NIAO: About Us - National Fraud Initiative

NATIONAL FRAUD INITIATIVE

The Comptroller and Auditor General (C&AG) has been given new statutory powers to conduct data matching exercises for the purpose of assisting in the prevention and detection of fraud. The new powers are contained in Articles 4A to 4H of the Audit and Accountability (Northern Ireland) Order 2003 as inserted by the Serious Crime Act 2007.

What is Data Matching?

Data matching involves comparing sets of data, such as the payroll or benefits records of a body, against other records held by the same or another body. This allows potentially fraudulent claims and payments to be identified. Where no match is found, the data matching process will have no material impact on those concerned. Where a match is found it indicates that there may be an inconsistency that requires further investigation.

Code of Data Matching

The use of data for data matching purposes is governed by the C&AG’s Code of Data Matching Practice, the purpose of which is to help ensure that the C&AG, the Northern Ireland Audit Office, and all persons and bodies involved in data matching exercises comply with the law, especially the provisions of the Data Protection Act 1998 and to promote good practice in data matching. The Code was prepared in consultation with the Information Commissioner and other stakeholders and was laid by the Department of Finance and Personnel before the Assembly on 25 July 2008. A copy of the code is available on our website by following the link Code of Data Matching Practice

Key documents

Code of Data Matching Practice (144 KB, Adobe PDF Format)

NFI-in-northern-ireland-instructions.pdf (134 KB, Adobe PDF Format)

Layered Fair Processing Notice - Level 3.pdf (25 KB, Adobe PDF Format)

Other information can be obtained at:

Audit Commission

NFI Workshop 18th February 2009

NIAO, in conjunction with the Audit Commission, held two half day workshops on 18^th February 2009.

All bodies participating in the 2008-09 NFI Exercise were invited to attend and it total, some 156 representatives from 69 bodies attended either of the sessions.
Janet Sides, NIAO, opened the session by providing participants with an update position on the NFI Exercise in Northern Ireland and she commended bodies for their considerable efforts in reaching this stage.

Nathan Nash, Audit Commission, gave delegates information on the types of matches that they will receive and advice on how best to deal with them. His presentation also included a comprehensive demonstration of the NFI secure website.

Patrick O’Neill, NIAO, concluded the session by giving delegates an overview of NIAO’s perspective on handling suspected fraud. Patrick also highlighted two documents that may be of use to those investigating potential frauds; ‘Common
Methods and Types of Fraud’, and ‘Indicators of Fraud’ – it should be noted that these are not intended to be exhaustive lists and should be tailored to bodies’ individual circumstances. These documents along with copies of all presentations made on the day can be accessed at the links below:

Documents

Common Methods and Types of Fraud.pdf

Indicators of Fraud Feb09.pdf

Presentations

Janet Slides, NFI Update.pdf

Audit Commission - NI NFI participants.pdf

NIAO's perspective on handling suspected frauds.pdf

National Fraud Initiative 2008/09

The first data matching exercise under the C&AG’s new powers will be undertaken in 2008/09. The Audit Commission for Local Authorities and the National Health Service in England (the Audit Commission), which has been conducting a sophisticated data matching exercise since 1996 under the banner of the National Fraud Initiative (NFI) (www.audit-commission.gov.uk/nfi), will carry out key aspects of the exercise on behalf of the C&AG, including the collection and processing of data.

The data obtained for the 2008/09 exercise will be matched on a cross jurisdictional basis in the UK and therefore will be included in a much wider NFI exercise.

Instructions for NFI in Northern Ireland 2008/09
The roles and responsibilities of participants are set out in the document, National Fraud Initiative in Northern Ireland 2008/09 Instructions and can be accessed at: NFI in Northern Ireland Instructions. These instructions also provide full details of the 2008/09 timetable and the data specifications

Fair Processing Notices
In accordance with the Code of Data Matching Practice, participants in the C&AG’s data matching exercises should inform individuals that their data will be processed as required by the Data Protection Act 1998.

The Information Commissioner recommends a layered approach to fair processing notices. Usually there are three layers: summary notice, condensed text and full text. Taken together, the three layers comprise the fair processing notice.

The full text includes an explanation of the legal basis for the C&AG’s data matching exercises and a more detailed description of how the Initiative works. This can be accessed at: Layered Fair Processing Notice Level 3

Public Accounts Committee Hearing

The Public Accounts Committee received a presentation on the NFI at its meeting on 3 April 2008. The Committee views the NFI as a key tool in the armoury against fraud and error, issues which the Committee has consistently highlighted in other reports

To oversee the subsequent operation of NFI, the Committee intends to review its outworkings. Given that the C&AG intends to carry out a stocktake following the proposed October 2008 exercise, the Committee will call him to report on the results of the initiative at that stage. The C&AG will also publish a report on the Exercise.

The Report of the Committee can be viewed at:

PAC Report on NFI

Press Notices

NIAO: Press Releases - Consultation on Data Matching Practice issued March 2008

Further Information

Patrick O’Neill

NFI Coordinator

( 02890 251023

nficoordinator@niauditoffice.gov.uk

Patricia Blair