Appendix A:
BFI methodology

In this Appendix we summarise the methodology used during the BFI inspection at SABC.

Section 139 A(1) of the Social Security Administration (Fraud) Act 1997 sets out the legislative framework for the BFI, which is:

…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.

In undertaking this work, BFI reviews processes to identify best practices and areas where the LA could work more effectively and efficiently.

The inspection process is divided into 3 stages:

• set-up
• inspection
• reporting.

Set-up

BFI met with SABC to outline proposals for the inspection, following an invitation from the authority. This meeting included a presentation from the BFI about the inspection process. At this stage, provisional dates were agreed for the capture of data with a questionnaire, for the on-site inspection, inspection dates, the presentation of emerging findings and the drafting and clearance of the report.

Inspection

The inspection process began with an analysis of the data provided by SABC and that collected centrally by DSS. A pen-picture was developed identifying the perceived strengths and weaknesses of SABC in both benefits administration and counter fraud aspects of their work. This pen picture allowed BFI to identify where they needed to concentrate their efforts, in terms of interviewing, data analysis and sampling when carrying out the field-work in SABC.

The inspection covered 8 areas essential to administer benefits effectively and securely, grouped under 2 main headings of benefit administration and counter fraud.

The 8 areas are explained in BFI’s Guidance notes on good practice in Benefits Administration and Counter Fraud measures, published in January 1999

Inspection methodology

The main elements were:

• a walk-through of the benefits administration and counter fraud systems with SABC officers
• interviewing SABC staff, the BA and ES
• seeking expert advice where necessary from DSS Solicitors Branch and Analytical Services Division
• observing SABC’s working practices
• inspecting individual benefit claims and claims for WBS and cross-checking information in these claims across BA and SABC
• analysing referrals to the fraud team
• examining documents relating to reviews, overpayments and internal audit work

Reporting

Initial findings were presented to SABC’s benefits in 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 Chief Executive, Treasurer, Head of Benefits and senior benefits officers at the end of the on-site phase of the inspection.

We met with SABC staff to discuss a draft of this report and fully considered their written comments before finalising this report.