switching on a fraud control dashboard for your organisation stephen horne managing director iab...
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Switching on a Switching on a
Fraud Control DashboardFraud Control Dashboardfor your Organisationfor your Organisation
Stephen HorneStephen HorneManaging DirectorManaging Director
IAB Services IAB Services (a NSW GTE)(a NSW GTE)
CorruptionPrevention Network
The origins of our current approach to fraud control in NSW can be linked back to this 1990 policy directive.
But few can remember it, or have ever seen it!
It was not a formal circular or Memoranda.
The NSW Audit Office 1994 Better Practice Guide has become a popular product.
2005 update for the 10-point 2005 update for the 10-point fraud control strategyfraud control strategy
Integrated Macro Policy
Notification Systems
Responsibility Structures
Detection Systems
Fraud Risk Assessment
External Notification Systems
Employee Awareness Investigation Systems
Customer and Community Awareness
Conduct and Disciplinary Systems
Building a Fraud Control DashboardBuilding a Fraud Control Dashboard
.
Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7
1. Integrated Macro Policy
2. Responsibility Structures
3. Fraud Risk Assessment
4. Employee Awareness
5. Customer & Community Awareness
6. Notification Systems
7. Detection Systems
8. External Notification Systems
9. Investigation Systems
10. Conduct & Disciplinary Systems
No Data
Urgent Action Required
RESULTS FOR INDIVIDUAL WORK AREASFraud Control AttributeOVERALL RESULTS FOR
THE ORGANISATION
Good Performance
Action Required
Overall Work Area Results :
1993 Audit Results1998 Audit Results
2004 Audit Results
On the bright side, things have On the bright side, things have been improvingbeen improving
These are the ones that matter most
highly effective
effective
2004 Audit Results
Highly Effective
13%Ineffective2%
Partly Effective16%
Generally
Ineffective6%
Effective37%
Fairly Effective26%
After 14 years only
50% at “effective” or better
So 50% not up to par??
But is it enough?But is it enough?
Breaking the results down shows up key problems
0%
20%
40%
60%
80%
100%
1 2 3 4 5 6 7 8 9 10
Fraud Control Attribute
Res
po
nse
NotApplicableExcellent
Very Good
Good
Fair
Basic
VeryBasic
= risk assessment; employee & customer awareness; investigations
Looking more closely, there are Looking more closely, there are some major concernssome major concerns
Fraud Control Improvement KitFraud Control Improvement Kit“By using this kit an
organisation can:– assess whether, and where, the
implementation of its fraud control strategy needs to improve
– develop a targeted plan for improving the implementation of its fraud control strategy
– monitor the ongoing extent of implementation of its fraud control strategy across all work areas within the organisation”
A simple method of data collectionA simple method of data collection
.
if the fraud control framework was working effectively, it would generate a testable “fraud control environment”
this seeks to test that environment through staff perceptions
it is not an audit “of fact”, it is a test of the operating reality
takes staff just 5 minutes
A simplified management reportA simplified management report
.
download spreadsheet from Audit Office website
has been calibrated to be sensible and usable
input the survey data into a spreadsheet and the report is instantly created
dashboard indicator report to the Audit Committee
Audit Committee recommends action to the CEO
Leading to targeted action Leading to targeted action (cost effective)(cost effective)
Attributes Needing AttentionAttributes Needing Attention
• flagged by the Healthcheck as needing attention across the organisation
• refer to a relevant “organisational owner” for action
• lets have a look ….
Which Attributes Need Attention?Which Attributes Need Attention?
.
Work Areas Needing AttentionWork Areas Needing Attention
• flagged by the Healthcheck as needing attention
• initiate a “fraud control improvement workshop”
• lets have a look ….
Which Work Areas Need Attention?Which Work Areas Need Attention?
.
Improvement WorkshopImprovement Workshop
• only initiated where necessary • independent facilitator• 10 modules, takes about 3 hours• there may be substantive issues, or there
may just be a lack of awareness. Either way there is a problem and this can fix it
• produces an improvement action plan that is then monitored by the Audit Committee
Switching on a Switching on a
Fraud Control DashboardFraud Control Dashboardfor your Organisationfor your Organisation
Stephen HorneStephen HorneManaging DirectorManaging Director
IAB Services IAB Services (a NSW GTE)(a NSW GTE)
Ph: 9261 1090 email: [email protected]: 9261 1090 email: [email protected]