differents procedures for same administrations 2890

  • Hi all
    i need a confirmation of one statement:
    If one public administration even has unique regulation which control her work but let the procedures how the service is provided to public free to the appreciation to each unit which is represent that administration within the country; in IMO, it is the best way to encurrage the fraud, isn’t it ?
    the social system administration, every city has it regional unit, if the internal procedures which monitor the work within this unit is different from one unit to another one, according their internal code, even for their responsibility facing the regulation remain the same, is that good and decrease the likelihood of the fraud
    thanks for reply

  • That’s an interesting question Selena.
    It is similar to a large company that has multiple accounting shops. They have one set of rules to work under (GAAP), but the local accounting shops each are responsible for enforcing the rules while being structured in the manner in which they each feel is most efficient for their business units. They may also have local governmental regulations on accounting that they must report under as well as the rules for the parent (think international locations of a global company).
    The greater the number of accounting locations, the greater the risk of error or fraud as you have more people to train on the rules and more hands touching the bookkeeping transactions. The greater the risk, the more need for oversight of the risk (internal audit, standard controls testing, local market visits by the parent company).

  • Hi kymike
    thanks for reply
    to be more clear, for sure in the case of company as you indicated answering to the local and international regulations has its part of risk. I’m focusing on the local public administration. for sure the responsible of each unit has this duties to implement the rules, but what about the way how the service is provided to the public as for the post administration, the town council Brit, they have many service to provide to the public ( certificate of born, of property …). if the procedure to provide such documentation aren’t the same for each unit and enough communicated to the public and left to the appreciation to each unit, it is the best way to open the door to the risk of fraud.
    isn’t it?

  • Selena,
    I doubt that the risk of fraud increases if each office communicates with the public a little bit differently, but it could cause confusion with the public, especially if they have dealt with one office in the past and now deal with a different office.
    Certainly, it is more efficient to have one set of guidelines that is used by all offices. This makes it easier to train new staff or staff who may transfer between offices. I think that it would be difficult to argue that SOX is the primary argument for standard procedures among offices, though.

  • Hi Kymike
    actually, i would argue on that. When you do not harmonize the process of service public, and left it to the appreciation of the units of these public company, located in several cities of country A, if in unit x of the public company has as procedure, to provide customers, a property certification of land, i take this exemple, enough controls before verification with SOD considerations, and others less controls, it is the breach for fraud and corruption to get in.
    what do you think ?

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