The National Fraud Initiative (NFI)
How Audit Scotland chooses data to be matched

Audit Scotland will only choose data sets to be matched where it has reasonable evidence that one of the data matching purposes permitted by the Public Finance and Accountability (Scotland) Act 2000  and the Criminal Justice and Licensing (Scotland) Act 2010 will be met as a result of matching those data sets. This will be a key consideration when Audit Scotland decides whether it is appropriate to accept data from a voluntary participant, or to require data from a mandatory participant.
 
Evidence may come from previous data matching exercises, pilot exercises, from participants themselves or from other reliable sources of information such as auditors and the police.
Audit Scotland will undertake new areas of data matching on a pilot basis to test their effectiveness in serving the permitted purposes. Only where pilots achieve matches that demonstrate a significant level of success (eg, potential fraud) will they be extended nationally. A small number of serious incidents of fraud or a larger number of less serious ones may both be treated as significant. 

Audit Scotland may also undertake data matching based on the results of previous data matching exercises or pilot exercises that have been undertaken by the Cabinet Office or one of the other UK public sector audit agencies.

Audit Scotland (and the Cabinet Office) will review the results of each NFI exercise in order to consider data and participants for inclusion in future NFI exercises. Data and participant bodies will only be included where there is reasonable evidence that inclusion in future exercises will help identify fraud or another permitted purpose.

Audit Scotland and the Accounts Commission participate in the NFI. 

The other Scottish bodies invited to participate in the 2018/19 NFI exercise in Scotland are:
·	All councils, 
·	Strathclyde Partnership for Transport, 
·	Tayside Contracts, 
·	all health bodies except for the Mental Welfare Commission, 
·	all colleges, and 
·	central government bodies specified in the table below. 
Central government NFI participants
Central Government Body	Own System (OS) or SG Systems (SG)	
Accountant in Bankruptcy	SG	
Care Inspectorate	OS	
Creative Scotland	OS	
Crofting Commission	SG	
Crown Office	OS	
Disclosure Scotland	SG	
Education Scotland	SG	
Food Standards Scotland	SG	
Forest Enterprise (Scotland)	OS1	
Forestry Commission (Scotland)	OS	
Highlands and Islands Enterprise	OS	
Historic Environment Scotland	OS	
National Galleries of Scotland	OS	
National Library of Scotland	OS	
National Museums of Scotland	OS	
National Records of Scotland	SG	
NHS Superannuation Scheme	SG2	
Office of the Scottish Charity Regulator	SG	
Police Investigations & Review Commissioner	SG	
Registers of Scotland	OS	
Revenue Scotland	SG	
Risk Management Authority	SG	
Royal Botanic Garden Edinburgh	OS	
Scottish Canals	OS	
Scottish Children's Reporter Administration	OS	
Scottish Court Service	OS	
Scottish Criminal Cases Review Commission	SG	
Scottish Enterprise	OS	
Scottish Environment Protection Agency	OS	
Scottish Fire & Rescue Service	OS	
Scottish Funding Council	OS	
Scottish Government	OS	
Scottish Housing Regulator	SG	
Scottish Legal Aid Board	OS	
Scottish Natural Heritage	OS	
Scottish Parliamentary Corporate Body	OS	
Scottish Police Authority	OS	
Scottish Prison Service	OS	
Scottish Public Pensions Agency	SG2	
Scottish Qualifications Authority	OS	
Scottish Road Works Commissioner	SG	
Scottish Social Services Council	OS	
Scottish Water	OS	
Skills Development Scotland	OS	
Sportscotland	OS	
Student Awards Agency for Scotland	SG2	
Teachers' Superannuation Scheme	SG2	
Transport Scotland	SG	
VisitScotland	OS	
1 Forestry Commission (Scotland) is coordinating the NFI on behalf of Forest Enterprise (Scotland). Forestry Commission (Scotland) has own its own systems.
2 SAAS uses SG systems but has its own awards data; SPPA and NHS and Teachers' pension schemes use SG systems except for pension awards.