Fraud initiative

We take our responsibility to protect public funds very seriously. In order to prevent and detect fraud we may share information provided to us with other bodies responsible for auditing or administering public funds.

All housing associations are required to have a clear and well-communicated strategy which covers the prevention and detection of fraud within the association. The Housing Corporation also encourages associations to engage in cross-sector and cross-agency initiatives which seek to identify fraudulent behaviour and activities, such as the Audit Commission’s National Fraud Initiative, a bi-annual data matching exercise.

Data matching involves comparing computer records held by one organisation against other records held by the same or other organisations to see how closely they match. The data examined 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.

We are taking part in the National Fraud Initiative data matching exercise to assist in the prevention and detection of fraud. We will provide particular sets of data to the Audit Commission for matching for each exercise. These are set out in the Audit Commission’s guidance which can be found on its website, 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 on the Audit Commission website. For further information on the Audit Commission’s legal powers and the reasons why it matches particular information please see the Audit Commission website www.audit-commission.gov.uk.