Use of ERP in the Public Sector and How It Can Eliminate Corruption
State agencies can make proper use of ERP software to manage their day-to-day businesses and eliminate corruption. In addition, the ERP system comes with features that improve the flow of processes, increase efficiency, and increase data security. This means that when applies properly, they help maintain accountability at different departments and different levels.
In light of how the world has become, corruption and fraud are part of every nation. Therefore, it is very important for government agencies to use technology to prevent corruption and fraud. We cannot deny that corruption and fraud are realities we have to fight. Using ERP software like GLUONERP can help eliminate corruption in the following ways:
“Prevention is better than cure,” and this is undeniable. Preventing fraudulent activities is the best way to prevent corruption. The more one can control the processes in an agency the better it is for the organization. At the same time, the more difficult it becomes for corrupt employees to misuse the resources and commit fraud.
An ERP system assists government agencies to ensure their workforce complies with all the legal requirements and best practices. Most fraudulent cases result from inconsistencies in the accounting system. Using ERP helps prevent abuse and helps businesses improve accountability.
Most manual systems are prone to abuse because people can modify documentation or misplace them. There is little or no auditing trail. An ERP software helps businesses to eliminate corruption by giving alerts, like emails sent to the management for approval before any actionable changes can take place in the organization. Electronic fund transfers, for example, can be an automated process, and it can eliminate the risk of manual payments.
4. Segregation of duties
An audit control distinguishes the duties of each individual in the organization. An ERP software makes it easier and better to implement segregation of duties. There are strict protocols to follow and only some personnel can get access to different aspects of data management in the ERP software.
To prevent the abuse of any sensitive protocol in the organization, the use of biometric identification is very helpful. This feature can easily eliminate corruption by preventing access to sensitive data and theft. For example, an ERP system can assign access rights to specific people, like access to high profile customers’ records.