The document discusses opportunities for fraud in aid delivery programs. It notes that up to 15% of aid funding, amounting to nearly $50 billion annually, can be lost to fraud and misappropriation. The majority of fraud incidents occur where information management system (MIS) control is weakest, typically involving many local staff entering and processing data with limited oversight. To reduce fraud, the document proposes an aid delivery platform that directly captures all transaction and program data in real-time using authorized processes, preventing unauthorized editing of primary data. It contrasts typical informal, disconnected MIS systems across aid program components with a centralized, integrated system tying all budget and component data together for improved oversight.

1. Reducing Opportunities for Fraud in Aid Delivery
Programs

2. The World
spends up to
$300 billion
each year on aid
& development

3. Reports indicate up
to15% can be lost due
to fraud and
misappropriation
(that is almost $50 billion)

4. Almost every report on fraud
agrees that the problem is in
the management system

5. Who reads and writes the data in
the system
Coordination
The deeper you
Donors
drill down in
Head Office an aid delivery
Country Office supply chain,
Operations
the greater the
number of
Program Team
people that are
Suppliers involved in the
Field Staff processing of
Contractors information
Beneficiaries

6. Information Management Systems
File Sharing Websites
The further up
the supply chain
you move, the Internal
Networks
more
sophisticated the
Proprietary
Information Management
Management Software
Systems (MIS)
typically is.

7. The relationship between Data Entry &
the Information Management System
Coordination File Sharing Websites
Donors
Head Office The MIS Internal
sophistication Networks
Country Office typically is
Operations inversely
proportional to Proprietory
Program Team the number of Management
people Software
Suppliers
involved
Field Staff
Contractors
Beneficiaries

8. Opportunities for Fraud exist
where the MIS Control is weakest
Coordination File Sharing Websites
Donors
Head Office Typically, the Internal
majority of Networks
Country Office fraud and
Operations theft incidents
occurs in this Proprietary
Program Team area of the Management
supply chain Software
Suppliers
Field Staff
Contractors
Beneficiaries
Data Read/Write Hierarchy Information Management
System

9. In general, fraud prevention is too little, too late

11. The Aidwork Platform will invert the
Information Management System
All transaction and
program data will be
directly entered into a
Audit capacity Reporting secure web platform in
of process and real time using
each authorized procurement
transaction processes.
recorded and
available in real Primary data entered by
Data
time. each operator is not
Management
able to be edited,
omitted or altered
without approval and a
logged record of the
Primary Data Entry change.

12. Sometimes one pays most for the
things one gets for nothing.

13. The Major Components of a typical
Aid Program
Program Data
Overheads Finance Each
Program
Information
Administration Procurement
Data
Component
has multiple
Logistics Contracts sub-
Comms components
Housing
Assets
Security Travel
Management
Human
Transport Resources

14. Disaster recovery needs a rapid response
to spend hundreds of millions of dollars

15. Elements of a Disaster Response
No Supplier
History
Large sums Short time
of money frame
Poor Limited
Systems Resources
Temporary Aid Opportunity
Staff Program for fraud

16. Some Informal Management
Systems in a Program
HR Logistic Program Contracts Purchases
• Staff • Comms • Schedules • Spec’s • Suppliers
• CV’s • Security • Client Lists • Adverts • Adverts
• Timesheet • Housing • Health • Bids • Bids
• Salaries • Transport • Shelter • Analysis • Specs
• Holidays • Stores • Protection • Contracts
• Recruit • IT • Gender • Variations
• Adverts • Fuel • Food
• Repairs • Livelihoods
• Management
Finance Overheads Admin Travel Assets
• Bank • Insurances • Bank • Vendors • Furniture
• Bills Due • Subscriptions • Stationary • Airlines • Cars
• Cash • Legal • Postage • Schedules • Computers

17. The Budget is at the Core of each
Program
Program Data
Overheads Finance
Each budget
line item
Budget directly
Administration Procurement
Line 1
Line 2
relates to
Line 3 some aspect
Line 4
… of the aid
…
Logistics Contracts program.
Assets
Travel
Management
Human
Resources

18. Component data and MIS are typically
independent of each other
MIS
Program Data Each Program
MIS MIS
Overheads Finance function will
typically
Budget MIS maintain its
Administration
Line 1
Procurement
own local
Line 2
MIS
Line 3 MIS, usually
Line 4
…
in the form of
Logistics … Contracts Microsoft
MIS MIS spreadsheets
and data is
Assets
Travel
Management entered into
Human
MIS Resources MIS report as last
MIS resort.

19. Component data and MIS are typically
independent of each other
MIS
Program Data Each Program
MIS MIS
Overheads Finance function will
typically
Budget MIS maintain its
Administration
Line 1
Procurement
own local
Line 2
MIS
Line 3 MIS, usually
Line 4
…
in the form of
Logistics … Contracts Microsoft
MIS MIS spreadsheets
and data is
Assets
Travel
Management entered into
Human
MIS Resources MIS report as last
MIS resort.

20. Program Data The Aidwork
Overheads Finance
platform integrates
MIS all the informal
MIS MIS
management
Budget
Administration
Line 1
Procurement systems in a single
MIS Line 2
Line 3
MIS web based data
Line 4 collection system.
…
Logistics … Contracts
MIS MIS
All transactions are
MIS MIS MIS linked and recorded
Assets
Travel
Management
Human
Resources

22. Functional Steps in the Process
1. Create a new program
2. Draw modules from menu
3. Recruit staff from network and assign read/write access
4. Program is operational
Program Field
Data
Overheads Finance
HR Logistic Program Contracts Purchases
• Staff • Comms • Schedules • Spec’s • Suppliers
• CV’s • Security • Client Lists • Adverts • Adverts
• Timesheet • Housing • Health • Bids • Bids
• Salaries • Transport • Shelter • Analysis • Specs Administration Procurement
• Holidays • Stores • Protection • Contracts
• Recruit • IT • Gender • Variations Program
• Adverts • Fuel • Food
• Repairs • Livelihoods
• Management
Logistics Contracts
Finance Overheads Admin Travel Assets
• Bank • Insurances • Bank • Vendors • Furniture
• Bills Due • Subscriptions • Stationary • Airlines • Cars Assets
Travel
• Cash • Legal • Postage • Schedules • Computers Management
Human
Resources
Module Menu

23. The social network links all data
contributors and recipients to a
single MIS system
Program Field
Data
Overheads Finance
Staff
Coord. Contract
Administration Procurement
Social Program
network Secure link
Logistics Contracts
HQ Supply
Donors Assets
Travel
Management
Human
Resources

24. Fraud prevention needs more than just good intentions

25. It needs a purpose
built system

26. The Aidwork Platform is being built
on years of field development
experience in managing programs &
combating fraud

27. Steve Hutcheson CEO
Recovery Development Group Sdn Bhd
27 Jalan Phuah Hin Leong
Georgetown, 10050 Pulau Pinang
Malaysia
+60 164909425
stevehutcheson@aidwork.net