lottery's us treasury bonds with higher yielding high credit quality instruments that would result in a net increase in proceeds for the lottery and two thousand and nine with commission approval the lottery undertook steps to restructure a portman of its investment portfolio with the goal of reducing the cost of investments for long term annuity prize payments and increasing resources to drive higher sales of luxury products so what does this mean exactly well let's say that you're a church and you hold a raffle contest the way that it should work quite simply is that you collect a dollar for each raffle ticket sold and at the end of the day you simply divide that money into profit and loss if you collect one hundred dollars in raffle tickets and you give away half of that money you're simply giving away fifty dollars and you're keeping fifty dollars for yourself now of course that would be the logical and reasonable way for this california state lottery to operate having no future debt or obligations of any kind it should simply be paying that fifty percent of its income to winner the required thirty six percent to schools and i guess technically it needs not sixteen percent to make the whole thing work but again that's not how government operates let's take a look at what the lottery fun actually does under cash management it states that the cash due from its retailers is collected on a weekly basis through an electric funds transfer system and deposited into an account within the california state treasurer's office idle cash as people are starving is invested in the surplus money investment fund a co mingled fund of the state of california and interest earnings are received quarterly the fund is administered by the pulled money investment board which is composed of the state treasurer the state controller and the director of the department of finance now for more information on this please see my video in titled  school what it is it commingled fund under risk management it states the lottery has elected with a few exceptions to be self insured against loss or liability this simply means that the lottery has invested a lot of this taxpayer money into a separate fund called a risk management fund it then pays out of that fund sort of the assets and annuities of that fund any future lawsuits or injury claims by employees or taxpayers under major initiatives it states that the california state lottery took big steps toward improving its brand image during the fiscal year two thousand and nine by offering exciting new products and promotions and b expanding its vast network of multimedia video monitors that provide players with the latest information about lottery products the lottery also initiated efforts to closely examine its practices and develop a road map for future success by starting the process of writing a new business plan let's face it folks what this says is that your government relies on gambling to fund schools understand this please government is promoting and making legal its own gambling scheme in order to fund its investment portfolio let's move on as part of its effort to create more winners and encourage players to recycle their tickets the lottery launched the california lotteries replay program that gives customers a second chance to win cash and prizes by going to the california lotteries website now again to create more winners you have to create more players and so again the government is promoting gambling as a way to fund its spending fiscal year two thousand and nine the lottery also struck a unique partnership with the california peace officers memorial foundation another fund on a special scratchers ticket that helped raise three hundred thousand dollars for the foundation which supposedly provides assistance and scholarships to the families of slain peace officers throughout the state these peace officers of course being the ones who come and take your home if you don't pay their fees now all of these foundations are set up very similarly so what we're talking about here in other words the money goes into a fund not necessarily to the families of the peace officers themselves at least not right away even more insulting it talks about the local economy it states that two years into the housing the slump the national and california economies began to face additional headwinds falling home prices tight credit conditions dysfunctional financial markets and soaring food and energy prices all of these things are essentially enterprise operations of government from the credit markets and stock market itself to the companies that manufacture food to the enterprise operations that create the energy prices government regulates those prices these headwinds took a toll the housing downturn worsened labor markets weakened and at the end of two thousand and seven consumers began to lose confidence in the economy a struggling housing sector will continue to weigh on the state and national economies and so again instead of government focusing its efforts to correct these problems instead it promotes its lottery it's legalized gambling scheme that allows this california enterprise fund to be created and all of that money to be invested now in my opinion that is not why we're supposed to have government and that is certainly not what they're supposed to be doing with our taxpayer money moving on to the financial section we see guinea independent auditors report where this government had to go by federal and state law to a private accounting firm to get the audit of this kaffir comically it states as discus the financial statements present only the california state lottery fund and do not proport to and do not present fairly the financial position of the state of california and here it states a summary of total revenues for the fiscal years ended june thirtieth two thousand and eight and june thirtieth two thousand and nine where we see the state of california is bringing in approximately three billion dollars each year in revenue also listed here are non operating revenues and other words non governmental functions where we see other realized gains and losses on investments interest on funds held by the state treasurer and other income again government operating outside of its balance which is allowed to happen by state law when we look at the expenses chart it states that the following chart shows prices game costs operating expenses and allocations as a percentage of operating revenues for the fiscal year ended june thirtieth two thousand and nine we see here the praises represent fifty two point four percent of the total money paid we see retailer cost game costs and operating expenses and then we see the allocation of operating income and investment proceeds to the education fund wait a minute what does that mean ah oh i get it it means that the lottery itself when it states that it gives money to education is actually giving that money to the education fun there is a big difference between those two that money is not going to schools it is going to an education fund oh now we start to see the bigger picture here and so again we see the creative accounting that makes government so grand this again is organized crime legal criminal activity and the marketing of that activity is the most important part because as the enterprise fund known as the california lottery tells the taxpayers that it's giving thirty four or thirty six percent of its profits to schools the truth of the matter is that it is simply depositing that money into another enterprise fund called the education fund there is a big difference between giving money to a school and giving money to a fund so let's examine this a little further when i go to the super lotto page of the california lottery we begin to understand how this scheme works underpayment up shims it states that by default all super lotto plus jackpot are paid in twenty six annual installments a winner has the opportunity to choose the cash value of their jackpot prize within sixty days of the lotteries payment approval date the payment option chosen will apply to all claimants and in multiple ownership claim either way government is going to make a killing from your choice if you select the cash option you will receive an amount equal to the net proceeds of the sale of bonds purchased to fund the twenty six annual payments for that prize this will be a single lump sum payment and is estimated at forty five percent to fifty five percent of the jackpot i'm oh ho well gee what happens to the rest of that money well that's called taxation that is revenue for government so immediately fifty percent of that money is taken out in federal and state taxes the other fifty percent goes to the winner but you'll notice here that it says you will receive an amount equal to the net proceeds of the sale of bones and of course if you choose the annual payments option you will receive the super lotto plus jackpot and twenty six graduated annual payments so they're going to wait twenty six whole years before they have to finally pay off the amount that they o you well what do you think they do with that money in the interim for instance here's a seven million dollar jackpot that is paid over twenty six years the last payment is three hundred fifty seven thousand dollars which is the largest payment of that prize but what is government actually doing with that three hundred fifty seven thousand dollars that is not due to be paid for twenty six whole years it invests that money why else in god's name would government want to extend payments out through twenty six years unless it wish to create a profit by investing that money and not being obligated for it for twenty six years twenty five years twenty four years by the time twenty six years comes around that three hundred fifty seven thousand dollars which the lottery collected in order to pay that prize today will earn government an on told us on imaginable investment return this is the ponzi scheme of the lottery the money is being invested in a big big way that money that's earned off of those investments does not go to school that is play money that is the money that goes towards the incorporation and takeover of the entire global structure it funds wars it funds all the things that you wonder how they get funded you must multiply this scheme that we're seeing right here over vast amounts of governments across the country from lotteries to alcohol to anything else that the state county or city controls the districts the school districts they're all participating in this type of commingled fund there are laws that require each and every city county and district to contribute to the state treasurers fund it is for the sole purpose of investment and nothing else the benefit that is paid to the schools is just a side effect it is not the reason that this lottery fund has been set up not in the least the purpose of the lottery is to create new money and invest it so you can see why it's in the federal government's best interest to have legalized gambling through a lottery every single winner is going to give twenty five to thirty percent of their winnings to the federal government on this seven million dollar jackpot the federal government is automatically going to get over a million dollars for doing absolutely nothing and the state treasurer is going to benefit as well by being allowed by federal government statutes to invest that money in federal securities this is your robe or a snake eating its own tail this is your government it is a cooperative effort on behalf of all state local and federal agencies the states are allowed to do certain things because it benefits financially the federal government likewise that county and cities are forced by law to invest in state treasurer of funds because it benefits the state which in turn benefits the federal government it then goes on to talk about some of it debt like the increase in gaming equipment costs and the funding of a new television show a government sponsored television show for the lottery wonderful i can imagine kids watching that just waiting until they're old enough to start gambling thanks government the most important part about this though is the law and term debt that's created by everyone or of the california state lottery and june thirtieth two thousand and nine the california state lottery had one point one billion dollars in outstanding long term liability versus one point two billion last year and a decrease of eleven point three percent most of the changes attributable to lotto game prize liability as the majority of jackpot winners now choose the cash option rather than the and new it ties to payments in addition four point six million was it crude for the net zero p e b obligation as required by statement number forty five of the government accounting standards board bringing the total of crew no p e b liability to nine point seven million at the end of june thirtieth two thousand and nine so nine point seven million of that taxpayer money goes to fund pension fund schemes as well as other employment benefits which are also the same kind of investment funs so a major portion of that sixteen percent that goes to fund the operations of the lottery actually just goes into the pension fund system the largest ponzi scheme in the world for more on pension funds and why they're not what you think they are you can watch my movie the great pension fund hoax linked below now if you want to complain about this or maybe occupy what you should be occupying here's the address for the california state lottery fight against department in sacramento california here we see the statement of revenues expenses and changes and net assets where list its assets and liabilities notice that under salaries wages and benefits forty nine million dollars is spent just to pay the employees a lottery this is a massive enterprise operation and so the end come before operating expenses equals one point one billion dollars for legalized crime but that's for operating expenses what about the non governmental or non operating expense revenues well for the funds investments under note nine we have six point seven million dollars in profit other income of four hundred eight thousand dollars and then there's the allocation to the education fund another look at where the money goes it doesn't go to schools it goes to the education fund big difference and at the end of the year it shows total net assets at one hundred and forty seven million dollars and through this creative accounting it can show a loss for that year of eighteen million dollars and again here is the distributions to the education fund and over a billion dollars followed by its cash flows from investments where it shows proceeds from disposal of capital assets of one hundred four thousand dollars purchase of securities at six hundred seventy seven million dollars proceeds from assured securities of two hundred eighty three million dollars proceeds from the sale of purchased securities at six hundred fifty nine million dollars surplus money investment fund interest where the lottery fund itself not the education fund but the lottery fund holds all of this taxpayer money with interest of ten million dollars for total net cash flows of over two hundred seventy five million dollars from non governmental operations investments of the lottery this is craziness this is how government works your review when you walk into the d m v or walk into just about every government office is only the tip of the iceberg underneath is the massive investment corporation that we're talking about here you think that these government workers are idiots and it works because well you think they're idiots while you call the presidents of the united states complete men compute they are getting away with massive organized crime with your consent and without you even knowing that it's happening and for the california state lottery fund notes to financial statements it goes over the organization of the lottery fund where it states that the lottery is part of the primary government of the state of california and is reported as a proprietary fund and business type activity within the state of california is financial statements the kaffir of the state of california and the purpose of the act is to support the preservation of the rights liberties and welfare of the people let me read that again the purpose of the act the purpose of creating the lottery looter are we getting this the purpose of creating the lottery act is to support the preservation of the rights liberties and welfare of the people by providing additional monies to benefit education without the imposition of additional or increased taxes good supporting legalized crime getting the poorest of the poor to buy lottery tickets instead of food or instead of saving that money for themselves is what government calls the preservation of rights liberties and welfare of the people you have to forgive me for disagreeing with this statement and i don't think any rational person watching this would disagree with me the operations of the lottery are separate and distinct from other operations of the state of california in other words it is an incorporated entity that acts outside of the state of california but gives all of its money to the state of california through the education fund and again it states that fifty percent of the total annual revenues from lottery sales are returned to the public in the form of prizes at least thirty four percent should be allocated to benefit public education the lottery is accounted for as an enterprise fund the financial statements are prepared on the accrual basis of accounting further down it states that all super lotto plus prizes won but not claimed within the specified period are allocated directly to the education fund oh so in other words any money that goes unclaimed just goes to the education fund to the state commingled fund and that's a very important key to the puzzle to now of course unclaimed prizes you'd think would be only just a few thousand here maybe someone lost a lottery ticket now i don't know about you folks but when i participate in some form of gambling it triggers the addictive response that triggers in most people's brains and all you can think about is whether you're going to win a million dollars or not when you buy a scratch or ticket and you win that prize you put it in your pocket and you can't wait to get to the store even if it's just a five dollar winner so the thought would be that maybe there's a couple thousand maybe even close to a million dollars i guess in unclaimed prizes but that's not how it works you see we see that all fantasy five prizes one but not claimed within the specified period are allocated directly to the education fund all daily three prizes also go to the education fund that aren't claimed unclaimed daily for prizes one old daily derby prizes all hot spot prices that are won just about everything and then we see that under the supplemental disclosure of noncash activities we see unclaimed prizes for the california lottery in total that are directly allocated to the education fund at twenty million nine hundred and sixty four thousand eight hundred and fifty seven dollars you're telling me that in two thousand and nine almost twenty one million dollars wind cleaned whoever is watching this right now if you can believe that than to you have a tolerance for lies that i certainly don't have and of course further down in the report we see the contributions to education and other words contributions to the education fund where we see a list of these unclaimed prizes in two thousand it was forty million in two thousand and one seventy nine million dollars in two thousand and two thirty six million two thousand hundred forty two million two thousand and four fifty million two thousand and five twenty seven million two thousand and six twenty nine million two thousand and seven twenty nine million two thousand and eight twenty five million and in two thousand and nine only twenty million that is an amazing amount of money to go unclaimed every year that is multiple jackpot prizes this i assure you is not happening by accident there something going on here that is creating these unclaimed prizes none dare call it conspiracy and we also see the allocations to the education fund for two thousand through two thousand and nine always around one billion dollars so ever use data california is getting a billion dollars put into the education fund it is that investing that money and paying some of it to school and continuing in the notes to financial statements we see a few things that you might want to read for yourself but take note here that the advertising expenses totaled forty two million one hundred eighty four thousand seven hundred dollars for the year ended june thirtieth two thousand and nine and i can't help but think here that that's forty two million dollars that could've went to schools instead of to support a gambling addiction for the people of the state of california called me crazy here but this doesn't seem like government as much as a organized mob what used to be undercover hidden black market casinos run by the mob have now just turned into legalized lottery gambling is this really what government is supposed to be doing i don't think so it goes on to talk about its investment earnings and it states the generally all cash is held on deposit with the california state treasurer in these commingled phones and is invested by that office and the surplus money investment fund once again the link below on this youtube video will link to another kaffir school video called what is a commingled fund i highly recommend viewing that as it talks about the sixty four billion dollars that california holds in that state treasurers investment fund and it states that interest on funds held by the state treasurer is distributed quarterly and we saw earlier in the report where the lottery fund listed the millions it received in interest payments now again the original lottery act was amended on january twenty eighth two thousand and nine when the lottery commission approved an amendment to the lottery's investment policy that allowed for the restructuring of its investment portfolio maximize the investment returns prior to this the lottery is policy limited investments to the u s treasury zero coupon bones the new amendment authorizes the lottery to sell its previously held s treasury zero coupon bonds and replace them with municipal and agency bones as well as with other u s treasuries the lottery began restructuring its investment portfolio on may two thousand and n by replacing u s treasury zero coupon bonds with higher yielding investments the lottery is able to generate cash proceeds that can be used to further the lot of used directives its directives to invest the money and make more money wonderful and remember what a municipal bond is folks that just means they're putting up your property and public property within the municipality moles movie theaters everything else and they're putting the first lien position on that property and if the municipality or you as the taxpayer who supports that municipality defaults on the debt well guess what there is a lien on that municipal property that collective citizen property and that property will be used to pay for the debt it is collateralized by your property your collective municipal property all of this happens all of the time with out your comprehension without sure knowledge and with your implied consent as of june thirtieth two thousand and nine the lotteries investments with yields ranging from point one one percent to five point seven eight percent consists of the following total investments at fair value of about one point five billion dollars most of them federal treasury and agency holdings and keep in mind the federal government doesn't necessarily invest in the united states but invest that money in creating new foreign markets it builds up corporations in china and ameesha and other third world countries and them allows those companies which are mostly american companies to import their products here devoid of any rules or regulations regarding pollution or any other protective laws it's really quite a brilliant scheme when you think about it and you've got to give them credit for they are much more brilliant than you could have ever imagined and they have been doing this under your nose for many many decades under the deposits and investments section we see that the state treasury through the surplus money investment fund is holding two hundred  seventy five million dollars of lottery money and it states that by law these monies can only be invested in the following categories u s government securities securities of federally sponsored agencies domestic corporate bond interest bearing time deposits in california banks savings and loan associations and credit unions prime rated commercial paper repurchase in reverse repurchase agreements security loans bankers acceptance is negotiable certificates of deposit and loans to various bond funds the government borrowing from itself so basically your california government is investing in banks it's investing your taxpayer money in banks and government securities and federal securities which then go to invest in the whole international scheme of corporatism congratulations again all of this under your nose for all of these years and finally we see us lottery data for fiscal year two thousand and nine which actually exclude some of the video lottery sales here listed by state we see the sales of the prizes and most importantly profit that's made from the lottery now remember that when they list these numbers they're listing them in millions of dollars which means that you have to add six zeros to all of these figures and so the profit in california was one billion not one thousand arizona hundred twenty nine million colorado hundred nineteen million some of the bigger ones like florida made one point two billion surpassing california's profits massachusetts with eight hundred fifty eight million dollars michigan was seven hundred twenty seven million dollars new jersey eight hundred forty nine million dollars new york state with two point five billion dollars in profit it investment profit from the lottery ohio is seven hundred two million pennsylvania nine hundred ten million texas a little over one billion and we can see that only five or six of the fifty states are not involved in this scheme and one of those is the district of columbia which is not even a state of the union but the corporation itself the federal corporation known as washington d c the united states incorporated and one last little snippet here it states that th california state lottery measures much of its success by the amount of money it contributes to california schools and colleges very important colleges are enterprise operations as well which is why college rates are so high that is profit for government in fiscal year two thousand and eight in two thousand and nine the lottery provided approximately one point four billion to education since its inception in  five the lottery has contributed more than twenty one point eight billion to california schools out of total sales and investment proceeds of more than fifty nine point two seven billion dollars so almost forty billion dollars the did not go to schools the current downturn in the economy has presented the lottery with a special challenge as it tries to maintain the sales because that's what's important in a downtrodden economy is to ensure that lottery sales remain high well thank you government it's good to know that you've got priorities and at the bottom it states that in addition to economic conditions lottery sales are hampered by restrictions that limit our ability to pay out bigger prizes based on our own experiences and those of other lotteries we believe that we would be able to increase sales and our contribution to schools by removing prize restrictions we are asking lawmakers to provide the lottery with the authority to pay out more money in prizes to our customers so we could increase sales and generate even larger contributions to california schools and colleges there is so much wrong with this statement first and foremost being that gaveling is not a solution to government is not a solution to debt is not a solution to any thing and of course when they say we are asking lawmakers to provide the lottery with the authority to pay out more money in prizes that means that they are changing the original law that was voted on by tax payers for which they justify this gambling in the first place so when you create new laws government then goes in and changes those laws to benefit its investment portfolio so there you have it the lottery scheme explained again remember the church model remember the simple raffle ticket concept and now compare that concept to what the lottery has explained here in its comprehensive annual financial report now going back to the rim of the world's little district's comprehensive manual finance report we see that expenditures are based on the following forecasts utilities are based on current year usage plus a projected five percent increase now why have i outlined that that seems perfectly normal doesn't it well yes until you realize that generally utility companies are government enterprise operations they are part of government if they are independent they're often oh and by government investments through the pension and other trust and investment funds many governments either start out or end up buying their utility companies turning these companies into government enterprise operations that are certainly for profit so in the traditional sense of government the thought of the utility company being a government agency charging even more money for their services doesn't really make sense but when we add the profit model to government government acting in nongovernmental enterprise activities we start to understand that government creates this price increase simply to make profit the highest level of governments from the treasury department in the federal reserve create a false market of inflation and deflation which also helps to increase the price of the utilities again these are for profit businesses generally oh and by the very government that is allowing the price increase government regulates its own corporations and of course charges the taxpayer for those services down here in the bottom it tells you how you can contact the district's financial management offices and it gives the e mail for jenny and company at the bottom what interests them a nice little email and tell them that you're on to their game you know that according to their comprehensive annual financial report if they paid off all their bills they'd still have over sixty million dollars worth of assets  wonder what they'd think and how they would respond to an email like that or if they even know that this is the case here's another look at the assets and liabilities and again it's important to note here that under the liabilit section we see listed the current portion of long term obligations that's the payments that are due now within the next very short period of time listed at seven hundred twenty eight thousand dollars but directly under that is listed the non current portion of long term obligations listed eight point seven million dollars these are payments for future debt that have nothing to do with the balance of net assets today in other words they're taking eight point seven million dollars off of the total listed assets and showing less money than they actually have and when we look at net assets we also see the debt service fund which shows six hundred sixty three thousand nine hundred sixty eight dollars again reserve to pay future debt now inversely nowhere listed in these net assets are listed future tax in other words the taxpayer money that's going to come in to pay for these creates your long term debts is not listed as an asset so why are we listing long term liabilities which will be paid for by future taxpayer money as a liability why are we doing this why are we listing the future liabilities without listing the future assets that will pay for those liabilities why indeed of course we have our answer it's simply the scam that's put into place to take money invest that money and then hide that money by listing future liabilities when we go to the government funds balance sheet we come to the fund balances section where it states under reserved these are the monies that are in these phones that are designated an unreserve meeting that technically they could go to be spent for any thing that government chooses but they don't they keep them in other funds and hide them from the public and so instead of paying off the future debt that we just showed we have three point four million in the general fund six point one million in the building fund for a total in just the governmental not the non governmental funds of twenty million dollars that could go right now to pay off debt here's the reconciliation of the governmental funds balance sheet and here's a look at the long term obligations at the year end which consist of general obligation bonds again required by law to be in debt through bondage and the rest is compensated absences early retirement issues and other post employment benefits totaling over one million dollars and a total of nine point four million dollars on those long term obligations here's revenues and expenditures what they spend for instruction instruction related activities general since this is something that gets reported and the budget report they're going to show a loss for the year of one point one million dollars in these governmental functions with a total fund balance  fifteen million two hundred twenty thousand dollars even though the fund balances above stated total net assets for government activities in the balance sheet of twenty million so we show a loss of one million dollars meanwhile we have five million extra dollars stuffed in there where nobody can see it this is your legal creative accounting coming straight from the california state government and the federal government here's your fetus area funds and here it states that the liabilities of the assets held are due to student groups now that doesn't mean that the five hundred four thousand dollars that is in these loans is going to go right away to student groups no again we're talking about an investment fund so that money is already invested and making a return on its investment until that money gets paid out to the student groups under the summary of significant accounting policies it states under the financial reporting entity that the rest of the world unified school district the district was organized on june twenty first one nine hundred fifty four under the laws of the state of california the district operates under a locally elected five member board form of government and provides educational services to grades kindergarten through twelfth as mandated by the state and or federal agencies it did states that the primary government of the district consists of all funds departments boards ad agencies that are not legally separate from the district again a legally separate entity is where they hide the money for rent of the world the unified school district this includes general operations food service and student related activities of the district which is basically what they report on the budget report in the basis of presentation meaning what is selectively presented to the public under funded counting it states that the accounting system is organized and operated on a fund basis a fund is defined as a fiscal and accounting entity with a self balancing set of accounts which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations restrictions or limitations the district spawns are grouped into two broad fund categories governmental and fiduciary all this is saying is that money is transferred into these funds and then the laws are set into place that require that money to be used for that funds stated purpose governmental funds are those through which most governmental functions typically are financed governmental fund reporting focuses on the sources uses and balances of current financial resources expendable assets are assigned to the various governmental funds according to the purposes for which they may or must by law be used current liabilities are assigned to the fun from which they will be paid the difference between governmental fund assets and liabilities is reported as fund balance so let's go over some of these funds and you'll start to understand why these funds were created in the first place instead of having just one generic bank account we have all these investment funds of course we have the major governmental loans again governmental a very important word because that refers to actual tax payer uses the general fund is the chief operating fund for all districts it is used to account for the ordinary operations of the district all transactions except those required are permitted by law to be and another fund are accounted for in this fund and again the only thing that's required to be in other funds is three percent of future operating costs and there is a cafeteria fund which is regulated by federal state and local resources for the really crappy food service program that all schools have very unhealthy and if i was a parent i wouldn't allow my children to eat what goes in those sloppy joe sandwiches the building fund exists primarily to account separately for proceeds from sale of bonds acquisition of major governmental capital facilities and buildings so again we put money into these funds specifically for the acquisition of new buildings ok well guess what we can put millions of dollars in that fund invest that money for many years and never actually use the money until we buy a future building in five years ten years twenty years just depends on the legislation that's written in government it's a way of putting money into fun and simply investing that money and then eventually paying for that future building with the actual money that's in the fund while the investment return from the investments made by that money in the fund go somewhere else then you have non major governmental funds and special revenue funds are funds established to account for the proceeds from specific revenue sources other than trusts or for major capital projects that are restricted to the financing of particular activities again little codes that force these funds to be open dolittle cation fund child development fund deferred maintenance fund again we put money into a fund for future maintenance we don't use the money that we have to simply pay for current maintenance we create a fund to pay for future on known and unconceived maintenance that might happen in the future meanwhile we invest the money and there's capital projects phones capital projects funds are established to account for financial resources to be used for the at it was ition or construction of major capital facilities other than those financed by proprietary funds and trust funds and we have the capital facilities fund of the county school facilities fund and the special reserve fund for capital outlay projects the word outlay simply means to spend and then there is debt service funds and you know we talked about this already but i cannot get this drilled into your head enough that this fund is specifically set up to fund debt debt that is already known about that could be paid off today but is instead being put into a fund to invest and make money meanwhile the government is paying interest on debt that it already has so it makes a profit and then charges the debt and the interest to the taxpayer and all the while reporting that it doesn't have the money to pay the debt but interest and redemption fund the bond interest in redemption phone is used for the repayment of bonds issued for a district again why the bond isn't just paid off with money that's in the fund i think we've covered that but obviously it's so that they can invest that money and make the taxpayers pay for the future debt and then there's a tax override fund which is used for the repayment of voted indebtedness other than bond interest and redemption fund payments to be financed from tax categories split into four classifications pension trust funds investment trust funds private purpose trust funds and agency funds now we covered the agency funds but perhaps one of the most important aspects of what government does with your taxpayer money are these other few disunity funs the pension investment and private purpose trust phones under the investment section and space that investments held in june thirtieth two thousand and ten with original maturities greater than one year are stated it fair value fair value is estimated based on quoted market prices at year end all investments not required to be reported at fair value are stated at cost or advertised cost fair values of investments in county and state investment pools the state commingled funds are determined by the program sponsor so again we see investments that are held as of june thirtieth with maturity dates that are far greater than one year old way where the profit will actually be made or reported at today's paper of value so while we list our future liabilities we don't list our future assets or profits by the time these investments mature the government will be making millions of dollars in profit but that is not listed as an  and the game continues on a restricted assets and states that restricted assets arise when restrictions on their use change the normal understanding of the event ability of the assett such constraints are either imposed by creditors contributors grantors or laws of other governments or imposed by enabling legislation enabling legislation imposes a lot restricted assets in the general fund represent cash and cash equivalents required by grantors to be set aside by the district for the purpose of satisfying certain requirements of the entitlement restricted assets in the capital project phones represent cash and equivalents required to be used for approved construction projects so again restricted assets simply means that money is put into a specific fund and required to stay there and tell that project or whatever that fund is designed to pay becomes a liability it remains an asset until that time and that asset is thus invested under compensated absences it states that sick leave is accumulated without limit for each employee at the rate of one day for each month worked so the government creates a fund and puts sick leave pay at the rate of twelve days per year into a phone whenever an employee takes a sick day that sick day is then paid out of that fund but once again that money is invested until it becomes a liability until the day that that employee takes that sick day that money is invested and makes a profit now very important to understand about this is that the employees do not gain infested right to accumulate sickly employees are never paid for any sick leave balance at terminations of employment or any other time therefore the value of accumulated sick leave is not recognized as a liability in the district's financial statements what does this mean it means that employees have no equity in these sick days if they don't take the sick day they lose that value that benefit government creates these type of incentives the incentive to call in sick once a month whereas otherwise people might not ever call in sick unless they absolutely had to now there's an incentive to take at least twelve days off a year and say that you're sick in this way that money could be put into office on and invested every single thing that government does revolves around this concept possible so that they can keep investing these amounts are reported in the fund from which the employees who have accumulated leave are paid again just saying that the money goes into the fund and doesn't get paid out until the day arrives on the paycheck of the a crude liabilities and long term obligations actions we reinforce what we've been talking about here all payables that crude liabilities and long term obligations are reported in the government wide financial statements in general governmental fund payables and a crude liabilities that once in curd are paid in a timely manner and in from current financial resources are reported as obligations of the phones so the money stays in the fund and gets paid in a timely matter when the long term obligation which can be years away finally gets there again that money could have paid off the debt much sooner and avoided the interest charges that are a crude but that's not how government works it's not the law it's not profitable to do it that way you profit on both ends you see because you're borrowing from yourself you're bonding the people and borrowing for money you already have you're making money on both ends as a government and if not then it's one of the government owned corporations that we've talked about in previous productions that are funding your bonds and so they are making a profit this is organized crime and it's the most extreme example you will ever see this is worse than communism socialism or any other ism you could possibly think of however claims and judgments compensated absences special termination benefits and contractual