Cdn. Ann. Fin. Rpt.- Testing Cdn's Benign Neglect

An Open Letter to the Governor General of Canada

Your Excellency,
cc. Prime Minister Harper and Finance Minister Flaherty,

I have read through the just-released Annual Financial Report for 2006-07 and accompanying Fiscal Reference Tables and wonder if a few questions can be answered.

Statement of Assets and Liabilities

Without a fuller technical explanation vis-a-vis the sound-biten Press Release, I am forced to believe that your 'new' Stewards of the Crown's Assets & Treasury are trying to misrepresent their Fiscal activities, or, at a minimum, not disclose the reasons for their actions.

Why did the public announcement accentuate the Balance Sheet's NetNet Debt (aka Accumulated Deficit,aka Federal Debt -see Ann Fin Rpt Highlights Pg.7) reduction of ~$14.231Billion, when the Gross Debt (aka Total interest-bearing debt) decreased by ONLY ~$1.821Billion? -see- Ann Fin Rpt - Table 9, Pg.25

The Annual Report's Table 9 shows "Total financial ASSETS" increasing ~$16.299, "Total non-financial ASSETS" increasing by ~$1.19Billion thus allowing a lower (net) amount for "Net debt" (down ~$13.041B) and permitting the (netnet) accounting manoeuver known as the (deliciously dis-informative) "Federal Debt" to be entered as down ~$14.231Billion - and to be announced with great fanfare.

If we are not actually lowering interest-bearing debt by an amount anywhere near what your Stewards say, but are in fact applying most of the "surplus" to increased government Assets , why do you allow them to make such readily-disprovable claims?

Do your temporary-Stewards believe we won't check? or do these Custodians-of-the-day think we are just too stupidly (ie beyond benign) neglectful to care?

Note #4 Contingent Liabilities -Condensed Financial Sttmnts

With all due respect, Governor General please ask for a fuller explanation to be made public on the ~$897.49 BIllion in "insurance in force relating to self-sustaining insurance programs operated by three agent enterprise Crown corporations .... . (that)The government expects ... will cover the cost of both current claims and possible future claims " see Ann Fin Rpt - Notes to the Condensed ... Note#4, Pg.28