Canadian Government Executive - Volume 26 - Issue 03

22 / Canadian Government Executive // May/June 2020 By Birave Mahendrarajah Millennial Outlook S tewardship of public funds is a fundamental responsibility of modern government. Entrusted with taxpayers’ hard-earned dollars, it is the government’s job to ensure that resources are managed in a way that brings the best possible value to citizens. This is not an easy task. Gov- ernments around the world are grappling with increasingly constrained resources while balancing citizen demands for bet- ter services within a rapidly changing pub- lic sector context. According to Deloitte’s 2019 Future Finance Report , “... the financial crisis might have receded, but govern- ments continue to face a range of external and internal challenges.” What are these challenges? Public debt, changing demographics, and technological disruption are just a few of the external factors influencing public sector transformation. Governments are facing increasing demands to operate in a manner that is increasingly transparent, lean, and accountable. For the stewardship role, this means traditional practices must evolve. Leading scholarly thought empha- sizes the importance of continually finding opportunities to improve the efficiency and effectiveness of government—and not just in times of fiscal restraint. In Building Better Public Services , Tony Dean (2015) maintains that ongoing review supports fiscal health that is sustainable over the long term. This is especially so in compari- son to strategies like across-the-board bud- get cuts that focus on meeting short-term fiscal targets. What can government leaders do? Data. Evidence-based decision making is at the heart of good governance. Accord- ing to Ernst & Young’s 2018 Line-by-Line Ex- penditure Review , the Ontario Government may have well-established data sets to demonstrate where taxpayer dollars are going, but there can be an alarming lack of information on the actual value gener- ated. This is especially true in cases where transfer payments to arm’s-length orga- nizations enable delivery of government- sponsored outcomes. Transfer payments are close to 90 per cent of Ontario’s oper- ating expenditures, representing a signifi- cant opportunity for reforms to achieve fiscal balance. Identifying the greatest risks alongside potential investments in data generation can close critical informa- tion gaps and reassure government of get- ting value for money. Process. Stewards of public funds must adapt processes to align with changing ways of working. This includes evolving the way government assesses investment proposals so that value generation is pri- oritized. For example, capital investment in large-scale information technology projects is being replaced increasingly by agile development methods and proof-of- concept-style delivery that can be scaled up over time. Such techniques may not have clearly defined milestones or de- tailed budgets. Ways to accommodate non-traditional business cases must be found within strict government approval processes to mandate detailed project plans and timely outcomes. In Tell the CFO the Agile Team Isn’t Asking for a Blank Check , Swanton & Kyte (2019) reveal new ways to show value, maintain accountabil- ity, and accommodate change. They sug- gest using outcome-based initiative road maps, establishing clear minimally viable products, and allowing flexibility to shift resources across initiatives. Technology. Significant opportunities can be realized through the use of emerg- ing technologies. Routine financial process- es like reconciliations and reporting are excellent candidates for Robotic Process Automation (RPA). Auditing financial state- ments can be optimized by maintaining a general ledger using Blockchain. Business analytics and intelligence can create valu- able insights for multi-year financial plan- ning and analysis. Deloitte’s 2019 technol- ogy predictions reveal that these are only a few of the emerging global trends being used to strengthen the stewardship func- tion. For example, it highlights the success of Denmark’s Agency for Government Ad- ministration in processing manual tasks that are five-to-six-times faster using RPA. Deloitte also highlights a Dutch govern- ment Blockchain pilot that demonstrates potential to significantly streamline the au- dit function by enabling real-time data and early non-compliance intervention. People. Government stewardship and financial management functions are evolv- ing from their roots as transactional ac- tivities to increasingly strategic functions. Investments in training and competency building initiatives are critical to ensure that staff are well equipped to tackle the challenges ahead. Price Waterhouse Coo- per’s 2019 publication on high performing finance talent emphasizes that technical knowledge may no longer be sufficient in the finance function. Professionals must develop skill sets and competencies relat- ed to strategic planning and analytics to meet changing organizational demands. Broader, widespread adoption of tech- niques like those identified above enable real change that strengthens government stewardship. More importantly, they have the potential to bring the greatest possible value for taxpayer dollars. Birave Mahendrarajah is an Ontario Public Servant. She is a Candidate for the Master of Public Policy, Administra- tion and Law Program at York University (birave@gmail.com) . The evolving role of public sector stewardship When it comes to managing taxpayer dollars, how can we do more with less?