All levels of government in the USA are facing challenges due to COVID19. This presentation looks at key areas including what needs to happen as part of transforming government.

1. Fiscal
Management –
Public Sector -
USA
PAUL YOUNG CPA CGA
AUGUST 15, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Internal Controls
• SME – Financial Planning and Analysis
• SME – Business Strategy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 Federal Government / Taxation
 Fiscal Management / USA
 GDP by President
 Fiscal Management / State Level
 Highest per capita debt / States
 Bottom 10 debt per capita / States
 Fiscal Management Cycle / States
 GDP Growth
 Key Cities
 Democratic Mayors
 Homelessness
 Economic Development
 Housing / Taxation
 Poverty Ranking
 Fiscal Management ranking
 Bond Rating / States
 Performance Audits and Operational Audits
 Portland, Oregon
 Seattle, WA
 Training/Development Courses

4. Federal Government / USA - Taxation
Source – OECD

5. Taxation / USA
Source - https://fred.stlouisfed.org/graph/?g=gTGe

6. Fiscal Management / USA
Source – USA Treasury Dept

7. Fiscal Management / USA
Source – USA Treasury Dept

8. GDP by President
Source - https://www.thebalance.com/gdp-growth-by-president-highs-lows-averages-4801102
Trump number does not reflect the
COVID19 pandemic

9. Fiscal Management / State
Source - https://www.usnews.com/news/best-states/rankings/fiscal-stability

10. USA / State Level
Source - https://www.usa.gov/state-taxes

11. USA / State Spending
Source - http://edr.state.fl.us/Content/local-government/data/revenues-expenditures/stwidefiscal.cfm and
https://www.census.gov/data/tables/2017/econ/state/historical-tables.html

12. Top 10 States – Highest per Capita Debt
Source - https://www.usgovernmentspending.com/compare_state_debt

13. Bottom 10 States – Debt per Capita Debt
Source - https://www.usgovernmentspending.com/compare_state_debt

14. Fiscal Management
Cycle
 40 states cannot afford to
pay their bills -
https://www.forbes.com/s
ites/mayrarodriguezvalla
dares/2018/09/24/fortyus
statescannotaffordtopaya
lloftheirbills/#4b8989607
18a

15. Bond Rating / States
Source - https://www.treasurer.ca.gov/ratings/current.asp

16. Local Government
Here is a look at few key cities in the USA:
 Chicago finances - https://chicago.suntimes.com/2020/1/28/21095089/chicago-budget-pension-debt-new-study-fiscal-health-ranking-taxes-bond-
rating “Moody’s Investors has already ranked Chicago and Detroit as the U.S. cities least prepared to weather the storm of another recession because
of “extraordinarily high” fixed costs and crushing pension obligations.”
 Minneapolis - https://www.southwestjournal.com/news/city-hall/2020/04/city-of-minneapolis-is-in-dire-financial-position/ “Minneapolis is currently
in a “dire financial position,” according to Mayor Jacob Frey, with the city’s external revenue expected to drop this year between 7% and 15% — by
roughly $100 million to $200 million. ” –
 Top 20 worse fiscally managed cities - https://www.businessinsider.com/us-cities-most-financially-stressed-housing-market-unemployment
 City of San Francisco – Fiscal Cliff - https://www.bloomberg.com/news/articles/2019-12-17/san-francisco-faces-budget-gap-as-6-billion-can-t-meet-
costs
 The 2020 budget that Mayor Melvin Carter proposed in August included a levy increase under 5%; in the months since, the city has had 30
homicides, prompting the mayor to propose a supplemental public safety budget that could require more tax dollars. Council members haven’t
gotten details yet but have generally expressed support. ” Source - https://www.startribune.com/minnesota-homeowners-get-an-early-peek-at-
property-tax-bills/565020362/ “
 Los Angeles –“Los Angeles Mayor Eric Garcetti's $10.5 billion budget for fiscal 2020-21 painted a bleak picture while acknowledging the
unprecedented harm to the city's economy from measures enacted to contain the coronavirus pandemic. The mayor declared a state of fiscal
emergency in the letter attached to his proposed budget unveiled Monday. The budget followed his State of the City speech, during which he had
announced furloughs affecting 16,000 city employees.” https://www.bondbuyer.com/news/los-angeles-budget-paints-a-bleak-coronavirus-picture “
 California cities - “The state budget is flush with a $21 billion surplus. The longest-ever economic expansion in California history has unemployment
at historic lows. But the wealth is not spread evenly among California cities, where some local government budgets are straining with debt and
declining revenue. The California State Auditor’s Office on Thursday unveiled a new online dashboard revealing the fiscal health, or lack thereof, of
471 cities in the Golden State, paying special attention to 18 “high risk” communities. Read more here: https://www.sacbee.com/news/politics-
government/capitol-alert/article236610128.html#storylink=cpy” or https://www.sacbee.com/news/politics-government/capitol-
alert/article236610128.html

17. Homelessness
 Homelessness - Seattle
https://www.forbes.com/sites/niallmccarth
y/2020/01/14/the-american-cities-with-
the-highest-homeless-populations-in-
2019-infographic/#344db5c014a9 – Where
is the talk about affordable housing?
 All cities need to do better urban planning
-
https://www.slideshare.net/paulyoungcga/
urban-and-rural-planning-whats-next
 High property taxes -
https://taxfoundation.org/property-taxes-
per-capita-2019/ or
https://www.usatoday.com/story/money/2
020/01/17/states-with-the-highest-and-
lowest-property-taxes/40974431/
 Cost of Living -
https://www.quickenloans.com/blog/15-
most-expensive-cities-in-the-us

18. Economic Growth
 Wages and Employment – People want to move where it is more affordable -
https://www.cnbc.com/2019/10/16/biggest-cities-in-us-are-losing-hundreds-of-workers-every-day.html
 Best cities to work (many are in the Midwest or Central/Northern California or on the East Coast
(https://fortune.com/2019/01/17/best-cities-to-work-in-2019/
 Cities hiring the most tech workers - https://www.usatoday.com/story/money/business/2019/03/25/stem-jobs-15-
cities-hiring-most-high-tech-workers-us/39125247/
 Best cities to find employment in 2020 - https://www.cnbc.com/2020/01/10/these-are-the-best-cities-to-find-a-
new-job-in-2020and-the-worst.html
 Manufacturing employment (Top 10 States) - https://www.globaltrademag.com/top-10-states-for-manufacturing-
2019/


19. State Taxation and Rent

20. Poverty Ranking by
major USA City
Source -
https://www.indexmundi.co
m/facts/united-states/quick-
facts/cities/rank/percent-of-
people-of-all-ages-in-
poverty

21. Fiscal Management
Source - https://wallethub.com/edu/best-cities-at-money-management/19256/ or https://www.usnews.com/news/cities/articles/2020-01-28/study-many-
us-cities-struggled-with-debt-in-2018 or https://www.truthinaccounting.org/news/detail/2020-financial-state-of-the-cities

22. GDP / City - USA
• Austin has the best GDP growth
• Many cities have strong growth but still face challenges with income inequality, poverty, affordable housing, and
cost of living - Source - https://www.businessinsider.com/us-metro-area-city-best-economy-ranking-2019-8
• Many cities have strong innovation hubs, like San Francisco and Seattle -
https://www.comptia.org/content/research/best-tech-cities-it-jobs
• Top cities for economic development / Blacks
• Atlanta, GA
• Washington, DC
• Austin, TX
• Baltimore, MD
• Raleigh, NC
• Charlotte, NC
• Houston TX
• San Antonio, TX
• Source - https://www.ajc.com/news/the-cities-where-african-americans-are-doing-the-best-
economically/aV6HMTUklKq4Hem3dYXQNK/

23. What is performance-based auditing
Source - https://chapters.theiia.org/vancouver-island/Events/Pages/Performance-Based-
Auditing.aspx
Auditing in the public sector means more than simply determining if controls are in place and regulations are being
followed. Public sector auditing, in many cases, means you will be dealing with varied constituents and often working in a
more public forum.
For new and experienced government and public sector auditors facing these unique challenges, this course will provide
new insight that includes assessing whether or not control frameworks are working to further an organization’s goals and
achievements. By learning to review an organization or department’s objectives and assess the risk to achieving them,
public sector auditors in this program will be able to effectively evaluate the organization and ensure that it is working
toward or maintaining a high level of performance.
Areas of focus:
• Management Issues, Concerns, and Functions
• Control Frameworks
• Risk-based Approach to Performance Auditing
• Value-for-money Approach to Performance Auditing
• Performance Measures

24. Value for Money
Source - https://www.iasplus.com/en-ca/standards/assurance/other-canadian-standards/section-ps-5400-value-for-money-auditing-in-the-
public-sector or https://www.niauditoffice.gov.uk/value-money-audit
An independent evidence-based investigation which examines and reports on whether economy, effectiveness
and efficiency has been achieved in the use of public funds.
Objectives
The primary objectives of value for money (VFM) audit are to:
• provide the Assembly with independent information and advice about how economically, efficiently and
effectively departments, agencies and other central government public bodies have used their resources;
• encourage audited bodies to improve their performance in achieving value for money and implementing
policy; and
• identify good practice and suggest ways in which public services could be improved.
An Organizations seeks to promote better value for money by highlighting and demonstrating to audited
bodies ways in which they could make improvements to realize financial savings or reduce costs; guard against
the risk of fraud, irregularity and impropriety; provide a better quality of service; strengthen and enhance their
management, administrative and organizational processes; and achieve their aims and objectives more cost-
effectively.

25. Can any
organization
undertake
Internal audit
and controls?
All organizations can set up internal control process and/or reporting:
 Triggers can be created based on pre-defined measurement and/or control
framework - https://www.investopedia.com/terms/c/continuous-auditing.asp
 Performance Measurements can be set up as part of measuring program
outcomes against success criteria. (AI and BI tools can be set up to help with
performance measurements reporting)
 External Audit firms can work with organizations to set up control
frameworks, performance measurements, etc.
 IT personal/Accounting teams can set up triggers with databases and/or
accounting software by establishing audit reporting (i.e. error reports,
reconciliations reports, security access reports, etc.)

26. Portland, Oregon
 Local cities - https://www.slideshare.net/paulyoungcga/fiscal-
health-usa-cities-local-government
 https://www.opb.org/news/article/portland-city-council-
unanimously-approves-budget/ “”Among these changes were
$50,000 to bolster security for council members” – Council has
private security, why?
 City voted to defund police, but up their security support to
council -
https://www.kgw.com/article/news/local/protests/defunding-
portland-police-city-council-budget-15-million-cuts/283-
239c5e3a-cfed-4dce-8775-d2c52a9df9aa
 Crime rate - https://www.kgw.com/article/news/portland-is-
oregons-third-most-dangerous-city-report-says/283-
47d57828-1d90-46a2-8aab-a3b0852dd95c
 Homelessness - https://www.heritage.org/poverty-and-
inequality/commentary/why-portlands-homeless-problem-
the-worst-the-nation

27. Seattle
 Crime on the rise in Seattle - https://mynorthwest.com/1697840/rantz-seattle-crime-dashboard-not-
updated/
 Homelessness – Seattle is ranked in the Top 5
https://www.forbes.com/sites/niallmccarthy/2020/01/14/the-american-cities-with-the-highest-homeless-
populations-in-2019-infographic/#16d727af14a9
 Seattle an income inequality - https://www.seattletimes.com/seattle-news/seattle-is-so-far-gone-on-
inequality-were-beyond-the-movie-parasite/

28. Chicago
 City of Chicago continues to have operating deficits - https://www.civicfed.org/civic-federation/blog/city-
chicago-projected-budget-deficit-increases-8382-million
 Chicago has enormous issues with Debt - https://chicago.suntimes.com/2020/1/28/21095089/chicago-
budget-pension-debt-new-study-fiscal-health-ranking-taxes-bond-rating
 Crime continues to plague cities like Chicago - https://heyjackass.com/
 Homelessness - https://www.usatoday.com/story/money/2019/10/07/48-major-us-cities-struggling-to-
shelter-growing-homeless-population/40242171/
 Chicago scores low when it comes to best managed cities in the USA - https://wallethub.com/edu/best-
run-cities/22869/

29. 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

30. What needs to be done
 All levels of governments need to moved forward with digital framework
 All local government need to undertake a program by program review -
https://ballotpedia.org/Analysis_of_spending_in_America%27s_largest_cities
 All levels of governments need to adopt analytics and data sciences
 Audits and Reporting - https://www.slideshare.net/paulyoungcga/internal-audit-and-performance-base-auditing or
https://www.ibm.com/ca-en/products/cognos-analytics
 All levels of governments need to have audited risk management reports
 All level of governments will need to be transformed - https://www.slideshare.net/paulyoungcga/the-role-of-
operational-and-performancebased-auditing-on-government-and-the-private-sector
 Pension funding
 Compensation
 Review of both discretionary and non-discretionary spending
 Annual audits of risk and crisis management plans