Wednesday, February 8, 2017

Vocational training : too much fraud, not enough control (Court of Accounts) – Boursier.com

The vocational training sector is pinned by the annual report of the Court of Accounts. It deplores the lack of controls, which facilitate fraud. Less than 1% of training providers are inspected each year by the State.

vocational Training : too much fraud, not enough control (Court of Accounts)

photo Credit © Reuters

(Boursier.com) — professional training in France, it’s more than 77,000 organizations that do a turnover of about 14 billion euros (as of 2014). However, according to the Court of Accounts, this market is experiencing a number of malfunctions and frauds, and should be much better controlled by the public power.

The sector has exploded in recent years, especially as the conditions of access are extremely flexible : “a simple declaration of activity” is enough, and then, the obligations of the training organizations “are reduced”, observes, in particular, the Court in its annual report published on Wednesday.

overage costs and VAT fraud

Result : irregularities and fraud are quite prevalent, especially in the audits of the services of the State are random and insufficient. “There’s no steering unified of the control activity”, complain to the magistrates, and the controls are too few. Thus, in 2014, only 5% of collectors, 0.8% of training providers and 0.7% of companies were controlled by the services of the State.

fraud and irregularities are most often the bodies of training : overage costs of the hours of training, an increase in the number of hours or number of trainees, or even VAT fraud… Some employers cheat also in recruiting employees under a professional contract, but without giving them the training, while the company has received a financing in this sense.

to Develop a real strategy of control

The Court of accounts is also the responsibility of the wrongdoing within the funding organizations : the Sages of the rue Cambon have been cases where disloyal employees have attempted to mount folders fictitious refund, in order to divert the funds.

The Court welcomes, however, the implementation of the law of march 2014, which will now require providers to submit to an evaluation on the quality of their interventions. This law should help to “improve market”, admit the judges of the Court. But it will not be enough, and the State must develop an effective “control strategy” and urge they be.

— ©2017, Boursier.com

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