Here is a look at fiscal management cycle for United States at the State level.

1. Deficit and Debt by States –
United States
PAUL YOUNG CPA CGA
APRIL 18, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Internal Controls
• SME – Financial Planning and Analysis
• SME – Business Strategy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 Highest per capita debt / States
 Bottom 10 debt per capita / States
 Fiscal Management Cycle / States
 Bond Rating / States
 Performance Audits and Operational Audits
 Training/Development Courses

4. Top 10 States – Highest per Capita Debt
Source - https://www.usgovernmentspending.com/compare_state_debt

5. Bottom 10 States – Debt per Capita Debt
Source - https://www.usgovernmentspending.com/compare_state_debt

6. Fiscal Management
Cycle
 40 states cannot afford to
pay their bills -
https://www.forbes.com/s
ites/mayrarodriguezvalla
dares/2018/09/24/fortyus
statescannotaffordtopaya
lloftheirbills/#4b8989607
18a

7. Bond Rating / States
Source - https://www.treasurer.ca.gov/ratings/current.asp

8. What is performance-based auditing
Source - https://chapters.theiia.org/vancouver-island/Events/Pages/Performance-Based-
Auditing.aspx
Auditing in the public sector means more than simply determining if controls are in place and regulations are being
followed. Public sector auditing, in many cases, means you will be dealing with varied constituents and often working in a
more public forum.
For new and experienced government and public sector auditors facing these unique challenges, this course will provide
new insight that includes assessing whether or not control frameworks are working to further an organization’s goals and
achievements. By learning to review an organization or department’s objectives and assess the risk to achieving them,
public sector auditors in this program will be able to effectively evaluate the organization and ensure that it is working
toward or maintaining a high level of performance.
Areas of focus:
• Management Issues, Concerns, and Functions
• Control Frameworks
• Risk-based Approach to Performance Auditing
• Value-for-money Approach to Performance Auditing
• Performance Measures

9. Value for Money
Source - https://www.iasplus.com/en-ca/standards/assurance/other-canadian-standards/section-ps-5400-value-for-money-auditing-in-the-
public-sector or https://www.niauditoffice.gov.uk/value-money-audit
An independent evidence-based investigation which examines and reports on whether economy, effectiveness
and efficiency has been achieved in the use of public funds.
Objectives
The primary objectives of value for money (VFM) audit are to:
• provide the Assembly with independent information and advice about how economically, efficiently and
effectively departments, agencies and other central government public bodies have used their resources;
• encourage audited bodies to improve their performance in achieving value for money and implementing
policy; and
• identify good practice and suggest ways in which public services could be improved.
An Organizations seeks to promote better value for money by highlighting and demonstrating to audited
bodies ways in which they could make improvements to realize financial savings or reduce costs; guard against
the risk of fraud, irregularity and impropriety; provide a better quality of service; strengthen and enhance their
management, administrative and organizational processes; and achieve their aims and objectives more cost-
effectively.

10. Can any
organization
undertake
Internal audit
and controls?
All organizations can set up internal control process and/or reporting:
 Triggers can be created based on pre-defined measurement and/or control
framework - https://www.investopedia.com/terms/c/continuous-auditing.asp
 Performance Measurements can be set up as part of measuring program
outcomes against success criteria. (AI and BI tools can be set up to help with
performance measurements reporting)
 External Audit firms can work with organizations to set up control
frameworks, performance measurements, etc.
 IT personal/Accounting teams can set up triggers with databases and/or
accounting software by establishing audit reporting (i.e. error reports,
reconciliations reports, security access reports, etc.)

11. What needs to be done
 All levels of governments need to moved forward with digital framework
 All levels of governments need to adopt analytics and data sciences
 All levels of governments need to have audited risk management reports
 All level of governments will need to be transformed
 Pension funding
 Compensation
 Review of both discretionary and non-discretionary spending

12. Training and Development
 If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
 These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies