The document discusses how government can adopt business-like practices to improve effectiveness and efficiency. It argues that while government goals are broader than profit, it should still assess programs and costs like a business. The document outlines some common problems with government such as failing to address root causes or heed auditor reports. It suggests government can be more business-like by conducting value-for-money audits, activity-based costing, and leveraging capital through public-private partnerships while respecting its role is not to run people's lives or pick winners and losers. The path forward includes more analysis and cost controls to ensure sustainable programs and balanced budgets.

1. Why should government
think like a business
Paul Young CPA, CGA
May 16, 2017

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain
Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. What are government goals?
 Government goals are broader as such are not
about profit, but the delivering of goods and
services to people

4. What are the problems with
government?
 Government tries to the be all and end all for
everyone
 Government fails at times to due their due
diligence when it comes to assessing either
existing policies or the introduction of new policies
 Government many times ignores the findings in
the annual auditor-general reports
 Government fails to embrace comprehensive
auditing including value for money auditing

5. You fix a problem by going to the root cause
and not just looking at the symptoms

6. Business
 Business exist to make a profit and return value
either to shareholders or to owners
 Business take risks as part of developing the
market for their products
 Business has to watch both cash flow and costs

7. Can Government be like a
business
 Government spends money to support social
programs, defense, infrastructure, healthcare,
education, training and environment
 Government needs to assess all programs
 Value for money
 Activity-base costing models (are all costs included as part of
pricing out areas, i.e. passports, driver licenses, etc)
 Capital investment needs to look at the best ways to leverage
capital (i.e. P3, tolls/user fees, etc)
 Government needs managed compensation ensure it aligns
with the private sector (Capping salary/pensions/benefits,
closing the gap between private and public sector wages and
fixing arbitration

8. What Government cannot do
 Run people lives
 Decisions on savings and/or running the household
should be left up to people
 Push policies at all cost
 Pick winners and losers in the private sector
 Programs should benefit all businesses

9. Path forward for government
 More value for money audits
 More analysis of government policies including
economic impact on the economy
 Most cost analysis to ensure government
programs are sustainable
 Continue use of both revolving and lapsing funds
 Balance budget legislation
 Only in sever economic times should government run
deficits.