National Fraud Initiatives 2025-26 Outcomes
Perth and Kinross Council · 29 June 2026
Back to Audit and Risk Committee — 29 June 2026 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Audit & Risk Committee Date of Meeting: 29 June 2026 Report Title: National Fraud Initiative 2024/25 Outcomes Report Number: 26/200 Report Author: Jackie Clark, Chief Internal Auditor Organisational Lead: Strategic Lead – Legal and Governance ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to outline the action that has been taken by Perth & Kinross Council in response to the requirements of the National Fraud Initiative for 2024/25. 1.2 Sections 1. Purpose 2. Recommendations 3. Background/Context 4. Progress Update 5. Outcome from Consultancy Work 6. Conclusion 7. Impact Value Assessment 8. Appendices 2. Recommendation It is recommended that the Committee notes that: 2.1 Perth & Kinross Council takes seriously its obligations for taking part in the NFI exercise; 2.2 The actions taken by Perth & Kinross Council in response to the requirements of the NFI; and 2.3 The 2024/25 exercise is now complete, with financial outcomes for Perth & Kinross recorded as £131,236.42.
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3. Background/Context 3.1 The National Fraud Initiative constitutes a sophisticated data matching exercise matching electronic data within and between participating public bodies to assist in the prevention and detection of fraud. The NFI exercise in Scotland is Audit Scotland’s data matching exercise that runs every two years in line with the published timetable. The Cabinet Office administers the NFI and processes the data on behalf of Audit Scotland. This 2024/25 exercise represents the nineth NFI data matching to be undertaken in Scotland. 3.2 The overall aims of the NFI are to serve the public interest by safeguarding public money against losses from fraud or misappropriation and to contribute towards the fight against fraud. It improves the use made of public resources by identifying anomalies in the data held by different authorities and by ensuring that these are highlighted for further investigation. Whilst it is designed to detect fraud, it may also identify instances of administration error or inaccurate data. 3.3 The NFI exercise helps participating bodies (such as Local Authorities, Police Scotland, Scottish Fire and Rescue and the other public sector bodies) to identify possible cases of fraud and detect and correct any consequential under or overpayments. The NFI also helps Auditors in assessing the Council’s arrangements for preventing, deterring and detecting fraud. 3.4 There are broadly three stages in the NFI process: 1 the submission of the required datasets by public authorities and other organisations; 2 the processing of the data (data matching) in order to identify anomalies; and 3 the investigation of the highlighted and reported anomalies 3.5 The Council is responsible for stages 1 and 3; processing of the data (stage 2) is carried out under arrangements put in place by the Cabinet Office. The reported findings of the 2022/23 exercise was presented to Audit Committee in June 2024 (report 24/199). 3.6 Internal Audit acts as a facilitator within the Council and maintains regular contact with Services and external audit to ensure that the former are progressing investigations in accordance with the NFI timetable and guidance. 3.7 The Audit Committee is aware that Perth & Kinross Council is one of two local authorities which did not provide the Electoral Roll for the NFI. Legislation to allow Audit Scotland to require Councils to provide information for NFI purposes was introduced after the 2008/09 exercise, subject to any sharing being compliant with data protection legislation. However, the advice from Legal Services was that this does not permit the Council to submit the Electoral Register as there are specific legal restrictions in place which limit the Council’s ability to share the Electoral Register. Audit Scotland is aware of the Council’s position.
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3.8 Consequently, Perth & Kinross Council does not use the NFI model for checking eligibility to Council Tax’s single occupancy discount. This position is being reviewed in advance of the forthcoming 2026/27 exercise. 3.9 This report presents a summary of progress and the outcomes of the Perth and Kinross Council NFI 2024/25 exercise. 4. 2024/25 Outcomes for Perth & Kinross 4.1 A total of 70 reports detailing different data matches were received in respect of Perth and Kinross Council. As at 31 March 2026, these reports contained 5.665 matches, of which 126 matches were regarded as high risk. In addition to investigating these matches, Services have reviewed the remaining matches and investigated a proportion of these using a risk-based approach. In total, 2,135 matches have been investigated, which represents 38% of all matches. The exercise is now concluded. 4.2 Of the 2,135 fully investigated matches, one error has been identified relating to a match between the Council Tax Reduction Scheme and HMRS Property Ownership records, with £3,441.22 currently being recovered. In terms of NFI outcomes, a further estimated saving of £1,549.20 is attributed to the error, therefore the NFI recorded outcome for this match is £4,990.42. In the 2022/23 exercise, there were no such errors or overpayments identified. 4.3 A further 159 errors were identified, all of which related to matches associated with blue badges. A notional value is placed on the value of blue badges and has therefore been applied in terms of financial outcomes for Perth & Kinross, which amounts to a further £126,246. 4.4 Therefore, the total outcomes attributable to Perth & Kinross Council as a result of the NFI exercise is £131,236.42. 4.5 Information relating to the national outcomes will be made available later in the year by Audit Scotland. 6 Conclusion 6.1 Perth & Kinross Council takes seriously its obligations for taking part in the NFI and the 2024/25 exercise is now completed. 7. Impact and Value Assessment 7.1 This report has been classified as being an operational report and as such does not require a full Impact and Value Assessment. 8. Appendices 8.1 None
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