Homeland Security managed to lose half the money; FEMA's a freakin fountain of fraud?

KPMG audit of Homeland Security's financial books came out. The numbers are pretty bad:

The Unite States Coast Guard (Coast Guard) was unable to provide sufficient evidential matter or make knowledgeable representations of facts and circumstances, that support transactions and account balances of the Coast Guard

-snip-

Particularly with respect to fund balances with Treasury, accounts receivable, actuarially-derived liabilities, environmental and legal liabilities, operating materials and supplies, certain categories of property, plant and equipment, undelivered orders and changes in net position, and adjustments both manual and automated, made as part of the Coast Guards financial reporting process.

The least secure thing at the federal Homeland Security behemoth is the checkbook.

Over at Firedoglake they parsed the numbers as so:

Here’s my favorite. It’s a doozy folks. You may want to read it twice: FEMA was unable to fully support the accuracy and completeness of certain unpaid obligations, and accounts payable, and the related effects on net position, if any, prior to the completion of DHS’s 2006 PAR. These unpaid obligations, as reported in the accompanying DHS balance sheet as of September 30, 2006, were $22.3 Billion or 46% of DHS consolidated unexpended appropriations at September 30, 2006. [emphasis mine]

So basically half the money has pretty much walked off the balance sheet off to profitable places lacking paper trails.

You can get the KPMG audit report in Accountant Language in a giant PDF here.

A government employee recently advised me that there's no oversight on the contracts with private companies in Homeland Security:

"What they do is, they set up a new bureaucracy, and then they put the money for the black ops in there. No one's looking at those contracts."

And now the money has plainly walked off..... FEMA money has just vanished in mountains.