National fraud initiative (NFI)
The Audit Commission is an independent body responsible for ensuring that public money is spent economically, efficiently and effectively, to achieve high-quality local services for the public. More about us
Since 1996 the Audit Commission has run the National Fraud Initiative (NFI), an exercise that matches electronic data within and between audited bodies to prevent and detect fraud. This includes police authorities, local probation boards and fire and rescue authorities as well as local councils. To date, an estimated £450 million of fraud and overpayments have been identified from this work and the initiative has attracted international recognition. In 2006/07 this approach has led to £140 million of fraud and overpayments being detected.
The use of data for NFI purposes continues to be controlled to ensure compliance with data protection and human rights legislation. A revised Code of data matching practice was published and laid before Parliament on 21 July 2008 and replaces the previous Code published by the Commission in 2006. A copy of the Code is available at Code of Data Matching.
NFI news
(updated 14 October 2008)
Form 3 (fair processing compliance return) due 30 September 2008
Completion of the Form 3 (fair processing compliance return) has been automated and is available via the 'Data Protection: Form 3' link on the NFI secure web site Home page. The form should be completed as soon as possible (the deadline was the 30th September 2008) as it provides confirmation to the Audit Commission that fair processing notice guidance has been or is in the process of being followed. A copy of the completed form will be available to view via the Home page link throughout the exercise.
Work programme and scale of fees
We consulted on our proposed work programme and scale of fees for the National Fraud Initiative (NFI) 2008/09 between May and July 2008. The Commission has now considered all of the responses and has agreed to confirm the work programme and scale of fees set out in the consultation document.
In parallel with this consultation, we were also consulting audited bodies and other stakeholders on a draft Code of Data Matching Practice. A number of audited bodies commented on our fee proposals in their response to the draft Code. We have included these in this summary of the consultation response.
Code of Data Matching Practice laid before parliament
On Monday 21 July, the Audit Commission’s Code of Data Matching Practice 2008 was laid before parliament by Parliamentary Under-Secretary of State for Communities and Local Government, Mr. Iain Wright. The Code will govern the Commission’s data matching exercises conducted under its new statutory powers which came into effect in April this year. A copy of the code is available on our Code of Data Matching Practice web page.
Handbooks for 2008/09 issued electronically
An email was distributed this week to NFI participants regarding the forthcoming 2008/09 NFI exercise. The email contained the link to the new environmentally friendly electronic instructions that are displayed over a series of pages in this section of the Audit Commission internet site. These instructions provide full details of the 2008/09 timetable and data specifications. The 2008/09 exercise starts this summer when data is extracted.
We have posted these instructions prior to the completion of the NFI 2008/09 Proposed work programme and scale of fees consultation in response to feedback on the Code of Data Matching Practice consultation requesting maximum notice of NFI requirements to participants. Final instructions will be issued once the Audit Commission has confirmed the work programme and scale of fees following the current consultation (ends 31st July).
Audit Commission urges public sector to put greater effort into eliminating fraud
A record £140 million in fraud and overpayment has been detected by the National Fraud Initiative (NFI) report 2006/07, published on May 20. This is a 26 per cent increase from £111 million in 2004/05. Despite this success, however, the Commission is calling on the public sector to devote more resources to using the NFI information to track down fraud.
National Duplicate Registration Initiative (NDRI)
The National Duplicate Registration Initiative
(NDRI) web page contains information about our exercise that involves matching General Practitioner's patient lists to identify duplicates, deceased patients and persons who have appeared to have moved.
Page updated: 14 October 2008
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