{"id":3535,"date":"2018-06-06T16:28:12","date_gmt":"2018-06-06T16:28:12","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=3535"},"modified":"2022-09-05T21:06:13","modified_gmt":"2022-09-05T21:06:13","slug":"identifying-fraud-within-travel-expense-te","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2018\/06\/identifying-fraud-within-travel-expense-te\/","title":{"rendered":"Identifying Fraud within Travel Expense (T&E)"},"content":{"rendered":"

Introduction<\/strong><\/span><\/p>\n

Achieving compliance with company travel policy can help control overall travel spending and increase employee confidence by creating a culture where employees are confident that all employees follow the same rule book to comply with policy requirements.\u00a0 Whether or not deviations are intentional or simply mistakes or carelessness, processes that appropriately detect and correct can guide the majority of \u201cinadvertent abusers<\/a>\u201d to become compliant and also provide the necessary objective evidence to support disciplinary action, as appropriate, in cases where intentional violations are substantiated.\u00a0\u00a0<\/span><\/p>\n

Traditionally, policy enforcement relied on a manager\u2019s review of an employee\u2019s expense report, with most managers not having expertise in travel policy, nor the patience or interest in performing a detailed review, or willingness to challenge small errors because of concern with causing friction with an otherwise highly-valued employee.\u00a0 Reviews performed during the processing of the expense report might include staff with greater knowledge of what constitutes a policy exception, but the volume of reports created bottlenecks and high costs to ensure high levels of compliance.\u00a0<\/span><\/p>\n

Fortunately, with the addition of sophisticated data analysis software, relationships in the data can be analyzed quickly, with possible violations flagged for follow-up.\u00a0 These capabilities dramatically improve the ability of companies to efficiently and effectively create a controlled environment that improves traveler compliance with travel policy, including better controls to prevent intentional fraud.<\/span><\/p>\n

iPollingTM<\/sup> Results Review<\/strong><\/span><\/p>\n

Peeriosity\u2019s iPollingTM<\/sup> was recently used by the Manager of Supplier Services at a large global company with revenues of over $80B, with the goal of better understanding how other large companies identify fraud or other significant deviations from travel policy.\u00a0 \u00a0The first of two poll questions asked about the organization\u2019s primary solution or approach to identify fraud in Travel and Expense (T&E). \u00a0For 32% of member companies, the top response was the use of Oversight Systems Software.\u00a0 For 23%, the response was to rely on Standard Internal Auditors, and an additional 18% cited another software solution, Concur<\/a> Audits \u2013 Prepayments, as their top response.\u00a0 The balance of responses included the use of in-house T&E compliance, and in-house forensic auditors, with no one indicating that they primarily rely on Third Party Audit Firms.\u00a0 Here are the details:<\/span><\/p>\n

\"iPolling:<\/p>\n

The second polling question asked about the overall level of satisfaction with the current fraud detection solution or approach.\u00a0 66% of responding companies were either satisfied or very satisfied, with 24% indicating they were indifferent.\u00a0 Only 10% reported they were dissatisfied.<\/span><\/p>\n

\"iPolling:<\/p>\n

Here are a few of the poll comments from Peeriosity members:<\/span><\/p>\n