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Date
Have you ever experienced project fraud? Examples include:
Time theft: Team members charging for time they didn't spend on a project or overlapping time on multiple projects
Resource theft: Loss of physical resources, such as software or hardware, or use of project resources for activities not in the project scope
Conflict of interest: Any
kind of subcontracting to or employment of resources based on
friendships or connections rather than skill sets required for the
project
So how can project fraud be prevented?
One way
is to have clear policies and procedures for resource utilization, and
processes for timesheet management, recording, charging and justifying
time.
Implementing internal controls for managing and reporting on project progress and utilization of resources can also help.
Many
elements of fraud cease to exist when you use weekly report cards on
key project reporting elements: budget, time and scope. Reporting on
resource usage based on project activities can show and account for
time charged quickly and with clarity as to where and how resources are
used.
Keeping track of the entire project inventory with a
systematic approach can reduce or eliminate resource theft. Sometimes
it's a matter of implementing processes that simply do not allow for
resource misappropriation. For instance, sometimes it can be easier to
manage consultants than members of the permanent staff. Why? Because
there's a forced process to account for time spent.
Some
organizations also require permanent/full time staff to report time
spent on projects. This allows for a more controlled use of time, as
resources, regardless of what field they are working in, will be
accountable for the time they put in.
What other types of project fraud have you seen and what are your recommendations for combating them?
Posted
by
Dmitri Ivanenko PMP ITIL
on: July 16, 2009 08:44 PM |
Permalink
