Appendix A:
BFI Methodology

Introduction

In this appendix we summarise the methodology used during the BFI inspection at Richmond.

Section 139A(1) of the Social Security Administration Act 1992 sets out the legal framework for BFI, namely:

... to report to the Secretary of State 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.

To do this, BFI analyses processes to identify best practices and areas where an LA could work more efficiently and effectively. The 2 main areas which BFI considers during an inspection are:

• benefit administration
• counter-fraud work.

The inspection process is divided into 3 stages:

• set-up
• inspection
• reporting.

Set-up

We met with Richmond to outline proposals for the inspection. This meeting included a presentation from BFI about the inspection process. At this stage, provisional dates were agreed for the:

• capture of data using a questionnaire
• on-site inspection
• presentation of emerging findings
• drafting and clearance of the report.

Inspection

The inspection process began with an analysis of the data Richmond provided and that collected centrally by DSS. A pen picture was developed, identifying the perceived strengths and weaknesses of Richmond in benefit administration and counter-fraud work. We could then identify areas to concentrate on when:

• interviewing
• analysing data
• sampling.

The inspection covered 8 areas essential to administer benefits effectively and securely, grouped under the 2 main headings, benefit administration and counter fraud. These areas are standard across all BFI inspections and are reproduced in the BFI Guidance Notes on Good Practice in Benefits Administration and Counter Fraud Measures, so we do not reproduce them separately here.

Reporting

We presented the initial findings to Richmond’s benefits and counter-fraud staff during the course of the inspection. A further presentation of emerging findings, taking into account feedback from the initial presentation and also further findings from the continuing inspection, was given to the Head of Revenues and Benefits, the Revenues and Benefits Manager, the Professional Adviser, the Call Centre Manager and the Investigation Officer at the end of the on-site phase of the inspection.

We drafted the inspection report following the structure outlined above and used findings from fieldwork to draw conclusions and make recommendations in each of the 8 areas of benefit administration and counter-fraud activity.