Blog – How to Transform the Public Sector Model for the United States Summary: The nonpartisan Congressional Budget Office (CBO) announced that the federal government’s budget deficit more than doubled through the first 10 months of the current fiscal year compared to a year ago. In its latest budget review released Tuesday, the CBO found that the federal deficit was $1.6 trillion in the first 10 months of fiscal year 2023 — a significant increase over the $726 billion deficit the federal government incurred in the same period last year. The CBO noted that federal spending was 10% higher during the reporting period than it was a year, while tax revenues came in 10% lower, which combined to cause the deficit to widen. As a result, the CBO now expects the federal deficit for FY2023 will be about $1.7 trillion — or $200 billion larger than the forecast it issued in May. Source: https://www.foxbusiness.com/politics/federal-deficit-hit-1-6-trillion-first-10-months-fy23-double-last-years-shortfall Additional Links and Sources: ESG / Public Sector - https://www.bdo.com/insights/sustainability-and-esg/99-of-the-s-p-500-is-reporting-on-esg-and-65-are-obtaining-esg-assurance?utm_source=Employee&utm_medium=Social&utm_campaign=BDOConnector&utm_content=None Wildfires and geospatial - https://www.sacbee.com/news/politics-government/capitol-alert/article277936838.html Housing - https://www.bloomberg.com/news/articles/2023-07-19/affordable-housing-shortage-looms-amid-inflation-high-construction-costs Infrastructure - https://www.theenergymix.com/2023/08/09/u-s-infrastructure-clean-energy-spending-spurs-investment-business-activity/ GDP growth - https://www.conference-board.org/research/us-forecast Tech - https://www.opentext.com/solutions/government-cloud-services?elqcampaignid=61788&utm_campaign=FY24-Q1-USA-ALL-ENT-ECM-GC-Cloud-for-Government-PPCTX-pd-gg-tx&utm_source=google&utm_medium=cpc&ldsrc=Marketing%20-%20Paid%20Inbound&gad=1&gclid=CjwKCAjw29ymBhAKEiwAHJbJ8reMqd56vozU8kmCntoFJK5J7L8dcG6Wzz_iA-O5qFGlMgbqej6CtxoCKckQAvD_BwE Healthcare - https://www.fiercehealthcare.com/healthcare/6-biggest-drivers-healthcare-waste USA generative AI - https://www.govtech.com/opinion/generative-ai-may-be-the-next-big-thing-in-digital-government Challenges - https://bluewhaleapps.com/blog/the-federal-governments-top-5-it-challenges

1. PUBLIC SECTOR – UNITED STATES
Paul Young CPA CGA
Senior Customer Success Manager and
Business Strategist
Date: August 12, 2023

2. PAUL YOUNG CPA CGA
SENIOR CUSTOMER SUCCESS
MANAGER AND BUSINESS
STRATEGIST
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – ESG and Sustainability Policy
Development and Reporting
• 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 email: Paul_Young_CGA@outllok.com
Slideshare: https://www.slideshare.net/paulyoungcga
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/

3. AGENDA
• CBO Report – Fiscal Management – Federal
Government
• Corporate Taxation and United States
• USA Government Debt
• State and Local government fiscal health
• Blog – Audit and Analytics
• Blog – ESG
• Blog – Insurance and Risk Mitigation
• Blog – Governance Model

4. CBO – REPORT – JULY 2023
Source – CBO

5. CBO – REPORT – MAY 2023
Source – CBO

6. GDP AND BUDGET BALANCES
Source – USA Government

7. CORPORATE TAX AND THE UNITED STATES
Pillar 1 involves reallocation of profit and revised nexus rules and is concerned with what portion of profits should be taxed in the jurisdictions where clients or
users are located. Pillar Two contains an anti-base erosion mechanism to ensure that multinational enterprises pay a minimum level of tax.
“Pillar 2 will expand the taxable revenue collected globally from corporations by implementing a global minimum tax,” said Dicker. “They’re talking about a
minimum rate of 15%. The exact rate has not been decided yet. If a country where the effective tax rate is below 15%, then the home country where the
company is located can tax on the difference. For example, if a U.S. multinational is taxed in Ireland at 12%, then the U.S. can impose a tax to bring that
company up to the global rate. For any country that has a rate below15 %, the choice is to raise their rate or forgo the tax revenue and hand it over to the parent
to the parent country. Companies will be paying the same rate; it’s just a question of where they will pay it.”
Here is my updated work on the Office of Finance as it relates to audit, reporting challenges, managing the accounting standards, and other aspects of the
close, consolidate, and reporting cycle - https://ibm.box.com/s/x973uioy6ozwkzw7yvqaa07wdldp8gld
1. Business impact - https://www.mckinsey.com/business-functions/risk-and-resilience/our-insights/covid-19-implications-for-business
2. Data sharing - https://www.govtechreview.com.au/content/gov-digital/article/three-data-sharing-challenges-facing-public-sector-922138145
3. Digital - https://www.openaccessgovernment.org/embracing-a-new-era-of-public-sector-it-smart-sourcing/116903/
4. ESG - https://www.cfodive.com/news/companies-oppose-one-size-fits-all-sec-climate-disclosure-rule-survey/604547/
5. SPAC / restatements - https://www.cfodive.com/news/almost-90-percent-spacs-restate-financials/604267/
6. Cyber defense - https://cisomag.eccouncil.org/cisa-unveils-joint-cyber-defense-collaborative-to-boost-cybersecurity/
7. Fraud - https://www.quora.com/How-does-machine-learning-facilitate-fraud-detection
8. Real-time reporting - https://www.rtinsights.com/category/industry-insight/
9. Log analytics - https://neptune.ai/blog/machine-learning-approach-to-log-analytics
10. ESG - https://www.weforum.org/agenda/2021/08/now-time-for-action-on-sustainability-reporting/
Source - https://www.accountingtoday.com/news/international-agreements-spur-move-to-global-minimum-tax?position=editorial_1&campaignname=V2_ACT_Daily_20210503-
08102021&utm_source=newsletter&utm_medium=email&utm_campaign=V2_ACT_Daily_20210503%2B%27-
%27%2B08102021&bt_ee=Nq%2Fv7c3AMvoxz%2F6ThJ8wFssJSDsjTBGSjUtT53TmJ9QvzUau3wfriBrnT0c44gCN&bt_ts=1628589736714

8. USA FEDERAL GOVERNMENT DEBT

9. STATE AND LOCAL
GOVERNMENT
FISCAL HEALTH
Source -
https://fred.stlouisfed.org/serie
s/SLEXPND

10. STATE AND
LOCAL
GOVERNMENT
Source -
https://www.gao.gov/products/
gao-21-562 or
https://www.usgovernmentspe
nding.com/local_spending_cha
rt

11. FISCAL SOUND STATES RANKING
Source - https://www.usnews.com/news/best-states/rankings/fiscal-
stability/long-term

12. FISCAL SOUND
LOCAL
GOVERNMENT
Source -
https://www.americancityandco
unty.com/2021/07/14/the-10-
best-run-cities-in-america/ or
https://wallethub.com/edu/bes
t-run-cities/22869

13. AUDITS (AI AND ANALYTICS)
Blog - Overburdened Audit Committees Threaten Quality of External Audits - https://www.linkedin.com/posts/paul-young-055632b_overburdened-
committees-threaten-quality-activity-7061660284792307712-hIvc?utm_source=share&utm_medium=member_desktop
Most public company CFOs would want audit committee members to be available, aware, and undistracted. Unfortunately, audit committees, in general, are
drowning in information and data, having been handed an almost endless list of oversight responsibilities. That trend may endanger the quality and oversight
of financial reporting and external audits.
https://www.cfo.com/accounting-tax/auditing/2023/05/audit-committee-oversight-risk-external-auditor-baruch-conference-nacd/
This is why there needs to be a data strategy including having the right data at the right time to drive business outcomes.
https://www.slideshare.net/paulyoungcga/how-to-solve-data-management-isuses-for-both-the-private-and-public-sectorspptx-257454162
This is a great opportunity for various audit committees to review their integrated business planning and reporting cycle as part of better managing data to
drive both profitability and shareholder value.
https://actionkpi.com/integrated-profitability-program/
This also ties nicely to my work on the close, consolidate, and reporting cycle - https://www.slideshare.net/paulyoungcga/close-consolidate-and-reporting-
cyclepptx-256864692

14. GOVERNMENT AND ESG REPORTING
Blog - Materiality Question Dogs SEC’s ESG Disclosure Project -
“When it comes to disclosure, investors have told us what they want,” Gensler tweeted in early August. “It’s now time for
the commission to take the baton.”
However, it would be practically impossible for the SEC to require all the above-listed information in one expansive rule.
In addition, though it might please climate change activists, it would alienate issuers and bring heaps of scorn from the
business lobby. More importantly, though, it could violate a bedrock principle of SEC disclosure mandates: materiality.
Disclosures are material when they are reasonably likely to impact a company’s financial condition or operating
performance. Therefore, they are the most important to investors, to use the definition of the Sustainability Accounting
Standards Board.
https://www.cfo.com/regulation/2021/08/materiality-question-dogs-secs-esg-disclosure-project/
Blog - Auditors dialed back mandated disclosures - Study - https://www.linkedin.com/posts/paul-young-
055632b_auditors-dialed-back-mandated-disclosures-activity-7024744315759300608-
3F_r?utm_source=share&utm_medium=member_desktop

15. INSURANCE RISK MITIGATION
Global insured losses from natural catastrophes surged in the first half of 2021 to $42 billion, the second-highest amount since 2011.
The preliminary estimate from Zurich-based reinsurer Swiss Re attributed the high loss total to winter storms, intense heatwaves, and severe flooding across the
world.
The insured loss total exceeded the previous ten-year average (2011-2020) of $33 billion. It was second only to the losses in the first half of 2011, when the Great
East Japan earthquake and tsunami and the Christchurch, New Zealand earthquake pushed the six-month total to $104 billion.
A big contributor in the first half of 2021 was February’s winter storm Uri, a period of extreme cold combined with heavy snowfall and ice accumulation in the
United States. The event took the lives of 164 people, 151 of those in Texas, and triggered estimated insured losses of $15 billion.
Close to 4,500 people lost their lives or went missing in first-half disaster events.
Martin Bertogg, Head of Cat Perils at Swiss Re, said: “The effects of climate change are manifesting in warmer temperatures, rising sea levels, more erratic
rainfall patterns, and greater weather extremes. Taken together with rapid urban development and accumulation of wealth in disaster-prone areas, secondary perils,
such as winter storms, hail, floods, or wildfires, lead to ever-higher catastrophe losses. … The insurance industry needs to upscale its risk-assessment capabilities
for these lesser monitored perils to maintain and expand its contribution to financial resilience.“
https://www.cfo.com/risk-management/2021/08/weather-catastrophes-drive-near-record-insured-losses/
Here are additional links:
New Insurance reporting standard - https://ibm.box.com/s/mgtzq1mp1h4dxk5ei4ov1tr7dgoyn76e
Emergency Planning - https://www.linkedin.com/pulse/how-data-ai-can-help-better-safeguard-assets-through-emergency-young
Risk Mitigation - https://www.slideshare.net/paulyoungcga/how-to-mitigate-geopolitical-risks-as-part-of-safeguarding-your-assets-249988353

16. CRISIS MANAGEMENT (HOW TO BEST
SAFEGUARD ASSETS)
Both the public and private sectors are impacted by geopolitical events. It is very important for both the public and
private sectors to have audited crisis and emergency management processes and procedures as part of safeguarding
their assets through better crisis, risk, and emergency management reporting.
Here is my work: https://ibm.box.com/s/rsp6p9tez8uru9fo0wu5d13bxt7rtrr0

17. GOVERNANCE MODEL
Governments at federal, state, and local government need to revisit their governance model to put more emphasis
on the following areas:
1. Ethics
2. Accountability and oversight through more performance audits
3. Mitigation of geopolitical events and other areas of risk management
4. Safeguarding assets from threats like cybersecurity and climate change
Source - https://www.slideshare.net/paulyoungcga/how-to-fix-the-goverance-model-for-the-public-sector-government-
249736146

18. BIODIVERSITY
• Blog – ESG and Sustainability
– Biodiversity Capturing and
Reporting -
https://www.linkedin.com/post
s/paul-young-055632b_what-
is-biodiversity-and-how-does-
it-affect-activity-
7038115093066223617-
CUHj?utm_source=share&utm_
medium=member_desktop

19. MITIGATING THE THREATS OF CLIMATE
CHANGE
Blog – ESG and Sustainability – How to Mitigate the impact of Climate Change – June 2023
- https://www.linkedin.com/pulse/blog-esg-sustainability-how-mitigate-impact-climate-
change-paul-young

20. VEGETATION
Blog - Safeguarding Assets through use of Weather Analytics and Vegetation Management Solutions - ESG and
Climate Change - https://www.linkedin.com/posts/paul-young-055632b_vegetation-
TQfV?utm_source=share&utm_medium=member_desktop
https://www.ibm.com/products/environmental-intelligence-suite/vegetation-management
This is a great opportunity for the utility sector to re-look at their asset management through using vegetation
and weather management solutions. Mitigation of risk from climate is becoming a key focus area for the utility
sector.
https://www.slideshare.net/paulyoungcga/electricity-analysis-canada-and-the-oecd-february-2023pptx

21. AUDIT AND PERFORMANCE AUDITS
Blog - Dynamic internal audit trends you should prepare for in 2022
A large class of “digital” goods and services have emerged and the use of digital methods of promoting goods and
services (digital marketing), as well as the capabilities of artificial intelligence and the growing cyber threats are
increasing.
Examples: remote asset management using gadgets with biometric user identification, analysis of consumer
preferences (with subsequent distribution of information). Extensive automation leads to the presence of system
vulnerabilities that can be exploited to harm.
Internal auditors, therefore, need to re-prioritize their different risk categories, allocating more time and resources to
the areas of cyber security and undertaking strategic risk management audits.
https://www.linkedin.com/pulse/dynamic-internal-audit-trends-you-should-prepare-2022-associates/
Both external and internal audit teams will focus on the following areas:
a) Regulatory filings, especially in areas like ESG (Environmental, Social, and Governance) Reporting
b) More work in areas like risk and crisis management
c) Adoption of AI as part of internal and external audit processes
d) Safeguarding assets through better monitoring
e) Adoption of industry 4.0 through enhancements to security policies and procedures.
f) Fraud prevention and detection
g) Mitigation cybersecurity risks and threats

22. BETTER CRISIS AND RISK MANAGEMENT
THROUGH USE OF GEOSPATIAL DATA
https://www.linkedin.com/posts/rwlord_river-flood-highest-since-2001-in-miss-valley-activity-
7062395985708085249-YI2M?utm_source=share&utm_medium=member_desktop
Leverage data and AI as part mitigating geopolitical risks and threats is becoming increasing important for
both private and public sectors. The ability to leverage geospatial data with business analytical tools like
Cognos Analytics and Planning Analtyics can lead to better risk mitigation as part of safeguarding assets.
Blog – Geospatial data with Planning Analytics - https://www.linkedin.com/posts/paul-young-
055632b_geospatial-data-with-planning-analytics-activity-7062420172178915328-
l43Y?utm_source=share&utm_medium=member_desktop

23. GAP ANALYSIS
Here are links that can assist with your data and AI journey as part of your planning, forecasting, budgeting, capital planning, cash flow
forecasting, analysis, activity-base costing, demand planning, capacity planning, HR planning, and reporting cycles (operational,
management, and regulatory)
Stock - https://www.slideshare.net/paulyoungcga/stock-market-analysis-and-commentary-for-we-august-4-2023pptx
GAP Analysis - https://www.slideshare.net/paulyoungcga/how-gap-analysis-can-better-support-business-decisions
Key Environmental Areas – https://www.linkedin.com/posts/paul-young-055632b_7-environmental-factors-for-esg-
reporting-activity-7071476082784276480-EYDt?utm_source=share&utm_medium=member_desktop
Scenario Planning - https://www.linkedin.com/posts/paul-young-055632b_6-ways-scenario-planning-is-essential-for-
activity-7086384141918752768-P7cE?utm_source=share&utm_medium=member_desktop
ESG - https://www.linkedin.com/posts/paul-young-055632b_esgreporting-esgreporting-issbstandards-activity-
7079823962368606208-NVac?utm_source=share&utm_medium=member_desktop
Reporting - https://www.slideshare.net/paulyoungcga/close-consolidate-and-reporting-cyclepptx-256864692
Data - https://www.slideshare.net/paulyoungcga/how-to-solve-data-management-isuses-for-both-the-private-and-public-
sectorspptx-257454162
Circular - https://www.linkedin.com/posts/lindsayhampson_tipwednesday-netzero-sustainability-activity-
7006238715744333824-KU-s?utm_source=share&utm_medium=member_desktop
Biodiversity - https://www.linkedin.com/posts/paul-young-055632b_what-is-biodiversity-and-how-does-it-affect-activity-
7038115093066223617-CUHj?utm_source=share&utm_medium=member_desktop

24. ISSUES FACING ALL LEVEL OF
GOVERNMENTS
• Tax fairness
• Ability to deliver program spending with value for money
• Funding of liabilities like healthcare
• Infrastructure gaps
• Federal reserve needing to address issues with productivity, innovation, and skills gaps
• Urban planning
• Economic development
• Securing the borders
• Violent crime and guns
• Access to affordable housing
• Addressing issues with high cost of living
• Adopting more value for money and performance audits
• Refining crisis and emergency management planning and reporting
• Addressing issues with productivity and the supply chain
Blog – How to Transform the Public Sector Model for the United States
Summary:
The nonpartisan Congressional Budget Office (CBO) announced that the federal government’s
budget deficit more than doubled through the first 10 months of the current fiscal year compared
to a year ago.
In its latest budget review released Tuesday, the CBO found that the federal deficit was $1.6
trillion in the first 10 months of fiscal year 2023 — a significant increase over the $726 billion
deficit the federal government incurred in the same period last year.
The CBO noted that federal spending was 10% higher during the reporting period than it was a
year, while tax revenues came in 10% lower, which combined to cause the deficit to widen. As a
result, the CBO now expects the federal deficit for FY2023 will be about $1.7 trillion — or $200
billion larger than the forecast it issued in May.
Source: https://www.foxbusiness.com/politics/federal-deficit-hit-1-6-trillion-first-10-months-fy23-
double-last-years-shortfall
Additional Links and Sources:
ESG / Public Sector - https://www.bdo.com/insights/sustainability-and-esg/99-of-the-s-p-500-is-
reporting-on-esg-and-65-are-obtaining-esg-
assurance?utm_source=Employee&utm_medium=Social&utm_campaign=BDOConnector&utm_content
=None
Wildfires and geospatial - https://www.sacbee.com/news/politics-government/capitol-
alert/article277936838.html
Housing - https://www.bloomberg.com/news/articles/2023-07-19/affordable-housing-shortage-looms-
amid-inflation-high-construction-costs
Infrastructure - https://www.theenergymix.com/2023/08/09/u-s-infrastructure-clean-energy-spending-
spurs-investment-business-activity/
GDP growth - https://www.conference-board.org/research/us-forecast
Tech - https://www.opentext.com/solutions/government-cloud-
services?elqcampaignid=61788&utm_campaign=FY24-Q1-USA-ALL-ENT-ECM-GC-Cloud-for-Government-
PPCTX-pd-gg-tx&utm_source=google&utm_medium=cpc&ldsrc=Marketing%20-
%20Paid%20Inbound&gad=1&gclid=CjwKCAjw29ymBhAKEiwAHJbJ8reMqd56vozU8kmCntoFJK5J7L8dcG
6Wzz_iA-O5qFGlMgbqej6CtxoCKckQAvD_BwE
Healthcare - https://www.fiercehealthcare.com/healthcare/6-biggest-drivers-healthcare-waste
USA generative AI - https://www.govtech.com/opinion/generative-ai-may-be-the-next-big-thing-in-
digital-government