Frequently Asked Questions

1. What kind of risks does the IM Toolbox address?

The toolbox focuses on integrity risks that concern the organizations’ operations, management systems, and governance structure. The risks range from non-cooperative customers to relatives and friends being preferred in recruitment processes, misuse of staff and vehicles for private purposes, and a biased constitution of the supervisory board. Risk categories largely correspond to organizational units and functions:

Example of integrity risk: Timesheet fraud

In 2008, an investigation by the Independent Commission Against Corruption (ICAC) revealed evidence of extensive payroll fraud in a large public sector agency. This fraud took the form of false timesheet entries and travel claims. In one instance, a work group claimed payment for the period 8 pm to 6 am, despite all employees having left the site at 12.30 am. One employee dishonestly obtained at least AUS$ 33,430 in a 15-month period by overstating the hours he worked. Another employee submitted fabricated accommodation receipts for himself and his work team to the value of approximately AUS$ 50,000 over three years. He believed that these receipts were never checked by anyone and would not be detected. Payroll officers did sometimes detect timesheet irregularities but when they refused to process questionable claims, they were berated by employees and managers.[1]

2. What kind of tools does the IM Toolbox provide?

The toolbox comprises a number of general management tools that serve overall efficiency and performance, such as standard operating procedures or complaint management systems. And it highlights which features need to well designed to make sure the tool can improve integrity. Additionally, it features more specific anti-corruption and integrity tools such as due diligence investigations for suppliers, sanction catalogues, or integrity pacts. Tool categories largely correspond to organizational units and functions:

  • Customer relations
  • Operations & maintenance
  • Governance & controls
  • Human resources
  • Procurement
  • Bidding
  • Contract management
  • Project execution
  • Financial management.

Example of integrity tool: Staff inspections

Zuthona Engineering in Zambia has been losing a lot of money through ghost workers. They then decided to supervise and inspect staff. Head counts of the number of staff actually working on each project were carried out every month before processing of the payroll. In some instances, it was found that more people were reported than the ones that were actually on the ground. For physical inspections on site, a form has been designed for project managers for each project to list down the names of all the staff on site including their identity card numbers. These are the ones that are physically counted by the internal audit term before they can be paid.

3. At which levels can the IM Toolbox be used?

Levels

The IM Toolbox can be implemented at an organizational, (sub)sector, or project level.

If implemented at organizational level, the management of an organization decides to use the toolbox as an approach for internal integrity management. The organization individually undergoes an integrity change process.

See how the implementation at organizational level works and how to get support

If implemented at (sub)sector level, a coordinating body (e.g. water regulator, sector association, or funding scheme) mandates or recommends that other organizations use the toolbox. In this scenario, the toolbox becomes a regulatory tool, standard, or quality award at (sub)sector level, and many organizations apply it at the same time. The participating organizations each undergo an internal integrity change process, while the coordinating body accompanies them with monitoring, benchmarking, and knowledge exchange activities.

See how the implementation at (sub)sector level works and how to get support

If implemented at project level, an NGO or other water sector organization uses the IM Toolbox to manage integrity, quality and compliance at project level. For the project level, a version aligning the IM approach with the project cycle is currently under development and will be added in 2016.

 

References

[1] ICAC, no year, Payroll, Independent Commission Against Corruption New South Wales (ICAC), http://www.icac.nsw.gov.au/preventing-corruption/knowing-your-risks/payroll/4906, accessed 11.11.2015

Last updated 29 March 2016