Fraud, Waste and Abuse: Every Associate a Sensor

Like many Exchange associates, I am a retired Airman. One of the pathways to becoming the best Air Force in the world was a tireless commitment to intelligence, information and surveillance. While serving on active duty, we were reminded that “every Airman was a sensor.”  Exchange associates aren’t much different.

The Exchange Office of the Inspector General compiled data from a recent Fraud, Waste and Abuse (FWA) Survey. We learned a lot from the information associates provided and are happy to share the observations. To set the stage, however, it is important to note there are three major objectives of the Exchange FWA awareness effort:  preventing, detecting and responding. The survey was designed to collect data on how well we are meeting those objectives.

Objective One: 

Prevention of FWA normally comes in the form of some type of action plan: internal controls, a code of ethics, compliance programs, tone at the top, etc.  This area received high positive results with more than 84 percent of respondents acknowledging their awareness of internal controls and their participation in ethics training.  In spite of efforts to prevent FWA, 50 percent of respondents believe FWA is likely occurring within the Exchange.    

Objective Two: 

The Exchange Oversight Group shares responsibility for detecting and investigating allegations of fraud, waste, abuse and mismanagement of Exchange resources. The group is made up of Audit, Inspector General, Loss Prevention and General Council, but the survey results told us detection systems are present everywhere. In fact, 94 percent of survey respondents acknowledged associates were aware of their responsibility to report potential violations of FWA. Additionally, a similar percentage confirmed their willingness to report potential violations if they became aware of, or observed, them.

Objective Three: 

In the event an instance of FWA is not prevented by good internal controls or detected by someone or something, then it is important an associate knows how to respond or report the violation. Of those surveyed, 92 percent of respondents indicated associates were aware the IG Hotline served as a reporting system. Other responses included reporting violations to first-line supervisors or through Loss Prevention. For the Hotline to be an effective system, associates must know they can confidentially report without fear of reprisal or retaliation. IG associates safeguard confidentiality to the maximum extent possible – it is a central tenet of the work we do.    

Being a sensor means you are a critical part of the Exchange’s early-warning system. You help to safeguard the integrity of the internal controls, you are guided by ethical behavior and you take seriously the responsibility to be aware of, and to report, allegations of violations. Fraud, waste and abuse’s worst enemy is an engaged, observant and well-informed associate. Keep up the great work, but if you need assistance or resources, feel free to reach out to us at hotline@aafes.com