Here is my work on how to transform the public sector model for all levels of government

1. PUBLIC SECTOR – UNITED STATES
Senior Data and AI Specialist /
Senior Customer Success Manager
Paul Young CPA CGA
Date: July 12, 2023

2. PAUL YOUNG –
PRE-SALES, BUSINESS
DEVELOPMENT, AND CUSTOMER
SUCCESS MANAGEMENT
• 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
• Blog – Vegetation Management
• Blog – Asset Management and Monitoring
• Blog – Autonomous Finance
• Blog – GAP Analysis
• Blog – What is a Cost to Serve Modeling
• Blog – Revenue and Operational Planning
• Blog – Capital Planning

4. CBO – REPORT – JUNE 2023
Source – CBO

5. CBO – REPORT – JUNE 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.
Link - https://www.slideshare.net/paulyoungcga/why-both-the-private-and-public-sectors-need-
mandatory-audits-of-crisis-and-risk-management-reports

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.

21. ASSET MONITORING

22. 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

23. 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

24. AUTONOMOUS FINANCE
Autonomous finance is a data-driven or algorithm-driven process that employs software to automate
financial operations and management.
Source - https://learn.g2.com/autonomous-finance
Key Stats
Consider the following statistics:
 89% of financial services leaders believe that the first financial services companies to deploy autonomous
finance will carve out a large competitive advantage.
 60% of financial institutions believe that autonomous finance enhances personalisation capabilities,
which improves their customer experience (CX).
 As things stand, over 50% of the following finance and accounting activities are mostly or partially
automated: processing of transactions, procurement, preparation of financial reports, and
planning/forecasts, etc.
Source - https://www.receeve.com/blog/autonomous-finance-drives-collections-success or Blog – What is
Autonomous Finance - https://www.linkedin.com/pulse/blog-what-autonomous-finance-paul-young

25. WHAT IS GAP ANALYSIS
A gap analysis is the process that companies use to compare their current performance with their desired,
expected performance. This analysis is used to determine whether a company is meeting expectations and
using its resources effectively.
A gap analysis is how a company can recognize its current state—by measuring time, capital, Revenue,
operational, planning, ESG, and HR planning—and compare it with its target state. By defining and analyzing
these gaps, the management team can create an action plan to move the organization forward and fill in the
performance gaps.
Source - https://www.investopedia.com/terms/g/gap-analysis.asp
Additional Link - https://www.slideshare.net/paulyoungcga/how-gap-analysis-can-better-support-business-
decisions

26. WHAT IS COST TO SERVE MODELING
As more businesses have come to understand the customer-driven side of the supply chain, a new framework has
emerged to answer questions about how the cost of sales, services, and last-mile logistics affect the bottom line.
This new way of thinking about profitability in the supply chain is commonly known as cost to serve.
https://www.coupa.com/blog/supply-chain/cost-serve-framework-for-profitability-and-customer-excellence
Key to cost to server modeling
1. Understanding business drivers
2. Strong data governance and management structure
3. Establish key metrics and targets.
4. Revamping business processes as part of overall cost planning and control
5. Revamping sales process including managing of price changes, contract pricing, etc.
The cost to serve model can be used for either the public and private sectors as part of overall managing of the
fiscal cycle including revenue, costs, capital, ESG, and human resources management.
Additional links: https://www.slideshare.net/paulyoungcga/profitability-and-costing-solutions-office-of-finance-
and-cfo

27. THE IMPORTANCE OF REVENUE AND
OPERATIONAL PLANNING
Blog – The importance of Sales and Operational Planning
Integrating sales and operations planning (S&OP) into an enterprise-wide process creates a robust picture for
executive decision-making. It ties together demand, supply, and financial planning as part of a company’s master
planning. Sales and operations planning is essential to the supply chain because it creates a view for future operations
and holds people accountable for data that impacts your bottom line.
Beginning with projected demand, S&OP looks at available resources and operational performance to understand the
landscape when making financial decisions. The process involves strategic and tactical plans.
Source - https://www.coupa.com/blog/supply-chain/what-sales-and-operations-planning-sop-and-how-it-can-benefit-your-
business
Five reasons why Sales and Operational Planning is important:
1. Balances Supply and Demand.
2. Cross-functional involvement.
3. No Surprises.
4. One set of Numbers.
5. Key Business Communication Tool.

28. CAPITAL PLANNING / PUBLIC SECTOR
Blog – Capital Planning and the Public Sector
 Substantial funds: Normally, huge funds are required for processing a capital expenditure, and the availability of funds
may be an issue. Therefore, organizations must wisely make capex decisions.
 Irreversible: The decision cannot be changed easily once a CAPEX is incurred. Reversing the capex decision may
prove to be significantly costlier for any entity.
 Uncertainty: It becomes difficult to foresight expenses that may occur in the future. CAPEX involves huge costs and
results that may extend to the end. Hence, characterizing the exact CAPEX decision is uncertain, affecting future
expenses.
 Measurement Issue: The cost and benefits of CAPEX are challenging to identify and measure.
 Temporal Spread: Decisions made regarding CAPEX are consistent over a long time, and investments it includes are
called long-term investments. These long-term investments create problems getting the exact discount rates and
maintaining their equivalence in the coming period.
Source - https://www.educba.com/capital-expenditure/
Complexity of capital management is driving the need to use more sophisticated Data and AI modeling.
These Data and AI models can provide more insight and oversight of the state of capital spending and the cost of building and maintaining
public sector infrastructure for current and future needs of their population base.
Best Practices - https://www.gfoa.org/materials/capital-asset-management

29. 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 Governance Model – July 2023
All levels of government are facing many challenges including crumbling infrastructure, public safety,
impact of climate change, affordable housing, and managing the taxes as part of delivery program
spending to their residence.
Key links and sources
Blog – Sector – Public (Government) Sector – Pittsburgh crumbling Infrastructure and need for more
spending on infrastructure along with better asset monitoring - https://www.linkedin.com/posts/paul-
young-055632b_fern-hollow-collapse-illustrates-poor-us-activity-7084701728729677824-
LFa7?utm_source=share&utm_medium=member_desktop
ESG and the Public Sector - Blog – Now the Standards are out for ESG – What is next -
https://www.linkedin.com/posts/paul-young-055632b_the-issb-has-released-new-esg-reporting-
standards-activity-7083144743563522048-8uja?utm_source=share&utm_medium=member_desktop
Public sector challenges - https://www.deloitte.com/global/en/our-
thinking/insights/industry/government-public-services/government-trends/2023/cross-agency-
collaboration.html
Close, consolidate, and reporting - https://www.slideshare.net/paulyoungcga/close-consolidate-and-
reporting-cyclepptx-256864692
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
Data Management - https://www.slideshare.net/paulyoungcga/how-to-solve-data-management-isuses-
for-both-the-private-and-public-sectorspptx-257454162
ESG-myths-realities-d
oes-adopting-a-stakeholder-model-undermine-corporate-governance.pdf
Public (Government)
Challenges.pdf
2023-12-07_Congress
Budget Office.pdf