Acounting Fraud on OPEBs


Last week I outlined how the Union County audit is fraudulent as regards their Note on OPEB Obligations. Tonight I brought my concerns to the freeholders and it got even worse:


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Not only did Finance Director Bib Taylor believe that the number Brown & Brown came up with in 2009 as the projected asset value as of 12/31/2011 ($17.4 million) to be what is actually in some OPEB fund but no mention was made  of the discrepancy between the two different asset numbers ($6.8 and $17.4 million) on the same page of the audit report.  And the clueless politicians bought it:

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But it gets worse when you consider that these are the character of people charged with solving the OPEB funding problem. What’s the chance of that ever happening?

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9 responses to this post.

  1. Posted by eatingdogfood on January 25, 2013 at 1:28 pm

    Democratic Hustler Politicians + Corrupt Greedy Unions = BANKRUPTCY BABY!

    Reply

  2. Posted by Javagold on January 25, 2013 at 2:31 pm

    its Theft !

    Reply

    • It’s not theft. Taking Ryan White HIV/Aids money and spending it on pizza (which the accountants can’t prove doesn’t happen in Union County) would be theft. This is fraud and a perfect example of how the SEC, GASB, and the LFB are useless with their rules that cost millions of dollars to comply with but have no practical enforcement mechanism.

      It’s also an example of something I’ve been kicking around for an appropriate blog post:the advantage of hiring incompetents. Let’s say there’s an onerous accounting rule (OPEB disclosure) that has to be complied with but the accountant you hire doesn’t know about it or thinks doing a valuation every thirty years is OK. In your interview wouldn’t that be a plus? It happens all the time in public pensions where the actuary who believes that an 8% interest assumption is reasonable seems to have the best chance to get hired.

      Reply

      • Posted by Tough Love on January 25, 2013 at 4:25 pm

        All the pension-related problems with such consultants as well as our incompetent self-interested elected officials would disappear if we only had DC (401K-style) Pension Plans.

        Ah …. but nobody connected to this gravy train want that. The Union couldn’t hide the very high true cost of these pensions (certainly resulting in reductions from the current level) and the politicians would likely lose most of the Union’s campaign contributions (because they would have nothing to trade).

        Reply

  3. Posted by Anonymous on January 25, 2013 at 8:57 pm

    TL, you’ve stated it well

    Reply

  4. Posted by My Ignorant Opinion on January 26, 2013 at 12:32 am

    Off topic but, on the tax collection front, it looks like Tina Turner is going to renounce her US citizenship in favor of Swiss citizenship. So if you believe that there are no consequences to raising taxes, yes there are.

    http://abcnews.go.com/blogs/entertainment/2013/01/tina-turner-to-become-swiss-citizen/

    River deep Mountain High:

    Reply

    • And Phil Mickelson is complaining about having to pay62% of his income in taxes.

      No sympathy here. If they have a problem with the new tax rate they should do the patriotic thing and get a Defined Benefit plan ($700 setup through EBS and as little as $500 annual administration).

      Reply

  5. […] 2013 audit is now out and after I pointed out how comical the 2012 OPEB numbers were: . . Note 15 on OPEBs changed considerably this time. No […]

    Reply

  6. […] Post-Employment Benefit (OPEB) costs, basically health insurance for retirees.  This had been fraudulently reported for years but in 2013 the county broke down and got a valuation done.  There remain questions about the […]

    Reply

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