The Honor System

It’s always good to pay out billions of dollars without verifying that the numbers are right.  I guess we can all figure it out later.  It’s not like it was your money.

U.S. Pay To Insurers Still Lacks Verification,” The Wall Street Journal, June 16, 2015 A4.  Report says that the Government didn’t have a handle on the $2.8 billion it paid to insurers from January 2014 through April 2014, and things haven’t gotten much better since.  The system doesn’t verify on a per-person basis how much is owed to whom.

Does your business verify that it owes the money before it pays the money?

Is this governance, or the absence thereof?

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Filed under Board, Business Case, Controls, Duty of Care, Governance, Information, Internal controls, Oversight, Protect assets, Risk, Value

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