Fraud Prevention: data matching

National Fraud Initiative 2008/09

The City of Edinburgh Council is required by law to protect the public funds it administers. The Council may share information provided to it with other bodies responsible for auditing or administering public funds, in order to prevent or detect fraud. This is called “data matching”.

What is data matching?

Data matching involves comparing computer records held by one body against other computer records held by the same or other 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.

What data is checked and matched?

The data required from the Council includes information on:

• Housing Benefit (via Department of Works and Pensions)
• Council Tax Benefit (via Department of Works and Pensions)
• Staff Payroll Details
• Staff Pensions Details
• Disabled Parking – Blue Badge Holders
• Supported Care Home Residents
• Council Tax
• Council Tenants.

The details are matched against details obtained from other local and central government bodies, the NHS and a number of private sector pension bodies. The relevant matches are produced at the beginning of 2009, and inconsistencies are investigated by the Council.

Why does the Council have to do this?

We are required by law to do this. Audit Scotland currently requires the Council to participate in data matching exercises to assist in the prevention and detection of fraud. We have to provide particular sets of data to Audit Scotland for matching, and these are set out in Audit Scotland’s handbook, which can be found at www.audit-scotland.gov.uk/work/nfi.php

Who audits this data matching process?

On behalf of the Accounts Commission and the Auditor General for Scotland, Audit Scotland appoints an auditor to audit accounts of this authority. Audit Scotland also assists appointed auditors by conducting a National Fraud Initiative, which is a data matching exercise, undertaken on a rolling two year cycle.

The use of data by Audit Scotland in a data matching exercise is carried out with statutory authority, under auditors’ powers in section 100 of the (Local Government (Scotland) Act 1973 and section 53 of the Local Government in Scotland Act 2003. It does not require the consent of individuals concerned under the Data Protection Act 1998.

Data matching by Audit Scotland is subject to a Code of Data Matching Practice. This may be found at www.audit-scotland.gov.uk/work/nfi.php

More information

For further information on Audit Scotland’s legal power and the reasons why it matches particular information, see the Level 3 fair processing notice at www.audit-scotland.gov.uk/work/nfi.php