Sales Professionals know better than most the aggravation of monthly expenses, but a new report exposes UK businesses lost £1.3 billion over fraudulent and out of policy expense claims during 2010, are they therefore also seeing the opportunity!
UK businesses were guilty of losing more than £1.3 billion through excessive and fraudulent expense claims during 2010, according to a report from Europe’s leading expenses outsourcer, GlobalExpense. Out of the £1.3 billion loss, £324 million was for fraudulent claims, and £999 million was for claims outside company policy. On average 10 percent of claims were outside company policy in 2010.
The new GlobalExpense Employee Expenses Benchmark Report 2011 drew on 11.2 million expense claims made by over 308,000 UK-based employees between 2006 and 2010.
David Vine, CEO of GlobalExpense says, “Clearly bosses of UK businesses can be doing a lot more to control costs and save money within their organisations, particularly when it comes to scrutinising the company’s expense policy. The proportion of claims that are outside company policy, but are approved anyway, is still too high and fraudulent claims remain a problem. Businesses need to improve policy enforcement and should insist on getting receipts from their employees to support all claims.”
Questionable claims included:
• a payment of over £4,000 for prep school fees
• over £58,000 for client entertaining
• More than £26,000 for a final payment on a holiday to Las Vegas under ‘sundries’
Whilst other unusual expense claims in 2010 included:
• £1,200 for lap dancers at Stringfellows
• A porn film on a hotel invoice, for which the description of purchase given was ‘argument with the wife’
• One frugal employee even claimed 43p for using a public toilet
• The hire of a van – for which proof of purchase was a picture of the claimant in the van
Other interesting findings from the report include:
• The maximum amount received for expenses over the year by any one employee was £333,000
• Employees in the financial services industry are the biggest expenses spenders on entertainment.
• Business travel remains the largest expenses spend for businesses.
• Entertainment spending is the only area to register an increase, up 10 percent