Fraud investigations: a case study in economic evaluation

Abstract

Increasingly, public sector organisations, including police, are required to justify public expenditure through a variety of performance reporting regimes. This study explores the potential for applying economic evaluation techniques as a reporting tool, using fraud investigations by the Australian Federal Police as an example. It was estimated that over 1999‐2000 and 2000‐2001, fraud investigations resulted in a net present value of $A298 million and a return to the government of $A6.00 for every dollar invested. Sensitivity analysis demonstrated that the positive results were robust. Potential improvements to the methodology were noted. On the basis of this study, benefit cost analysis appears to be an additional promising tool for the measurement and monitoring of police performance.

Citation

McFadden, M. and Mwesigye, S. (2002), "Fraud investigations: a case study in economic evaluation", Policing: An International Journal, Vol. 25 No. 4, pp. 752-761. https://doi.org/10.1108/13639510210450668