Uganda Martyrs University fraud prevention management and organizational performance: Case study National Social Security Fund (NSSF)

Abstract

The research report was commissioned to analyze the impact of fraud prevention management on organizational performance in NSSF as a case study. The research objectives were to assess accounting systems, to find out how segregation of duties facilitates fraud prevention management and to examine the role of internal audit in fraud prevention management as a key to organizational performance in NSSF. Data was collected from respondents using self administered questionnaires, interviews and observations. A sample size of 70 respondents was used. Respondents constituted the general manager, accountant, finance manager, risk manager and staff dealing in operations. The sampling methods used were simple random sampling, purposive sampling and quota sampling methods. Major findings showed that segregation of duties is paramount in all offices of the fund and serves as a critical component to the fund’s internal control structure aimed at reducing opportunities for fraudulent activities. It minimized opportunities for employees to steal from the fund. In addition, findings established that internal audit was organized within the fund and it is most commonly responsible for conducting fraud risk assessments, indentifying fraudulent schemes that the fund is most vulnerable to and develop alternative internal control systems to boast organizational performance. The entire function therefore serves as a consultant department on matters of controls. The , findings also revealed that the fund utilizes accounting systems at its process level and they are used to facilitate users by providing relevant information to make decisions and form judgments for example, they provide a clear and valid picture of how much income the fund is generating and how it is being spent on investment and overheads. Conclusions were drawn basing on the research findings from which it was concluded that fraud prevention management can only be achieved with help of strong internal control systems already in place. But these systems alone are just not enough and it’s for this reason that the fund management is insisting on the issue of competence of staff (the integrity of staff) needed to operate these internal control systems. The training of staff is therefore based on performance and attitude towards work and fellow employees. Recommendations were made to improve risks management that included managing risks effectively and efficiently by striking an appropriate balance between risk and return, because profitability and balance sheet growth are functions of effective risk management. In addition, providing feedback, by reporting to employees how they are, their group and the organization as a whole is performing against the expected goals and where possible, evaluating and rewarding behavior, in order to focus employee’s attention on strategic priorities and to motivate them to take actions and make decisions, which are consistent with organizational goals. Companies also cannot afford to lose good customers, therefore, they cannot accuse people of fraud without any sound evidence, but must be able to justify and explain why something is suspicious. Critical reflection is also action.