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The National Fraud Initiative (NFI) matches data from 1,300 public sector and 77 private sector organisations, including police authorities, local probation boards, fire and rescue authorities as well as local councils, NHS Trusts and other agencies. It flags up inconsistencies in data that may indicate fraud, errors, and potential overpayments, signalling the need for participating organisations to further review those findings, conduct internal investigation with Accounts Payable Recovery Audits and implement any necessary corrective actions which is no small task.

The main NFI matching exercise takes place every two years, whilst Council Tax and Electoral Register matching takes place annually. Participating organisations submit data to a secure website.

The NFI system matches data within and between bodies to identify potential anomalies, referred to as matches. Matches are made available to participating organisations for them to review, investigate and record outcomes from those investigations.

Good motives underpin NFI match reports, and this article places the spotlight firmly on NFI Creditor and Duplicate Payment reports.

They help prevent or detect fraud, support good governance, provide transparency, and essentially assist provide greater scrutiny of Tax-Payer spends.

Theoretically the NFI reports are a WIN-WIN for participant organisations; they deliver the identification of potential errors and positive reassurance no errors exist. The issue or NFI dilemma arises with the sheer size of some reports.

These may contain matches that are false positives or potential duplicate payments which may have already been corrected. Despite this internal staff are compelled to vet and address each matched line item.

Accounts Payable teams are frequently under time pressures and resources stretched to maximum working capacity.

Few if any, have the desire or wish to divert valuable and often expensive resources to the rather mundane task of investigating data matches and potential duplicate payments which may prove to be false positives. The match reports are simply the first step in a process of queries.

Those yards get even harder when valuable time is absorbed verifying and validating if a duplicate or overpayment has taken place and organisations find themselves under time pressure to report back their findings to the NFI. This is before any recovery, claims fromsuppliers can even commence which in of itself, can often be measured in months rather than weeks.

To help provide an indication of scale participating organisations are compelled to investigate NFI matches and where Rockford delivers regular risk-free Accounts Payable Recovery Audits, it provides an ideal opportunity to lighten that load and assign the mundane task to us.

Over 2 months, we analysed and reported on over 12,000 NFI line matches for a single client mapping their NFI matches with our Accounts Payable Recovery Audit.

This enabled the update and reporting of findings to the NFI within project timescale. Moreover, it provided time to deliver the day job and apply corrective actions to their respective payable ledgers.

From an Accounts Payable and duplicated payments perspective, NFI creditor reports are similar to Rockfords Pathfinder data mining outputs. Potential duplicated supplier reports also mirror our Electronic Data Analysis Reports. Dual vetting provides a belt and braces approach with errors highly unlikely to escape the scrutiny of two systems.

Rockford can match the relevant NFI duplicate payment reports to the Pathfinder outputs; and we can validate each item establishing the action to be taken (essentially: not a duplicate, already cleared by a matching credit, duplicate but not paid, still to be investigated, Etc).

Thereafter we can advise on the response to each item. Rockford regularly performs such exercises whilst undertaking risk-free Accounts Payable Recovery Audits and there is generally no cost incurred.

Rockford Associates Accounts Payable Recovery Audits include a ready-made resolution for NFI duplicate payment reports, save organisations time and monies by the release of valuable internal resources enabling them to focus on higher priority tasks. The benefits include:

Duplicate / incorrect payments

Wrong Supplier / Currency

Paid Credit Notes

Missed Credit Notes

Overpayments (E.g., unused deposits, incorrect invoice values)

The National Fraud Initiative, based in the Cabinet Office, has enabled participating organisations to prevent and detect/recover 443 million fraud and error across the UK in the period April 2020 to March 2022.

This takes the NFI programme cumulative savings to 2.4 billion since its creation in 1996. These outcomes exclude the non-financial benefits also experienced by participants, such as improvements in the accuracy of records, or a greater knowledge of the extent and types of risks their organisations might face.

Recommended Next Steps?

Rockford encouraged long standing Clients to transition away from undertaking accounts payable recovery audits on an ad-hoc basis. The need for vigilance in respect of overpayments never ceases. We pioneered an on-going multi-year audit programme, enabling regular delivery pre-planned Accounts Payable Recovery Audits on an Annual, Biennial or Triennial basis.

The benefits of ongoing Accounts Payable Recovery Audits are abundantly clear and proved popular with Clients now requesting we schedule them to coincide or dovetail directly with the timescales of the NFI match reports enabling them to meet the challenge of NFI reporting requirements in a timely manner.

To discover how we can assist you with NFI match reports and Accounts Payable Recovery Audits, or if you would like to see some case studies of how we have assisted others please feel welcome to get in touch.

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