October 4th, 2018, was a busy news day. The only thing that did not make the news was an announcement by a little-known government body called the Federal Accounting Standards Advisory Board " FASAB " that essentially legalized secret national security spending. The new guidance, "SFFAS 56 " CLASSIFIED ACTIVITIES" permits government agencies to "modify" public financial statements and move expenditures from one line item to another. It also expressly allows federal agencies to refrain from telling taxpayers if and when public financial statements have been altered. To Michigan State professor Mark Skidmore, who's been studying discrepancies in defense expenditures for years, the new ruling ... was a shock. "From this point forward," he says, "the federal government will keep two sets of books, one modified book for the public and one true book that is hidden." I spent weeks trying to find a more harmless explanation for SFFAS 56, or at least one that did not amount to a rule that allows federal officials to fake public financial reports. I couldn't find one. This new accounting guideline really does mean what it appears to mean. Late last year ... we saw an incident in which two employees of the National Reconnaissance Office and the NSA were arrested for procurement fraud in Colorado in a case involving a classified signals intelligence program. In that instance, the site turned out to be owned by the Department of Health and Human Services.