Fraud and Corruption proof your organisation
How we can help: Taking proactive steps to fraud- and corruption-proof your organisation will not only protect its reputation and improve efficiencies through reduced fraud and corruption seepage, but also raise its level of accountability, improving trust with donors and beneficiaries alike. As a result, many organisations actually see an increase in their funding levels, as donors increasingly view them as both ethical and trustworthy partners.
The uncomfortable truth: Fraud and corruption are on the rise
The charity/non-profit and international development sectors are not immune from fraud, with corruption levels on the rise. Increasing economic challenges and the growing wealth gap in many parts of the world continue to add to the pressures:
- Corruption is now the 3rd largest industry worldwide, and is a growing issue in both developed and developing environments alike
- The average organisation loses 5% of its income to occupational fraud alone. For Australia’s non-profit sector, this equates to a startling A$3.8 billion per annum. In the case of England and Wales, fraud is currently estimated to cost the charity sector £1.3 billion (or 2.4% of annual turnover)
- Recent surveys in Australia and the UK show that over half of respondents felt fraud was a major risk to the charity sector, and almost 30% saw it as a problem for their organisation. Despite this, 60% of non-profits had no anti-fraud or anti-corruption policies or procedures in place, and 82% had no fraud control plan..
- In comparison to other sectors, the non-profit and charity sectors tend to be characterised by relatively weak regulatory environments with a low level of external oversight. When combined with a high level of public trust and the cover of respectability, it provides a perfect environment for those committing fraud and other acts of corruption to operate with minimum scrutiny and less suspicion.
Unfortunately a lack of awareness and understanding of the topic and its potential impact has tended to result in many charities and non-profits only addressing it once directly affected by an actual case of corruption. By the time the problem is recognised, reputational damage has already occurred.
How we can help you
We can help you avoid this through the provision of the following:
- Anti-Fraud and Corruption Frameworks and Strategies: Developing an integrated anti-fraud and corruption prevention strategy and framework to help fraud and corruption-proof your organisation.
- Assurance and Compliance Services: A comprehensive suite of anti-fraud and anti-corruption related services providing you with appropriate levels of assurance and/or reassurance.
- Online Training and Customised Workshops: Online self-paced courses or tailored training programmes to educate your managers and staff on corruption prevention, governance, and ethics.
- Whistleblower Solutions: Easy and cost-effective internal and external reporting platform. Find out about a potential issue before it becomes a problem.
- Anti-Corruption Certification: The big tick that shows your organisation has the appropriate systems and structures in place to minimise the risk of fraud and corruption taking place.
If you are interested in any of the above, or have any queries, please feel free to contact us. Otherwise, please have a look at some of the various assignments we’ve completed.