Switching on a Fraud Control Dashboard for your Organisation

1. Corruption Prevention Network Switching on a Fraud Control Dashboardfor your Organisation Stephen HorneManaging DirectorIAB Services (a NSW GTE)

2. 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.

3. The NSW Audit Office 1994 Better Practice Guide has become a popular product.

4. 2005 update for the 10-point fraud 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

5. Building a Fraud Control Dashboard .

8. highly effective effective On the bright side, things have been improving These are the ones that matter most

9. But is it enough? After 14 years only 50% at “effective” or betterSo 50% not up to par??

10. = risk assessment; employee & customer awareness; investigations Looking more closely, there are some major concerns

11. Fraud 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 acrossall work areas within the organisation”

12. A 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 .

13. A 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 .

14. Leading to targeted action (cost effective)

15. Attributes Needing Attention • flagged by the Healthcheck as needing attention across the organisation • refer to a relevant “organisational owner” for action • lets have a look ….

16. Which Attributes Need Attention? .

17. Work Areas Needing Attention • flagged by the Healthcheck as needing attention • initiate a “fraud control improvement workshop” • lets have a look ….

18. Which Work Areas Need Attention? .

19. Improvement 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

20. Switching on a Fraud Control Dashboardfor your Organisation Stephen HorneManaging DirectorIAB Services (a NSW GTE) Ph: 9261 1090 email: stephen.horne@iab.nsw.gov.au