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PF (Lochmaddy) v
vy William Quarm
Forensic Accountancy Report of
David W Adamson CA, MEWI
3 December 2009
HMA
v
William Quarm
Report of
David W Adamson CA, MEWI
Dated
3 December 2009
Specialist field Accountancy
On behalf of Mr William Quarm (“the accused”)
On instructions of I:
Subject Matter
Anderson Banks, Solicitors
Confiscation Proceedings
Adamson Forensic Accounting Ltd
14 Rutland Square
Edinburgh
EH1 2BD
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Section
1.0
2.0
3.0
4.0
5.0
6.0
I
2
3.1 to 3.2
3,3 to 3.4
3.5 to 3.6
37
4
Report of : David William Adamson CA
Specialist field : Accountancy
On behalf of =: Mr William Quarm
CONTENTS
Item
Introduction
LA Formal
1.2. Synopsis
1.3. Instructions
1.4 Independence
The background and the issues
2.1 The relevant parties
2.2 The assumed facts
2.3. The issues to be addressed
Scope of investigation
Findings on which the expert's opinion is based
Conclusions
Declarations
APPENDICES
Experience and qualifications
Documents which have been considered
Branch Trading Statement summaries
Branch Trading Statements — ATM stock unit
Branch Trading Statements — AA stock unit
Overnight cash holdings summary April to July 2008
Copies of any documents listed in Appendix 2
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Page
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Introduction Report of : David W Adamson CA
Specialist field : Accountancy
On behalf of =: Mr William Quarm
REPORT
INTRODUCTION
1. INTRODUCTION
1.1 Formal
1, David William Adamson, am a director of Adamson Forensic Accounting
Ltd, and I am a Chartered Accountant practising in Edinburgh.
Tam a member of the Network of Independent Forensic Accountants
(“NIFA”)
This report should not be construed as expressing opinions on matters of law.
I report as an expert witness and not a witness of fact. The issues pertaining to
this litigation fall well within my professional experience and are such that I
am qualified to give an expert opinion on them. A summary of my curriculum
vitae is enclosed as Appendix 1.
Thave prepared this report without the assistance of staff and the opinions
expressed herein are mine and mine alone.
This report has been prepared solely for the purposes of this litigation. In all
other respects its contents are confidential and should not be released to any
other parties than those subject to the litigation or their advisers, nor should it
be relied upon for any other purpose whatsoever. Neither I nor Adamson
Forensic Accounting Ltd accepts any responsibility to third parties for breach
of this obligation, nor for any opinions expressed or information included
within this report, other than in so far as liability arises to the Court from the
giving of evidence.
In conducting my work I have attempted to deal with this matter, as far as is
practicable:
in ways which are proportionate -
i to the amount of money involved;
ti) to the importance of the case;
ili) to the complexity of the issues; and
iv) to the financial position of each party.
There may be factors which are not within my knowledge or competence as an
accountant which may have to be considered and this report should be read in
that context.
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Tam instructed by Messrs Anderson Banks. My report is prepared on behalf
of Mr William J Quarm who is the accused in the case of PF v William J
Quarm.
1.2 Synopsis
In this case, Messrs Anderson Banks seek accounting advice to assist them in
forming views on the following matters:
Whether embezzlement has taken place;
If so, the complexity of the embezzlement;
The degree of complexity of the Horizon accounting system; and
Whether the Horizon accounting system is sufficiently complex as to facilitate
operating errors.
1,3. Instructions
Messrs Anderson Banks have instructed me to prepare a Report on the above
matters.
Thave not been instructed to perform any auditing work. The conclusions
drawn in this report are therefore reliant upon the completeness and accuracy
of information provided to me.
Should further information become available, I reserve the right to modify my
opinions where necessary and acknowledge that I have a duty to do so.
In preparing this report I have relied upon representations made to me by the
accused and on various documents, a list of which is enclosed as Appendix 2.
Where I refer to matters of which I have no personal knowledge, I have
indicated the source of my information.
1.4 Independence
Prior to accepting instructions to act in this matter, I made reasonable
enquiries to identify any actual or potential conflicts of interest in connection
with the parties concerned. These enquiries did not reveal any matters of
significance.
Thave never previously acted for any of the Parties to this case, nor knowingly
acted for any of their associates. I have no financial interest in the outcome of
the dispute.
Background
and issues
2.
Report of: I David W Adamson CA
Specialist field : Accountancy
On behalf of =: Mr William Quarm
THE BACKGROUND AND THE ISSUES
21 The relevant parties
The relevant parties are PF (Lochmaddy) and Mr William J Quarm.
22 The assumed facts
The accused has been Subpostmaster of Paible Sub Post Office Branch
(SPOB) code 147869, located within Bayhead Shop, Paible, Lochmaddy,
North Uist, since 1994. He had one part-time assistant, Ms Acford.
The cash and stock of the SPOB belonged to the Post Office Ltd and were to
be kept separate from the cash and stock of Bayhead shop, the latter being
owned by the partnership of WJ Quarm and his wife, Mrs A Quarm. Mr
Quarm’s contract with Post Office Ltd stated that he was responsible for the
safekeeping of the SPOB’s cash and stock and must make good any cash
shortfall; conversely he was entitled to retain any cash surplus.
In common with all other SPOBs the Paible SPOB used Post Office Ltd’s
computerised accounting system called “Horizon”. Within the SPOB was one
Horizon “terminal” or stock unit (“SU”) referred to as “SU AA”. Although Mr
Quarm and Ms Acford had their own passwords and login details, Mr Quarm
did, on occasion, obtain Ms Acford’s password.
The Horizon system records all transactions and keeps a record of stock levels.
In the SPOB, stock normally comprises cash, stamps, and other postal items.
The Horizon system monitored cash levels at the main Horizon terminal, SU
AA, and at a Hanco internal ATM cash dispenser referred to as “SU ATM”.
Mr Quarm transferred surplus cash, in the form of new or good condition £10
notes to SU ATM, with some minor transfers back to SU AA. The level of
cash held within the ATM was relatively consistent over the period of the
libel, varying between £900 and £4,000.
Post Office Ltd divides the year into four or five week “Trading Periods”. At
the end of each Trading Period, each SPOB is required to submit a detailed
report known as the “Branch Trading Statement” (Branch Trading Statements
cannot be produced if funds transferred out of one SU have not yet been
recorded as received by the other SU). The SPOB manager is relied upon to
accurately record in this Statement the amounts of cash and stock held at each
SU at the end of the Trading period. He then compares these with the amounts
calculated by Horizon and must make good any deficit, should one exist.
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In the Branch Trading Statements, Horizon shows the amount of cash and
stock carried forward from the last trading statement, adds funds received
during the Trading Period, deducts funds paid out, and calculates closing
balances of cash and stocks. These figures are reconciled with the levels of
cash and stock which the manager has recorded as being held by each SU.
The Branch Trading Statements were signed by Mr Quarm and sent to Cash
Management within Post Office Ltd.
The Branch Trading Statements will give Post Office Ltd’s Cash Management
Division an indication as to the likely cash requirements for each SPOB. If
the SPOB appears to hold more cash than it needs, then Cash Management
should ask request the return of the excess funds.
Following concerns within Post Office Ltd about large daily fluctuations in
cash levels, and a failure to remit surplus cash when substantial cash holdings
were recorded, auditors from Post Office Ltd visited Paible SPOB on 23 July
2008 and found a large cash shortage, being £40,277.76. The main deficiency
was found in SU AA, being £37,774.54. The deficiency in SU ATM was
£2,490, with minor stock differences accounting for the remaining £13.22.
Following this discovery Mr Quarm was suspended from his post as Sub-
postmaster.
2.3. The issues to be addressed
The issues to be addressed are: whether any embezzlement has taken place
and, if so, the complexity of the embezzlement; and the degree of complexity
of the Horizon accounting system, and whether the Horizon accounting system
is sufficiently complex as to facilitate operating errors.
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Scope
3.
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Report of : David W Adamson CA
Specialist field : Accountancy
On behalf of =: Mr William Quarm
Scope of Investigation and allegations.
3.1 Sources of information
Tinspected copy Crown productions and witness statements. I spoke to the
accused. I spoke to the accused’s accountants in respect to his trading accounts
and obtained a copy of the accounts for the period which includes that of the
libel. I spoke at length with a postmaster based in East Anglia about the
mechanics of the Horizon accounting system, and toa postmaster based in
Dundee about the same. I visited a Post Office in Edinburgh and spoke with
the postmaster.
3:2 Limitation of Scope
1am unaware of any limitation of scope.
3.3 Allegation
Mr Quarm is alleged to have embezzled £40,277.76 of Post Office Ltd monies
between I October 2007 and 23 July 2008 at Paible SPOB.
Funds belonging to Post Office Ltd may have been used to help pay suppliers
of Bayhead Shop. If Mr Quarm did not record the actual cash held at each SU
in the Branch Trading Statements, but instead manually keyed in inflated
figures which agreed with the figures calculated by the Horizon system, then
he would avoid having to make good any deficiencies until such time as Post
Office Ltd discovered the shortfall.
For example, on 26 March 2008 the Horizon system recognised that £17,240
cash was held at the start of that Trading Period and that, during the Period to
30 April 2008, £66,585 was received (including £25,000 from Post Office
Lid). In the same five-week period a total of £(47,858) was paid out to
customers and withdrawn through the ATM. Allowing for a small reduction
in the stock of stamps, etc, of £25, the Horizon system calculated that the cash
at the end of that Period should be £35,992. If the manager, when asked how
much cash was in hand, keyed in £35,992, then the Horizon system would
show no shortfall although some of these funds may have been missing.
3.4 The accused’s position
In conversation with Mr Quarm, he stated that the alleged shortfall may be due
to money being paid into the ATM machine without this being recorded. If
more money was transferred to this SU than recorded by Horizon, the ATM
machine would record a negative cash figure as money was withdrawn. On
inspection, no such negative cash figure was recorded for the ATM. Mr
Quarm’s explanation would not be tenable unless there was a weakness in
both the Horizon accounting system and in the ATM.
Mr Quarm did not advise me of any other possible explanation for the cash
shortfall.
5
4.
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Report of : David W Adamson CA
Specialist field : Accountancy
On behalf of =: Mr William Quarm
FINDINGS ON WHICH THE EXPERT'S OPINION IS BASED
4.1 Analysis of Horizon Data
The Crown productions include two sets of information directly derived from
the Horizon system. These are the Final Branch Trading Statements for Paible
SPOB covering each four or five week period from 21/03/07 to 29/05/08.
Those for the period from 23/01/08 to 20/02/08, and after 29/05/08, are
missing. I have summarised the overall branch Statements in my Appendices
3.1 and 3.2 (i.e. for the SPOB), 3.1 showing the figures for the seven months
to 24/10/07 and 3.2 showing the figures for the seven months to 29/05/08 (one
four week period being missing). Appendices 3.3 and 3.4 show the equivalent
figures for SU ATM only (i.e. the ATM machine), and Appendices 3.5 and
3.6 show the equivalent figures for SU AA only (i.e. the main terminal).
4.1.1 Appendices 3.1 and 3,2- SPOB
Appendix 3.1 shows the cash and value of stock received from Post Office
Ltd and from customers (e.g. Girobank deposits), and paid to Post Office Ltd
and customers, all in the period from 21/03/07 to 24/10/07. Apart from the
final three weeks, this is all before the period of the libel. The total figures for
the seven months, and the monthly averages, are shown. I have ignored
transfers between the two SUs as they cancel one another. The monthly
average received, excluding monies from Post Office Ltd, is £18,597. Monthly
payments out, excluding remittances to Post Office Ltd, average £(32,323).
Discrepancies and shortages are minimal, totalling under £1,000 for the seven
months and the average monthly cash figure at the Period ends is £5,910.
Appendix 3.2 shows the equivalent figures for the period from 24/10/07 to
29/05/08 (figures for one month are missing). The total figures for the six
months, and the monthly averages, are shown. I have again ignored transfers
between the two SUs as they cancel one another. The monthly average
received, excluding monies from Post Office Ltd, is £32,491, an increase of
almost £14,000 per month on the previous seven months. Monthly payments
out, excluding remittances to Post Office Ltd, average £(37,720), an increase
of just over £(5,000) when compared to the previous seven months. Shortages
average £3,651 for the six months and the average monthly cash figure at the
Period ends is £21,750, the trend being one of increase, particularly in April
2008.
4.1.2 Appendices 3.3 and 3.4 ATM
Appendix 3.3 and 3.4 show monies received, mainly from SU AA. Mr Quarm
advises that he would pay £10 notes into the ATM up to a maximum of around
£1,000 per day. From the Trading Statement the average was much less than
this. In the seven months up to 24/10/07, and the six months for which records
exist after that date, the average monthly transfers from SU AA to the ATM
were between £7,500 and £8,000. There was no recorded reduction in transfers
in the later period that may have indicated some transfers being made but not
being recorded. Average monthly withdrawals were £(7,487) in the period to
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24/10/07 and £(7,690) after that date, a negligible change. Discrepancies and
shortages were minimal throughout, and the average monthly cash figures at
the Period ends vary from £2,167 in the first seven months to £2,839 in the
later period, a small variation. Overall there is no apparent inconsistency, error
or unexplained variation in the ATM.
4.1.3 Appendices 3.5 and 3.6 SU AA
Appendix 3.5 shows the cash and value of stock received from Post Office
Ltd and from customers (e.g. Girobank deposits), and small recoveries from
SU ATM, as well as amounts paid to Post Office Ltd and customers (e.g.
pensions, Girobank withdrawals) plus transfers to SU ATM, all in the period
from 21/03/07 to 24/10/07. Apart from the final three weeks, all this is before
the period of the libel. The total figures for the seven months, and the monthly
averages, are shown. The figures vary little from those in Appendix 3.1 and
my comments on Appendix 3.1 apply equally to Appendix 3.5.
Appendix 3.6 shows the equivalent figures for the period from 24/10/07 to
29/05/08 (figures for one month are missing). The total figures for the six
months, and the monthly averages, are shown. I have included transfers to and
from SU ATM. The total figures for the six months, as well as the monthly
averages, are shown. The figures vary little from those in Appendix 3.2 and
my comments on Appendix 3.2 apply equally to Appendix 3.6.
4.1.4 ONCH Printout
This is the overnight cash in hand statement produced by Post Office Ltd Cash
Management. It shows figures for each day from 01/04/08 to 08/07/08 only.
From 24/05/08 to 07/07/08 the figure for overnight cash (excluding the value
of stock of stamps, etc) is either above £30,000 or between £3,000 and £8,000.
The only exception to this is 27/05/08 when the cash figure is £29,449. There
is only one day of the week in that six week period when the cash balance was
always over £30,000, and that day was Wednesday. That is also the day of the
week in which the balancing periods end. The figure for Saturdays would
always be the same as that for Sunday because the SPOB was closed on the
Sundays. The predicted overnight cash balances generated by the Horizon
system were the same as the reported cash figures on only a few occasions,
The daily stock movements were sometimes nil, but generally increase in size
and swing more violently as the three months progress; negative and positive
movements alternate with one another and increase in size.
Thave taken one figure for each day from the ONCH report and tabled this in
my Appendix 3.7. This is the declared figure for the overnight cash holding at
Paible SPOB as monitored by Post Office Ltd. The average cash holding for
Wednesdays is £24,787, almost four times the average for Mondays and
Tuesdays. Some cash holdings appear to be too low to be credible for a SPOB
with two stock units; those for 16 to 18 April 2008 are all below £1,000. The
cash held from 26 to 29 June 2008 starts at £4,663, leaps to £35,848 on 27
June, then falls to £4,663 without explanation. I have no alternative
explanation to that of the Crown for the patterns of movement and levels of
reported overnight cash holdings in the period from 01/04/08 to 08/07/08.
1
Okan G
4.2. Bayhead Shop Accounts
Ihave examined the financial accounts of Bayhead Shop for the period
01/05/07 to cessation of trading on 05/09/08. The accounts show a loss of
£(2,264) for the period. As drawings were £(81,304) the excess of liabilities
‘over assets increased from £(218,063) at the start of the period to £(301,631)
at the end of the period. At 05/09/08 bank borrowings were £(58,381) and
trade creditors were £(250,575). The business was insolvent throughout the
period and the level of insolvency increased during the accounting period,
which includes that of the libel. Bayhead Shop’s accountants, Campbell
Stewart MacLennan & Co, advised that there were difficulties in reconciling
Bayhead’s recorded sales with those reported for VAT return purposes. They
also advised that they had other difficulties in compiling the accounts. Thave
been unable to ascertain whether the accountants found a shortage of reported
sales relative to bank lodgements (had they done so, this would have
supported the Crown position that Post Office money was being transferred to
Bayhead Shop).
I believe that the business operated two bank accounts; one was Alliance and
Leicester account!_ GRO}. This was used primarily to pay a single supplier
(Lovat) by weekly cheque, the amount usually being £4,200. The business
lodged daily amounts of £700, or a weekly amount of around £4,200, to meet
this cheque. During the period of the libel at least two cheques failed to clear
due to insufficient funds, being cheque numbers 1791 and 1821. The source of
the funds lodged into the Alliance & Leicester bank account is not clear from
the accounting records that I have seen; each deposit is recorded by a journal
entry which is part of a complex posting involving several nominal ledger
accounts and, according to the accountants, lacked explanatory back-up.
‘The other business bank account was RBS accow
an examination of one month’s transactions I note that it was used to pay other
suppliers, repay loans, car finance agreements and credit cards, and meet other
standing orders. Until 21/12/07 a regular monthly payment of £3,900 was
made to Lovats from this account by standing order. Bank lodgements were
mainly made by point of sale (“POS”), and some bank giro credit (“BGC”)
pay-ins. The RBS balance was generally overdrawn by at least £(30,000)
during the period of the libel.
In summary it is not possible to identify the sources of all Bayhead Shop bank
lodgements, but it is possible that some were augmented by, or were taken
from, Post Office monies. Bayhead Shop had difficulty in paying suppliers
from trading income, and financial difficulties increased during the period of
the libel due to a high level of personal drawings when the business was
incurring a loss.
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4.3 Horizon Accounting System
I believe that the Horizon accounting system is used by all 12,500 to 14,000
Post Offices in the UK, including around 40,000 counter terminals. It was
built upon an earlier IT system and has been in place for several years. The
three postmasters to whom I spoke were confident that it was “watertight” and
accurate, despite some recent press reports that express reservations about this.
An expert in IT may be able to find possible weaknesses with the Horizon
system, but the accounting evidence lends no support to the contention that it
may be unsound or inaccurate. It is an automated record of all cash and stock
movements and processes all customer transactions through pin-pad
technology, and mails transactions through links to electronic scales. It
produces summaries of daily transactions and cash flows, obliges the
postmaster to declare at the end of each day the amount of cash held
overnight, and allows Post Office Ltd to monitor each SPOB’s levels of cash
held. Post Office Ltd can request the return of cash held that is surplus to the
SPOB’s needs. As the postmaster has to declare cash each day and submit a
Branch Trading Statement every four or five weeks, the system has inbuilt
checks to detect error at an early date. While the IT involved is no doubt
complex, the accounting is basic.
5.0
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Conclusions —_ Report of: David W Adamson CA
Specialist field: Accountancy
On behalf of: Mr William Quarm
CONCLUSIONS
Conclusions
I conclude that there is no accounting evidence that supports any alternative
explanation of the alleged cash shortage at Paible SPOB to that of the Crown,
i.e. that Post Office Ltd funds were misappropriated. On the basis of the
accounting evidence there were no complex transactions involved. The
accounting evidence is that there were large daily movements in the balance of
Post Office cash between 01/04/08 and 08/07/08, that the overall reported cash
balance increased during the period of the libel, and that the pattern before the
period of the libel differed from that of the period of the libel in terms of
holding lower levels of cash, recording smaller discrepancies, and recording
lower levels of activity in the earlier period. The main changes during the
period of the libel were recorded at SU AA. At the same time the business of
Bayhead Shop was in financial difficulties, and its accounting records failed to
identify the sources of each bank lodgement into the business’ Alliance &
Leicester account, leaving scope for the possibility that some Post Office
money may have been paid into that account.
I consider that the automation of the SPOB accounting process through the use
of Horizon makes the accounting burden on postmasters simple relative to any
manual alternatives, and that there were no accounting complexities that may
have resulted in the shortfall of cash discovered by the Post Office auditors.
6.0
Declarations Report of : David W Adamson CA
Specialist field : Accountancy
On behalf of =: Mr William Quarm
DECLARATIONS
6.1 I, David William Adamson C.A., declare that:
i I understand that my duty in providing written reports and
giving evidence is to help the Court, and that this duty overrides any
obligation to the party by whom I am engaged or the person who has
paid or is liable to pay me. I confirm that I have complied, and will
continue to comply, with my duty;
ii I have endeavoured to include in my report those matters of
which I have knowledge or of which I have been made aware, that
might adversely affect the validity of my opinion. I have clearly stated
any qualifications to my opinion;
iii Ihave indicated the sources of all information I have used;
iv Ihave not, without forming an independent view, included or
excluded anything which has been suggested to me by others
(including my instructing lawyers);
v I will notify those instructing me immediately and confirm in
writing if, for any reason, my existing report requires any correction or
qualification;
vi I know of no conflict of interest of any kind, other than any
which I have disclosed in my report;
vii I do not consider that any interest which I have disclosed
affects my suitability as an expert witness on any issues on which I
have given evidence;
viii I will advise the party by whom I was instructed if, between the
date of my report and the proof, there is any change in circumstances
which affect my answers to points vi and vii above;
ix Tunderstand that:
a) my report will not form evidence in itself but requires to be spoken
to by me under oath or affirmation;
b) questions may be put to me in writing for the purposes of clarifying
my report and that my answers shall be treated as part of my report and
covered by my statement of truth;
c) I may be required to attend court to be cross-examined on my report
by a cross-examiner assisted by an expert;
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6.0 Declarations (continued) Report of : David W Adamson CA
Specialist field Accountancy
On behalf of =: Mr William Quarm
d) Lam likely to be the subject of public adverse criticism by the
Judge if the Court concludes that I have not taken reasonable care in
trying to meet the standards set out above.
e) the Court may at any stage direct a discussion to take place between
experts for the purposes of identifying and discussing the expert issues
in the proceedings, where possible reaching an agreed opinion on those
issues and identifying what action, if any, may be taken to resolve any
of the outstanding issues between the parties:
f) the Court may direct that following a discussion between the experts
that a statement should be prepared showing those issues which are
agreed and those issues which are not agreed, together with a summary
of the reasons for disagreeing
xi Where, in my view, there is a range of reasonable opinion, I
have indicated the extent of that range in the report.
STATEMENT OF TRUTH
6.2
I confirm that I have made clear which facts and matters referred to in
this report are within my own knowledge and which are not. Those that are
within my knowledge I confirm to be true. The opinions I have expressed
represent my true and complete professional opinions on the matters to which
they refer.
David W Adamson CA, MEWI
Director, Adamson Forensic Accounting Ltd
14 Rutland Square
Edinburgh
EHI 2BD
3 December 2009
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Report of David W Adamson CA
Specialist field Accountancy
On behalf of =: Mr William Quarm
APPENDIX 1
EXPERIENCE AND QUALIFICATIONS
David W Adamson CA, MEWL
Director, Adamson Forensic Accounting Ltd
CV AND EXPERTISE
Career history:
Experience:
After training with Ernst & Whinney I joined the Edinburgh partnership of
McKerrell Brown & Gray CA, becoming a partner in 1983. While remaining a
partner with McKerrell Brown & Gray, in 1999 I became part-time finance
and admin manager with a charity, Visual Impairment Services South East
Scotland. This charity became part of RNIB in 2002, at which point I resumed
full-time duties with McKerrell Brown & Gray (now LLP). At the end of
January 2006, McKerrell Brown & Gray LLP was acquired by Gibson & Co,
CA. Since 1 February 2006 I have operated through Adamson Forensic
Accounting Ltd. In 2006 I was admitted to membership of the Network of
Independent Forensic Accountants (““NIFA”) and, in 2007, to the Expert
Witness Institute. I am a director of Alba, a chartered accountancy practice,
and of the Autism Treatment Trust.
In 1996 I was asked to help the defence with a Statement of Information
served on their client under the Proceeds of Crime (Scotland) Act 1995. From.
this came further work such that, by 2005, forensic accounting had become my
main area of work. I normally have over 20 cases in progress, and had assisted
in at around 200 completed cases by the end of 2008.
Range of services:
Much of my work has been assisting defence solicitors in confiscation
proceedings under the Proceeds of Crime Acts. This role has included
preparing reports in civil recovery proceedings and in criminal cases, as well
as instances where confiscation proceedings may follow, for appeal, and as
part of plea in mitigation. Other main areas of work are:
Loss of earnings & personal injury
Theft & embezzlement
Fraud, including benefit and VAT
Partnership disputes
Business & share valuations.
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Nature of work:
The main outcome of my work is usually a detailed report, accompanied by
financial appendices, designed to allow solicitors to understand the financial
aspects of their client’s case. Before preparing the report I usually examine
relevant documents, statements and precognitions, and may meet with the
client. Frequently the report narrows the range of issues in dispute and hastens
resolution. I have experience of appearing in court as an expert witness, most
recently in 2007 and 2008.
Report of : David W Adamson C.A.
Specialist field Accountancy
On behalf of =: Mr William Quarm
APPENDIX 2
DOCUMENTS WHICH HAVE BEEN CONSIDERED
Crown Productions
Accounts of Bayhead Shop for period 01/05/07 to 05/09/08
Bayhead Shop - Sage printout of accounts 1211 (Alliance & Leicester bank
account)
Bayhead Shop - Sage printout of account 1215 (Cash account)
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AND40 Quarm Branch trading statements
From
To
Received
From Post Office Ltd
From SU AA
From customers
Paid
Remittances out
To SU AA
Other
Net movement
Postage stock changes
Cash to begin
Difference
Cash to end
Discrepancies
Over transferred
Short transferred
Over resolved
Short resolved
04/12/2009
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2007 SU AA Appendix 3.5
21/03/07 25/04/07 23/05/07 20/06/07 25/07/07 22/08/07 —- 20/09/07 Summary Monthly
25/04/07 23/05/07 20/06/07 25/07/07 22/08/07 20/09/07 24/10/07 Average
15,000.00 13,200.00 19,002.00 14,030.00 19,000.00 14,000.00 9,000.00 103,232.00 14,747.43
1,480.00 58.83 220.60 1,759.43 251.35
23,332.67 15,203.80 18,815.25 25,092.93 16,767.53 14,993.97 15,686.01 129,892.16 18,556.02
39,812.67 28,403.80 37,876.08 39,343.53 35,767.53 28,993.97 24,686.01 234,883.59 33,554.80
-4,677.03 —-3,699.52 -520.50 -388.49 -933.35 -713.33 -669.04 -11,601.26 -1,657.32
-10,500.00 -4,390.00 -7,915.82 -13,616.18 -9,400.00 = -2,963.43 _-5,060.00 -$3,845.43 -7,692.20
-28,980.73 -21,081.10 -23,960.33 -28,640.89 -22,129.39 -22,744.24 -26,317.91 _-173,854.59 _-24,836.37
-44,157.76 -29,170.62 -32,396.65 -42,645.56 -32,462.74 -26,421.00 -32,046.95 _-239,301.28 _-34,185.90
-4,345.09 -766.82 5,479.43 — -3,302.03 3,304.79 2,572.97 -7,360.94 -4,417.69
430.95 -158.04 64.51 36.81 42.30 31.82 17.92 466.27 66.61
5,225.99 1,311.85 386.99 5,930.93 2,665.71 6,012.80 8,617.59 5,225.99
1,311.85 386.99 5,930.93 2,665.71 6,012.80 8,617.59 1,274.57 1,274.57 3,742.92
729.08 174.58 903.66 129.09
0.36 53.45 1.63 16.57 33.94 105.95 15.14
174.58 174.58 24.94
0.36 53.45 1.63 55.44 7.92
09:19
COPF0000236
COPF0000236
AND40 Quarm overnight cash April to July 2008 ONCH Appendix 3.7
Thursday Friday Saturday Sunday Monday Tuesday Wednesday
w/e 02/04/08 5,197 17,691
w/e 09/04/08 1,890 1,649 1,649 1,649 10,722 7,705 16,579
w/e 16/04/08 1,640 940 15,945 15,945 3,246 14,976 946
w/e 23/04/08 510 460 13,076 13,076 19,665 17,110 14,686
w/e 30/04/08 1,124 1,877 20,114 20,114 7,340 5,796 26,595
w/e 07/05/08 $,011 4,661 4,561 4,561 4,561 4,561 28,735
w/e 14/05/08 4,795 5,148 5,648 5,648 4,890 30,795 3,525
w/e 21/05/08 3,598 4,194 4,194 4,194 6,895 5,875 27,986
w/e 28/05/08 6,483 5,933 30,979 30,979 30,278 29,449 34,029
w/e 04/06/08 38,260 5,890 6,590 6,590 7,205 39,505 37,774
w/e 11/06/08 5,500 5,843 37,959 37,959 6,647 4,842 35,169
w/e 18/06/08 4,192 4,950 36,430 36,430 5,255 35,078 33,856
w/e 25/06/08 5,687 5,983 5,583 5,583 4,222 3,823 34,209
w/e 02/07/08 4,663 35,848 4,663 4,663 4,771 4,336 35,235
w/e 09/07/08 4,065 4,577 4,377 4,377 7,305 0
87,418 87,953 191,768 191,768 123,002 209,048 347,015
Averages 6,244 6,282 13,698 13,698 8,786 14,932 24,787
04/12/2009 09:19