Government Accounting: The Ken Lay Way.

As reported over the weekend in the NYT, an audit finds that the US Agency for International Development (AID) has been using funny math to hide huge cost overruns for Iraqi reconstruction projects. “The agency hid construction overruns by listing them as overhead or administrative costs, according to the audit…[for one new power station]the project’s overhead, a figure that normally runs to a maximum of 30 percent, was a stunning 418 percent.