It is just a few dollars here and there, right? An employee may take a carefree stance on the use, or in this case misuse of employee funds from time to time, but expense fraud is a crime. And it is more than a few dollars on simply an accounting or human error. The median impact of each fraudulent expense case on an organization’s finances is $33,000, according to the Association of Certified Fraud Examiners. Expense fraud can come in many forms from falsified travel and mileage reports, billing for items never purchases, excessive reimbursement for leisure or entertainment or even manipulating receipts.
More often than not, expense fraud can be averted if companies implement fraud control policies and procedures. These policies must be actively enforced.
Tips to Prevent Expense Fraud:
- Clearly state and maintain your travel reimbursement policy
- Digitally track details of money spent by employees
- Record details of money spent on corporate credit cards
- Require receipts for specific expenses
- Prosecute offenders by maintaining proper oversight
One closing note comes from an article by CNN. “Despite technological advances in expense reporting, companies are still having a hard time detecting fraud. On average, it takes a company 24 months to discover expense account fraud, according to a 2010 report by the Association of Certified Fraud Examiners. And this kind of fraud is more than four times as likely to occur within a business as corruption or financial statement fraud.”
Do your part to prevent expense fraud and call ARA at 636-346-9273.