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 (1075)/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
The Power of Field Statistics
7 March 2018

The Power of Field Statistics

IDEA Tech Tip

IDEA’s Field Statistics can save you a wealth of time. It should be the first thing you go to after importing a file. Why?

Read More

Using Data Analytics to Prepare for Fieldwork
20 February 2018

Using Data Analytics to Prepare for Fieldwork

Automating High-Risk Transactions with IDEA

See how a global corporation used IDEA to develop an automated process to prepare auditors for on-site work.

Read More

People. Processes. Tools.
5 February 2018

People. Processes. Tools.

Successful Integration of Data Analytics

Expert IDEA users share their experiences and advice for building and sustaining a successful data analytics program.

Read More

Planning & Scoping Your Audit with Data Visualization
1 February 2018

Planning & Scoping Your Audit with Data Visualization

Data-Driven Insights Save Hours of Effort

Here are some ways IDEA can help you plan and scope an audit using the data visualization features within IDEA.

Read More

Classroom Collaboration at University of Missouri - St. Louis
30 January 2018

Classroom Collaboration at University of Missouri - St. Louis

Student Learn to Develop Analytic Tests

Masters students attending the University of Missouri - St. Louis share their results using data analytics to assess risk, test 100% of the data population.

Read More

Do One Thing Every Day that Scares You
30 January 2018

Do One Thing Every Day that Scares You

Virginia Tech Students Gain Confidence Using Data Analytics

Learn how Associate Professor of Practice Nadia Rogers, CPA, introduced students to IDEA, including types of audit tests that can be performed within the software and various documentation aspects of an audit engagement.

Read More

New Features in IDEA 10.3
29 January 2018

New Features in IDEA 10.3

IDEA now runs faster and offers more flexibility than ever before

The latest version of IDEA introduced a host of new features and improvements.  IDEA now runs faster and offers more flexibility than ever before.

Read More

5 Ways Data Analytics Saves Time
26 January 2018

5 Ways Data Analytics Saves Time

Turn Hours of Work into Minutes

5 time-saving ways data analytics can help you shrink your audit time, while improving the quality of your work.

Read More

Tired of Wrangling Cumbersome Client Data?
24 January 2018

Tired of Wrangling Cumbersome Client Data?

10 Ways Our Importing Services Make it Easy

10 reasons to try our data importing services, which save you time, effort and undue frustration. 

Read More

A Journey in Using Data Analytics
24 January 2018

A Journey in Using Data Analytics

Testimonial from Brian Cullum

Read how Brian Cullum used IDEA to help identify a multi-million-dollar fraud based on the overstatement of the borrower’s lending base.

Read More

Planning & Scoping Your Audit
15 January 2018

Planning & Scoping Your Audit

With Data Visualization

Data visualization is changing the way auditors are communicating with their audiences. Easy planning, find risk areas and prioritize your scope of work.

Read More

Infusing IDEA into Your Organization
16 November 2017

Infusing IDEA into Your Organization

Building a successful and sustainable data analytics program requires a mix of people, processes and products...it all starts with collaboration.

Read More

Using Nested @Functions()
16 November 2017

Using Nested @Functions()

IDEA Tech Tip

Combining @functions in creative ways can open a wealth of new capabilities that you may not have known your IDEA software is capable of.

Read More

IDEA 10.3 Now Available
15 November 2017

IDEA 10.3 Now Available

CaseWare Analytics Launches Update

Newest release of CaseWare IDEA introduces key features and enhancements to help auditors, accounts and other finance professionals improve their audits.

Read More

RSS