Does Uncle Sam need a CFO?

Over this past weekend, my better half and I spent two days in the Berkshires, the majestic mountain range located in Western Massachusetts and home to a number of artsy and history-laden towns such as Stockbridge, Lenox and Great Barrington.

We did the requisite tour of the famed Norman Rockwell museum as well as a number of other galleries and relaxed on the rows of rocking chairs on the gargantuan porch of the landmark Red Lion Inn.

But as has been my custom of late, I tend to run into people I know in such far away venues and this was no exception.

While filling my coffee cup back at the hotel I found myself standing next to one Joseph DioGuardi, a two-term U.S. Representative from New York and former partner at Arthur Andersen.

Currently, he heads Truth in Government, a non-profit watchdog organization designed to help achieve fiscal responsibility in government. His book, “Unaccountable Congress” chronicles reasons behind the quantum leap in our national debt from $800 billion in 1980 to over $20 trillion currently and urges massive reform on accountability via a multi-pronged plan – including the Cabinet-level creation of a national Chief Financial Officer.

His message is similar to the one former Comptroller General David Walker delivered during his “Fiscal Wake-up Tour” several years ago, warning of looming Armageddon via the unfunded liabilities of our entitlement programs – Social Security, Medicare and Medicaid – which is now approaching $100 trillion (yes, with a “T”).

Now I’m doubtful that I or anyone else who is not a partner at global accounting firm is oblivious to the fact that Washington is out of control when it comes to use of the nation’s credit card.

DioGuardi’s multi-point plan for reining in government spending play out as such:

1. Covert the current system of cash basis accounting for the nation’s budget to GAAP.
2. Publish clear and accurate information as required by GAAP detailing all spending and spending commitments and clearly delineating our debt-to foreign sources ratios.
3. Making the Chief Financial Officer a Cabinet-level post and transfer all financial reporting duties currently overseen by the Treasury Department to the CFO and a team of independent auditors.
4. Create a new independent body like the Federal Reserve System to institute sound budgeting and transparency about the real size of our national debt and budget deficits.

I will admit it was one of the most informative and interesting times on a coffee line ever – although the time supermodel Cindy Crawford was compressed against me at an overcrowded Starbucks in New York City might qualify as a notable exception.

I’ll let far brighter minds than mine determine the best course of financial reform in Washington and hopefully that will come sooner rather than later. Because no matter what side of the aisle you sit, before too long you know the nation’s credit card will invariably start getting declined.