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| Private data 'also given to firm' | Private data 'also given to firm' |
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| Unencrypted discs with 25m Child Benefit records on them were handed to an accountancy firm by government auditors, it has emerged. | Unencrypted discs with 25m Child Benefit records on them were handed to an accountancy firm by government auditors, it has emerged. |
| The National Audit Office (NAO) gave the CDs - identical to the ones lost by HM Revenue and Customs (HMRC) officials - to accountants KPMG for auditing. | The National Audit Office (NAO) gave the CDs - identical to the ones lost by HM Revenue and Customs (HMRC) officials - to accountants KPMG for auditing. |
| It said the discs - with bank account details on them - were delivered "by hand" to KPMG and returned safely. | It said the discs - with bank account details on them - were delivered "by hand" to KPMG and returned safely. |
| The Information Commissioner refused to comment on whether the law was broken. | The Information Commissioner refused to comment on whether the law was broken. |
| A spokesman said the commissioner would be looking at "all aspects" of data protection surrounding the missing Child Benefit records as part of its ongoing investigation. | A spokesman said the commissioner would be looking at "all aspects" of data protection surrounding the missing Child Benefit records as part of its ongoing investigation. |
| Erased | Erased |
| The details were revealed in a letter sent by the NAO, which was released on Thursday. | The details were revealed in a letter sent by the NAO, which was released on Thursday. |
| The letter from an HMRC manager, whose name is blanked out, says: "I also confirm that I have asked KPMG to provide me with assurances that they have deleted or erased the data that they analysed as part of our 2006-07 Resource Accounts audit." | The letter from an HMRC manager, whose name is blanked out, says: "I also confirm that I have asked KPMG to provide me with assurances that they have deleted or erased the data that they analysed as part of our 2006-07 Resource Accounts audit." |
| The NAO told the BBC the data was delivered to KPMG's offices by hand and had now been returned safely. | The NAO told the BBC the data was delivered to KPMG's offices by hand and had now been returned safely. |
| Data erased | Data erased |
| A KPMG spokesman agreed with this statement and said any trace of the data contained on the discs had been erased from the company's computer system. | A KPMG spokesman agreed with this statement and said any trace of the data contained on the discs had been erased from the company's computer system. |
| The Child Benefit details had originally been put on to disc and forwarded to the NAO by HMRC officials at its Tyne and Wear offices. | The Child Benefit details had originally been put on to disc and forwarded to the NAO by HMRC officials at its Tyne and Wear offices. |
| Just 1,500 Child Benefit records needed to be examined as part of the auditing process - but all 25 million records were handed to KPMG, as the NAO wanted to be able to select individual records at random. | |
| The NAO asked if HMRC would remove bank accounts and other details from the data before it was sent to them, but this was declined. | |
| An NAO spokesman said discs containing the Child Benefit records had been delivered by a member of its audit team to KPMG. | |
| The spokesman said there was nothing unusual about this, as KPMG was a "long-standing strategic partner". | |
| Internal mail | Internal mail |
| He said the NAO needed to use KPMG's "mainframe IT capacity" to analyse the housing benefit data. | He said the NAO needed to use KPMG's "mainframe IT capacity" to analyse the housing benefit data. |
| Asked if it had considered removing the bank details of individuals from the discs on security grounds before handing them to a third party, the NAO spokesman said the data belonged to HMRC. | Asked if it had considered removing the bank details of individuals from the discs on security grounds before handing them to a third party, the NAO spokesman said the data belonged to HMRC. |
| "It is HMRC's data to manage," he told the BBC News website. | "It is HMRC's data to manage," he told the BBC News website. |
| In March officials at HMRC's offices in Tyne and Wear began the practice of downloading the entire Child Benefit database - including bank account details and National Insurance numbers - on CDs and sending them through the internal mail to the NAO for auditing. | In March officials at HMRC's offices in Tyne and Wear began the practice of downloading the entire Child Benefit database - including bank account details and National Insurance numbers - on CDs and sending them through the internal mail to the NAO for auditing. |
| The practice only came to light on Tuesday when it was revealed two discs had been lost - raising fears data protection laws had been broken. | The practice only came to light on Tuesday when it was revealed two discs had been lost - raising fears data protection laws had been broken. |