state.wi.us/subcategory.asp?linksubcatid=374&locid=3

(My comments are in red)

————————————————————————————————————–

(Page 19)

FINANCIAL HIGHLIGHTS — PRIMARY GOVERNMENT

The State of Wisconsin, like the rest of the nation, experienced an economic decline that persisted from Fiscal Year 2009 in to Fiscal Year 2010. To assist in stimulating the economy, the federal 2009 American Recovery and Reinvestment Act (ARRA) provided tax relief and additional funding for approximately 132 federal programs administered by at least 16 different state agencies. Both events impacted the financial results reported for the State.

Government-wide (Tables 2 and 3 on Pages 22 and 23)

Net Assets. The assets of the State of Wisconsin exceeded its liabilities at the close of Fiscal Year 2010 by $11.7 billion (reported as “net assets”). Of this amount, $(9.9) billion was reported as “unrestricted net assets”. A positive balance in unrestricted net assets would represent the amount available to be used to meet a government’s ongoing obligations to citizens and creditors.

Changes in Net Assets. The State’s total net assets decreased by $29.3 million in Fiscal Year 2010. Net assets of governmental activities increased by $31.7 million or 0.6 percent, while net assets of the business-type activities showed a decrease of $61.0 million or 1.0 percent.

Excess of Revenues over (under) Expenses — Governmental Activities. During Fiscal Year 2010, the State’s total revenues for governmental activities of $26.2 billion were $1.3 billion more than total expenses (excluding transfers) for governmental activities of $24.9 billion. Of these expenses, $12.6 billion were covered by program revenues. General revenues, generated primarily from various taxes, totaled $13.6 billion.

Note: The State of Wisconsin, as listed under Table 3: “Changes in Net Assets”, earned $34.84 Billion in tax-based revenues, which represents a $3.89 Billion increase in revenue generation for the state. In other words, the state government through its business activities related to taxpayers earned over 3.8 billion dollars more profit than they did in the 2009 fiscal year at the taxpayers expense (See Table 3 on page 23 of the CAFR).

This Financial Highlights section makes it appear that the Wisconsin government is in trouble, but I assure you this is not the case.

Net assets of the State are listed here as well at $11,693,400,000. But this does not include the funds we will be going over starting now…

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(Page 75)

NOTE 5. DEPOSITS AND INVESTMENTS

The State maintains a short-term investment “pool”, the State Investment Fund, for the State, its agencies and departments, and certain other public institutions which elect to participate. The investment “pool” is managed by the State of Wisconsin Investment Board (the Board) which is further authorized to carry out investment activities for certain enterprise, trust and agency funds. A small number of State agencies and the University of Wisconsin System also carry out investment activities separate from the Board.

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(Page 76)

B. Investments

1. Primary Government
Wisconsin Statutes, program policy provisions, appropriate governing boards, and general resolutions contained in revenue bond indenture documents define the types of securities authorized as appropriate investments and the conditions for making investment transactions.

Investments of the State are managed by various portfolios. For disclosure purposes, the following investment portfolios are discussed separately:

Primary government, excluding the University of Wisconsin System, the Wisconsin Retirement System and the State Investment Fund. The primary government portfolios include various funds managed by the State of Wisconsin Investment Board consisting of the following:

— Local Government Property Insurance Fund (LGPIF)
— State Life Insurance Fund (SLF)
— Injured Patients and Families Compensation Fund (IPFCF)
— Historical Society Fund
— Tuition Trust Fund

University of Wisconsin System (UWS)

Wisconsin Retirement System (WRS)

State Investment Fund (SIF) — functions as the State’s cash management fund by “pooling” the idle cash balances of all State funds and other public institutions. Investments of the SIF are discussed in section B 3 of this note disclosure.

The State of Wisconsin Investment Board (the Board) has exclusive control over the investments of the Local Government Property Insurance Fund (LGPIF), the State Life Insurance Fund (SLF), the Injured Patients and Families Compensation Fund (IPFCF), the Historical Society Fund, and the Tuition Trust Fund, which are collectively known as the “various funds”.

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(Page 77)

Custodial Credit Risk
Custodial credit risk is the risk that, in the event of a failure of the counterparty, the State will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party.

So the states investments (taxpayer money) are at risk of loss with no recovery or insurance while it is being invested without the consent or knowledge and comprehension of the taxpaying public.

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Primary Government (excluding the University of Wisconsin System (UWS), the Wisconsin Retirement System (WRS), and the State Investment Fund (SIF))

At June 30, 2010, the reported amount of investments of the primary government, including the various funds, was $4,403.7 million, of which $286.9 million is reported as cash equivalents and $327.0 million is reported as “Other Assets”. The primary government, including the various funds, does not have an investment policy specifically for custodial credit risk, however, at June 30, 2010, the primary government had no custodial credit risk exposure for these investments.

(in millions, The Primary Government Funds called “Various Funds”, which include the LGPIF, the SLF, the IPFCF, the Historical Society Fund, and the Tuition Trust Fund have $4.403 Billion Dollars in investments)

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Wisconsin Retirement System (WRS)

All assets of the WRS are invested by the State of Wisconsin Investment Board (the Board). The WRS consists of shares in the core retirement trust fund and the variable retirement trust fund…

The retirement fund assets consist of shares in the Variable Retirement Investment Trust and the Core Retirement Investment Trust. The Variable Retirement Investment Trust consists primarily of equity securities. The Core Retirement Investment Trust is a balanced investment fund made up of fixed income securities and equity securities. Shares in the Core Retirement Investment Trust are purchased as funds are made available from retirement contributions and investment income, and sold when funds for benefit payments and other expenses are needed.

The assets of the Core and Variable Retirement Investment Trusts are carried at fair value with all market value adjustments recognized in current operations. Investments are revalued monthly to current market value. The resulting valuation gains or losses are recognized as income, although revenue has not been realized through a market-place transaction.

The investments of the core retirement trust fund consist of a highly diversified portfolio of securities. Wis. Stat. Sec. 25.182 authorizes the Board to manage the core retirement trust fund in accordance with “prudent investor” standard of responsibility as described in Wis. Stat. Sec. 25.15(2) which requires that the Board manage the funds with the diligence, skill and care that a prudent person acting in a similar capacity and with the same resources would use in managing a large public pension fund.

At June 30, 2010, the WRS investments were $66.6 billion. The WRS does not have a formal policy for custodial credit risk. As of June 30, 2010, the WRS held eighteen tri-party repurchase agreements totaling $787.0 million.

(The Wisconsin Retirement System (WRS) has over $66 billion in investments.)

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University of Wisconsin System (UWS)

At June 30, 2010, the UWS investments were $365.8 million, of which $26.7 million is reported as cash equivalents. The UWS’s investments are registered in the name of the UWS and the UWS does not participate in any securities lending programs through its custodian bank. Investment securities underlying the UWS’s investment in shares of external investment pools or funds are in custody at those funds. The shares owned in these external investment pools are registered in the name of the UWS.

(The University of Wisconsin System (UW) has $365.8 million in investments.)

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(Page 89)

2. Component Units
…except for the Wisconsin Health Care Liability Insurance Plan and the University of Wisconsin Foundation (Other Component Units)

Wisconsin Housing and Economic Development Authority (Authority) – The Authority is required by statute to invest at least fifty percent of its General Fund funds in obligations of the State, of the United States, or of agencies or instrumentalities of the United States, or obligations, the principal and interest of which are guaranteed by the United States, or agencies or instrumentalities of the United States. Each investment portfolio specifies what constitutes a permitted investment and such investments may include obligations of the U.S. government and agencies securities; corporate bonds and notes; money market mutual funds; commercial paper; and repurchase agreements and investment agreements.

The Authority enters into collateralized investment contracts with various financial institutions. The investment contracts are generally collateralized by obligations of the United States government.

The Authority is also authorized to invest its funds in the State Investment Fund.

The Authority’s aggregate investments at June 30, 2010 were $1,023.7 million of which $843.8 million are reported as cash equivalents.

(In millions, The Wisconsin Housing and Economic Development Authority has $1.023 billion in investments)

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University of Wisconsin Hospital and Clinics Authority – The University of Wisconsin Hospitals and Clinics Authority’s (the Hospital) aggregate investments at June 30, 2010 were $375.6 million of which $248.2 million (invested with the University of Wisconsin Foundation, see investment disclosure discussion for the University Wisconsin Foundation) are reported as “Cash and Investments with Other Component Units.” The board of directors has authorized management to invest in debt and equity securities.

(In millions, The University of Wisconsin Hospital and Clinics Authority has $375.6 million, $127.4 million of which is not invested in the University fund (see above))

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State Fair Park Exposition Center, Inc. – The aggregate investments at December 31, 2009 were $.2 million consisting of money market funds reported as cash equivalents.

(In millions, The State Fair Park Exposition Center, Inc has $200 thousand in investments)

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(Page 91)

Other Component Units

Wisconsin Health Care Liability Insurance Plan (WHCLIP) – Aggregate investments of the WHCLIP were $72.0 million, of which $13.2 million are money market and other highly liquid debt instruments reported as cash equivalents.

The WHCLIP does not hold investments in any one issuer that exceeds 5 percent of total assets.

As of December 31, 2009, the WHCLIP did not own any issues denominated in a foreign currency.

Excluded investments include: bonds rated below A by a major rating service at the time of purchase, foreign bonds not denominated in U.S. currency, futures transactions, short selling, use of margin, derivatives and hedge funds.

The investments of the WHCLIP at December 31, 2010 were $58.9 million consisting of the following (in millions):

Amortized Estimated Investment Type Cost Fair Value

U.S. Treasury securities and
–   obligations of the U.S. government
–   corporations and agencies                    $10.1
Debt securities issued by foreign
–   governments and corporations             $3.2
Industrial and miscellaneous                   $25.5
Loan-backed securities                              $24.2

Total                                                         $63.0

(In millions, The WHCLP Fund has $72 million in investments)

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(Page 92)

University of Wisconsin Foundation (the Foundation) – Aggregate investments of the Foundation are $2,006.6 million.

The following table summarizes the types of investments of the Foundation at December 31, 2009 (in millions):

Investment Type Fair Value

Bond and debentures    $455.5
Stocks                                $512.2
Bond funds                      $106.0
Stock funds                        $25.5
Hedge funds                    $478.4
Limited partnerships     $278.6
Real asset funds              $146.2
Other funds                          $4.2

Total                         $2,006.6

(in millions, University of Wisconsin Foundation Fund has $2.006 Billion in investments)

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(Page 101)

Component Unit

University of Wisconsin Foundation – The University of Wisconsin Foundation’s (the Foundation) endowment consists of 3,067 individual funds established for a variety of purposes. Its endowment includes both donor-restricted endowment funds and funds designated by the Board of Directors to function as endowments. Net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.

The Board of Directors has interpreted the Uniform Management of Institutional Funds Act (UPMIFA) as requiring the preservation of fair value of the original gift as of the gift date of the donorrestricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Foundation classifies as permanently-restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently-restricted net assets is classified as temporarily-restricted net assets until those amounts are appropriated for expenditure by the organization in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

• The duration and preservation of the fund
• The purpose of the Foundation and the donor-restricted endowment fund
• General economic conditions
• The possible effect of inflation and deflation
• The expected total return from income and the appreciation of investments
• Other resources of the Foundation
• The investment policies of the Foundation

Endowment Net Asset Composition by Type of Fund as of December 31, 2009 (in millions):

Unrestricted  –  Temp. Restricted  –  Perm. Restricted  –  Total

$(38.2)                        $175.0                        $749.5            $886.3

(In other words, the Board Of Directors of the University of Wisconsin Foundation have made the original donations made by a donor(s) (known as endowments) a restricted money base, meaning it cannot be used for anything else. But the money made on the investment gains from these donations, the capital gains, are designated as “unrestricted” and can be used or transferred elsewhere in government or into these types of secretive funds not reported to the taxpayer on the annual taxpayer budget report.)

(So… In millions, The University Of Wisconsin Fund also includes $886.3 million in cash and investments, which are “donor-restricted”.)

(Page 100)

The University of Wisconsin System invests its trust funds, principally gifts and bequests designated as endowments or quasi-endowments, in two of its own investment pools: the Long Term Fund and the Intermediate Term Fund. Benefiting University of Wisconsin System entities receive quarterly distributions from the Long Term Fund, principally endowed assets, based on an annual spending rate applied to a 12-quarter moving average market value of the fund…

University of Wisconsin System investment policies and guidelines for the Long Term Fund and Intermediate Term Fund are governed and authorized by the Board of Regents.

The fair value of Endowments as of June 30, 2010 was $370.7 million including an unrealized gain of $38.4 million when fair values as of June 30, 2010 are compared to asset acquisition costs. This compares to a fair value as of June 30, 2009 of $336.9 million. The net increase in fund balance during 2009-10 was $33.8 million. (That’s profit!)

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(Page 102)

Celebrate Children Foundation, Inc
The Celebrate Children Foundation Inc. (CCF) endowment includes both donor-restricted funds and funds designated by the Board of Directors to function as endowments. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The Board of Directors of the CCF has interpreted the State Prudent Management of Institutional Funds Act (SPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the CCF classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund…

(Page 103)

…The CCF expects the current spending policy to allow its endowment funds to grow at a nominal average rate of 3 percent annually. This is consistent with the CCF’s objective to maintain the purchasing power of the endowment assets as well as to provide additional real growth through new gifts and investment return. (But what about the children???)

Endowment net asset composition as of June 30, 2010:

–                      Unrestricted  –  Perm-Restricted  –  Total

Donor-restricted       $ —                   $1,083,214         $1,083,214

Unrestricted

Board-designated  (14,812)                     —                      (14,812)

Total                   $(14,812)          $1,083,214     $1,068,402

(In millions, Celebrate Children Foundation, Inc Fund includes $1.068 million in cash and investments which are “donor-restricted”.)

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(Page 93)

3. State Investment Fund

The State Investment Fund (SIF) functions as the State’s cash management fund by “pooling” the idle cash balances of all State funds and other public institutions. In the State’s Comprehensive Annual Financial Report, the SIF is not reported as a separate fund; rather, each State fund’s share in the “pool” is reported on the balance sheet as “Cash and Cash Equivalents.” Shares of the SIF belonging to other participating public institutions are presented in the Local Government Pooled Investment Fund, an investment trust fund.

Wis. Stat. Secs. 25.17(3)(b), (ba), (bd) and (dg) enumerate the various types of securities in which the SIF can invest, which include direct obligations of the United States or its agencies, corporations wholly owned by the Untied States or chartered by an act of Congress, securities guaranteed by the United States, unsecured notes of financial and industrial issuers, direct obligations of or guaranteed by the government of Canada, certificates of deposit issued by banks in the United States and solvent financial institutions in Wisconsin, and bankers acceptances. Other prudent investments may be approved by the State of Wisconsin Investment Board’s (the Board) Board of Trustees.

Investments are valued at fair value for financial statement purposes and amortized cost for purposes of calculating income to participants. The custodial bank has compiled fair value information for all securities by utilizing third party pricing services. The fair value of investments is determined at the end of each month. Government and agency securities and commercial paper are priced using matrix pricing. This method estimates a security’s fair value by using quoted market prices for securities with similar interest rates, maturities, and credit ratings. Short-term debt investments with remaining maturities of up to 90 days are valued using amortized costs to estimate fair value, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Repurchase agreements and nonnegotiable certificates of deposit are valued at cost because they are nonparticipating contracts that do not capture interest rate changes in their value. In addition, a bond issued by another State agency having a par value of $21.2 thousand is valued at par, which management believes approximates fair value.

(Page 94)

For purposes of calculating earnings to each participant, all investments are valued at amortized cost. Specifically, income is distributed to pool participants’ monthly based on their average daily share balance. Distributed income includes realized investment gains and losses calculated on an amortized cost basis, interest income based on stated rates (both paid and accrued), amortization of discounts and premiums on a straight-line basis, and investment and administrative expenses. This method differs from the fair value method used to value investments because the amortized cost method is not designed to distribute to participants all unrealized gains and losses in the fair values of the pool’s investments.

Custodial Credit Risk

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the Board will not be able to recover the value of investments or collateral securities that are in the possession of an outside party. Investments are exposed to custodial credit risk if the securities are uninsured and unregistered and are either held by the counterparty or by the counterparty’s trust department or agent but not in the name of the Board.

At June 30, 2010, the reported amount of investments was $6,603.9 million. The SIF had no custodial credit risk exposure for these investments.

Interest Rate Risk
Interest rate risk is defined as the risk that changes in interest rates will adversely affect the fair value of investments. The weighted average maturity method is used to analyze interest rate risk and investment guidelines mandate that the weighted average maturity for the entire portfolio will not exceed one year. At June 30, 2010, the following table shows the investments by investment type, amount and the weighted average maturities (in millions):

Weighted Average Investment Fair Value

Bank NOW account deposits      $755.6
Repurchase agreements           $1,249.0
Government and agency          $4,599.0
Certificates of deposit                      $0.3
Mortgage backed securities        $331.0

Total                                       $6,603.9

(In millions, The State Investment Fund has $6.603 Billion Dollars in investments)

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(Page 95)

4. Lottery Investments and Related Future Prize
Obligations

Investments of the State Lottery Fund totaling $64.0 million are held to finance grand prizes payable over a 20-year or 25-year period. The investments in prize annuities are debt obligations of the U.S. government and backed by its full faith and credit as to both principal and interest. Liabilities related to the future prize obligations are presented at their present value and included as Accounts Payable and Other Accrued Liabilities.

(in thousands, there is $64 Million Dollars in investments in the “Lottery Fund”)

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(Page 128)

G. Arbitrage Rebate
The Tax Reform Act of 1986 requires that governmental entities issuing tax-exempt debt subsequent to August 1986, calculate and rebate arbitrage earnings to the federal government. Specifically, the excess of the aggregated amount earned on investments purchased with bond proceeds over the amount that would have been earned if the proceeds were invested at a rate equal to the bond yield, is to be rebated to the federal government. As of June 30, 2010, a liability for arbitrage rebate did not exist.

(Though it didn’t happen in fiscal year 2010, some investment income called “arbitrage” is given to the Federal Government as a penalty (tax) for making what you might call other than legal investment returns.)

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(Page 142)

NOTE 19. SELF-INSURANCE
It is the general policy of the State not to purchase commercial insurance for the risks of losses to which it is exposed. Instead, the State believes it is more economical to manage its risks internally and set aside assets for claim settlement in its internal service fund, the Risk Management Fund. The fund services most claims for risk of loss to which the State is exposed, including damage to State owned property, liability for property damages and injuries to third parties, and worker’s compensation. All funds and agencies of the State participate in the Risk Management Fund.

Changes in the balances of claims liability for the Risk Management Fund during the current and prior fiscal years are as follows (in thousands):

–                                                                  2010               2009

Beginning of fiscal year liability      $103,119         $95,000

Current year claims and changes
in estimates                                          $21,376          $41,508

Claim payments                                  (28,278)         (28,089)
–                                                      _____________________

–                                                              $96,217          $108,419

Excess insurance reimbursable        (1,370)            (5,300)
–                                                      _____________________

Balance at fiscal year-end       $94,847       $103,119

(In thousands, the Risk Management Fund used for lawsuits against the state and for worker’s comp (taxpayer money in this fund) is 94.84 million dollars.)

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And now, listed here are the individual funds where much of this money is being hidden and invested. This is a list of all reported funds. A description of each fund can be found in the CAFR. Page numbers are listed as reference to those descriptions. Many of these funds grew (made a profit) for fiscal year 2010 over 2009 totals, some by millions of dollars (see balance sheet). Only the totals for each fund are listed here, as presented in the combining balance sheets following the descriptions of the funds within the 2010 CAFR. Some funds are grouped into total balances on the balance sheet, and these are notated as (see below).

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(Pages 169-182)

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE: Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for a specified purpose. The State’s special revenue funds are described below:

The Conservation Fund

–> $92,152,000

The Election Administration Fund

–> $16,244,000

The Utility Public Benefits Fund

–> $20,491,000

The Petroleum Inspection Fund

–> $14,132.000

The Wisconsin Public Broadcasting Foundation Fund

-> $12,393,000

The Celebrate Children Foundation Fund

–> $1,523,000

The Heritage State Parks and Forests Fund

–> (See Below)

The Waste Management Fund

–> (See Below)

The Environmental Fund

–> (See Below)

The Dry Cleaner Environmental Response Fund

–> (See Below)

The Recycling and Renewable Energy Fund

–> (See Below)

Total for above (5) funds listed as “Other Environmental Revenue Funds” above

$87,843,000

OTHER SPECIAL REVENUE FUNDS – account for resources that must be used for specific purposes and include the following:

The Wisconsin Election Campaign

-> (See Below)

The Investment and Local Impact

-> (See Below)

The Industrial Building Construction Loan Fund

-> (See Below)

————-

(Page 170)

————-

The Self-insured Employers Liability Fund

-> (See Below)

The Work Injury Supplemental Benefit Fund

–> (See Below)

The Workers Compensation Fund

–> (See Below)

The Uninsured Employers Fund

–> (See Below)

The Mediation Fund

–> (See Below)

The Police and Fire Protection Fund

–> (See Below)

The State Capitol Restoration Fund

–> (See Below)

The Agricultural Chemical Cleanup Fund

–> (See Below)

The Agrichemical Management Fund

-> (See Below)

The Agricultural Producer Security Fund

–> (See Below)

The Historical Legacy Trust Fund

–> (See Below)

The History Preservation Partnership Trust Fund

–> (See Below)

The Wireless 911 Fund

–> (See Below)

The VendorNet Fund

–> (See Below)

The Universal Service Fund

–> (See Below)

The Children’s Trust Fund

–> (See Below)

Total for above (19) funds listed as “Other Special Revenue Funds”

-> $80,155,000

(Total Special Revenue Funds – $324,932,000)

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(Page 170)

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DEBT SERVICE FUNDS: Debt service funds account for the accumulation of resources for, and the payment of, principal, interest and related costs of general long-term obligations:

The Bond Security and Redemption Fund

-> $20,039,000

The Annual Appropriation Bonds

-> $33,905,000

The 2009 Annual Appropriation Bonds

-> $126,000

The Badger Tobacco Asset Securitization Fund

-> $8,564,000

The Petroleum Inspection Revenue Bonds Fund

–> $4,393,000

The Transportation Revenue Bonds Fund

–> $149,968,000

(Total Debt Service Funds – $216,994,000)

CAPITAL PROJECTS FUNDS: Capital projects funds account for financial resources used for the acquisition, construction, renovation or repair of major capital facilities (other than those financed by proprietary funds and trust funds). The State’s capital projects funds are described below:

The Building Trust

–> $24,775,000

The Capital Improvement Fund

–> $39,135,000

The Transportation Revenue Bonds Fund

–> $24,243,000

(Total Capital Projects Funds – $88,153,000)

PERMANENT FUNDS: Permanent funds are used to report resources
that are legally restricted to the extent that only earnings,
principal, may be used to support the State’s programs:

The Historical Society Fund –>

$9,400,000

The Other Permanent Fund accounts for various resources legal restrictions requiring that principal remain intact and earnings may be spent, including the following:

• The Agricultural College and University statutory funds

–> (See Below)

• The Normal School statutory fund

-> (See Below)

• The Benevolent statutory fund

–> (See Below)

Total for above (3) funds listed as “Other Permanent Funds”

> $24,980,000

(Total Permanent Funds – $34,380,000)

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(TOTAL NONMAJOR GOVERNMENTAL FUNDS – $664,459,000)

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(Pages 183-191)

NONMAJOR ENTERPRISE FUNDS

ENTERPRISE FUNDS: Enterprise funds account for business-like State
activities that provide goods and/or services to the public and are
financed primarily through user charges. The State’s enterprise
funds are described below:

The Lottery Fund

–> $158,368,000

The Income Continuation Insurance Fund

–> $82,794,000

The Long-term Disability Insurance Fund

–> $218,977,000

The Health Insurance Fund

–> $216,313,000

The Veterans Trust Fund

–> $54,736,000

The Veterans Mortgage Loan Repayment Fund

–> $288,514,000

The Care and Treatment Facilities Funds – account for various
resident facilities including:

• The Mendota Mental Health Institute Fund

–> $31,804,000

• The Winnebago Mental Health Institute Fund

–> $26,047,000

• The Homes For Veterans Fund

–> (See Below)

• The Northern, Central, and Southern Developmental Disabilities Center Funds

–> (See Below)

Total for above (2) funds listed as “Other Care and Treatment Facilities”

-> $120,426,000

OTHER ENTERPRISE FUNDS: account for the following programs:

The State Fair Park Fund

–> (See Below)

The Institutional Farm Operations Fund

–> (See Below)

The Correctional Canteen Operations Fund

–> (See Below)

The Local Government Property Insurance Fund

–> (See Below)

The State Life Insurance Fund

–> (See Below)

The Transportation Infrastructure Loan Fund

–> (See Below)

The Life Insurance Fund

–> (See Below)

Total for above (7) funds listed as “Other Enterprise” funds

-> $248,093,000

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(TOTAL NONMAJOR ENTERPRISE FUNDS listed as “All Nonmajor Funds” – $1,446,072,000)

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(Pages 192-201)

INTERNAL SERVICE FUNDS

INTERNAL SERVICE: Internal service funds account for the operations of State agencies which render services to other State agencies, institutions, or other governmental units on a cost-reimbursement basis. The State’s internal service funds are described below:

The Technology Services Fund

–> $40,917,000

The Fleet Services Fund

–> $32,676,000

The Financial Services Fund

–> $3,143,000

The Facilities Operations and Maintenance Fund

–> $253,425,000

The Risk Management Fund

–> $9,223,000

The Badger State Industries Fund

–> $10,724,000

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(TOTAL INTERNAL SERVICE FUNDS listed as “totals” – $350,107,000)

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(Pages 202-212)

FIDUCIARY FUNDS

FIDUCIARY FUNDS: Fiduciary funds are maintained to account for assets held by the State acting in the capacity as a trustee or agent. The State’s fiduciary funds, consisting of pension and other employee benefit trust, investment trust, private-purpose trust, and agency funds, are described below:

PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS: Pension and other employee benefit trust funds are used to report resources that are required to be held in trust for members and beneficiaries of the public employee retirement system or other employee benefit plans:

The Wisconsin Retirement System Fund

–> $66,415,157,000

The Accumulated Sick Leave Fund

–> $-393,157,000 (Total assets listed at + $1,802,597,000)

The Duty Disability Fund

–> $334,828,000

The Reimbursed Employee Expense Fund

–> $1,108,000

The Local Retiree Life Insurance Fund

–> $225,553,000

The Retiree Life Insurance Fund

–> $353,669,000

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(TOTAL PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS listed as “Totals” – $66,937,157,000)

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INVESTMENT TRUST FUNDS: Investment trust funds account for assets invested on a commingled basis by the State on behalf of other governmental entities. The State’s investment trust funds are described below:

The Local Government Pooled Investment Fund

–> $2,490,278,000

The Milwaukee Retirement System Fund

–> $116,120,000

——————————————————————————————————-

(TOTAL INVESTMENT TRUST FUNDS listed as “Totals” –> $2,606,398,000)

——————————————————————————————————-

PRIVATE-PURPOSE TRUST: Private-purpose trust funds are used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments:

The Tuition Trust Fund

–> $8,473,000

The BadgerRx for Individuals Fund

–> $177,000

The College Savings Program Trust Fund

–> $2,247,475,000

The Retiree Health Insurance Fund

–> $9,556,000

——————————————————————————————————-

(TOTAL PRIVATE-PURPOSE TRUST FUNDS listed as “Totals” – $2,265,681,000)

——————————————————————————————————-

AGENCY FUNDS: Agency funds report those assets for which the State acts solely in a custodial capacity. The State’s agency funds are described below:

The Insurance Company Liquidation Account Fund

–> $720,000

The Local Retiree Health Insurance Fund

–> $2,156,000

The Inmate and Resident Fund

–> $16,711,000

The Bank and Insurance Company Deposits Fund

–> $303,730,000

The Support Collection Trust Fund

–> $11,521,000

——————————————————————————————————-

(TOTAL AGENCY FUNDS listed as “Totals” – $334,837,000)

——————————————————————————————————-

——————————————————————————————————-

END OF REPORT

——————————————————————————————————-

Again, the above information is taken from the State of Wisconsin’s Comprehensive Annual Financial Report for fiscal year ending June 30, 2010.

Going through these reports is the only way to get a grasp on the amount of wealth your local, county, or state government has in its hidden funds and investments.

Please do not let my efforts go to waste! This needs to be seen by all taxpaying citizens, no matter what state they reside in. This is a blueprint for most or all state governments. If you stay silent about this, you are giving your consent to this crime.

Silence is consent.

Confront your legislators.

Ask questions. Demand answers.

Get a rope…

.

Please go to these other websites for more information on CAFR’s:

TheCorporationNation.com

CAFR1.com

.

–Clint Richardson (realitybloger.wordpress.com)

Tuesday, March 1, 2011