In God we trust, all others we audit. ~ Former State Auditor Phil Bryant.
It was massive accounting frauds at ENRON and WorldCom that led to government regulation of large swaths of the CPA profession and deservedly so I’ll add. For instance at ENRON there was an ossified, ineffectual Board of Directors stacked with politically connected phonies like Senator Phil Gramm’s wife Wendy, an economist that could rationalize about anything. At DMR, by their own admission we have a Board of Trustees that had no clue what was going on and who evidently did not bother to engage their jobs beyond the free boat rides, fishing trips etc. When the people that are supposed to be running the show are asleep at the switch bad things happen as we found out at ENRON and now DMR.
ENRON used off balance sheet special purpose entities or (SPE in accounting lingo) as a major vehicle for much of the criminal activity that occurred DMR director Bill Walker created an off books foundation that sucked all manner of tax dollars away from DMR’s mission to support the boats Walker used to wine and dine everyone on the taxpayer dime and lord knows what else.
And speaking of what else I detailed some of it as it relates to Hancock County’s role in the CIAP disaster. None of these schemes are particularly innovative and in fact are of the in your face variety. When there is no oversight to begin with why bother with the bells and whistles of a complex corruption enterprise like the one Aaron Broussard created in Jefferson Parish. Lest I digress.
Governor Phil should well remember from his time as State Auditor that in 1992 the Governmental Accounting Standards Board issued GASB Statement 14, The Financial Reporting Entity under which Billy Walker’s Private Foundation certainly fell. Yet here is Walker with his own private slush fund buying millions of dollars of fishing boats and lord knows what else and no one knew anything about it. The question ladies and gents is what does this say about the level of oversight at these state agencies? Simple folks, despite Governor Phil serially saying for years at speaking engagements “In God we trust, all others we audit”, nobody was auditing his coast based political cronies at DMR, or even worse if someone did audit them there is an audit failure of massive proportion. It is just that bad folks but we already know all this from months ago.
And all those days ago seeing where this would end up was too predictable: