National Fraud Initiative (NFI)

The National Fraud Initiative is a data-matching exercise that helps detect fraudulent and erroneous payments from the public purse across the UK.

The National Fraud Initiative (NFI) began in 1996, and now runs every two years. It helps participants from local government, central government and the NHS to identify fraud and error.

Since 1996 over £11.5 million of fraudulent and erroneous payment have been detected in Wales. These include housing benefit, pension and student loan payments. Seventy public sector organisations in Wales participated in the latest NFI exercise. NFI 2006/2007, which identified fraudulent and erroneous payments with a value of £4.5 million and resulted in 26 successful prosecutions

The Auditor General's report "National Fraud Initiative in Wales 2006/2007: Summary of Findings" was published following the latest exercise, and provides an overview of the outcomes and includes case studies illustrating the types of fraud and error overpayments found.

For further information contact Kate Febry (WAO NFI Co-ordinator) on 029 2032 0616

Data Matching – National Fraud Initiative

1. Wrexham Council is required by law to protect the public funds it administers. It may share information provided to it with other bodies responsible for auditing or administering public funds, in order to prevent and detect fraud.

2. The Auditor General for Wales appoints the auditor to audit the accounts of this authority. He is also responsible for carrying out data matching exercises.

3. Data matching involves comparing computer records held by one body against other computer records held by the same or another body. This is usually personal information. Computerised data matching allows fraudulent claims and payments to be identified. Where a match is found it indicates that there is an inconsistency which requires further investigation. No assumption can be made as to whether there is fraud, error or other explanation until an investigation is carried out.

4. The Auditor General currently requires us to participate in a data matching exercise to assist in the prevention and detection of fraud. The Auditor General requires this authority to provide information it holds for this purpose. We are required to provide particular sets of data to the Auditor General for matching for each exercise, and these are set out in the Auditor General’s handbooks, which can be found at www.wao.gov.uk/whatwedo/1252.asp.

5. The use of data by the Auditor General in a data matching exercise is carried out with statutory authority under its powers in Part 3A of the Public Audit (Wales) Act 1998. It does not require the consent of the individuals concerned under the Data Protection Act 1998.

6. Data matching by the Auditor General is subject to a Code of Practice. This may be found at www.wao.gov.uk.

7. For further information on the Auditor General’s legal powers and the reasons why he matches particular information, see www.wao.gov.uk/whatwedo/1252.asp or contact Katrina Febry, NFI,Co-ordinator, Wales Audit Office, 24 Cathedral Road, Cardiff CF11 9LJ, 029 2032 0616 or email infoofficer@wales.gov.uk.