Send a Tweet
Most Popular Choices
Share on Facebook 13 Share on Twitter 3 Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
General News

Detroit is Not Broke!

By   Follow Me on Twitter     Message Scott Baker       (Page 9 of 10 pages) Become a premium member to see this article and all articles as one long page.     Permalink    (# of views)   7 comments, 3 series

Related Topic(s): ; ; ; ; ; , Add Tags
Add to My Group(s)

Must Read 4   Valuable 4   Well Said 3  
View Ratings | Rate It Headlined to H4 8/5/13

Become a Fan
  (81 fans)
- Advertisement -

My friend, that means we are already sitting at over $12 billion in current assets, despite the CAFR statement of net assets claiming only $11 billion. And we've only looked at two types of funds.

How about the "discretely presented component units" (page 62-63)? They have assets of over $500 million, long-term debt of $166,728,140, and only reported as $214,130,890 or less than half their asset value.

Then you can read how some tricks work in the "Notes to financial statements":

(j) Deferred Revenue

- Advertisement -

Deferred revenue represents revenues received, but for which the revenue recognition criteria have not been met . Accordingly, these revenues are deferred until such time as the revenue recognition criteria is met.

(So why don't they refer liabilities until they are actually current liabilities?)

(k) Bond Premiums, Discounts, Issuance Costs, and Deferred Amounts on Refunding

- Advertisement -

In the government-wide and proprietary fund financial statements, bond premiums and discounts are deferred and amortized using the effective interest method. Issuance costs (deferred charges) and gains and losses (deferred amounts) on refunding are deferred and amortized over the life of the bonds using the straight-line method.

In other words, the liabilities reflect things like interest, so the actual liabilities of today are much less without future interest charges.

On page as "Interest paid on Bonds, Notes, and Leases", we see interest on just Enterprise funds at ($224,029,617).

I suggest reading the notes section.


Clearly, the CAFRs need an independent audit, not from an emergency auditor who specializes in bankruptcy filing, but from a team of unbiased forensic accountants out to measure and present a realistic picture of Detroit's assets, liabilities, and projections for both in the future.

- Advertisement -



What about the surrounding area?

Next Page  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8  |  9  |  10


- Advertisement -

Must Read 4   Valuable 4   Well Said 3  
View Ratings | Rate It

Scott Baker is a Managing Editor & The Economics Editor at Opednews, and a blogger for Huffington Post, Daily Kos, and Global Economic Intersection.

His anthology of updated Opednews articles "America is Not Broke" was published by Tayen Lane Publishing (March, 2015) and may be found here:

Scott is a former President of Common Ground-NYC (, a Geoist/Georgist activist group. He has written dozens of articles for (more...)

Scott Baker Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Obama Explains the FEMA Camps

Was Malaysian Flight MH370 Landed Safely in Afghanistan?

Let the Sun Shine on a State Bank in Florida

Batman, The Dark Knight Rises...and Occupy Wall Street Falls

The Least Productive People in the World

Detroit is Not Broke!