Appendix A:
BFI methodology

Introduction

In this appendix we summarise our inspection methodology.

Section 139A(1) of the Social Security Administration Act 1992, inserted by the Social Security Administration (Fraud) Act 1997, sets out the legislative framework for the BFI, namely:

…to report on the administration by authorities of housing benefit and council tax benefit and, in particular, their performance in the prevention and detection of fraud relating to those benefits.

Good practices

In an inspection we analyse processes to identify good practices and areas where an LA could work more effectively and securely. We provide details of the elements of secure benefit delivery in Section 3 of our recently published good practice guide.

Set up

We met with Tower Hamlets to outline proposals for the inspection. This included presentations from BFI about the inspection process. At this stage, provisional dates were agreed for the capture of data using a questionnaire, for the on-site inspection, inspection dates, the presentation of emerging findings and the drafting and clearance of the report.

On-site inspection

The inspection process began with an analysis of the data provided by Tower Hamlets and that collected centrally by DSS. This helped us create a pen picture identifying the perceived strengths and weaknesses of Tower Hamlets in benefits administration and counter fraud work. This pen picture allowed us to identify where we needed to concentrate our efforts in terms of interviewing, data analysis and sampling, when carrying out the field work.

Our on-site work involved:

• a walk through of the benefits administration and counter fraud systems with Tower Hamlets officers
• interviewing staff from Tower Hamlets, BA and ES
• observing Tower Hamlets’ working practices
• inspecting individual benefit claims and claims for WBS, including cross-checking information held by BA and Tower Hamlets
• inspecting the working relationships between Tower Hamlets, BA and ES
• analysing referrals to and investigations carried out by Tower Hamlets’ counter fraud unit
• examining documents relating to reviews, overpayments, internal and external audit work.

Reporting

Emerging findings were presented to Tower Hamlets’ senior management during the course of the inspection.

The inspection report was drafted using findings from fieldwork, to draw conclusions and recommendations in each of the 8 areas of benefit administration and counter fraud activity.