We should have some happy Georgia readers today – all those who have been complaining about the lack of Atlanta Journal-Constitution’s little mention of USA v Moultrie. h/t Y’all for the link to First, pre-heat oven to 425 degrees: A recipe for ‘cooking the books’
That federal trial of a politically connected Smyrna company and its three executives continues to churn out preliminary documents that reveal bits and pieces of the prosecution’s case.
And the company’s fine sense of mathematics.
The AJC story is a blog post by the Political Insider who appears to actually have a fine sense of mathematics himself.
…one document dump from last week revealed tidbits include the allegation that the Facility Group charged $423,000 for insurance that only cost the company $40,000, and the discovery of false time sheets to “cook the books to back up the false hours.”
Prosecutors also say that have a hand-written formula, penned by company controller, the company used to double-bill the cost of its employees. It goes something like this:
An employee who earns $100 an hour also gets health insurance, dental insurance, life insurance, disability insurance. Social Security and bonuses must be paid. So the true cost is $130 an hour. So that’s a bottom-line ratio of $1.30 of cost for every $1 paid to an employee.
Sayeth the prosecutors:
”Then, according to the accountant, The Facility Group estimates an employee only works 65 percent of the time (35 percent goofing off, not working, sick, vacation- inefficiency).
So they divide 1.3 (their alleged cost to employee)/65% (inefficiency) and come up with a neat figure of 2.0, which they multiply times the employees salary for every hour the employee works. For example if an employee’s salary is $200 an hour they claim he costs them $400 and bill that employee out at $400.”
Anyone else remember Do the Math – Musgrove’s slogan promoting the federal health insurance program for children?