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Learn how a comprehensive, integrated approach to government analytics can enhance revenues by preventing government fraud.
Checking public sector fraud—tax evasion and fraud in procurement and social services—is increasingly recognized as a major avenue for increasing government revenue. The collective impact of government fraud is so significant that, if tackled effectively, it has the potential to transform a country’s socio-economic status. It is thus critical for governments to plug this resource leak.
While government analytics, implemented in pockets, is enabling policy makers and administrators achieve incremental improvements, a comprehensive approach that multiplies the power of analytics through tightly integrated business processes is required to ensure broad-based compliance and to wrest back control from fraudsters.
Research indicates that the most effective solution for annihilating government fraud at all levels is achieved when government leaders drive an enterprise approach throughout their agencies, integrating and applying insights from analytics. These studies collectively reinforce the need for agencies to shift their policies toward more effective means of achieving compliance and receiving tax dues.
Across government agencies, taxpayer money is disappearing, jeopardizing citizen-facing services such as schools, hospitals, pensions and welfare programs. While government analytics is providing some relief, it isn’t enough.
Prompted by the economic crisis, several countries have increased their tax rates as a means to cover their revenue-expenditure deficit. Given the already difficult economic climate, these rate increases have had an adverse impact on compliance rates. Accenture’s estimates also indicate that if nothing is done to increase levels of compliance, the declining age of the working population will result in falling tax receipts.
Fraud is a systemic problem and tackling it requires an enterprise approach that offers continuous optimization through industry-specific analytics, real-time auditing, and focused and dynamic resource allocation to meet the most pressing compliance issues as well as opportunities for greater efficiency.
Government analytics, when implemented as point solutions, yield only incremental gains. Initial positive results can easily lead to a false sense of security and curb further efforts to combat fraud. This defeats the overarching goal to achieve compliance across the board.
Most government leaders admit they are not taking full advantage of government analytics. They also acknowledge their agencies are achieving limited success. Accenture’s Global Risk Management Study 2013 reveals that agencies are aware of the gap between action and results; 66 percent know more is needed to address financial risk, and 64 percent know more is needed to address compliance risk. Forward-thinking leaders have converted this knowledge into results by adopting an integrated approach in identifying and eliminating fraud.
Fraud exists openly and at the expense of the taxpayer. While most senior leaders acknowledge the importance of an integrated approach in achieving full compliance, government analytics, as yet, provides point solutions rather than a comprehensive defense.
Research consistently indicates that an enterprise approach is the most effective solution to enable organizations to successfully counter the threat of fraud. Clearly, a shift in approach is required.
The battle against fraud does not rest on a single weapon or technology. It requires an approach that multiplies the power of analytics through tightly integrated business processes. Government leaders who take a proactive approach that addresses noncompliance and enhances predictive capabilities are successful in empowering frontline staff to fight government fraud at every level and every hour of every day by equipping them with data-driven insights.
Revenue and customs solutions with industry-specific analytics help agencies move from correcting to preventing noncompliance with predictive capabilities.
April 16, 2014
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