Training seminar

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National Fraud Initiative 2006/07

• Training seminar

Audit Commission Darren Shillington
Wales Audit Office Gill Lewis, David Rees
Katrina Febry
21 February 2007
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Agenda
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Review of NFI 2004/05 England Walesdetected
fraud overpayments
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NFI 2004/05 results (2002/03 in brackets)
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Review of NFI 2004/05 England Wales NFI
successes LG

• A Derbyshire council investigated an address
  match and identified an individual claiming
  housing benefit, council tax benefit and income
  support who had not declared any income from
  employment as a school support teacher under a
  previous name. The investigation established that
  overpayments totalled 35,000.

• Blaby DC found an NHS employee claiming housing
  benefit, council tax benefit and income support
  but had failed to declare their income. The case
  was went back to 2000. Overpayments totalled
  58,000.

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Review of NFI 2004/05 England Wales NFI
successes LG

• A Tenant who had a one bedroom flat in Wandsworth
  was found to have purchased a property through
  the right to buy scheme at a neighbouring
  authority. Further investigation revealed that
  other unidentified persons had lived in the flat
  since 2002. A notice to quit was issued and, when
  presented with the evidence, the tenant vacated
  the property, which has been re-let to a family
  on the housing register.

• Investigations at one DC revealed an individual
  who had purchased two of the Councils properties
  through the right to buy scheme. Investigations
  revealed that the first property was sold to
  finance a business venture. When this failed the
  individual returned to the area homeless and was
  housed again. The individual subsequently bought
  this second property receiving a further discount
  of 21,000. Legal action is in progress.

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Review of NFI 2004/05 England Wales NFI
successes NHS
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Review of NFI 2004/05 in Wales

• Successful exercise
• Identified fraudulent and erroneous payments
  totalling 2.6million
• 31 successful prosecutions
• 206 cases of fraud or error involving public
  sector employees
• Reduction in long standing frauds, e.g. Pension
  payments
• Improved anti-fraud arrangements
• Demonstration of partnership working

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Review of NFI 2004/05 in Wales (2)

• However.
• Variable results across authorities
• Not all reports investigated
• Benefits not optimised outside of local
  government
• Report available online
• http//www.wao.gov.uk/assets/englishdocuments/NFI_
  English_2006.pdf

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2006/07 changes
In the beginning
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What else can you use NFI for ?

• Reduce parking revenue losses
• Reduce cost of concessionary travel
• Sickness/absence checks
• Identify system weaknesses
• Gain assurances
• Use NFI to address other risk areas

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Current Issues - 1

• Bank details
• no disclosure no data compromised
• Data submission
• review in progress looking at secure file
  transmission or collection by AC
• Council Tax Single Person
• Hillingdon pilot successes
• Link to HB fraud
• secondary pilots and London wide exercise
• national roll out Dec 07 (provisional)

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Current Issues - 2

• Creditors
• Successful pilot
• Specification refined - improved matches
• Guidance improved
• Assistance for further analysis
• More fields to filter easily identify those for
  investigation
• Matches grouped
• Housing tenancies, RTB and FTA
• UK visas to pay and HB

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Web application demonstration
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How are we helping?

• Move to a web based application PLUS considerable
  development has resulted in a significant number
  of changes to assist you
• These include
• streamlined report structure
• user friendly vertical view
• filters being available on almost all reports
• the introduction of recommended filters
• real time updates e.g. key contacts, additional
  functionality
• quick and simple process for setting up new users
  
• providing real time management information
  critical for effective monitoring and control
• record status and outcomes of investigations
• audit trail

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How to get the most from NFI (1)

• Start by reviewing the guidelines
• Pop ups will act as a reminder
• Streamlined reports for ease of use and
  prioritisation
• High quality reports include national insurance
  number near matches
• Surname, forename, date of birth surname,
  forename reversed are now combined
• Address matches not low priority
• Make use of the surname forename frequency count
• Sort deads by date of death
• Dont ignore pension abatements

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How to get the most from NFI (2)

• Apply local geography to address matching
• Prioritise right to buy, former tenant arrears
  and risk based options
• Use the Recommended filter and Sort
• Remember you dont have to investigate every
  match (with one exception pensions to deceased
  persons) but you should review all reports not
  just high quality ones

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The follow up approach

• A co-ordinated and prioritised plan for dealing
  with NFI should establish
• Lead officers for each match type
• Clarity about the objective of the follow up work
• Priority areas for follow up report colour
  coding will assist
• Mechanisms for obtaining any additional
  information required to complete investigations
  e.g. E E pro forma
• That all are aware outcomes can be recorded
  on-line

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Arrangements with JCP and TPS

• JCP copy of HB/CTB matches where IS or JSA
  (income based) in payment
• Sift for cases unknown pass to Investigation or
  Compliance teams
• Cases referred to Fraud Investigation Service
  (FIS) will be offered for joint working as will
  Compliance cases
• NFI matches that count towards interventions
  target
• Available for housing benefits to students,
  payroll and pension matches
• Available until the end of February 2007
• Use NFI recommended filter, mark selected for
  intervention
• The position at the end of April 2007 i.e. after
  the two-month review period will be sent by AC to
  DWP
• TPS copy of HB/CTB where GPC or SPC in payment

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How will Auditors support you?

• An audit contact has been appointed to each
  client
• Auditors will work with authorities to facilitate
  the use of the NFI tools
• Auditors will have access to the web application
• Monitoring the investigation of the NFI output
  forms part of statutory audit duties in relation
  to fraud
• Site visits will be made by auditors if requested
  by the client

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Future Developments current restrictions

• Cross border eg Scotland/England
• Non fraud matters
• Private sector payrolls
• Government payrolls
• Bank and building society mortgages
• Public safety eg
• absconders from justice
• sex offenders
• counter terrorism

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New powers required

• Serious Crime Bill specific NFI provisions
• Bill introduced on January 16th 2007
• Royal Assent summer 2007
• Preliminary work starts now

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Wish list

• CML landlord fraud
• Sex offenders public safety
• Government employees DWP and DoH
• Private pensions vs. HB
• Police and Fire disability pensions
• Identity fraud

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New matches in advance of new powers

• UK visa matches to Pay and HB
• Creditors becomes a core dataset
• National purchasing comparisons/cartels
• Procurement corruption bank details and
  companies house
• Council tax discounts
• Taxi drivers and market traders reintroduced to
  HB
• Insurance claimants link to private sector

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Summary

• NFI 2004/05 a big success
• NFI 2006/07 builds on this by introducing
  creditors, new risk based datasets and UK visas
• Introduction of the web application
• New powers imminent for broader scope

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Support is available!

• NFI Team provide on-going support throughout the
  exercise
• If you have any queries please contact Katrina
  Febry
• Katrina.Febry_at_wao.gov.uk 
• 02920 262698
• For technical queries please get in touch with
• helpdesk_at_nfi.gov.uk
• 0845 345 8019
• Web page - http//www.wao.gov.uk/whatwedo/1252.asp
  
• Web page - www.audit-commission.gov.uk/nfi
• We can access your results remotely and provide
  assistance or we can undertake a site visit