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How to fix the Governance Model for the Public Sector (Government)

paul young cpa, cga
paul young cpa, cga
paul young cpa, cgaConsultant at paul young cpa, cga

Here is my look at the public (government) sector governance model on how to improve governance for all levels of government.

How to fix the Governance Model for the Public Sector (Government)

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HOW TO FIX
THE
GOVERNANC
E MODEL
FOR
GOVERNMEN
T
Presenter Name: Paul Young CPA CGA
July 14, 2021
PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Costing and Profitability Solutions
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
Contact information: Paul.Young@ca.ibm.com
AGENDA
What is governance?
What factors impact governance?
How can performance audits help with governance?
How to improve data ethics?
How to improve data literacy?
How to mitigate risk from geopolitical events?
Public sector is no island
Summary
PRESENTATION TITLE 5/30/201 4
WHAT IS
GOVERNANCE
Source: https://www.caaf-fcar.ca/en/oversight-concepts-and-context/what-is-oversight-and-how-
does-it-relate-to-governance/what-is-governance
PRESENTATION TITLE 5/30/2021 5
While governance includes oversight, it is a broader concept. Governance refers to the structures,
systems, and practices an organization has in place to:
• assign decision-making authorities, define how decisions are to be made, and establish the
organization’s strategic direction;
• oversee the delivery of its services; the implementation of its policies, plans, programs, and
projects; and the monitoring and mitigation of its key risks; and
• report on its performance in achieving intended results and use performance information to drive
ongoing improvements and corrective actions.
FACTORS THAT IMPACT GOVERNANCE
• Ability of ombudsman, commissioner, auditor-general, and other key members of government to work
free of partisan appointment
• Government ability to provide open, transparent, and accountable reporting through financial statements,
fiscal management cycle, and performance and operational audits
• Ability of committees to work free of partisan politics as part of reviewing laws or spending bills or other
areas of government.
• Ability of government to make key appointments without partisan politics
• Ability of government to digitalize its government through use of technology as part of focusing on the tax
fairness and the delivery of program spending with value for money.
PRESENTATION TITLE 5/30/2021 6

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How to fix the Governance Model for the Public Sector (Government)

  • 1. HOW TO FIX THE GOVERNANC E MODEL FOR GOVERNMEN T Presenter Name: Paul Young CPA CGA July 14, 2021
  • 2. PAUL YOUNG - BIO • CPA, CGA • Academia (PF1, FA4, FN2, MU1. and MS2) • SME – Risk Management • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Emerging Technology • SME – Business Process Change • SME – Financial Solutions • SME – Macro/Micro Indicators • SME – Supply Chain Management • SME – Data, AI, Security, and Platform • SME – Internal Controls and Auditing Contact information: Paul_Young_CGA@hotmail.com LinkedIn: https://www.linkedin.com/in/paul-young-055632b/ SlideShare - https://www.slideshare.net/paulyoungcga
  • 3. PAUL YOUNG - BIO • CPA, CGA • Academia (PF1, FA4, FN2, MU1. and MS2) • SME – Risk Management • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Costing and Profitability Solutions • SME – Emerging Technology • SME – Business Process Change • SME – Financial Solutions • SME – Macro/Micro Indicators • SME – Supply Chain Management Contact information: Paul.Young@ca.ibm.com
  • 4. AGENDA What is governance? What factors impact governance? How can performance audits help with governance? How to improve data ethics? How to improve data literacy? How to mitigate risk from geopolitical events? Public sector is no island Summary PRESENTATION TITLE 5/30/201 4
  • 5. WHAT IS GOVERNANCE Source: https://www.caaf-fcar.ca/en/oversight-concepts-and-context/what-is-oversight-and-how- does-it-relate-to-governance/what-is-governance PRESENTATION TITLE 5/30/2021 5 While governance includes oversight, it is a broader concept. Governance refers to the structures, systems, and practices an organization has in place to: • assign decision-making authorities, define how decisions are to be made, and establish the organization’s strategic direction; • oversee the delivery of its services; the implementation of its policies, plans, programs, and projects; and the monitoring and mitigation of its key risks; and • report on its performance in achieving intended results and use performance information to drive ongoing improvements and corrective actions.
  • 6. FACTORS THAT IMPACT GOVERNANCE • Ability of ombudsman, commissioner, auditor-general, and other key members of government to work free of partisan appointment • Government ability to provide open, transparent, and accountable reporting through financial statements, fiscal management cycle, and performance and operational audits • Ability of committees to work free of partisan politics as part of reviewing laws or spending bills or other areas of government. • Ability of government to make key appointments without partisan politics • Ability of government to digitalize its government through use of technology as part of focusing on the tax fairness and the delivery of program spending with value for money. PRESENTATION TITLE 5/30/2021 6
  • 7. HOW CAN PERFORMANCE AUDITS HELP IMPROVE THE GOVERNANCE MODEL • All levels of government provide key performance reporting in areas like accounting standards - https://www.bdo.ca/en-ca/services/assurance-and-accounting/a-a-knowledge-centre/psas/ • All levels of government providing key performance measurements through SORP Reporting - https://www.frascanada.ca/en/psab/about/due-process/what-are-sorps • Mandatory emergency and crisis management reporting including annual audit review by external and internal auditors – https://ibm.box.com/s/rsp6p9tez8uru9fo0wu5d13bxt7rtrr0 • Use of data and AI as part of automation of various audit programs - https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76 • Various ombudsman, commissioner, and other groups reporting into committee and the house. • Monthly updates of the fiscal management results including key areas like taxation and program spending. This should include key targets, i.e., outcomes and results (Planned vs Actual) PRESENTATION TITLE 5/30/2021 7
  • 8. HOW TO IMPROVE DATA ETHICS Data ethics Data ethics is a branch of ethics that evaluates data practices—collecting, generating, analyzing and disseminating data, both structured and unstructured—that have the potential to adversely impact people and society. It includes addressing and recommending concepts of right and wrong conduct, with transparency in and defensibility of actions and decisions driven by automated/artificial intelligence (AI) in relation to data in general and personal data in particular. Source - https://www.turing.ac.uk/research/publications/what-data-ethics or https://www.cognizant.com/glossary/data-ethics Global Standard / Data Ethics: EUGDPR - https://edps.europa.eu/data-protection/our-work/subjects/general-data-protection-regulation_en Data Governance - https://www.datanami.com/2021/01/21/governance-privacy-and-ethics-at-the-forefront-of-data-in-2021/ I have done a lot of work on blogs and presentation related to how best to managed data: Data and AI - https://ibm.box.com/s/6w39nl609pl1gv1p49lsp87fme7pjlwv Government, Risk, and Compliance - https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76 Emergency and Crisis Management – https://ibm.box.com/s/rsp6p9tez8uru9fo0wu5d13bxt7rtrr0 Close, consolidate, and reporting - https://ibm.box.com/s/i7efp948qvb5l8bt96y8sigsup8yes2u ESG Reporting - https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce FP&A with Predictable Analytics - https://www.afponline.org/ideas-inspiration/topics/articles/Details/five-keys-for-fp-a-when- applying-predictive-analytics PRESENTATION TITLE 5/30/2021 8
  • 9. HOW TO IMPROVE DATA LITERACY Blog – How improve data literacy for both the public and private sector? What is data literacy? That’s essentially how a data-driven business functions when there is no data literacy. If no one outside the department understands what is being said, it does not matter if data and analytics offers immense business value and is a required component of digital business. By 2020, 50% of organizations will lack sufficient AI and data literacy skills to achieve business value. “The prevalence of data and analytics capabilities, including artificial intelligence, requires creators and consumers to ‘speak data’ as a common language,” says Valerie Logan, Senior Director Analyst, Gartner. “Data and analytics leaders must champion workforce data literacy as an enabler of digital business and treat information as a second language.” As data and analytics becomes a core part of digital business and data becomes an organizational asset, employees must have at least a basic ability to communicate and understand conversations about data. In short, the ability to “speak data” will become an integral aspect of most day-to-day jobs. https://www.gartner.com/smarterwithgartner/a-data-and-analytics-leaders-guide-to-data-literacy/ I have done a lot of work on blogs and presentation related to how best to managed data: Data and AI - https://ibm.box.com/s/6w39nl609pl1gv1p49lsp87fme7pjlwv Government, Risk, and Compliance - https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76 Emergency and Crisis Management – https://ibm.box.com/s/rsp6p9tez8uru9fo0wu5d13bxt7rtrr0 Close, consolidate, and reporting - https://ibm.box.com/s/i7efp948qvb5l8bt96y8sigsup8yes2u ESG Reporting - https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce FP&A with Predictable Analytics - https://www.afponline.org/ideas-inspiration/topics/articles/Details/five-keys-for-fp-a-when-applying-predictive- analytics PRESENTATION TITLE 5/30/2021 9
  • 10. HOW TO MITIGATE RISKS FROM GEOPOLITICAL EVENTS The world needs a coordinated effort as part of mitigation geopolitical risks - https://globalriskinsights.com/ Global risks need to be assessed by both the private and public sectors - https://www.govtech.com/em/emergency- blogs/disaster-zone/the-global-risks-report-2021.html. It is very important for both the private and public sectors to have audited risk and crisis management reports. - https://www.slideshare.net/paulyoungcga/why-there-needs-to-be-audited- reports-of-crisis-emergency-management-policies-and-procedures World is moving more to a digital cloud base model. More needs to be done to mitigate security risks - https://www.splunk.com/en_us/form/top-50-security- threats.html?utm_campaign=google_amer_en_search_generic_dynamic&utm_source=google&utm_medium=cpc&utm_con tent=dynamic_search&utm_term=&_bk=&_bt=427536315752&_bm=b&_bn=g&_bg=107944675828&device=c&gclid=Cj wKCAiAm-2BBhANEiwAe7eyFNHAbY5qDr2iRWGLWWQn1UfJ6Y- kMfs7TSfPotXlM7htbW5l2cv2PhoC5NwQAvD_BwE PRESENTATION TITLE 5/30/2021 10
  • 11. PUBLIC SECTOR IS NO ISLAND • Goal of government has always been to deliver program spending with value for money - https://www.slideshare.net/paulyoungcga/designing-social-programs-and-tax-fairness-policies • Government ability to manage their taxation policies as part of protecting the environment while growing the economy is a sustainable way will also lead to a stronger governance model. More oversight into planned vs actual results related to key environmental targets and economic targets. This means all levels of government need to adopt ESG reporting including setting standards for ESG reporting - https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce • Elected officials need to held accountable including enforcing balance budget acts or recall elections or other areas that will provide people with a better governance model from their elected officials. • Government needs to revisit its operational model as part of better management and oversight into taxation and program spending - https://www.slideshare.net/paulyoungcga/the-importance-of-value-for-money-and- perfomance-based-audits PRESENTATION TITLE 5/30/202 11
  • 12. VALUE FOR MONEY AND PERFORMANCE AUDITING • All levels of government need to re-look at the internal controls and testing including development AI and Data models that get better safeguard assets. • All levels of government need to invest in internal audit and risk base solutions. • All levels of government need to work with auditors and departments as part of implementing changes recommended in the audit reports. There should be status reports on each and every audit to ensure changes have been implemented. Here is a brief look at why value for money and performance audits are very important for all levels of government - https://www.slideshare.net/paulyoungcga/why-are-value-for-money-and-performance-audits- important-for-government-public-sector PRESENTATION TITLE 2/11/20XX 12
  • 13. SUMMARY • The world continues to face many challenges through the new normal - https://www.slideshare.net/paulyoungcga/new-normal-for- canada-and-the-world-248752153 • The world continues to head through difficult times. The ability of the public sector to provide sustainable program spending will bey key for the public sector - https://www.oecd.org/coronavirus/policy-responses/the-territorial-impact-of-covid-19-managing-the- crisis-and-recovery-across-levels-of-government-a2c6abaf/ • Balancing the protection of the environment with growing the economy in a sustainable way - https://www.slideshare.net/paulyoungcga/how-best-to-managed-the-circular-economy • Government moving to digital model including assessing security, data, AI, and Platform - https://ibm.box.com/s/6w39nl609pl1gv1p49lsp87fme7pjlwv o • Zero-Trust becomes a key focus area for both the private and public sectors. https://www.linkedin.com/pulse/blog-how-best- implement-zero-trust-security-paul-young/?published=t • Blog – Rise of Cybersecurity Threats to both the Private and Public Sectors – Here is a brief look at cybersecurity and how to mitigate the threats from cybersecurity attacks on both the private and public sectors. https://www.linkedin.com/pulse/blog-rise- cybersecurity-threats-both-private-public-sectors-young/?published=t • Gentile points out the two sides of the trend toward total digitalization. “With ‘going digital,’” she says, “we see organizations collecting more information about their clients than ever. On the good side, you have a lot of data available for AI analysis. The challenge is, you need a data governance framework that allows for the secure collection and organization of that data so that it can be securely leveraged.” https://www.ibm.com/blogs/watson/2021/04/ai-governance-risk-compliance-whats-next/ This ties nicely into my work on audit and risk management -https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76 PRESENTATION TITLE 5/30/2021 13