National Fraud Initiative NFI

1
National Fraud Initiative (NFI)

• Jenny Millgate
• 26th September 2006

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Introduction

• Corporate Fraud
• Section 151 responsibility
• Prevention
• Detection
• Investigation

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What is NFI?

• National mandatory data matching exercise
• Includes Local Authorities, NHS and other public
  sector organisations
• Includes data from various streams
• Payroll and pensions
• Benefits
• Care Homes
• Identification of possible cases of fraud and
  corruption

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What is NFI?

• Definition of Fraud
• Fraud (CIPFA)
• The intentional distortion of financial
  statements or other records by persons internal
  or external to the organisation which is carried
  out to conceal the misappropriation of assets or
  otherwise for gain.
• Corruption
• The offering, giving, soliciting or acceptance
  of an inducement or reward which may influence
  the action of any person.

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What is NFI?

• Some types of fraud which can be identified
• False identity
• Pension fraud
• Employment fraud
• Benefit fraud

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How does NFI work?

• All organisations submit their data
• Matches undertaken by the IT provider
• Audit Commission releases matches
• The Council is responsible for
• Checking all data matches they receive
• Reporting to the Audit Commission regularly
• Investigating cases where the data match is
  positive.

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Our responsibility

• Mandatory requirement to submit all data
• Mandatory requirement to check the matches
  received
• Regular reporting to the Audit Commission
• Legal requirement to investigate cases of
  potential fraud

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Data Protection

• Data handling
• Data security
• Access to matches
• Data protection and the NFI Code of Practice

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Data Matches

• Phase 1 - Implementation and Distribution
• Phase 2 - Checking
• Phase 3 - Investigation
• Phase 4 - Reporting

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Phase 1 Implementation and Distribution

• Re-launch
• Training
• Protocols
• Data Submission
• Receipt and distribution

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Phase 2 - Checking

• Schools responsibility
• To be done as soon as possible after receipt
• Results
• No match
• Correction
• Referral for investigation

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Phase 3 - Investigation

• Refer ALL cases of potential fraud
• Do not attempt to carry out an investigation
  yourself
• Do not discuss the matter with anyone.
• Do ring me if you are not sure

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Phase 4 - Reporting

• Audit Commission
• NFI Lead Officer
• Internally
• Schools
• Senior Management
• Publication

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Timetable

• Data Submission 6th October 2006
• Training October/November 2006
• Data Receipt 29th January 2007
• Data Distribution February 2007

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NFI Lead Officer

• Training
• Advice
• Reporting and returns
• Investigations

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Questions?

• Jenny Millgate
• 0207 525 4315
• Jenny.Millgate_at_southwark.gov.uk
• Fraud awareness training is available for all
  schools, please contact me for further
  information.