NASA's Finances in Disarray 234
mwolff writes "Yahoo News has an article about the 'financial disarray' NASA seems to be in after a recent audit showed horrible documentation of funding. 'As NASA sets course for the moon and Mars, the space agency's finances are in disarray, with significant errors in its last financial statements and inadequate documentation for $565 billion posted to its accounts, its former auditor reported.'"
Question (Score:3, Funny)
Re:Question (Score:2, Funny)
Re:Question (Score:2)
Re:Question (Score:2, Funny)
Obligitory NASA Joke (Score:5, Funny)
I can already hear the excuses (Score:5, Funny)
Re:I can already hear the excuses (Score:5, Funny)
"Dollars?!? Fiddlesticks! I was doing these damned reports in pesos!"
Re:I can already hear the excuses (Score:5, Informative)
don't laugh. the computer that nasa used for the moon landing had 74k of rom, only 4k of ram and no external storage whatsoever. despite that it ran a real, interrupt-driven, multi-user operating system and, most importantly, it go the job done.
my source is here [abc.net.au].
Re:I can already hear the excuses (Score:3, Informative)
How do we get $565 billion with a small budget? (Score:4, Insightful)
Where does the $565 billion come from?
Re:How do we get $565 billion with a small budget? (Score:5, Informative)
Basically, it's not that they lost 500 billion, it's that the total number of accounting errors totals 500 billion...I think this is a silly way of counting errors, as it grossly inflates the size of the problem by automatically tripling the size of a problem for every mis-classified entry.
Honestly, this looks like headline-grabbing by their auditors. (Who, it should be noted, lost the NASA contract to keep doing their auditing.)
Re:How do we get $565 billion with a small budget? (Score:4, Informative)
Mostly legitimate double-entry bookkeeping, I would imagine. As others have pointed out, it's one of the right ways to do your books. Every transaction generates two corresponding entries, in such a way that the balance at the end of the day comes to zero. Railroad Tycoon is a good place to get a handle on the basics. :)
So--if you spend one billion dollars on a rocket, then you generate two billion dollars' worth of transactions--the billion dollars out to Lockheed Martin, and a billion dollars on paper for the assets received.
Lather, rinse, repeat. Take some hypothetical cases to illustrate the accounting. If NASA receives a bundle of cash from the federal government, that's two entries. If it transfers the funds internally from its general accounts to its satellite launching division, that's two more entries. If the satellite division subcontracts part of the project to an outside company, that's another two entries. You get six dollars in apparent traffic for one real dollar actually spent.
If someone makes a typo somewhere, then it gets even worse. Someone inadvertantly records a transfer to the satellite division as being transferred to the Shuttle. Oops--wrong expense code or something. A routine check catches the error a week later. Since you're not allowed to delete entries from the ledger--it makes it too easy to cheat--you now have to generate two more pairs of entries: one to reverse to original typo, and one to record the actual transfer.
If NASA amalgamates two programs into one, or splits a larger program into two or more parts, then reassigning the assets also generates transactions.
The $565 billion figure is an artifact of good accounting--it has precious little real meaning.
Here's the solution (Score:3, Interesting)
-How long till this is modded -1 Troll?
Re:Here's the solution (Score:2)
$565 billion an overestimate? (Score:5, Insightful)
If I understand it correctly, that paragraph would make it seem that the number $565 billion actually double- or triple-counts the amount of money that is poorly accounted for. Of course, $200+ billion is still not pocket change...
I'm wondering though - they don't actually say what part of that process was the problem. Making appropriate debits and credits to correct errors seems reasonable to me, but all I have to balance is my checkbook. Is there some other way to correct errors in the books? Or should NASA presumably have not been making errors to begin with?
Maybe they should have been using some of that $565 billion to hire better accountants?
Re:$565 billion an overestimate? (Score:2)
Isn't that correct behaviour? (Score:3, Insightful)
> a debit to delete the error, then as a credit in
> the correct column.
Although this makes more entries, the end result is correct. In fact, GNUCash (http://www.gnucash.org) does this for ALL your entries, and calls it double-booking or something. Maybe they just need to upgrade to the latest build?
Double-ENTRY bookkeeping (Score:4, Interesting)
double entry bookkeeping
and simply means that for every credit, there must be a corrisponding debit.
As a result, if you sum all the books, the answer should be 0.00 - if it is NOT, then there was a misentry somewhere.
For example, using GnuCash, every time I get paid, an entry debiting an account called "Paycheck" is created, and an entry crediting "Checking" is created, and the two entries are tied together. So over time the "Paycheck" account grows more and more negative. However, this allows me to see exactly how much I've been paid over time.
It's a form of error dectection and correction.
I've a cousin who is a certified bookkeeper and how has been a comptroller for several small companies - I told her about GnuCash and she was VERY interested. Pity I cannot convert her system to Linux at this time, or run GnuCash under Windows (last time I checked).
"Double-booking" is a criminal activity in which a company maintains 2 sets of books (possibly using double-entry bookkeeping on each set), in which one book is the version that gets shown to the auditors and IRS, and one actually has the real facts in it.
Re:$565 billion an overestimate? (Score:3, Insightful)
For example, I generate a report at the beginning of the month: A $100 + B $200 + C -$100 = $200
The next month, we discover that product B didn't wasn't $200, it was actually $300. Whatever. The point is, that the total as of now is $300, except that I have all these old printouts up till today that say it was $200.
If I go back in my ledger and change "B" with no audit history, then what happens to all those hard copies
A government agency with financial discrepancies? (Score:4, Funny)
All the more reason for private companies to get into the space business. I'm not saying that private companies can't cook the books, but at least there's laws in place to handle that.
Re:A government agency with financial discrepancie (Score:5, Insightful)
I'm not sure which is more easily and quickly held responsible, but I'd still rather have NASA around, trying to do the job. I'd explain further, but my mind is all discombobulated from lack of sleep.
~UP
Re:A government agency with financial discrepancie (Score:2)
Martha Stewart didn't do anything illegal financially. In fact, the government dropped the charges of financial wrong-doing because there simply was no evidence that she did anything wrong. What Martha Stewart was actually eventually convicted of was attempting to cover up the alleged wrongdoing - in other words they convicted
The missing half a TRILLION ... (Score:4, Funny)
X-files budget? (Score:4, Funny)
$565 billion posted to its accounts??? (Score:5, Funny)
With that kind of cash, screw Mars, let's go straight to Europa.
Re:$565 billion posted to its accounts??? (Score:2)
Re:$565 billion posted to its accounts??? (Score:2)
Enjoy
All these worlds are yours . . . (Score:2)
If their MONEY is in such condition... (Score:3, Insightful)
If their MONEY calculations are in such condition, how do their spaceships even rise off the ground?
Re:If their MONEY is in such condition... (Score:5, Funny)
"If their MONEY calculations are in such condition, how do their spaceships even rise off the ground?"
Apparently by the explosive combustion of billions of small, unmarked bills crammed into the fuel tank.
I agree (Score:2)
Re:If their MONEY is in such condition... (Score:2)
Anybody that says there is no such thing as 'truly random numbers' needs to let my wife balance his checkbook for a month.
Plus or minus fifteen hundred dollars ($1,500.00) is considered 'close enough' in her world.
Comment removed (Score:5, Insightful)
Re:umm (Score:5, Funny)
At that rate, it'd take them oh, say 40 years to save up 500+ billion.
Something does not compute.
Unless someone accidentally used different monetary units...
Re:umm (Score:5, Funny)
rtfa (Score:3, Informative)
if that be the case, then where does this $565 billion number come from? it seems that they have simply counted the same pile of money for several times, without noticing that it has already been taken into account: "a $40 billion contract that stretched over nine years and several separate N
Where is the money? (Score:3, Interesting)
According to its own auditors, the US Government is posting not millions, not billions, but trillions of dollars in "undocumented transactions." This means, the financial officers responsible simply have no idea what a particular financial flow was used for, or lack the paperwork to rule out fraud or theft.
The IT contractors that built the systems that can't keep track of the money (AMS, Dyncorp, CCC, CACI, and Lockheed Martin among others) have had their multimillion dollar "support" con
I can hear my grandpa now... (Score:5, Funny)
Put the general ledger on the web (Score:5, Interesting)
Conversion?? (Score:4, Funny)
Not that NASA would be so stupid as to forget to convert units....
compared to? (Score:2, Interesting)
Why is
Re:compared to? (Score:5, Insightful)
An error of this magnitude is inconceivable. It really makes me think the figure must be $565 million, in which case this is pretty small potatoes for a big organization that's been around for a long time. (Lose track of $28 million a year - 0.2% of your budget - for 20 years and there's your number.) It certainly reflects inefficiency at NASA, but is there anyone, anywhere, who would be surprised by inefficiency at NASA?
Re:compared to? (Score:2)
You can't.
Doomsday? (Score:2)
Re:Doomsday? (Score:2)
You see.... (Score:2)
faith-based accounting (Score:2, Interesting)
Re:faith-based accounting (Score:4, Informative)
Yes, the recession is bad, and on-going; I'm not going to make apologies for the current President because I, myself, don't like him. But, as a student training in history, I felt that I had to correct that one (run-on) sentence of your short but panicked post.
I'm not going to tell you what to do, but I do advise that you at least take a few deep breaths.
~UP
auditing money, auditing humans (Score:3, Interesting)
Not at all true (Score:2)
I was actually picked for the household survey and we got a phone call every month and they asked a whole bunch of questions about all the peope in the house, who was working, who was looking for work, and who wasn't and why they weren't.
So, any attempt to say that the rat
surveys then surveys (Score:2, Interesting)
U-3, which
And yet, you've really introduced nothing to the.. (Score:2)
Consider first your "analysis" by looking at the statistics being presented. Did the structural problems that you're now discussing suddenly emerge during this recent time? If the methodology has not changed then the built-in error in the report remains the same.
So, then you can go back and analyze the other portions of the report covering part-time, discouraged, and other categories and you'll find that there is no historically high numbers in this area either.
The simple fact is that these
Re:faith-based accounting (Score:2)
2> The Bush Jr. "unemployment" numbers are cooked
3> I wrote "in real terms", like headcount of unemployed, or wealth lost, or any other measure of economic damage
4> You can pick any single measure you like, but this economy is screwed worse than just a stock market speculation over-leverage
5> I wrote a long, complex sentence that is not a run-on
6> I'm not panicking - I retired before the bubble popped, and am doing rather well, in spite of t
Re:faith-based accounting (Score:2, Interesting)
Regardless of comparisons, the economy is not going well. I think it worthwhile to look at this graph [bls.gov] - specifically, do the graph from 1969 (the year Nixon took office) to 2004. Note that under President Carter, infamous as a "bad president," the percentage of the population employed rose dramatically. Under Reagan's first term, the rate dropped precipitously, only rising above Carter's levels in Reagan's second term. Under Bush 41 the rate plateaued, then dropped again, and stayed at the lower level unti
Re:faith-based accounting (Score:3, Insightful)
I think it would be hard to argue that our current recession is larger (or worse) than the great depression. Perhaps if you look only at the raw number of layoffs it could look as bad, but obviously that is not an accurate representation.
I was working at Intel from 2000 - 2003, and can remember exactly when the economy started to go south. It was in the fall of 2000 (only 7 months after Bush took office)... We
Re:faith-based accounting (Score:2)
Re:faith-based accounting (Score:2)
See als
Re:faith-based accounting (Score:3, Interesting)
Everyone has an excuse they stopped taking risks and creating wealth starting around 2000. And the same (minority, but huge) gang of pooped Americans invited Bush Jr to manage the economy they were abandoning. And their boy is such a mismanager that even the resilience and vast wealth (and its production system) created under Clinton weren't enough to keep the spiral from
Re:faith-based accounting (Score:3, Insightful)
But to go after Bush Sr. shows that you are simply hitting a bunch of republicans. Poppa Bush was handed an irresponsible deficit that was on its way up. By the end of his 4 years, He had started the turn in the deficit, which was the hard part. In particular
Re:faith-based accounting (Score:2)
Hold it right there. You might be interested to know that George Bush Snr was actually a member of the Reagan administration. In fact he was even the Vice President!
Blaming the previous admin for problems when it was the other party is one thing. Blaming your own party is a different matter.
NASA probably did not get into th
Re:faith-based accounting (Score:2)
Yes, but we do not know to what extent that Bush participated. In fact, Tthe general belief is that Reagan ran it all and that Poppa had very little say or control. Poppa Bush spoke against the vodoo economics (supply side) that Reagan preached, and showed that as soon as he got in, he worked at reversing the Reagan's economic approach. He sta
Re:faith-based accounting (Score:2)
Re:faith-based accounting (Score:2)
Re:faith-based accounting (Score:2)
----
You do realize that a lot of the surplus came from the taxes generated by the false economy that was the
Re:faith-based accounting (Score:3, Interesting)
Re:faith-based accounting (Score:2)
For those interested the following is per capita debt adjusted into 2003 dollars (picked decade boundaries for the hell of it and to make math easier).
1940 - $502.65
1950 - $1,288.72 (15.64% annual rate of change)
1960 - $1,000.20 (-2.24%)
1970 - $880.54 (-1.20%)
1980 - $892.14 (0.13%)
1990 - $1,812.23 (10.31%)
2000 - $2,188.92 (2.08%)
2003 - $2,372.25 (2.79%)
Based on population estimates from the U.S. Census Bureau [census.gov] (with 2000 and 2003 estimated from 1999 numbers using 0
Re:faith-based accounting (Score:2)
1940 - D $502.65
1950 - D $1,288.72 (15.64% annual rate of change)
1960 - R $1,000.20 (-2.24%)
1970 - D $880.54 (-1.20%)
1980 - R $892.14 (0.13%)
1990 - R $1,812.23 (10.31%)
2000 - D $2,188.92 (2.08%)
2003 - R $2,372.25 (2.79%)
I note that the 1950 numbers include fighting WWII (largely nondiscretionary increases), while the 1960 numbers include the divi
Re:faith-based accounting (Score:2)
The 1950-1960 numbers didn't really have any war dividends (in the traditional sense of the phase) but saw a strong growth in the economy during that time which increased tax income (among other tax code changes). In fact spending on military was rather higher during this time period.
The following outlines the percentage of total federal outlays for nations defense... notice the effects of the start of the cold war.
1950 - 32.2%
1952 -
Yeah but I'm making more money (Score:2)
I'm making 40% more under Bush than Clinton. GO Bush 04.
Re:Yeah but I'm making more money (Score:2)
The usual. . . (Score:2, Insightful)
NASA has been under funded since the NIXON administration. Every year since the last of the Moon missions NASA has been yoked to the Albatross of politicians who demand more and more from smaller and smaller budgets. Remember Senator Garn hitching a ride?
What? A short list:
Spacelab - allowed to drop from a decaying orbit in 1979 - but the budget cuts made it apparent in 1977 tha
Re:The usual misinformation - from RWW (Score:2)
Do you remember the price of gasoline per gallon in 1970? How about Milk? What was the average salary for a family of four? What was NASA's budget?
Well, the US Government does keep track of those figures and they still publish them. Try the gov docs section of your local depository library or, http://www.lib.umich.edu/govdocs/steccpi.html for a quick review.
Spin-offs from NASA research include
CNN is not a primary source (Score:2)
Let's be really honest, tell me that you believe *everything* that you see/hear/read on CNN. Then tell me that the paper records from the past 30 years are all bogus.
I stand by the historical record and the primary sources. You have to do quite a bit better than reference "CNN" if you expect to make an argument worth the electrons you control.
I pointed you
Rand, huh? (Score:2)
I'm sorry to break this to you fella, but the world does not operate on Rand principals. Bush doesn't operate on Rand principals. Hell, Ayn Rand didn't operate on her own principals.
I grew up a few blocks away from the author, Ayn Rand. Remember that is all that she ever was: an ex-pat Russian author. She never held office and she never did anything but put pen to paper to create a utopia of her own
"A human being in this world" (Score:2)
Turning to you: "A human being in this world", eh? Quite interesting. Do you think that you are a freebooter? That the state has to give you the right to a line-item veto of your tax support of the state? Not in this world. Try it- the IRS has a special, Earth-bound Hell, for tax protesters.
As for way you "believe" or don't about the repor
Re:The usual. . . (Score:2)
This funding crisis leads to two murderous flights of the shuttle. Richard Feynman and a ton of other really brilliant people investigated the first disaster. We really didn't need to investigate much because the foam strikes were a known problem - but management denied it and had the crews continue to risk their lives.
Do you
Culture follows from funding (Score:2)
Well you know what they say (Score:4, Funny)
yet again, private industry does better! (Score:3, Insightful)
yet again gov't fails to lead the industry. look at the accounting issues in tyco, enron and worldcom. looks like nasa is just trying to play catchup to private industry!
Dammit, Jim! (Score:2)
This is rocket science, not accounting!
Guess it shows which is harder.
They still don't get it. (Score:3, Interesting)
NASA has had no real direction for 20+ years. The space shuttle hobbled it beyond compare. It was a stupid 70s pipe dream that should have died on the drawing board. If they are going to build a spaceplane then build one, don't build a rocket lifted glider.
Hopefully the X-Prize will show people that we are capable of putting stuff into space without a monolithic Government entity.
The goals of a moonbase and Mars landing are laudable. They are true attempts to move forward. The space station was a sick waste of money and worse, we were forced to keep the shuttle around just because of it. A base on the moon would finally move us forward. We aren't going to get there with the old NASA mentality which is still stuck in the 70s.
Frozen alien bodies... (Score:2)
All that money that "disappeared" went towards funding research on the frozen alien bodies they found in Roswell. I know this for a fact and I have undeniable proof: First, there was a made-for-television movie about aliens crash-landing in Roswell. Second, I was told
Actually (Score:3, Interesting)
So this is nothing new. NASA abuses its position in power to get a lot of cash for doing a whole lot of nothing.
Re:this isn't suprising (Score:3, Insightful)
Re:this isn't suprising (Score:4, Informative)
Do you have the vaguest notion what building a space elevator would entail? It's a GREAT idea. And when we have autonomous factories that can turn asteroids into carbon nanotubes, it's going to be the only way to fly.
But, for now, with our current level of technology, it is a non-starter.
Re:this isn't suprising (Score:2)
I've seen some materials from the company that's plugging the space elevator, and it's the same story. They essentially make up a number for what the cost of the elevator would be, then base their rosy financial picture on that.
Sean
MOD DOWN PLEASE! (Score:2)
Re:this isn't suprising (Score:4, Informative)
These are just electronic accounting anomolies because of NASA's new Integrated Financial Management system (which has the huge task of combining 10 completely different systems at the field centers into one agency-wide system for accounting). Everyone I know pretty much concludes it's a complete fuckup of a system and whoever designed it should be shot, however, in NASA's defense, this of course does NOT mean they overspent $565 billion. NASA's budget was around $15 billion this year so you can easily imagine that overspending by $550 billion is impossible. It's all accounting oddities, not actual monetary loss. Think of it as a learning curve.. NASA operates as 10+ distinct field centers that honestly have nothing in common except the name of the agency. They all fight for program dollars, all have their own management structure with their own agendas, and all fight to try to steal programs from other centers. It's really pathetic when you think about it. Marshall Space Flight Center in Huntsville, Alabama is just about the worst when it comes to stealing programs from other centers IMHO. Oh yea, BTW, IFM is handled out of MSFC. It figures a bunch of backwoods hicks living in the asshole of America (Alabama) couldn't add and subtract numbers correctly. They get lost after they count to 20 and exhaust the number of fingers and toes they have so it's understandable that figures like $2 billion here or $3 billion there would utterly confound them.
Re:this isn't suprising (Score:2, Insightful)
"It figures a bunch of backwoods hicks living in the asshole of America (Alabama) couldn't add and subtract numbers correctly. They get lost after they count to 20 and exhaust the number of fingers and toes they have so it's understandable that figures like $2 billion here or $3 billion there would utterly confound them."
This is not an accurate characterization of the whole state, nor of all i
URL IS BAD! MOD PARENT DOWN! (Score:2, Interesting)
So this won't be an entire waste of a post, the NASA stuff isn't surprising--my grandpa worked for NASA way back when, and the attitude was, "If we can get it in the, good. If we can get it in the air and make it stay within budget, they'll give us less money next time." This isn't an environment conducive to good bookkeeping.
Re: (Score:3, Funny)
Re:URL IS BAD! MOD PARENT DOWN! (Score:3, Informative)
Re:URL IS BAD! and clipboard text stealing (Score:2, Funny)
Heh, what a stupid troll the original was, then. Making people copy and paste the link just before stealing their clipboard text. Duuuuh.
I copied about 16 megs of random letters and numbers and tried going to that link a few times, just for good measure.
Re:URL IS BAD! MOD PARENT DOWN! (Score:2)
Re:Perhaps militarization is the solution (Score:4, Interesting)
Re:Perhaps militarization is the solution (Score:2, Insightful)
The US isn't a colony because the former colonists kicked the British out... twice. The rest was taken from Mexico in a war, bought from Russia and Spain, and taken, by treaty, purchase, and war, from the Native Americans. (We only bought the right to obtain the land from the French, not the land itself.)
As for the idea about putting the area above a country within the definition of that country's borders, I think there may have already been
4 of 5 orbital mechanics disagree... (Score:5, Insightful)
This is completely impractical for everything except Geosynchronous satellites. Most satellites' orbits are designed to accomplish specific mission objectives, and if they happen to fly directly over (say) Burma, North Korea, or Zimbabwe that's just how it works. If you are interested in general orbit mechanics, you could consult Bate, Mueller and White's Fundamentals of Astrodynamics [doverpublications.com]. More specifics about orbit mission design are in Wertz and Larsen's Space Mission Analysis and Design [astrobooks.com]. Each is a classic.
Political problems: This would give every 2-penny tinpot dictator in the world license to put up a tollbooth in space. Should a scientific satellite that measures worldwide ocean wave heights have to get permission from said dictators to fly over their countries? How about search and rescue satellites? Telecommunications? GPS?
As to the issue of Moon resources... well I'm not too sure what sorts of treaties have been ratified, but I think it's a little early to worry about it. Even if there are tons of He-3 on the Moon we have no way to make use of it. Just about every other material resource on the moon (Al, O, Mg, etc) is in abundance on Earth. These resources will be useful for in-situ manufacturing, but economically not worth the candle here.
Re:Perhaps militarization is the solution (Score:4, Informative)
As several other posters have pointed out, the physics of orbiting the Earth pretty much makes this a idea no-go. There was some talk about this in the pre-Sputnik days, and the US was quite worried about how to handle the resulting jurisdictional mess. Luckily for them the USSR launched Sputnik, which then provided a precedent for orbital space being managed differently than airspace, and we ended up with the current system.
As I was writing in my blog, as it is now, space seems a bit like the wild west - noone cares who they fly over, or what's orbiting above them, or whatever.
This is fundamentally untrue. For starters, the geostationary belt (aka Clarke orbit, or 35,786 km), which is the only orbit that can be reasonably tied to geographical location, is very tightly managed. Different countries have assigned "slots" in GEO, and can use them or sell them as they see fit. Missions in other orbits require a certain amount of coordination in order to ensure that collisions don't take place, and the RF transmission don't interfere with each other.
Or better yet put them all under the total control of the UN, as things too big for one nation to claim for itself.
Which is in fact roughly what was done. You may want to look at the 1967 Outer Space Treaty [state.gov], and then remove your foot from your mouth.
but just because the US is powerful right now doesn't mean it should have total rights to everything it finds in space
It doesn't. See above.
Personally I wish there were more collaborative space exploration. Instead of 3 countries/consortiums sending a probe each to Mars, we could have a probe to Mars, one to Europa, and one to Venus.
The recent Mars Exploration Rover carried a German (IIRC) spectrometer. It was also going to be doing some communications via the European Mars Express mission (don't know if it actually did or not). Also, note that MER, Mars Express, and the Japanese Mars mission were all carrying different instruments and had different goals. In that sense, they were all performing part of a collaborative exploration of the planet Mars.
Re:the moon is -not- on the way to mars (Score:2)
Re:yet another reason to get rid of nasa (Score:2, Informative)