After an audit found that the Department of Defense couldn't account for $6.5 trillion in non-black-budget spending, Michigan State University State and Local Government Finance and Policy Chair Mark Skidmore assembled a team to audit the Housing and Urban Development agency, uncovering $351 million more in "undocumented adjustments" to HUDs spending since 1998. Read the rest

Lax enforcement from the SEC has allowed the biggest companies in America -- 90 percent of the companies in the S&P 500, led by the faltering energy sector -- to ignore the "Generally Accepted Accounting Principles" (GAAP) in presenting their financial information to investors, manufacturing nonexistent profits in quarters where they suffer punishing losses. Read the rest

Hollywood, legendary home of creative accounting, wants a new round of subsidies. David Sirota at Pando Daily:

Now that California has a budget surplus, the question for the state’s lawmakers is pretty simple: Should they use all the new money to reverse recession-era cuts to social programs. Or, should they spend up to $400 million a year of the new resources on more taxpayer handouts to the film industry? Yesterday, 59 California state legislators called for the latter, sponsoring a bill to increase tax credits to the film and television industry. Call it yet another Hollywood heist, this one engineered with a double-shot of chutzpah.