Operation Hope Foundation (OHF), headquartered in Singapore with vital operations  in Cambodia and Nepal, is dedicated to bringing about sustainable change in communities facing hardship. As a charity entrusted with public donations, maintaining the highest standards of financial integrity and accountability is not just a policy – it’s a fundamental pillar of our mission. Every dollar saved from misuse is a dollar that directly impacts the lives of those we serve.

The Unique Challenges of Field Operations

Operating in diverse geographical landscapes, particularly in regions where standard financial practices may differ, presents unique challenges to fraud prevention. In places like Cambodia, for instance, everyday transactions, such as purchasing fuel, often rely on handwritten receipts rather than standardized, computer-generated printouts. This environment, while common, can inadvertently create vulnerabilities if not addressed with robust oversight mechanisms.

OHF’s Innovative Solution: The Vehicle Consumption Test

At OHF, we believe in going beyond conventional methods to ensure every resource is utilized effectively and ethically. One such innovative approach we’ve implemented to detect and prevent fuel fraud in our vehicle fleet is the Vehicle Consumption Test.

Instead of solely relying on submitted fuel receipts, which can be susceptible to manipulation, our team employs a meticulous, data-driven verification process:

Kilometer Tracking: At the end of each month, we rigorously track the total kilometers travelled by every vehicle in our fleet. This is recorded from the odometer readings.

Known Fuel Efficiency: We have established a baseline for the fuel efficiency of each vehicle – the average number of litres of diesel (or petrol) consumed per kilometer travelled. This data is derived from historical records and vehicle specifications.

Estimated Fuel Cost Calculation: By multiplying the total kilometers travelled by the vehicle’s known fuel consumption rate, we can accurately estimate the expected diesel (or petrol) usage for the month. This estimated usage is then converted into an estimated cost.

Claim Comparison: Finally, this estimated fuel cost is directly compared against the amount claimed by the driver on their submitted receipts.

A Real-World Incident: Uncovering Discrepancy in Cambodia

This proactive approach has proven invaluable in identifying and addressing discrepancies. We recall a specific incident in Cambodia that perfectly illustrates the effectiveness of our consumption test.

A driver submitted a fuel claim that was nearly double our estimated diesel cost based on the kilometers travelled. When confronted with the data from our consumption test, the driver admitted to the fraudulent activity. He confessed to colluding with a petrol attendant to write a higher amount on the handwritten receipt than the actual quantity of fuel pumped into the vehicle. This incident underscored the critical importance of our internal controls, especially in contexts where external verification mechanisms (like computerized receipts) are not standard.

Beyond the Test: A Commitment to Accountability

The vehicle consumption test is just one example of Operation Hope Foundation’s multi-layered approach to safeguarding our resources. It highlights our commitment to:

Proactive Detection: Moving beyond reactive measures to actively seek out potential areas of fraud.

Data-Driven Verification: Utilizing quantifiable data to validate claims and ensure accuracy.

Contextual Adaptation: Developing and implementing controls that are effective within the specific operational environments we work in.

Transparency and Accountability: Fostering a culture where integrity is paramount and every team member understands their role in upholding it.

At Operation Hope Foundation, every donation is precious. Our rigorous  and hands-on practical fraud prevention measures, like the innovative vehicle consumption test, ensure that donor funds are maximized for their intended purpose: delivering maximum benefits  to vulnerable communities in Cambodia, Nepal, and beyond. By continuously refining our processes and adapting to local realities, we remain steadfast in our commitment to financial integrity, ensuring that our operations are as impactful as they are transparent.