We’ve all heard about fraud, waste and abuse. These improper or even unlawful actions can sneak into any organization and affect mission success.
But there is another important term worth knowing—mismanagement.
Mismanagement is the failure to appropriately manage Exchange funds, assets or resources. It also includes managerial inaction—failing to respond to known issues or addressing problems that could impact operational readiness and effectiveness.
Missteps and Their Effects
Examples of mismanagement and the potential impact include failing to:
- Cancel recurring credit card charge for services not received or used.
- Leads to waste of funds because of lack of oversight.
- Adhere to policies regarding the disposal of equipment.
- Leads to loss of funds.
- Address known misconduct by an associate.
- Leads to a breakdown of culture and morale and results in further misconduct by the wrongdoer.
- Keep track of property or inventory.
- Could lead to an understatement of property or inventory and the potential purchase of unnecessary items.
- Address an allegation of fraud, waste and abuse.
- Results in financial loss, continuing the actions and a lack of deterrence.
Insufficient management of Exchange assets, resources and funds—whether due to non-compliance with established policies and regulations or due to lack of oversight—may result in significant costs to the organization. Mismanagement compromises operational efficiency and erodes trust.
But prevention is possible through audits, inspections, astute oversight, routine assessments, continuous monitoring and a commitment to ethical conduct. With these types of preventive measures, we can mitigate the risks of mismanagement and promote a culture of transparency, accountability and integrity.
Vigilance Protects Our Future
Understanding mismanagement is crucial for implementing effective measures to prevent it and protect the organization from loss. By remaining vigilant, we safeguard our resources, protect our assets and ensure ongoing mission readiness. Each of us has a right and responsibility to help prevent mismanagement. If you observe or suspect mismanagement, report it through your supervisory chain or to the appropriate office that can investigate the matter and take action to keep it from happening again.
The Exchange IG Hotline is available for anyone who knows of or suspects fraud, waste, abuse or mismanagement. Contact us at hotline@aafes.com or visit our website at https://odin.aafes.com/Oig.
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