Better Business Through Data Analysis & Monitoring My Account

Oklahoma Uses Data Analytics to Create a Culture of Statewide Compliance

Oklahoma Office of Management and Enterprise Services Uses Data Analytics to Ensure Policies are Followed

Challenge

The Oklahoma Office of Management and Enterprise Services (OMES) conducts multiple administrative investigations each year to ensure policies are being followed, and to ensure programs are used in an ethical, economical, equitable and efficient manner. Auditors rely heavily on data analytics software to electronically examine 100% of available data, which are often millions of transactions, to reduce fraud, waste, mismanagement and abuse.

Highlights:

  • Strategic initiative to move away from traditional audits towards statewide audits of all agencies
  • Analysis of 100% of data provides sufficient details to conduct through investigations
  • Created a culture of statewide compliance and reduced purchasing card fraud by 99.999%

The OMES wanted to move away from traditional auditing where only a few agencies or divisions would be audited using sampling methods towards conducting more comprehensive analysis of all available data. To accomplish this, OMES auditors selected CaseWare IDEA® to help them analyze 100% of data to identify potential fraud or errors within complex transactions and calculations.

Solution

The OMES uses a predetermined set of databases, with varying file types, and imports the data directly into IDEA for analysis. For example, auditors search for conflict of interest within vendor contracts. They obtain the vendor database, employee database, claims, corporation filings and purchasing database. A Join is performed to combine all the databases, and the IDEA Fuzzy Match feature is used to identify similar records that may indicate conflict of interest. Auditors are able to provide the agency with specific data, including transaction details and amounts, to conduct thorough investigations.

Auditors perform comprehensive audits to identify bid rigging, purchasing card (p-card) misuse, overbilling, theft, time and leave fraud, ghost employees, kickbacks, misuse of authority and other infractions. A mix of data analytics techniques is used to analyze data including:

  • Benford’s Law to analyze transactions using a third-digit test to uncover anomalies, and drill down into the data for details
  • Link analysis to identify employees who have access to multiple databases
  • Full and false inclusion testing to verify the presence or absence of information from reports
  • Gaps within data, such as omitted records and missing vendor details
  • Stratification and summarization to identify split purchases
  • Chart analysis to analyze vendor spending over time and search for increases in volumes
  • Expectation analysis to identify areas where data patterns are irregular and requires further investigation

Results

Using a purpose-built data analytics tool has helped staff complete most investigations within two weeks or less. The quick turnaround of results allows agencies and departments to handle investigations internally, increase controls and build a stronger culture of compliance. With IDEA, auditors can examine large, complex data quickly and drill down into the results to uncover root causes or instances of fraud. As a result, they have reduced p-card fraud by 99.999%, and taken a more proactive approach to fraud prevention.

The OMES has worked to build a solid fraud program with preventative training and awareness, conducting regular risk-based audits, digital monitoring, and implementing an automated (anonymous) fraud and abuse reporting application. More frequent and comprehensive audits have helped reduce fraud, waste and abuse statewide.

“Fraud is always changing. When every agency and division knows we are conducting statewide audits and analyzing all the data, it creates a culture of compliance. With IDEA, we’re able to perform comprehensive audits quickly and pinpoint areas where there are issues.”
- JoRay McCoy, Director Audit and Internal Investigations, OMES
Print

Number of views (1483)/Comments (0)

Brad Newman

Brad Newman

Other posts by Brad Newman
Contact author

Please login or register to post comments.

Name:
Email:
Subject:
Message:
x
Global Chemical Company Automates Risks Identification with CaseWare IDEA
14 September 2018

Global Chemical Company Automates Risks Identification with CaseWare IDEA

Global corporation used IDEA to standardize & develop an automated process to comply with anti-corruption policy.

Read More

Telecommunications Provider Turns Two Days of Work Into 20 Minutes with CaseWare IDEA®
14 September 2018

Telecommunications Provider Turns Two Days of Work Into 20 Minutes with CaseWare IDEA®

Auditors Analyzing Hundreds of Millions of Records to Track Buying and Usage Patterns

One of the world’s largest telecom companies' internal audit team leverages tech to analyze trends, tendencies & patterns within customer & financial data.

Read More

Exploring IDEA's Built-In Power of Python
20 August 2018

Exploring IDEA's Built-In Power of Python

IDEA Tech Tip

With the release of version 10.3, IDEA created a buzz with its implementation of the Python scripting language, thereby taking a huge step towards having a more robust coding environment.

Read More

Sharing IDEA Data Using IDEA's ODBC Driver
18 July 2018

Sharing IDEA Data Using IDEA's ODBC Driver

IDEA Tech Tip

Read More

Oncor Achieves Operational Efficiencies with CaseWare IDEA
25 June 2018

Oncor Achieves Operational Efficiencies with CaseWare IDEA

Oncor's internal audit team needed to acquire years of data from different environments and formats to help improve processes and efficiency levels.

Read More

Analyzing the Past to Predict the Future with Trend Analysis
18 June 2018

Analyzing the Past to Predict the Future with Trend Analysis

In business, predicting the future is never an easy task. But IDEA can help as long as you have the right data, and Trend Analysis can help.

Read More

2018 IDEA® User of Excellence Award Winner Selected
15 June 2018

2018 IDEA® User of Excellence Award Winner Selected

Jennifer Girard, CIDA with American Red Cross Recognized for Exceptional Use of Data Analytics

Jennifer Girard, Sr Auditor with the American Red Cross is the recipient of the 2018 US IDEA UoE Award. She utilized IDEA to assist Finance Department during a natural disaster.

Read More

The Rules of Nature and Audit
6 June 2018

The Rules of Nature and Audit

What’s missing is often as important as what’s present. The rules of nature apply very well to audit if you consider, “Everyone knows it, but do you test for it?”

Read More

Using IDEA to Import QuickBooks General Ledger Data
4 June 2018

Using IDEA to Import QuickBooks General Ledger Data

The General Ledger is typically the starting point to an expanse of detailed information, see a step-by-step guide on how to get a readable version in idea.

Read More

New Features in IDEA 10.3 Part II
10 May 2018

New Features in IDEA 10.3 Part II

IDEA Tech Tip

In a recent article, we introduced the improvements to Stratified Random Samples and Python integration added in IDEA 10.3. But that’s just a small part...

Read More

Cargo Company Swaps Programming-Intensive Data Analytics Software for CaseWare IDEA
10 May 2018

Cargo Company Swaps Programming-Intensive Data Analytics Software for CaseWare IDEA

Auditors Achieve More Success in First Year with IDEA Than 5+ Years with Other Tool

With the entire audit team up and running using data analytics, they are finding new ways to integrate IDEA into other areas of the business and automate repeatable processes.

Read More

Maximizing Your Environment - Global Variables
8 May 2018

Maximizing Your Environment - Global Variables

Consider scope to be a building in which people work. The tools required to accomplish their tasks will of course be housed in that building, but in scripting it’s important to determine which tools need to be shared among the buildings.

Read More

Tips on Acquiring Data
8 May 2018

Tips on Acquiring Data

An IDEA User Shares Frequent Practices

When working with rows and columns of data to spot suspicious behaviors, fraud and errors can look very similar to one another. While Yeriazarian often uses Excel as an interim format for data, he also understands there are several avenues to navigate before getting the right data.

Read More

Identifying Churn in AR
19 April 2018

Identifying Churn in AR

IDEA Tech Tip

Customer churn (customer attrition, turnover, or defection) is when a customer decides to stop engagement with your company. IDEA can help easily identify “churn” in accounts receivable by following these steps...

Read More

RSS