Businesses can learn lessons from expenses row

News Article - 22 May 2012
Category: Business

Whilst the MPs expenses row received significant media coverage, many companies will know expenses fraud is not only a parliamentary issue: commercial organisations commonly suffer large financial losses through inflated expenses claims. By analysing and learning from the post-scandal situation in Westminster, companies can more effectively target workplace expenses fraud.

Following the parliamentary scandal, a new expenses system was implemented by the Independent Parliamentary Standards Authority (IPSA), which was set up solely to find an alternative solution and limit fallout. IPSA recently admitted to 'teething troubles' with the new system, following the resignation of operations director Nigel Gooding after only six months with the organisation.

One of the major problems has been a negative response from MPs to IPSA's system which has stalled progress and led to gridlock. IPSA staff abused by MPs in lengthy phone calls subsequently complained to chief party whips, who forced those responsible to send apology letters. MP support for the new expenses system remains unstable, with polarised opinions common throughout Parliament.

The main aggravating issue is cultural inertia; the new expenses systems formed such a significant and controversial break that many MPs resisted reform from the early stages. After a period of relative freedom in which expenses claims were largely rubber stamped, the new system brought in a much more restrictive framework that subjected claims to a far greater level of scrutiny than before.

Cultural inertia is also a significant stumbling block encountered by companies looking to reform internal policy, whether a substantial issue such as expenses or even something less wide-ranging. However, reforming the expenses system is particularly sensitive to cultural inertia as it revolves around something many employees feel strongly about - the repayment of money spent in good faith.

Companies will no doubt be keen to tackle expenses fraud considering the significant hit it makes to the bottom line, but many may be unsure where to start. Producing expenses policies that are sensitive to employee wishes can help facilitate a smoother and more agreeable transition for all parties involved. This could help reduce the significant resistance - and associated productivity losses - experienced by IPSA.

Access software provides tools to help businesses track expenses electronically and also comprehensive project management time tracking that captures all time-based activity. Powerful authorisation features provide an opportunity for all timesheets and expenses to receive management approval, helping to highlight any potential areas of expense inflation.

For more information, please call Access on 0845 345 3300.

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