The Association of Certified Fraud Examiners (ACFE) lists payroll fraud as one of the costliest examples of asset misappropriation affecting businesses around the world. This is partly due to the fact that payroll fraud tends to go undetected for longer – as time passes, the scheme grows, and your business suffers exponentially. Sometimes, payroll fraud can be traced back to human error but more often than not, it’s an opportunistic criminal act. Either way, outdated payroll processes that are unable to proactively detect fraud put your business at risk.
Africa is a vast continent, full of opportunities but not without its challenges. Many government departments, as well as private businesses, have fallen victim to unethical payroll administrators falsifying employee benefits, paying ‘ghost’ employees and miscalculating expenses. In South Africa, for example, a 2016 PwC survey reveals that 28% of local companies have suffered as a result of fraudulent HR and payroll activities.
Moving up the continent, the governments of Liberia, Kenya and Nigeria have all reported incidents of payroll fraud. These include administrators paying themselves salaries long after retirement, paying salaries to people who no longer work for the government, and paying salaries to non-existing or ‘ghost’ employees.
In April 2017, Ghana’s finance ministry conducted an audit of civil servants, identified non-existing ‘ghost’ employees and removed close to 27,000 names from the payroll. A national census removed just over 23,000 names, reducing the enormous wage bill substantially and saving the country over US$50mn in 2017 alone. On the back of this, the Ghanaian government is now looking into outsourcing its payroll to ensure a more efficient management system that improves visibility and speed, while also ensuring compliance and accountability.
Outdated payroll processes that rely on Excel spreadsheets and manual accounting are easy to manipulate and defraud. However, the following three technologies can provide your business in Africa with better payroll protection, keeping your operations fully compliant and safe.
- The cloud
Cloud-based, mobile payroll software gives payroll managers, administrators and employees easy access to relevant payroll information on any device, anywhere and at any time. The information is fully transparent, and access is clearly tracked and recorded. If certain information is particularly sensitive like medical and financial data, then different access controls can be assigned to different employees.
Management can use real-time cloud analytics to filter data-points according to relevant fields, generate daily activity reports with little effort and thus, spot any payroll fraud fast. When people know measures are in place to identify and catch a criminal, they are less likely to commit a crime. Transparent company data that makes use of the cloud is crucial.
To reduce the risk of payroll fraud, you need to reduce the need for human oversight and intervention. Modern payroll technology eliminates the need for manual intervention, automating these five important functions:
- Leave management – an employee self-service authorisation process automatically inputs leave dates into the payroll system. If an employee applies for more leave than they are entitled to, the system will send a notification.
- Commission allocations – a built-in company specific commission calculator ensures that employee commissions are worked out and paid correctly.
- Data integration – seamless integration with accounting software, further reducing the amount of human errors.
- Earnings and deductions – automatically process recurring employee earnings and deductions.
- Bank account and ID number verification – confirm new employees’ details quickly.
- Workflow authorisation
A modern payroll system helps you combat fraud by sharing authorisation responsibility across departments. If, for example, HR adds a new employee’s ‘master’ information like name, surname, ID number and address, it then directs the task to payroll to load the employee’s earnings and deductions. With this additional oversight and multiple authorisations, it’s much harder to create ‘ghost’ employees.
Unfortunately, there will always be dishonest people looking for an easy way to make more money – and some of them may end up working for you. Don’t give them the opportunity to commit occupational fraud under your roof. Put modern automated payroll technology to the test and protect your African business’ from costly fraud.
New iPhone pricing for SA
The iStore has announced that the latest iPhones, the Xs and Xs Max, can now be pre-ordered at www.myistore.co.za , and will be available in stores starting 28 September 2018.
|iPhone Xs and iPhone Xs Max feature 5.8-inch and 6.5-inch Super Retina displays that offer remarkable brightness and true blacks while showing 60 percent greater dynamic range in HDR photos. iPhone Xs and iPhone Xs Max have an improved dual camera system that offers breakthrough photo and video features, A12 Bionic chip with next-generation Neural Engine, faster Face ID, wider stereo sound, longer battery life, splash and water resistance,
Pre-orders will be open for cash purchases and on iStore’s revised payment plan in partnership with FNB Credit Card, allowing customers to pay off their iPhone at a reduced interest rate. However, the contract period is 37 months rather than the usual 24 months.
Accenture opens Fjord design centre in Johannesburg
Accenture has launched its first design and innovation studio on African soil, Fjord Johannesburg.
The company says the move significantly expands its design capabilities and demonstrates its commitment to unlocking Africa’s innovation potential through the creation of experiences that redefine industries in our constantly evolving digital era.
The new studio, opening in November, will be located at Accenture’s new 3875m² offices in Waterfall. It will be led by Marcel Rossouw, design director and studio lead for Fjord Johannesburg.
Said Rossouw, “Brands are constantly asking, ’how does one take a business need or problem, build that out into a definition of a service experience, and then bring it to market?’ It’s about re-engineering existing service experiences, identifying customer needs, prototyping rapidly, iterating often and proving or disproving assumptions. But it’s also about getting feedback from customers. The combination of these factors helps companies advance towards the ultimate service experience.”
Fjord is the design and innovation consultancy of Accenture Interactive. The Johannesburg location marks its 28th design studio globally, solidifying its position as the world’s leading design powerhouse.
Working in the same location as Accenture Interactive will allow Fjord to fuse its core design strategy DNA with the digital agency’s expertise in marketing, content and commerce to create and deliver the best customer experiences for the world’s leading brands.
Accenture Interactive Africa‘s blend of intelligent design and creative use of technology has already been used by some of South Africa’s largest and most prominent brands, including Alexander Forbes, Discovery, MultiChoice and Nedbank. The digital agency has also earned industry accolades for its innovative and compelling business results, most notably two gold awards in the Service Design category at the 2017 and 2018 Loeries awards.
“Great design tells great stories,” says Wayne Hull, managing director of Accenture Digital and Accenture Interactive lead in Africa. “It unifies a brand, drives innovation and makes the brand or service distinctive and hyper-relevant in both the digital and physical worlds. This is critical to achieving results. Having Fjord Johannesburg as part of Accenture Interactive, and collaborating with all of Accenture Africa, will provide unique experiences and forward-thinking capabilities for our clients.”
“Businesses in South Africa are becoming more design-aware and are looking to take greater advantage of design skills to compete with the rest of the world,” said Thomas Müller, head of Europe, Africa and Latin America at Fjord. “We’re excited to open our first design studio on the continent and to be part of an emerging market that is ripe for design and innovation, and open for business. Developing markets like South Africa are challenging assumptions and norms about what digital services and products are meant to be, and we’ll strive to put design at the heart of the innovation being produced there.”