HOW DO YOU GET MAXIMUM VALUE FROM GOVERNMENT TAXATION

PAUL YOUNG CPA, CGAMARCH 6, 2017

AUTHOR – 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

AGENDA/ VALUE FOR MONEY

• Money Flow / Government

• What it is?

• How it works?

• Drawbacks ?

• Strategy

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

WHAT IS VALUE FOR MONEYIndependent 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/definition/value-for-money-audit.html

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

PROBLEMS WITH VALUE FOR MONEYIt’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. – Macleans – 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. Macleans – June 5, 2015

SUMMARY

• 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