The use of procurement cards (P-Cards)—also known as purchase cards, corporate cards or fleet cards—has become widespread as organizations streamline their procurement processes. P-Card programs can streamline procurement and make finance managers’ lives much easier. But to earn executive buy-in to keep or grow your program, senior management often require risk-based monitoring oversight to ensure the program is healthy and makes the organization more agile. However, inadequate point-in-time controls expose huge opportunity for fraud, errors or abuse that cannibalizes your advantage.
Many organizations assume that fraud only happens elsewhere. P-Cards are an area in which fraudsters can most easily rationalize their actions, sometimes not even considering their abuse to be fraudulent. Even the best designed policies may be ignored or circumvented— and not all internal controls are 100% preventative without 360° oversight.
ACL’s 360° approach to p-card compliance
While ERP systems are often equipped with point-in-time controls, such as managerial reviews to ensure an individual transaction complies with policy, it is only in aggregate that the total transactional population for an individual will clearly indicate a suspicious pattern. “Tone at the top” combined with paying attention to all details by monitoring creates the environment necessary for a healthy functioning procurement process.
For an organization to be effective in detecting and preventing employee fraud, P-Card control activities must be active, visible and a part of an organization’s culture. You can’t merely rely on your ERP’s controls to catch fraud because they are typically made simple for the sake of efficiency—and easily circumvented.
ACL’s P-Card compliance solution enables continuous transaction monitoring to mitigate typical P-Card risks such as personal purchases, circumventing process or policy, inadequate approvals or reviews, and third-party fraud. ACL enhances the detection of fraud by providing access to multiple systems at the same time, and allows you to add new tests at any time as risk profiles change.
Benefits of acl’s approach to p-card compliance
- Analyze 100% population data.
- Cross-match data from all sources, including third-party systems.
- Streamline investigations with built-in surveying.
- Combine “structured” and “unstructured” data for quicker resolution.
- Create a culture of compliance.
- Centralize and secure your review process.
- Provide interactive, actionable oversight to senior management.