Here is a brief look at why value for money and performance audits are very important for all levels of government.

1. WHY ARE VALUE FOR MONEY
AND PERFORMANCE AUDITS
IMPORTANT FOR
GOVERNMENT (PUBLIC
SECTOR
PAUL YOUNG CPA, CGA
JULY 1, 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. BACKGROUND – PAUL YOUNG CPA, CGA
• 27+ years of corporate finance, business process changes and internal audit/control
• 12+ years of building financial solutions
• Streamlined business process including reporting using analytical tools
• Implemented cost to serve models (Pricing models)
• Blogger in areas like financial solutions, cost control, management/regulatory reporting, risk
management and government policies
• Academia experience in areas like advance accounting, advance management information
system, financial performance management training/solutions and public finance

4. AGENDA/ VALUE FOR MONEY
• Money Flow / Government
• What it is?
• How it works?
• Drawbacks ?
• Auditor-General – Canada
• Blog – AI and Analytics and Audit
• Blog – Performance Audits and Charities
• Strategy

5. MONEY FLOW GOVERNMENT
Taxation
• Personal Income Tax
• Corporate Income Tax
• Consumption Tax
• Excise/Duties
• Other Taxation
Government Funds
• Social Security (Pension)
• Unemployment
• Social Welfare (Child benefits
• Direct Program Spending
• Healthcare
• Education
• Public Safety
• Immigration
• Foreign Affairs
• Environment

6. WHAT IS VALUE FOR MONEY
Independent audit of a not-for-profit
organization (government agency or unit,
charity, trust, etc.) to assess the
effectiveness and efficiency of its utilization
of funds. It is employed where the
standard commercial performance (profit
oriented) measures cannot be used. Also
called value for money analysis.
Source -
http://www.businessdictionary.com/definitio
n/value-for-money-audit.html

7. SUSTAINABLE GOVERNMENT
There is a great opportunity for data, AI, platform, and security to help reshape the public sector
(government) - https://www.slideshare.net/paulyoungcga/what-is-next-for-the-public-sector

8. WHY IS VALUE FOR MONEY AUDIT IMPORTANT
• Ensure programs are deliver in cost effective and efficient manner
• Identified ways to improve the delivery of program pending
• Governments are under pressure to deliver quality programs without increasing
taxation

9. PROBLEMS WITH VALUE FOR MONEY
It’s no accident that private sector business owners rarely turn to their auditors to run the business. Auditors are
trained to provide assurance that firms are presenting their financial results in a fair and complete way. No one
expects auditors to comment on how to negotiate a contract, hire a CEO, or launch a new product. Business
owners know that auditors are not competent to do these things. Rather, they rely on professional managers to
run the business. – MacLean's – June 5, 2015
This is not to say that value for money is unimportant when taxpayer dollars are being spent in the public
interest. It is a key responsibility of public servants. But to assess the substantive results achieved by
government programs and how they measure up against targets requires subject matter and management
expertise that auditor general staffs rarely possess. MacLean's – June 5, 2015

10. GOVERNMENT AND VALUE FOR MONEY AND
COMPREHENSIVE AUDITING
• All governments should conduct more value for money audit. The problem has been skill set to
performed audits
• Value money audit recommendation have not always been implemented by the various level of
government. Auditor General’s recommendations are just recommendations. It is up to the various
governments to implement the changes
• Too many governments do no review all programs to ensure they are effective -
https://www.quora.com/What-is-the-difference-between-comprehensive-and-performance-audit
Source - https://www.winnipegfreepress.com/local/wheres-the-value-in-value-for-money-audits-
500342211.html or https://ca.news.yahoo.com/ontario-apos-auditor-weigh-controversial-
202443819.html or https://www.businessinsider.com/ifiar-auditing-survey-2017-global-audit-problems-
2018-3

11. AUDITOR – GENERAL CANADA
Source - https://www.oag-bvg.gc.ca/internet/English/acc_lp_e_9377.html
Auditor General.pdf

12. AUDITOR – GENERAL CANADA
Source - https://www.oag-bvg.gc.ca/internet/English/acc_lp_e_9377.html
Auditor General.pdf

13. AI AND ANALYTICS WITH AUDIT
Blog - IBM OpenPages with Watson can deliver a 218% return on investment, finds Forrester study
https://www.ibm.com/blogs/watson/2020/12/ibm-openpages-with-watson-can-deliver-a-218-return-on-investment-finds-
forrester-study/?campaign=socialselling&share=592db045-fde8-43e9-8ce3-
ff8d18fc175b&channel=linkedin&userID=cfad680f-7c88-4a2e-82e9-
f052d0bc4447&advocacy_source=everyonesocial&es_id=581e0fab6d
This ties nicely into my work on data, AI, security, and Platform:
• Audit - https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76
• Data and AI - https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76
• Machine Learning - https://ibm.box.com/s/7fape09ryvkrj515urhcx4estuzzp5hp

14. PERFORMANCE AUDITS / CHARITIES
https://financialpost.com/opinion/we-in-hot-water-again-this-time-with-the-cra-over-donation-receipts
The WE Charity is in hot water again, this time with the Canada Revenue Agency (CRA), which has
levied penalties against it for improperly issuing donation receipts of $1.8 million. The charity has
filed an appeal with the tax court and a trial date must now be scheduled.
Here is my work on charitable organizations:
https://www.slideshare.net/paulyoungcga/why-charitable-organizations-should-have-performance-
audits-248805512

15. BLOG- ADOPTION OF DATAAND AI AS PART OF
AUTOMATION OF INTERNALAUDIT DEPARTMENT
FOR BOTH THE PUBLIC AND PRIVATE SECTORS
I have seen many changes over the years with accounting and finance due to more and more adoption
of data and AI.
Both the private and public sectors will continue looking at ways to embrace data science into all
aspects of their operations including their various internal audit programs. The pandemic taught many
things to the world including the need for both the private and public sector to have better risk
mitigation policies and programs.
• https://www.slideshare.net/paulyoungcga/how-to-deploy-ai-and-analytics-as-part-of-automating-
internal-and-external-audits

16. SUMMARY
• Stronger governance model required by all levels of government -
https://www.slideshare.net/paulyoungcga/path-forward-for-all-levels-of-government-public-
sector
• Government and Private Sector
• Operational audits are becoming very important for business and government
• Many teams in the private sector, especially consulting groups have members with diverse backgrounds
• Value for money
• More governments need to perform value for money audits
• Teams need to include people with right background in areas of program spending (i.e. engineers,
healthcare, education, etc.
• Government needs to ensure money is spent in efficient and effective manner

17. 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