“The President proposes, Congress disposes”

Below is part of the minutes from the operation committee meeting just past. At the end is a little explanation of the reason for the shortfall of more than a Million dollars from the 2013 Budget.

" RESERVES

There has been discussion regarding the adequacy of the reserves for roads, irrigation,

and other major components of our facilities. An analysis of the requirements has been

completed based on the finding of or auditors and internal discussions.

At June 30, 2014, the reserves aggregate $554,375 and are supported by cash in the

bank. The UCO reserves as recorded were always supported by cash in the bank

accounts.

The December 31 , 2013 draft report of the UCO audit was released on May 1, 2013. In

this report, it is stated that the aggregate amount of reserves at Dec. 21 , 2013 amounted

to $423,872.

The estimated underfunded reserve at December 31 , 2014 is expected to be $1 ,152,561

This is due to inadequate funding in the current and prior years. Examples of this are as

follows:

• During the 2013 Budget process, the Delegate Assembly approved reserves for

2013 of $385,915, although $456,061 was required per the audit report. This

amounts to a shortfall of $70,146.

• Similarly, during the 2014 process, the Delegate Assembly approved reserves for

2014 in the amount of $291 ,000 although the auditor's suggested a required

amount of $493,440. This amounts to an added shortfall of $202,400.

A recent review of the aggregated UCO reserve requirements has been

completed in preparation for the upcoming 2015 UCO Budget. The result of the

review disclosed a net shortfall in the aggregate reserves at December 31, 2013

in the amount of $715,711

FS 718 requires that adequacy of reserves be reviewed and maintained,

We can mitigate this shortfall in a systematic manner over a period of not less than 5

years.

In summary, the required aggregate reserve for UCO should be $1 ,817,433 at December

31 , 2014 as compared with the projected amount of $664,872. This shortfall of

$1,152,561 could be funded at the rate of 20% per annum or $226,912 over the next 5

years.

This amount will be in addition to the measured and required 2015 addition of $704,100.

The 2015 budget for reserves should be $931 ,012, rounded to $930,000 or $9.87 per

month, as compared with the $3.09 per month in this current year's 2014 budget."

So for those of you who have gotten this far. This is still part of the blame game. The Delegates are at fault. Oh, are they? Well let see how many of you have ever heard of the expression the President Proposes and Congress disposes. If you know your Constitutional/Governmental History, it is the president's job to propose the ratification of a treaty/budget, and it is up to the Senate/delegates to either approve or disapprove it.

 So where does the Great One, The UCO President get off saying it is the delegates fault. Not so. Can you imagine the Delegates sitting there and saying No we cannot approve $1 ,817,433. instead we will approve  $664,872, leaving us with a shortage of $1,152,561. because that is better?

The United States budget process is the framework used by Congress and the President of the United States to formulate and create the United States federal budget. The process was established by the Budget and Accounting Act of 1921,the Congressional Budget and Impoundment Control Act of 1974, and by other budget legislation.

The CV budget process is the framework used by the Delegates and The UCO President to formulate the CV Yearly Budget. The President Proposes, the Delegates disposes. 

The President proposes, Congress disposes

So who leads the charge to this shortfall? 

Mr.David Israel our leader! You betcha!

So the above is a part of the story. The rest of the story, actually, the  beginning of the story, is contained Eduardo's Scandals series. Specifically Scandals #7.Here is a link to that article and a link to all the scandal posts

Are we at Recall Yet?