Compliance Officer
objectivity and INDEPENDENCE
The key characteristic of an effective compliance officer is independence, and this core value is the foundation that supports each of the elements of an effective compliance program. The OIG Guidance notes that the best practice in terms of creating a reporting structure for compliance professionals is a “free standing” function to “help ensure independent and objective legal reviews and financial analyses of the institution’s compliance efforts and activities."“
Separating Compliance and OPerations
The reporting structure should be designed to allow compliance professionals to be unbiased. For example, compliance professionals should not be working in both operational and compliance functions. Further, working from within an operational department may place pressures on compliance professionals that may lead to a lack of objectivity. There could be pressure from within the department to suppress auditing and monitoring reports from going outside the department to other institutional officials as required. Moreover, there could be conflict with individuals within the department who feel uncomfortable with audit results without the formal boundary of being audited by a distinct department.
Checks and balances
Compliance professionals oversee the monitoring and auditing of operations and conduct program evaluations; therefore, it is important that their role is not combined with an operations role. The separation of operations from compliance in terms of both work responsibilities and compliance functions ensures that the OIG’s vision of “a system of checks and balances is established to more effectively achieve the goals of the compliance program.” Therefore, both the reporting and work description of compliance professionals should be designed to promote independence.