Do you know what the "Comprehensive Annual Financial Report Is"? AND HOW IT CAN FIX EVERY PROBLEM WE FACE THAT IS FINANCIAL!

http://www.youtube.com/watch?v=jkwjtbTjTsE


All of this can be accomplished in three years.

And how is pertains to every county, city, state, and National Level of Government? "AND HOW IT CAN FIX EVERY PROBLEM WE FACE FINANCIALLY!" This is a basic understanding and some links to get your started. I had a two hour conversation the other day with Mr.Burien, AFTER watching all of them.

"The primary difference between a budget and a CAFR is that where the budget is a plan for the a fiscal period (often a year) primarily showing where tax income is to be allocated, the CAFR contains the results of the period (year) with previous years accumulations. A CAFR shows the total of all financial accounting that a general purpose budget reports does not. The CAFR contains a section that provides a comparison of period budget and actual. Additionally, the CAFR gives a detailed showing of investment accounts by category reflecting balances over previous years."

Do not be conned into thinking the budget is anyway the real telling of the amount of money any level of government does or does not make. Budgets are a joke.

I want you to think about this for a second. Lets say we own a company together. Now our company has taken much of its profits from the past and put them in investments. We bought stocks and gold and bonds and many other financial investment instruments.

From those investments we have income as well as any income from any sales of any products we make.

So lets say for simplicity's sake that on average we make in profits from sales $1 million per year. Now we also have $200 million invested and from those investments we make $30 million per year.

Now we know from years past that it cost us $800,000 to do business so we set our annual budget to be $850,000 but we spend $900,000 because prices went up.

Now we do not make our $1millon in sales this year we only made $500,000 in sales because one of our competitors beat us in sales. Have we lost money or did we make a profit?

The answer is quite simple even though we went over budget spending $950,000 and even though we only had $500,000 in sales we have still made a profit this year.

How?

Well its quite simple really. First off we have to take the profits from investments into account. Now we actually had invested in our competitors and others and so instead of making just $30 million this year we made $40 million from our investments.

So lets do some simple math.

when we take the $40 million and our $500,000 from sales we have made $40,500,000.00 this year then we take the $950,000 and subtract it from what we made and we have $39,550,000.00 Profit. Yet we run around saying we lost money cause we went over budget.

This is exactly what all levels of government have been doing for decades. An the only way you can know if the particular section of government you are looking at actually increased or decreased anything is to look in its CAFR (Comprehensive Annual Financial Report). Nothing else will tell you if there was an increase or a decrease in the Net Worth of the government.

So if I may suggest you should be not looking at budgets you should be looking at CAFRs.

http://www.youtube.com/watch?v=jkwjtbTjTsE

http://www.youtube.com/watch?v=XddjM_efnmk

http://cafr1.com/

http://en.wikipedia.org/wiki/Comprehensive_annual_financial_r...