A value-for-money review that delivered measurable impact

The challenge: Understanding the true costs of program delivery

A Government client wrestled with understanding the cost effectiveness of their operational programs, which provide inmates with meaningful skills and work experience in textile production, linen services, and license plate manufacturing. These programs, spread across four locations, incurred significant machinery, equipment, and other operational expenses—and without any prior operational review, the client struggled to determine if the programs delivered value for money.

The solution: Value-for-money assessment shines a light on economy, efficiency and effectiveness

The Government client engaged KPMG in Canada to conduct an extensive, evidence-based review of their operational programs. Using KPMG’s value-for-money methodology, we assessed the programs’ costs over a three-year period through the lenses of economy, efficiency, and effectiveness.

The client gained a clear understanding of the true cost of their programs and identified inefficiencies in key processes and controls including areas of risk and opportunities to streamline operations. These insights helped the client make more informed decisions, prioritize investments, and explore more sustainable approaches to delivering the programs.

The review also compared the cost and benefits of producing goods and services internally versus sourcing them through external contracts, clarifying which delivery models offered the greatest value. Drawing on KPMG’s global network of member firms, we incorporated international benchmarking data, cross-jurisdictional comparisons, and leading practices from correctional systems worldwide. This global perspective, combined with feedback from stakeholders and inmates, surfaced practical opportunities to enhance both efficiency and impact.

By focusing on cost drivers, operational risks, delivery models, and global best practices, the client gained actionable insights and clear recommendations to optimize spending, strengthen service delivery, and improve the overall effectiveness of their operational programs.

The outcome: Cost savings and enhanced programs

Our client explored alternative program delivery options and significantly improved their operational framework, achieving $1 million in savings, equivalent to 11% of their $9 million total budget. Additionally, they identified $400,000 in further savings by reducing manual processes, improving internal controls, and exploring external partnerships.

Beyond these quantifiable savings, the client uncovered opportunities to expand work programs to female participants, offer monetary incentives to inmates, and build relationships with potential employers—enhancing the reach and relevance of their programs.