NCJ Number
198489
Journal
Policing: An International Journal of Police Strategies & Management Volume: 25 Issue: 4 Dated: 2002 Pages: 752-761
Editor(s)
Lawrence F. Travis III
Date Published
2002
Length
10 pages
Annotation
Using results from a benefit cost analysis of Australian Federal Police fraud investigations as a case study, this paper discusses the application of economic evaluation techniques to police reporting work and performance measurement.
Abstract
Today, law enforcement agencies, as well as other public-sector organizations, are required to justify public expenditure through an assortment of performance reporting systems. The economic evaluation of organizational functions is one approach to measure performance, using techniques such as benefit cost analysis. This study examined the potential for applying economic evaluation techniques as a reporting tool, using fraud investigations by the Australian Federal Police (AFP) as an example. Fraud cases handled by the AFP predominantly involve social security fraud or tax evasion. The study employed the standard economic evaluation approach of benefit cost analysis. Fraud figures were extracted from the AFP’s database for cases finalized during 1999-2000 and 2000-2001. Study results indicate that it is feasible to measure the economic value of at least some police functions. The study provides a model for the assessment of benefits in terms of past losses recovered, future losses averted, and deterrence value. Results also indicate that the AFP provided sound returns to the Government due to the fraud investigations. It was estimated that fraud investigations resulted in a net present value (NPV) of $A298 million and a return to the government of $A6.00 for every dollar invested. Overall, benefit cost analysis appears to be a promising tool for the measurement and monitoring of police performance. References