Counter-fraud

Counter-fraud

Here you will find information about the range of counter-fraud work that Audit Scotland is involved in as well as signposts to other organisations with an interest in this area.

As public finances continue to tighten and the number of people working in the public sector reduces, there is a risk that controls set up in public bodies to combat fraudulent activity, corruption and error are compromised. This can result in the loss of public money and affect our public services. Read more about Audit Scotland's work and the partners we work with in Angela Canning's blog.

Raising a concern about fraud or corruption

If you believe that there is fraudulent activity going on in a Scottish public body, you can find out how to tell us and share your information with us here, or you may wish to report your concerns directly to the police.


National Fraud Initiative

The National Fraud Initiative (NFI) in Scotland is a counter-fraud exercise led by Audit Scotland, and overseen by the Cabinet Office for the UK as a whole. It uses computerised techniques to compare information about individuals held by different public bodies, and on different financial systems that might suggest the existence of fraud or error. It means that public bodies can take action if any fraud or error has taken place, and it allows auditors to assess fraud prevention arrangements which those bodies have.

The National Fraud Initiative in Scotland 2016/17

Published in July 2018, the latest report identified nearly £19 million of fraud and error across the public sector.

Case study: East Dunbartonshire Council

The Cabinet Office has published a case study illustrating how the council used the NFI's AppCheck to verify information submitted in applications across its departments.

 Download the case study - PDF 1.7Mb

Our animation explains some of the key facts from the report.

 

National Fraud Initiative outcomes 2016/17

The 2016/17 Scottish NFI outcomes are derived from the 2016/17 NFI exercise and late outcomes from the 2014/15 NFI exercise. Detailed data from the 2016/17 exercise can be downloaded below.

 NFI outcomes 2016/17 - XLS 181Kb

Areas which generated NFI outcomes

 

Information for the 2018/19 National Fraud Initiative exercise

Instructions for participants 2018/19Published August 2018

The 2018/19 instructions include important guidance and instructions for participating bodies including data requirements, data specifications and the 2018/19 timetable. It will be regularly updated throughout the exercise.

 Instructions for participants - PDF 482Kb

 Instructions for participants (text only) - RTF 150Kb

Participants in the National Fraud Initiative 2018/19Published September 2018

This details the Scottish bodies participating in the 2018/19 exercise in Scotland.

 2018/19 participants in Scotland - PDF 90Kb

 2018/19 participants in Scotland - RTF 26Kb

Privacy noticeUpdated August 2019

This broader description forms part of the privacy notice for individuals whose information is submitted to Audit Scotland for the purpose of the National Fraud Initiative in Scotland.

 Privacy notice - PDF 199Kb

 Privacy notice (text only) - RTF 34Kb

Self-appraisal checklistPublished March 2018

This document contains a two-part checklist that we encourage all participating bodies to use to self-appraise their involvement in the NFI. Part A is designed to assist audit committee members and Part B is for officers involved in the NFI exercise.

Some suggestions for improving the efficiency and effectiveness of reviewing and investigating NFI matches are also included.

 National Fraud Initiative - Self-appraisal checklist  - PDF 420Kb

Code of data matching practice 2018Published September 2018

This Code of data matching practice was issued on 28 September 2018 under Section 26F of the Public Finance and Accountability (Scotland) Act 2000 (as amended).

Data specifications

The dataset specifications for the National Fraud Initiative (NFI) 2018 to 2019 national exercise and NFI council tax single person discount 2018 to 2019 exercise have been set by the Cabinet Office and are as follows:

 Changes for 2018 to 2019 exercise - PDF 49Kb

The NFI team in the Cabinet Office review data specifications before each exercise. Although changes have been kept to a minimum, some are necessary to improve the matching process and the quality of matches.

 Electoral Register data specification - PDF 105Kb

The Electoral Register data should be the ‘full version’ of the Electoral Register (not the commercially available ‘edited version’) and should be extracted and submitted after the Register is formally published.

 Trade creditors standing data specification - PDF 64Kb
 Trade creditors payment history data specification - PDF 55Kb

Trade creditors standing data should be a snapshot of trade creditors current at the date of extraction, exclude dormant or suspended creditors and cover the period given in the data specification.

 Council Tax data specification - PDF 131Kb

The data should only be current/live accounts and relate to all council tax accounts, whether or not there is a discount or exemption (i.e. it should cover every domestic property where council tax applies).

 Personal budgets and social care payments data specification - PDF 119Kb

Data should relate to personal budget payments paid as direct payments (for the mandatory exercise) or social care payments (if matching this data voluntarily) to those applicants over 18 years of age only.

 Transport passes and permits data specification - PDF 154Kb

The Blue Badge Improvement Service (BBIS) will upload data on behalf of the local authorities that have opted for this service. If you do not use the BBIS service then you will need to extract and upload the data locally.

 Pensions data specification - PDF 90Kb

Data should be uploaded in 3 separate files. Please note any pensions currently in payment should be included in the ‘current pensioners’ file.

 Private supported care home residents data specification - PDF 56Kb

All data should relate to current care home residents at the date of extract who are receiving all, or part, of their funding from the local authority.

 Payroll data specification - PDF 80Kb

Payroll data should be provided in accordance with this data specification.

 Council Tax Reduction Scheme data specification - PDF 144Kb

Data should be provided in accordance with the Council Tax Reduction scheme data specification.

 Licenses data specification - PDF 87Kb

This specification includes licenses for market traders, taxi drivers and personal licenses for the supply of alcohol. Data should be uploaded in 3 separate files.

 NHS Patient Exemptions (Scotland only pilot) data specification - PDF 217Kb

This data specification is in respect of a pilot for NHS Scotland.

 Housing waiting list data specification - PDF 70Kb

Housing waiting list data should be provided in accordance with this data specification.

 

 Housing tenants data specification - PDF 99Kb

The housing data that should be uploaded includes current named tenants and any former tenants who completed a right to buy application during the period stated in the data specification.

 

 Non domestic rates (Scotland only pilot) data specification - PDF 87Kb

This data specification is in respect of a pilot for Scottish local authorities in respect to non-domestic rates relief.

National Fraud Initiative contact details

The NFI in Scotland is overseen by Audit Scotland. Our phone number for all NFI enquiries is: 0131 625 1500.

Information about the UK NFI exercise can be found on the Cabinet Office’s website at www.gov.uk/government/collections/national-fraud-initiative.

Bodies participating in NFI in Scotland should note that they can update their contact details via the 2016/17 NFI secure website or by sending an email to nfiqueries@cabinetoffice.gov.uk.


Other work we do

Safeguarding public money

Safeguarding public money: are you getting it right?

The Accounts Commission has produced this report as part of its 'How councils work' series for councillors. It includes checklists to help them make sure their councils’ money is being safeguarded.

 Download the report on safeguarding public money - PDF 2.1Mb

Fraud and irregularity report

Fraud and irregularity report 2018/19
 

This report provides a summary of the cases of fraud and other irregularities at public bodies reported by external auditors for the financial year 2018/19.

 Download fraud and irregularity report - PDF 374Kb

NFI presentations

Presentations
 

We regularly give presentations about the National Fraud Initiative and our work. The presentation below was made to CIPFA.

 Download NFI presentation - PPT 1.3Mb

Dundee City Council report

Dundee City Council: Report on significant fraud

Our report on the 2016/17 audit of Dundee City Council found that a £1 million fraud perpetrated at Dundee City Council from 2009-2016 was the result of failures in fundamental controls within the council’s financial systems.

Auditor's role in fraud and money laundering

Auditors' responsibilities relating to fraud

This International Standard on Auditing, published by the Financial Reporting Council in July 2017, deals with auditors’ responsibilities relating to fraud in an audit of financial statements.

 Auditors' responsibilities relating to fraud - PDF 326Kb

Code of audit practice

Code of audit practice

Our Code of audit practice sets the framework for public audit in Scotland, and outlines the responsibilities of external auditors appointed by the Auditor General for Scotland and the Accounts Commission. This includes auditors' responsibilities regarding fraud.

Working with NHS Scotland Counter Fraud Services

We work with NHS Scotland Counter Fraud Services (CFS) in the deterrence, prevention and detection of fraud and other irregularities in NHS Scotland and other public bodies where CFS provides counter fraud services. The memorandum of understanding below outlines how we work together.

 NHS Scotland Counter Fraud Services - Memorandum of understanding - PDF 113Kb

NHS Scotland Counter Fraud Services

Resources

Protecting public resources in Scotland
 

Produced by the Scottish Government in 2015, this sets out a strategic approach to fighting fraud and error across the public sector in Scotland.

 Protecting public resources in Scotland - PDF 268Kb

Cabinet Office Behavioural Insights Team paper on fraud, error and debt

The Behavioural Insights Team uses behavioural science to make public services more cost-effective and easier to use.Their paper on fraud, error and debt sets out some of the most effective actions which public bodies can take to reduce fraud, error and debt.

Other bodies

Cross-Sector Counter Fraud Forum

The objectives of this forum are to share counter fraud intelligence and promote opportunities for joint working across all sectors in Scotland. It also looks at how counter fraud best practice can be disseminated to public sector organisations in Scotland.

The Counter Fraud Maturity Model provides guidance on how mature your counter fraud controls are.

NHS Scotland Counter Fraud Services

NHS Scotland Counter Fraud Services deals with the prevention, detection and investigation of fraud, embezzlement, theft, corruption and other irregularities against NHSScotland.

Police Scotland
 

The Police Scotland website includes information about different types of fraud, advice on how to avoid becoming a victim and contact details for reporting a fraud to the police.