Money & Fraud

7    Money and fraud

Money & Fraud

Successful businesses exist because

• they maintain a flow of cash, which means they can pay their bills
• they make a profit, which can either be paid to employees in bonuses or invested for future growth.

Managers are entrusted with keeping the company financially healthy. Money is created or spent in a number of ways

income from sales costs of sale general expenses of running business

losses or scrap (wasted resource) time of employees customers retained

What you can do to make the money go further

You will probably find that you have targets which you and your team need to meet. By meeting these targets you are doing your bit to help the company keep financially healthy. As you begin your job make sure you at least meet these targets.

As you gain more experience you may find your manager asks you to review the way you and your team work so that you can achieve higher targets. This may include

• higher productivity per hour or day
• buying more items out of the same budget
• getting more things right first time
• less time on each customer transaction
• speeding up a process
• reducing or getting rid of overtime.

Team members often have ideas of how to save money – make time to listen carefully to them.

Money & Fraud

Fraud

Fraud is stealing. It is the easiest way for someone to end their career. The first point here is that you must never respond to the temptation to be involved in corporate fraud. If someone asks you to be part of it, speak with your line manager immediately.

How people defraud a company

Typical ways in which someone defrauds a company are

• giving confidential company information to a competitor
• using company information for personal benefit
• taking equipment like stationery or components
• wasting company time which they are paid for
• absenting themselves from work for no acceptable reason.

Why people commit fraud

It can be for many reasons but two main reasons are

Financial

If you know or hear that someone in your team is in trouble financially, mention it to your manager. They will be able to have a conversation with them and if their work involves them dealing with money, can determine whether they need to be moved to another job where money is not a temptation.

Grudge against the company

A person may believe they are being treated unfairly by the company and fraudulent activity is their way of retaliation. You are more likely to find this out by having good working relationships with all your team. Then you will spot odd behaviour.

Money & Fraud

Half hour with your manager

1. How am I and my team spending or saving the company money?






2. How do my targets impact on the company’s financial performance?






3. Where am I wasting money?






4. How are ideas mentioned by the team considered?






5. What do I do if I think someone is defrauding the company? Give me some examples where it has happened.

Money & Fraud

Notes from the week

Money & Fraud

Putting feet to your decisions…

This is your first opportunity to take a FROG decision based on your learning this week. Management is about making decisions and then acting on them, so here’s your chance.

F  first thing that you need to do or find out

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R  Resources - what do you already have in your kit bag to       help you

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O  others - any help you need from anyone else to make it       happen and why you think this

     _____________________________________

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G  go - a definite step which you will take immediately to put       feet to your decision

     _____________________________________

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