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Onsite Seminar

Legal Concepts and Contracting

Fraud Prevention in Contracts & Purchasing

Learning Objectives:
  • Common business ethics
  • Types of internal fraud related to contracts & purchasing
  • Types of external fraud related to contracts & purchasing
  • Steps in corruption prevention
  • Anti-corruption policy statements & contract clauses
  • Stages in the procurement process where fraud can occur
  • Elements of a good procurement system to combat fraud
  • Expectation for continuous improvement as anti-corruption tool
  • Standard of ethical and professional conduct
  • Fair and reasonable price determination to prevent corruption
  • Basic methods of fraud detection
  • Resources to increase knowledge & skills sets
Seminar Outline:

Setting the Stage

  • Business ethics
  • Defining fraud
  • Impact of fraud and corruption
  • Corruption perception index
  • Influences that cause corruption
  • Rewards and risks for participating in corrupt activities
  • Duties of employees acting as agents

Where Is Internal Fraud Most Likely to Occur?

  • Stages of the contracting and purchasing process where fraud is most likely to occur
  • Statements of work
  • Types of employee fraud related to the procurement process
  • Types of collusion
  • Elements of a good procurement & competitive bidding process
  • Authority levels
  • Determining fair and reasonable pricing
  • Main elements in a competitive bidding process

Types of External Fraud

  • Types of external fraud and overcharging
  • Fraud prevention process for engaging consultants
  • Reverse auctions
  • Supplier qualification
  • Major steps to effective prevention
  • Checklist for compliance policies
  • Model code of conduct
  • Management responsibilities in corruption prevention
  • Due diligence in hiring & promoting personnel
  • Contract & purchasing professionalism

Ethics Clauses & Contract Clauses to Assist in Prevention

  • Disciplinary action
  • Standards of ethical and professional conduct
  • Gratuities & gifts
  • International effort to fight corruption
  • Corrupt practices act
  • "Blow the Whistle" procedures
  • Contract clauses that assist in prevention
  • The Integrity Pact

The Warning Signs of Fraud

  • Methods of fraud concealment
  • Potential warning indicators of fraud by personnel
  • Basic methods of fraud detection
  • Expectations for continuous improvement
  • Continuous improvement programs
  • The use of strategic purchasing plans to reduce fraud