Read the financials.

• Author: Mozzetti, Ben, Jr.
• Position: Sound Off

The United States' federal spending budget for 2001-02 fiscal year end is $2 trillion. To put that in perspective, that's two thousand billions or two million millions. For comparison, $2 trillion amounts to more than twice the combined gross income of Exxon Mobil, Wal-Mart, General Motors, Ford Motors and Daimler Chrysler--the world's five largest corporations in 2000 according to Fortune.

STRAIGHT TO THE SOURCE

Being a CPA with a curiosity for numbers, I decided to go directly to the source, www.gao.gov. There I found the U.S. government's financial statements, for the prior year ended Sept. 30, 2000.

Governmental accounting is not my forte. But as I read the treasury secretary's message, I began to notice a certain theme.

There is a vaguely stated point that the time and quality of the consolidated statements "continues to improve." And, for the first time, the statements included information regarding Social Security, Medicare, railroad retirement benefits, Black Lung benefits and unemployment insurance, to "assist users in evaluating ... future budgetary resources to sustain program services and meet program obligations." You mean they weren't included before?

Turning to the comptroller's cover letter, my suspicion was verified as I read: "This is the fourth consecutive year for which we are unable to express an opinion. Certain material weaknesses in internal control and accounting and reporting issues resulted in conditions that prevented us from being able to provide the Congress and the American citizens an opinion as to whether the consolidated financial statements are fairly stated in accordance with U.S. generally accepted accounting principles."

Wait a minute, "unable to express an opinion?" The report continued citing "significant financial management weaknesses, problems with fundamental record keeping, incomplete documentation and weak internal controls."

A LITTLE BACKGROUND

The General Accounting Office and the Comptroller General have been required, pursuant to the Federal Financial Management Act of 1994, to present the activities of the U.S. government, with the goal of being "timely, accurate and professional."

As such, the 24 major federal agencies and a related 25 additional entities, from the Department of Agriculture to the U.S. Postal Service, are included in the financials.

The report proudly states that of the 24 consolidated agencies within the financials, 18 received unqualified opinions, "up from only six...