Decided on key areas to conduct the audit
Identified areas with a potential for data inconsistencies.
Checked for inconsistencies in each identified area by analyzing training data reported by partners.
Shortlisted key areas with significant inconsistencies to perform an audit.
Conducted a pilot study
Selected the top 5 cases of inconsistency from the shortlisted areas and decided to perform a sanity check with partners.
Reached out to partners and collected additional documentation to support the authenticity of the training conducted.
Validated cases based on the documentation and authorizations provided by partners.
Extended audit and calculated subsidy impact
Discussed the outcome of the pilot study with stakeholders.
Decided to extend the audit to the top X cases, covering 50% of the financial impact.
Reached out to partners representing the top X cases.
Confirmed unauthorized ones based on supporting documents from partners
Calculated the total subsidy impact for unauthorized trainings.
Confirmed an over-reporting of trainings worth $1 million in subsidy impact.
Clawed back $500K from partners (50% of total) from payments approved in the current fiscal year.
Identified a few data discrepancies with the client’s internal data, which led to the development of a more reliable internal data source.
Additional automated checks and business rules were put in place, developing a more robust validation mechanism.