National Fraud Initiative
This authority is required by law to protect the public funds
it administers and, as a result, may share information
provided to it with other bodies responsible for auditing or
administering public funds, in order to prevent and detect
fraud.
The Audit Commission appoints the auditor to
audit the accounts of this authority. It is also responsible for
carrying out data matching exercises.
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 potentially 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.
The Audit Commission currently requires us to
participate in a data matching exercise to assist in the prevention
and detection of fraud. We are required to provide particular sets
of data to the Audit Commission for matching for each exercise, and
these are set out in the Audit Commission’s handbooks, which can be
found at
www.audit-commission.gov.uk/nfi.
The use of data by the Audit Commission in a
data matching exercise is carried out with statutory authority
under its powers in Part 2A of the Audit Commission Act 1998. It
does not require the consent of the individuals concerned under the
Data Protection Act 1998.
Data matching by the Audit Commission is
subject to a Code of Practice. This may be found at www.audit-commission.gov.uk/nfi/codeofdmp
For further information on the Audit
Commission’s legal powers and the reasons why it matches particular
information, see the Level 3 Notice on the Audit Commission website
(www.audit-commission.gov.uk/nfi/fptext.asp) or
contact Peter Yetzes, Head of NFI on 0844 798 2222 or email
nfiqueries@audit-commission.gov.uk.