Case Study

Strengthening Operations and Financial Stewardship Across State Government

SUMMARY/OVERVIEW

Helping state leaders identify more than $160 million in opportunities

State governments face growing pressure to deliver services efficiently while managing limited resources, evolving workforce needs, aging technology, and increasing expectations for accountability. To navigate these challenges, leaders need a clear understanding of how their organizations operate and where opportunities exist to strengthen performance.

Over a six-year relationship, we supported one state government with federal funding strategy, compliance oversight, grants management, and organizational advisory services. Building on prior work, our team was selected through a procurement process to conduct operational and financial reviews across three cabinet-level agencies.

The reviews gave agency leaders a better understanding of how their organizations were operating and where opportunities existed to strengthen financial management, streamline operations, modernize systems, and support long-term performance.

Key Takeaways

$160M+

in opportunities identified to strengthen operations and financial stewardship within state government  

100+

stakeholder interviews conducted across three cabinet-level agencies

6+

years supporting the state's priorities through federal funding oversight, organizational advisory services, and operational reviews

Government Professional.
The Challenge

Finding Increased Effectiveness and Accountability

State leaders wanted a clearer understanding of how resources were being managed across several large agencies and where operational challenges were affecting performance. The agencies under review were responsible for transportation infrastructure, human services programs, public safety operations, corrections, emergency management, administering related federal grant programs, and other critical government functions.

Following the COVID-19 pandemic, leaders were also navigating the transition away from temporary federal funding programs while managing growing operational demands, increased costs, and additional responsibilities placed on state governments.

Early discussions revealed several common challenges. Agencies were dealing with workforce shortages, manual processes, aging technology, and limited visibility into financial and operational performance. Leaders were also looking for opportunities to strengthen oversight, modernize operations, and better align resources with agency priorities.

The state needed practical, data-driven recommendations that leaders could use to address current challenges and help guide long-term decision-making.

US Capital Building.
The Approach

Combining Data, Stakeholder Input, and Operational Analysis

Our team conducted detailed operational and financial reviews across an initial selection of three cabinet-level agencies. The work combined data analysis, document reviews, peer benchmarking, and extensive stakeholder engagement to evaluate how each agency was functioning and where opportunities for change existed.

We reviewed budgets, organizational structures, policies, systems, operational data, and prior assessments. The team also conducted more than 100 interviews with agency leadership, managers, and staff to understand day-to-day operations, identify challenges, and validate findings.

The reviews focused on key areas including:

  • Financial management and cost containment
  • Grants management and oversight
  • Workforce recruitment and retention
  • Organizational effectiveness and governance
  • Contract and vendor management
  • Technology modernization
  • Process automation and operational efficiency
  • Strategic planning and performance management
  • Service delivery operations and outcomes

Using data analysis, public-sector benchmarking, and operational reviews, we developed recommendations that agency leaders could use to prioritize actions, strengthen accountability, and make better use of public resources. Learn more about BDO’s government services. 

US Supreme Court Building.
The Results

Creating a Roadmap for Long-Term Success

Our team identified more than $160 million in opportunities to strengthen operations and financial stewardship across state government, including ways leadership could: 

  • Tighten financial controls and resource management.
  • Expand federal cost recovery and reimbursement opportunities.
  • Strengthen grants management and monitoring practices.
  • Streamline workforce recruitment and hiring processes.
  • Reduce manual, paper-based work.
  • Modernize legacy technology systems and data management capabilities.
  • Improve contract oversight and vendor accountability.
  • Support stronger governance, planning, and decision-making.

We used the findings to develop recommendations ranging from modernizing legacy systems and strengthening grants oversight to evaluating unused subscriptions, underutilized assets, contract administration, and opportunities to insource certain contracted activities. The recommendations created a roadmap for modernization and stronger performance across state government. 

Agency leaders gained a clearer understanding of operational risks, investment needs, and future priorities. State leaders are using the findings and recommendations to prioritize future investments, address operational challenges, and advance modernization efforts across multiple agencies. The state continues pursuing cost controls and efficiency with reviews and initiatives underway across additional agencies. 

Government agencies across the country find themselves working harder to meet competing expectations with limited resources. We help support state and local efforts to improve performance and deliver greater value to the public. 

As we worked alongside agency leaders and staff, we saw a real commitment to understanding how operations, resources, and priorities could be better aligned. The value of this work wasn’t just in identifying opportunities, it was in providing leaders with practical information they could use to make decisions and strengthen performance over time.

David Clark
Managing Director, Government Services