Applications of IDEA - Benefits
The key tests on benefit systems are tests of validity using exception testing and cross-matching.
Examples of tests are:
Accounts
There are a number of tests that apply to most account types:
Analysis
- Analytical review of benefits paid including the average, minimum, maximum, stratification of allowances and rebates.
- Analysis of award and component grants/allowances, identifying particularly large or unusual amounts.
- Analysis of claimants by age, identifying particularly old/young as appropriate.
Calculations
- Agree the totals of benefits paid and due to summary reports.
- Reconcile awards, etc, to the ledger accounts.
- Reprove the benefit or grant calculation, etc, identifying exceptions.
Exception Tests
- Exception report of high benefits and those out of range.
- Benefits paid on void/empty/deceased cases.
- Offsets or recoveries exceeding benefits paid.
- Ensure correct allowances are awarded.
- Check validity of identification documents.
Gaps and Duplicates
Test for duplicate claims using:
- Address
- Surname and initials
- Surname and date of birth
- Social Insurance / Social Security / National Insurance number, etc.
Cross Matching
- Match the benefits file to the employees' payroll file using the address, Postcode (or ZIP code) or bank account details.
- Cross match the benefit beneficiary name with names on other benefit systems, the electoral system or central register.
- Cross-match addresses with property registers (where available) to ensure a valid address has been given.
- Cross-match with other awards and other departments.
- Cross-match bank account details/addresses with employee payroll
Warning: There may be certain legal considerations in different countries on whether cross matching between systems is allowed.
Experience indicates that the incidence of error or fraud is often higher in certain groups or categories of people. Tests with IDEA in these areas are often very effective but again care must be taken not to infringe any laws or regulations particularly in relation to minority groups.
Many tests involve addresses. These can be used for performing fuzzy matching such as checking if any supplier addresses are the same as employee addresses. They may be needed for circularisation purposes. However, addresses take up a considerable amount of space. It may be possible to include only the first portion of an address. Additional guidance is available in this area.