1 / 11

Charity Fraud Awareness

Charity Fraud Awareness. Lisa Heading Fraud Prevention & Investigations Unit December 2012. Content:. What is Fraud? What leads people to commit Fraud? Stats / figures and why Charities are vulnerable Protecting against Internal Fraud – Red Flags Anti-Fraud Programme

sona
Télécharger la présentation

Charity Fraud Awareness

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Charity Fraud Awareness Lisa Heading Fraud Prevention & Investigations Unit December 2012

  2. Content: • What is Fraud? • What leads people to commit Fraud? • Stats / figures and why Charities are vulnerable • Protecting against Internal Fraud – Red Flags • Anti-Fraud Programme • Best Practice Recommendations • Q & A Session

  3. What is Fraud? The Charity Commission and the Serious Fraud Office define fraud as: ‘a form of dishonesty, involving either false representation, failing to disclose information or abuse of position, undertaken in order to make a gain or cause loss to another’. Zurich expands this definition to:  • Misappropriating, concealing, diverting or obtaining money, assets including data, information or services by deceptive means; • Misusing one’s position through unlawful or improper acts with the intention of causing financial loss to Zurich, its customers, employees and / or suppliers; • Any false representation, or material non-disclosure, which is intended to be misleading with the intention of securing a financial or other gain, or causing a financial loss or reputation risk. 

  4. The Fraud Triangle What leads people to commit Fraud? • Rationalisation • “No-one will miss it” • “Merely borrowing” • Employer dissatisfaction • Need outweighs the risk/crime • Opportunity • The ability to commit fraud – what’s the environment like? • Culture? • Controls - lax / non-existent? • Governance – poor oversight? • Motivation • Financial difficulty • Need for money • Greed • Maintenance of lifestyle

  5. Annual Fraud IndicatorMarch 2012

  6. Protecting against Internal Fraud 33% of reported fraud is identified through whistle-blowing and tip-offs; 15% is identified by management, 15% by audit and 12% by accident. A far greater amount goes undetected. One way to protect against fraud is to look out for the warning signs (Red Flags), such as: • changes in the behaviour of employees or volunteers; • new staff resigning quickly; • an increase in the number of complaints being made; • transactions taking place at unusual times or not being recorded on a timely basis; • discrepancies in accounting records; • unexplained items on reconciliations; • missing documentation; and • missing funds or assets.

  7. Anti-Fraud Programme The most effective way to deal with internal / external fraud is to develop an anti-fraud programme, appropriate and proportionate to the size of the charity. Areas to be considered include: C – Controls -robust financial controls H – Heighten fraud awareness by training all staff and volunteers A - Anti-corruption policies and procedures R – Reporting - whistle-blowing policies I – Implement fraud risk assessments T – Tone at the Top I – Insurance (theft) E – Employees -robust recruitment and screening procedures S - Segregation of duties and authorisation limits

  8. Benefits of an Anti-Fraud Programme • The benefits of an effective anti-fraud programme cannot be • understated. • These include: • reduced risk and impact (financial and reputational) of fraud or error; • less disruption dealing with fraud or error after the fact; • greater likelihood of achieving charitable objectives; • early warning of problems; • better decision making; • better allocation of resources; • more effective communication with stakeholders; and • effective continuity planning.

  9. Best Practice Recommendationstominimise the risk of fraud: • Critically review your financial controls at appropriate intervals, keeping them up-to-date. • 2. Segregate duties – don't allow one or two people to be in charge of your charity's financial controls. • 3. Make sure all of the separate parts of the financial records agree with each other and always keep receipts. • 4. Avoid weakening your financial security for the sake of saving time; e.g. Never pre-sign blank cheques, even where a second signature is required. • 5. Keep a register of valuable assets and property and inspect them periodically.

  10. (Cont) Best Practice Recommendationsto minimise the risk of fraud: • Ensure online banking arrangements are secure and protected • with dual-level authorisation. • 7. When recruiting staff, especially those who handle finances, make appropriate background checks and references. • 8. If the charity makes grants to beneficiaries or other organisations, carry out appropriate due diligence checks on applicants. • 9. Ensure Trustees receive and consider regular reporting information about the charity's finances. • If you suspect or become aware of fraud, make sure you know • what to do and whom to inform. Prompt and appropriate action will help limit any damage.

  11. Any Questions? lisa.1.heading@uk.zurich.com

More Related