News Article - 23 May 2012
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A new survey reveals public acceptance of expenses fiddling has more than halved in the last year. 14% of respondents felt fiddling could be justified, down from over a third in previous years. 15% of expense-claiming employees exaggerate their claims, with 13% of these exaggerating by more than 25%. 71% said fiddling expenses was justified when employers failed to reimburse costs.
Also highlighted were the detrimental effects of expenses fiddling on workplace efficiency. 75% of those surveyed would not trust someone who fiddles their expense claims with other areas of work. The research concluded that employers must be proactive in targeting the issue as 77% of employees revealed their bosses never reviewed their claims.
The decrease in public acceptance on the matter is no doubt linked to the MPs expenses scandal publicised in the media throughout 2009. Confidence in British politics fell sharply and the moral integrity of involved MPs was questioned. Public and professional calls for greater parliamentary transparency and tougher rules on expense claims are still being made today.
Yet evidence exists that fiddling expenses and other forms of workplace fraud are increasing. Speculators suggest recession has driven people to raise money illegally, and recent research by Deloitte reveals a third of companies experience expenses fraud. In addition a quarter of companies would be uneasy answering questions from HMRC regarding staff expense claims.
Businesses of all sizes may be anxious over the effects expense fiddling could have on reputation and profitability. Whilst scrutinising claims may stretch resources, companies should ensure consistent and proven methods are utilised to ensure expense claims are based on legitimate costs. As fiddling expenses becomes less acceptable the negative effects of expense-based fraud on company reputation and long-term stability are likely to increase.
Access expenses management software encourages, and helps develop, company-wide accountability for expense claims. With powerful functionality to configure expenses type, variable rates can be entered that allow all costs to be incorporated with minimal effort. Flexible levels of authorisation also allow decision-makers to maintain heightened levels of scrutiny, with more chance of anomalies and inflated expenses claims being spotted earlier.
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