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ICL Pathway Benefit Payment End to End Ref: CS/PRD/036
BA Reconciliation Process For ICL Pathway Version: C09
Release NR2 - PART 3 (Liability ates
POCL Assignment)
Document Title: Benefit Payment End to End Reconciliation Process For ICL
Pathway Release NR2 - PART 3 (Liability Assignment)
Document Type: Process Definition - Jointly developed by ICL Pathway, BA and
POCL
Abstract: Benefit payment reconciliation processes for ICL Pathway
Release NR2 are divided into nine parts. Part 1 deals with
reconciliation incident management. Part 2 describes
reconciliation resolution processes. This part (Part 3) focuses on
reconciliation liability assignment processes. Part 4 defines the
interactions between reconciliation incident management and
service/problem management. Part 5 describes the interactions
between reconciliation incident management and fraud
management. Part 6 defines ICL Pathway/DSS/ES/SSA(NI)
financial reconciliation process. Part 7 defines ICL
Pathway/POCL financial reconciliation process. Part 8 describes
liability invoicing and Part 9 contingency arrangements for
reconciliation.
Status: Version 0.B
Distribution: See list on Page 2
Authors: Bob Davis - ICL Pathway Customer Service, Jenette Stark - BA
CAPS Business Modelling Team, Mike Hannon POCL Business
Assurance.
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‘elease NR2 - PART 3 (Liability
POCL Assignment)
Distribution
For Review
BA
Colin Galloway CAPS RD&D Manager
Jackie Laughton CAPS Operations and Live Support-Service Management
Steve Chandler CAPS Operations and Live Support- Service Development Manager
Cheryl Fielder CAPS Field Implementation Manager
Tan Marshall CAPS Business Procedures (Future Releases)
Sue Hawley CAPS Business Procedures (Present Release)
Stuart Riley CAPS Commercial
Sue Venton ES
Mary Cassidy DLA/AA
Carol Shaw JSA
Austin Toner ChB
Betty Simpson ChB CSU
Diane Christie WPA
John Connor ICA
Sue Thompson PSCS/INCAP
Paddy McGlinchley SSA(NDI,
Carl Mitchell BSB (SF)
Leslie Bischert OSD BS (IS/SF)
Rob Jennings BMB IS/SF
Richard Harvey SoA BAB
Kelvin Drew BAB(PA)
Mark Turner Security, External Fraud
Paul Cheesborough Security, Internal Fraud Project
Darryl Dixon Security, Business System (FBT)
Paul Burrows Data Management
Joanne Adamezyk Audit
Wayne Stephens COBAP
Craig Lewis Card Policy
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Release NR2 - PART 3 (Liability .
POCL Assignment)
Library
POCL
Library
ICLPathway
For review
Stephen Muchow
Paul Westfield
Martin Riddell
Peter Burden
Richard Brunskill
John Dicks
Hillary Forrest
Bob Davis
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Release NR2 - PART 3 (Liability are
POCL Assignment)
0 Document control
0.1. Document history
Version I Date Reason
0.A 23/10/98 I Internal PET QA
0.B 21/11/98 I Second draft for sign off by PET
0.C 6/2/99 External Review
0.2. Approval authorities
Name Position Signature Date
ICL Pathway Ltd. Director: ICL
Pathway Customer
Stephen Muchow Service
DSS CAPS Programme
Executive Team
Vince Gaskell
POCL Business Integrity
Manager
Ruth Holleran
CAPS Commercial CAPS Commercial
Manager
Stuart Riley
0.3 Authors
Name Position Signature Date
Jenette Stark BA CAPS Process Team
Bob Davis ICL Pathway Ltd
Mike Hannon POCL Business Assurance
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Release NR2 - PART 3 (Liability ate:
POCL Assignment)
0.4 Associated documents
Reference Vers I Date Title
CS/PRD/0002 I 2.0 15/04/98 I Benefit Payment End to End Reconciliation Process
For ICL Pathway Release 1c - PART I (Incident
Management)
CS/PRD/003 2.0 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release Ic - PART II (Resolution)
CS/PRD/034 1.0 I 4/1/99 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART I (Incident
Mgt)
CS/PRD/035 0.C I12/2/99 I Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART II (Resolution)
CS/PRD/036 0.C 6/2/99 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART III (Liability
Assignment)
CS/PRD/037 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART IV (Links with
Problem Mgt)
CS/PRD/038 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART V (Links with
Fraud Mgt)
CS/PRD/039 1.0 I 8/2/99 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART VI (DSS/ICL
Pathway Financial Reconciliation Process)
CS/PRD/040 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART VII
(POCL/ICL Pathway Financial Reconciliation Process)
CS/PRD/041 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2 - PART VIII (Liability
Invoicing)
CS/PRD/042 Benefit Payment End to End Reconciliation Process
For ICL Pathway Release NR2- PART VIII
(Contingency Arrangements for Reconciliation)
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Release NR2 - PART 3 (Liability ate:
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0.5 Key To Symbols Used In Models
> Event
Process
oo System/User
) Delay
© Decision
0] End Process
Simultaneous
Process
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BA
POCL
Reconciliation Process For ICL Pathway
Release NR2 - PART 3 (Liability
Assignment)
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Ref: CS/PRD/036
Version: 0.C
Date: 6/2/99
0.6
Abbreviations
A&L Alliance and Leicester (ICL Pathway)
ABED Automated Benefit Encashment Database (POCL)
AP Authorised Payment (DSS/ES/SSA(NI)
APS Automated Payment Service (POCL)
ASG Application Support Group (DSS/ES/SSA(NI))
BA Benefits Agency
BAB Banking Accountancy Branch (DSS/ES/SSA(NI))
BAB(PA) Banking Accountancy Branch (Programme Accounting)
(DSS/ES/SSA(NI))
BAB ASG Banking Accountancy Branch Application Support Group
(DSS/ES/SSA(ND)
BES Benefit Encashment Service (POCL)
BIA
BIA Benefit Issuing Authority — Benefit Issuing Authority:
BPS Benefit Payment Service (POCL)
BS Business Section
BSU Business Support Unit (ICL Pathway)
CAP Cash Account Period (POCL)
CAPS Customer Accounting and Payments Strategy
(DSS/ES/SSA(NI))
CBDB Counter Business Database (POCL)
CBoS Common Basis of Settlement
cc Counter Clerk (DSS/ES/SSA(NI)).
CMS Card Management Service (ICL Pathway)
CES Common Enquiry Service
COBAP Corporate Banking and Methods of Payment Group
COLS CAPS Operations and Live Support (DSS/ES/SSA(NI)
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Release NR2 - PART 3 (Liability
POCL Assignment)
COM Counters Operations Manual (POCL)
CPCS Customer Payment Computer System (DSS/ES/SSA(NI))
CR Change Request (DSS/ES/SSA(NI))
CSO Computer Support Officer (DSS/ES/SSA(NI))
CSU Card Support Unit (DSS/ES/SSA(ND)
NM
DEX Dialogue Expert (DSS/ES/SSA(NI))
DN Drafters Note
DP Due Payment (used to show data flows in diagrams)
DPU Data Processing Unit (POCL)
DQ Drafters Question
DSS Department of Social Security
BSS4CBE+DO} Depart Hepsi desl ity(Child Benefit Cent Titer ee ite
DSS/ES/SSA(NI) Department of Social Security/Employment Services/Social
Security Agency (Northern Ireland)
E Encashment Transaction (used to show data flows in diagrams)
ED Expert Domain
EDIMS Expert Domain Incident Management System
EPOSS Electronic Point of Sale Service (POCL)
EVP Extended Verification Procedure
FAD Financial Accounts Division (POCL)
FBS Feeder Benefit System (DSS/ES/SSA(ND)
FSG Fraud and Security Group (DSS/ES/SSA(NI)
HSH Horizon System HelpDesk (ICL Pathway)
ICL Pathway ICL Pathway Limited
ID Identity
JOP Instrument Of Payment
IPMS Incident and Problem Management System (ITSA)
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tabi Date: 6/2/99
Release NR2 - PART 3 (Liability
POCL Assignment)
ISDN Integrated Services Digital Network (ICL Pathway)
ITSA Information Technology Services Agency
LAN Local Area Network (ICL Pathway)
MIS Management & Information Statistics
MOP Method Of Payment (DSS/ES/SSA(NI))
NINO National Insurance Number
NPO Nominated Post Office
PAB Personal Acting Body
PACS Programme Accounting Computer System(DSS/ES/SSA(NI))
PAS Payment Authorisation Service (ICL Pathway)
PCHL Payment Card Help Line (ICL Pathway)
PDCS Personal Details Computer System (DSS/ES/SSA(NI))
PinICL PinICL (an ICL Pathway incident management system)
PI Payment Instruction (DSS/ES/SSA(NI))
PID Personal Identification Device
PO Post Office
POCC Post Office Counter Clerk
POCL Post Office Counters Limited
PPD Processes and Procedures Description (POCL/ICL Pathway)
PUN Pick Up Notice
QA Quality Assurance
RED Reconciliation Exception Database (ICL Pathway)
SADD Service Architecture Design Document
SCoP Service Code of Practice (DSS/ES/SSA(NI)
SHD Service Help Desk (DSS/ES/SSA(NI))
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SMC System Management Centre (ICL Pathway)
SoA Seal of Approval (DSS/ES/SSA(NI)
SSC System Support Centre (ICL Pathway)
TIP Transaction Information Processing (POCL)
TMS Transaction Management Service (POCL/ICL Pathway)
TP Transaction Processing (POCL)
vo Voluntary Offer (DSS/ES/SSA(NI))
WAN Wide Area Network (ICL Pathway)
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0.7 Glossary of Terms
The following glossary is generic, not Release specific. The contractual terms in italics
are those used in the Related Agreements (Schedule A01-Interpretations). Any
comments on the wording of the contractualeentractural terms (in ifalics) should be
referred to the Joint Contracts Team based in Terminal House, London.
Account
A record of a customer or other payees details held on a computer system.
Agency
In this context, it is used to describe the Benefits Agency, War Pensions Agency,
Employment Services, and the Social Security Agency (Northern Ireland).
Alternative Payee
A person entitled to collect certain benefits, allowances or pensions on behalf of a
partner as defined in Regulation 36 of the Social Security (Claims and Payments)
Regulations (1987).
Appointee
A person appointed by the Secretary of State in accordance with the provisions of
Regulation 33 of the Social Security (Claims and Payments) Regulations
Authorised Officer
A person who is authorised locally to contact the PCHL.
Authorised Person
A person authorised by the DSS, or the relevant Beneficiary or an Appointee, to collect
an Authorised Payment. An Authorised Person could be the Beneficiary or Appointee, or
any of Alternative Payee, Casual Agent, Permanent Agent, or Signing Agent.
Authorised Payment
A single amount of a particular benefit type authorised by the DSS as being due to a
specified Beneficiary on a specified date.
Authorised User
A person who has been granted access to certain restricted computer dialogues/functions.
Authority to Pay
The form a customer or PAB completes and signs to authorise an agent (standing or casual) to
collect Payment Card payments from the PO on their behalf.
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Automated Benefit Encashment Database
Post Office Counters Limited database which receives encashment records from ICL
Pathway, by Post Office, for benefit Encashmentseneashments made via the Benefit
Payment System in order to produce a weekly “supporting” document for reconciliation
against each Post Offices cash account. It also produces a daily “reconciliation”
statement to the ICL Pathway 10 day settlement reports.
Automated Payment Service
This is the next automated product after BES, for delivery during ICL Pathway Release
NR2, for clients other than those of the DSS/ES/SSA(NI).
Award
A decision of entitlement to a benefit, pension or allowance.
Batch
A process by which data is collected at intervals, usually every 24 hours and then sent to
another system in one process overnight.
Batch System
A computer system which is not linked to an on-line system. The information held
cannot be updated on line, but is manually input from a data input form.
Benefit Apportionment System
A computer system that records the details of all payments made that are recorded on the
host business computer system whether paid clerically, or by the system. The details of
these transactions are stored by the payment type and code of issue. Information is
collected from all the business systems that are linked to BAS.
Beneficiary
A person entitled to receive one or more benefits.
Benefit Encashment Service
A service provided and maintained by ICL Pathway to support the encashment of
authorised payments at the PO for Payment Cardholders.
Benefit Payment Reconciliation Panel
A monthly group meeting consisting of members from BA, POCL, and ICL Pathway
who meet to identify, progress and discuss reconciliation issues which may affect
deliverables in which all parties have an interest.
Business System
The system on which individual business Users record all details relating to the
customers claim and entitlement. This may be an on-line computer system, a system
using batch system processing or a clerical system.
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Business Type
This refers to a section within the business system which has an interest in the customer,
e.g. IS, RP, WB or JSA.
CAPS Programme
The Programme to introduce the Customer Accounting and Payments Strategy.
Card
A card or other token to be issued by or on behalf of DSS for the payment of benefits and
allowances and other related benefit and social security purposes, as provided and
managed under the Card Management Service.
Cardholder
A person identified by CAPS as being entitled to hold a card, and to be named on that
card, in order to collect benefit for a specified beneficiary, or a number of specified
beneficiaries.
Card Management Service
A service provided and maintained by ICL Pathway who produce, automate, review,
issue and distribute Payment Cards and Pick-Up Notices.
Card Reader
A device used by the PO through which the Payment Card is swiped. It allows access to
the information held on BES.
Cash Account Period
POCL accounting week which runs from Thursday to the following Wednesday.
Casual Agent
A person authorised by the Beneficiary or Appointee to collect benefit on his or her
behalf on a one-off basis.
Clerical Payment
Any payment that is non-system generated, such as clerically issued order books,
girocheques, payable orders and in some cases, cash.
Clerically Processed Cases
Cases which may be assessed and processed manually by the benefit system, although
payment can be made on CPCS provided an account exists on PDCS.
CAPS Operationals and Live Support
A dedicated team within the CAPS environment who provide live support duties for the
CAPS systems and CAPS customers.
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Commit
In relation to a Transaction, to execute a Transaction Committal for that Transaction.
Related terms shall be construed accordingly.
Computer Support Officer
A nominated individual who controls and supports access to mainframe systems,
ensuring that security and integrity are maintained, liaising with various areas (PID
stockholder, Security Specialist, DEX, etc.) when appropriate.
Counter Node
See Transaction Reference.
Curator Bonis
A person authorised by the Scottish courts to act on behalf of the customer.
Customer
A person transacting, or seeking to transact business with either AUTHORITY through
any of the Services.
Customer Payment Computer System
It is through this system that Payment Card payments are administered. CPCS holds
details of all payments for all benefits, regardless of the MOP and forwards accounting
details to PACS.
Customer Session
A set of contiguous Transactions recording business transacted by a single Customer.
Data
Information stored electronically in a database.
Data File
A set of electronic data, contained within a single file and held or used within, or
transmitted over, any of the Services.
Death Arrears Payee
A person accepted by the Secretary of State to receive outstanding amounts of payments
upon the death of a customer.
Deduction Component
An amount deducted from a particular payment component to repay a loan/debt or an
amount deducted for payment to a third party.
Dialogue Expert
A nominated individual who provides advice and guidance to Users with complex cases
or suspected system faults, raising incidents where appropriate. In addition, they provide
liaison between various expert domains, Users and advice lines, etc.
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Earliest Encashable Date
The earliest date that a payment can be cashed at the PO. This may be earlier than the
due-date if an adjustment has been made to allow for a Bank or Local Holiday.
Early Batch
Functionality to issue a request in a batch file from a business system which will ensure
that payment/stop will be available on the next working day.
Encashment
The act of collecting payment(s) for one beneficiary from a post office.
Encashment Identification
A means of uniquely identifying an individual encashment.
Entitlement
The details of the award of a benefit, pension or allowance.
Electronic Point Of Sale
A term used to describe the systems typically used in retail shops and stores, at the point
of customer service, for recording sales transactions.
Expiry Period
The period beyond which Payment Cards and payments are no longer valid.
Extended Verification Procedures
Part of the card verification method requiring extra interactions in order to provide a
greater degree of confidence in confirming the identity of a Cardholder.
Exceptions
Any action different from the normal business processing.
FAD Code
See Transaction Reference.
Fall-back
ICL Pathway term for contingency.
File
A means of transferring data from one system to another. Each file generally consists of
a standard header, a series of detailed records and a specific trailer.
Foreign Encashment
An encashment of an Authorised Payment which occurs at a post office other than the
Nominated Post Office.
Help Desk
The initial point of call for Users in need of support relating to the services.
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Horizon System HelpDesk
A technical help desk provided by ICL Pathway.
Host Business System
The business system through which CPCS and PDCS are being accessed.
Improper Encashment
An encashment that is found to have been subject to improper or fraudulent processing
resulting from a business or technical error occurring in the CAPS or Pathway
environment.
Incident
Any perceived abnormal or undesirable occurrence relating to a Service.
Incident Resolution
The agreed closure of an Incident which may include the re-establishment of Service
following an Incident or, where the Incident was found not to be an abnormal or
undesirable occurrence, clarification of the incorrect perception
Incident and Problem Management System
A dedicated ITSA system which enables DSS Expert Domains to log incidents and
problems and maintain an accurate and ongoing review process from logging to
resolution.
Lisahally
Lisahally is the location of the Paid Order Unit who provide payment receipt storage,
search and retrieval services for the Agency or ES. The payment receipts are sent by the
post office for secure storage, so that they remain accessible to the Agency or ES on
request.
Main Payee
For certain business systems (e.g. Child Benefit), two people are equally eligible for
collection: the customer and his/her spouse or partner. Sometimes the customer is also
referred to as the Main Payee.
Method of Payment
The form of payment recorded against a Transaction involving a Customer.
Node Id
See Transaction Reference.
Nominated Post office
A specific post office at which a Beneficiary has elected to receive benefit payments.
On-Line Day
The period of time during which a computer system is available for use each day.
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One Off Payment
A Payment Instruction that contains only one Like Payment which consists of one
Authorised Payment.
Other Guardian
A person appointed by the courts in Scotland to act on behalf of the customer.
Other Payee
A person who, in certain circumstances, the customer may elect, or have elected for
them, to collect payments on their behalf.
Outlet
A location that transacts post office business.
Parent/Guardian
Specifically the parent or guardian of a child who has been awarded DLA or WPA. The
parent/guardian acts on behalf of the child, regardless of whether the child is capable of
managing their own affairs.
PAS Exception
A transaction received by CPCS from PAS contained in an Encashment file is matched
against the customer record held in CPCS. Where one or more data item(s) do not match
exactly with the corresponding data item(s) on the Authorised Payment record(s) held
upon CPCS, an Exception (and report) is Produced. The Exception must be investigated
to allow the correct updating of CPCS.
Payee
The person who is entitled to collect payments, (customer/PAB/alternative payee or
agent).
Payment Advice Notes
Leaflets sent to the customer containing information and advice such as reporting
changes of circumstances to the Agency or ES. These will replace the Yellow Pages
currently found at the back of the order book.
Payment Authorisation Service
A service provided and maintained by ICL Pathway for the management of payments
authorised for collection by customers or their representatives.
Payment Card Help Line
A telephone service provided by ICL Pathway covering Card Management Service
(CMS) helpdesk and Payment Authorisation Service (PAS) helpdesk. This area acts as
the single point of contact for all enquiries relating to Payment Cards and PUNs.
Separate telephone numbers are used by the DSS, POCL and the public (one number is
also dedicated to Welsh speaking customers).
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Payment Component
The breakdown of a payment into its component parts, e.g. basic rate, age related
addition, additional components etc.
Payment Due Date
The date that payment is due to the customer, as authorised by the Agency or ES.
Payment Instruction
An instruction from a business system or clerically input to CPCS, that contains all the
information necessary to allow CPCS to authorise the issue of payments to the correct
person, at the correct rate and at the correct time.
Permanent Agent
A person authorised by the Beneficiary or Appointee to collect benefit on his or her
behalf (until revocation of that authorisation).
Payment Receipt
A pre-printed slip completed during encashment at the Outlet counter to provide details
of the Beneficiary’s Authorised Payments.
Payment Request
The action taken by a User to ask a business system to pass a Payment Instruction to
CPCS.
Personal Acting Body
Someone who acts on behalf of a customer for the Agency and ES business. In effect,
the PAB then becomes the customer, in that they are responsible for signing declarations
and reporting any changes of circumstances on the customers behalf, e.g. an appointee.
Personal Details Computer System
The computer system through which personal details relating to a customer and, where
appropriate, other payees are input and maintained.
Pick-Up Notice (PUN)
Notification to an Authorised Person that a card is ready for collection by him or her.
POCL Outlet Accounting Period
The shortest normal accounting period applying within an Outlet, normally a week and
running Thursday through Wednesday, but subject to variation at financial year end and
to revision. It may be merged by agreement in individual Outlets, e.g. to enable sub-
postmaster holidays.
Power of Attorney (Enduring)
The appointment of an agent by deed, which if specified by that deed, can for the
purposes of the Agency or ES transfer responsibility from the customer to the Attorney
in relation to all matters concerning receipt of payments and are legally allowed to
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manage the customers affairs without time limitation. It can be terminated by the death
of a customer or attorney, or in the event of customers bankruptcy.
Power of Attorney (Limited)
Is legally contracted to manage the affairs of the customer. Must be granted specific
powers by the court to handle the customers financial affairs, but may not act for the
customer without the Secretary of State granting them powers to deal with the customers
affairs under the BF56 procedure. The appointment may be limited by time and/or
purpose. It can be terminated by the death of the customer or Attorney, the customer
becoming bankrupt, or the customer losing the capacity to manage their own affairs.
Qualified NINO
A NINO allocated where we have established the customers identity but require to carry
out final corroboration. The qualified NINO has time controls in place to ensure the
necessary follow up action is carried out and can only be allocated if benefit is due.
Reconciliation Exception Database
ICL Pathway Customer Services database which will hold details of all reconciliation
exceptions relating to benefit Encashmentseneashments made via the BPS, identified by
themselves, DSS/ES/SSA(NI) or POCL.
Record
A unit of information. Several records make up a file.
Records
Full and accurate records relating to the performance of (i), in the case of the DSS
Agreement, the DSS Services, (ii), in the case of the POCL Agreement, the POCL
Services, (iii), in the case of the ICL Agreement, the ICL Pathway Services.
Restricted Post Office
A Restricted Post Office is a designation used to describe a situation where an
Authorised Person must use their Nominated Post Office to encash Authorised
Payments.
Royal Mail Address
An address which is in England, Scotland, Wales, Northern Ireland, the Isle of Man or
the Channel Islands (Jersey, Guernsey, Alderney and Sark).
Seal of Approval
A key Information System Policy of the DSS/ES/SSA(ND, which aims to ensure that all
deliverable end products are provided once all issues and non-conformities have been
addressed. This provides assurance to Accountable Officers that a quality product is
delivered with a guarantee of “fit for purpose”.
Sequential Taxation Id.
See Transaction Reference.
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Service Architecture Design Document
The document showing the Service Architecture developed pursuant to Clause 401.1.1,
as amended from time to time to reflect optional and additional Products and Services
supplied and performed under the POCL Agreement and the DSS Agreement.
Service Code of Practice for Help Desks
Describes the services involved in the Card Payment environment for Release Ic, their
roles, responsibilities and the way they interact. Also describes the generic procedures
for incident and problem management.
Service Level
A quantified and measurable standard, as defined in the Related Agreement, required
for a specified Service.
Signing Agent
An official of the Local Authority who is authorised to deal with all the residents
payment, e.g. a warden. A signing agent is only appropriate for customers who are in
Local Authority Part III Residential Accommodation.
Standing Agent
A person nominated by the customer with prior agreement of the Agency or ES who
may, on a long term basis, collect any payments on behalf of the customer.
Stop Request
An instruction released by CAPS to ICL Pathway to stop an authorised payment.
Superseded Account
The account which has been closed by the appropriate User. This account is held for
historical purposes only and may be viewed but not maintained.
Superseding Account
An account which has replaced another for the same customer under a different NINO.
The account is fully maintainable using existing CAPS facilities.
Swipe
The action of passing the Payment Card through the Card reader at the post office.
System Support Centre
ICL Pathway technical support services.
Temporary Token
A token that permits an Authorised Person to encash one or more Authorised Payments.
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Temporary Token Post Office
To collect payment(s) using a TT the customer/Alternative Payee/Death Arrears
Payee/PAB can specify a post office to use the TT at for collection of payment. This
post office must be used for all Encashmentseneashments made using the TT.
Third Party Deduction
An amount deducted from a payment component that is specifically for payment to a
third party on the customers behalf, e.g. payments of electricity or gas.
Transaction
A recorded and auditable instance of business activity, involving Service provision or
Stock movement across organisational or Service boundaries.
Transaction Reference
The unique identifier shown on the BES payment receipt, which has the following
format;
FAD Code (6 characters) - Identifies the post office at which the encashment was made.
Counter Node (2 characters 00 or //) - The counter position where the encashment was
made.
Sequential Taxation ID (8 characters) - Unique number given to the post office clerk by
the HelpDesk.
Transitional Period
The time from when the first customer is migrated to PDCS until customers of all
business systems are accounted for under CAPS.
Tripartite
A three way partnership between ICL Pathway, DSS/ES/SSA(NI) and POCL.
Tutor
A person appointed by the courts in Scotland to act on behalf of a customer.
Unsafe Address
An address with a record of continual loss of IOPs and PUNs relating to it.
Urgent Payment
An Authorised Payment that must be available for collection at a post office within 30
minutes of its authorisation by CAPS.
Urgent Stop
A stop request issued immediately to the post office and the result notified immediately
to the post office clerk on-line and the business system. This stop request is actioned via
a CPCS on-line dialogue
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User
A person authorised by the relevant AUTHORITY to use a Service.
Voice Bank
An automatic system for receiving and directing information.
Void Transaction
A Transaction which is cancelled before Transaction Committal
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0.8 Changes in this version
Changes following comments from CAPS Commercial Team and a meeting with COBAP,
CAPS Commercial, ICL Pathway BSU and POCL.
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0.8 Table of content
1. Introduction 24
2. Scope 25
3. Purpose 25
4. Approach 25
5. High Level Principles For The Assignment of Liability 27
5.1 Liability for Reconciliation and repudiation including Burden of Proof, linked
Costs of Investigation and Recovery
5.2 Liability in Fall-back 28
5.3 The Scope of Liability before, during and after Operational Trial 28
5.4 Liability arising from Phased Releases and Declared Deficiencies 29
issues related to availability of data (e.g. EVP) 29
5.6 Liability and Recovery Costs 30
5.7 Liability impact of CCNs 30
6. ICL Pathway Caselaw Database 31
6.1 Caselaw Principles 31
7. Generic Escalation Process Model for Liability Assignment 32
7.1 Summary of Processes 33
8. Low Level Principles for the Assignment of Liability 38
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1. Introduction
Benefit Payment Reconciliation Processes for ICL Pathway NR2 are divided into 9 parts. The
end to end reconciliation incident management and resolution processes (Parts 1 and 2) describe
how ICL Pathway, DSS and POCL work together to :
¢ identify and manage incidents, and
e resolve reconciliation incidents, in particular any benefit under or overpayments, and
transaction data exceptions in the return leg (BES to CPCS).
Although it is stated that this document is specific to ICL Pathway NR2, the principles and
processes are not Release specific.
Liability definition: In the context of this document, liability is taken to mean a financial loss
or unplanned for charge which affects any party to the Related Agreements.
The four main ways in which a potential liability may be identified due to operational events
are:
¢ areconciliation exception
e service management reports identifying breach of an agreed service level in the Related
Agreements (with an attached remedy);
e an audit failure, see Section 2.1 of schedule B08 of the Authorities Agreement);
e arepudiation by a customer (see schedule B08).
There are other significant ways in which liability may arise, however these are detected and
progressed through contract management. A separate forum will be held to resolve liability
issues relating to contract management. Some of these are touched upon in the principles
defined later in the document at part 5; they cover events such as:
e failure to meet a contractual milestone with an associated cost to the Authorities;
¢ failure to meet an obligation under the Related Agreements associated with a specific
liability, e.g Operational Trial;
e a general breach of contract for which specific remedies have not been specified, e.g.
unauthorised publicity.
This document links the assignment of liability (documented in Part 1 in the Incident
Management Process Maps for COLS, BSU and POCL) to the generic escalation processes
where liability cannot be agreed, through to conclusion and acceptance of liability by ICL
Pathway, the DSS or POCL.
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2. Scope
The scope of the document includes:
¢ for completeness all agreed high level principles for the assignment of liability; (although the
document only focuses on liability assignment for reconciliation incidents),
e the processes and low level principles involved in the assignment of liability for
reconciliation incidents, including references to the appropriate forums for agreement.
The scope excludes:
* accounting implications following assignment of liability (settlement), i.e. who pays what,
when and how, (This area of work will be developed under Part VIII- Liability Invoicing,
although it may, at a later date be necessary to combine this document with Part VIII).
3. Purpose
¢ To define the principles and process framework for assignment of liability for Benefit
Payment System related reconciliation incidents.
¢ To support the development , enhancement and validation of local procedures.
e To inform BA Security and BA Banking and Accountancy Branch Seal of Approval process.
e To satisfy the contractual requirements associated with the Benefit Payment System.
4. Approach
4.1 Planning
e plans for the production of process definitions are maintained by ICL Pathway, BA,
POCL.
¢ any changes to the plans are agreed by the 3 parties.
4.2 Process Definition and Approval
e joint ICL Pathway/BA/POCL development, publication and ownership of a set of
reconciliation process definitions covering the scope of this document;
¢ process definitions developed by a process team comprising nominees from ICL
Pathway, BA and POCL, working in conjunction with nominees from the relevant
business organisations;
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© progress reviewed by the BPS Reconciliation Panel;
© process definitions signed-off by senior management in ICL Pathway, BA and
POCL;
¢ process definitions maintained under change control for the duration of Release NR2
and revised to accommodate approved continuous improvements.
4.3 Document Control
e The electronic master of this document resides in the DSS, CAPS library. Mirror
copies are held in the POCL, ICL Pathway libraries.
e Draft versions will use references 0.A, 0.B, 0.C, etc.
e Definitive versions will use the references 1.0, 2.0, etc.
e Authors of the documents are responsible for distribution within their own
organisation.
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5 High Level Principles for the Assignment of Liability
The following principles for the assignment of liability were agreed at the RAB (Release
Assurance Board) on the 29 October 1997, involving PDA (now Service Management),
BA, POCL and ICL Pathway. These are high level generic principles for the assignment
of liability, are contractually bound, and do not just cover liability assignment for
reconciliation. Those principles that are applicable to reconciliation are identified by
italics.
Lower level principles for the assignment of liability can be found at paragraph 6. They
describe the processes within the operational areas, i.e. COLS and ICL Pathway.
Liability Assignment Principles are prefixed L.
5.1 Liability for Reconciliation and Repudiation including Burden of Proof,
linked Costs of Investigation and Recovery
Ref.
Liability Assignment Principle
‘Action By
Ll
The contractual liability clauses specify that the direct costs of a liability
should fall on the party found liable. In general "direct costs” comprise
three main areas - investigation costs, benefit losses and correction costs.
Pathway would be responsible for investigating all reconciliation failures,
and the Authorities for investigating all repudiations.
All
L2
With the above broad principle, Pathway would not be responsible for
investigating reconciliation differences between the Authorities, which
may appear to arise as a result of timing differences. Pathway will
investigate any reconciliation differences which directly involve their
systems and will assist the Authorities in any investigation they need to
make between them. On investigation costs, there should be a distinction
drawn between normal operational costs (i.e. work that is undertaken in
checking ete. even if no reconciliation differences are found) and specific
extra work as a direct result of an investigation. Hence, if liable, Pathway
would not bear the costs of the Authorities’ investigation of reconciliation
differences, but would bear direct losses and recovery costs if shown to be
liable.
All
In the case of fraud, there is a straightforward liability for cost of the
money that has gone astray and the costs of investigation (as above), but
there needs to be a more case specific consideration of the costs involved
in any corrective action to prevent further occurrences. This last cost
needs to be considered in context of the risk and value of the other losses.
All
L4
In establishing “proof” of liability, while the relevant contract clauses
(see Clause 808 of the Authorities’ Agreement) make the general
provision that Pathway need to establish if the Authorities systems were at
fault, it was agreed that it would be difficult in advance to provide any
quantification of what constitutes proof, It_was_further_agreed_that
TCL Pathway
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“proof” needed to be considered with a lest of reasonableness, and that
care was needed over early cases to establish sound precedent.
5.2 Liability in Fall-back
Ref. Liability Assignment Principle Action By
TCL Pathway
Ls The principles of liability under fall-back should mirror those under live
operation. Most fall-back errors will appear as reconciliation errors as
data is reprocessed, And hence Pathway are responsible for resolving the
error and unless they can show the Authorities were at fault, Pathway
should accept any consequent liability.
5.3 The Scope of Liability before, during and after Operational Trial
Ref. Liability Assignment Principle Action By
During the operational trial period all contracted service levels should be _ I All
- monitored and reported against, although related remedies do not apply.
After the operational trial period the related remedies will apply.
Service faults or errors should attract liability at all stages. Direct losses I All
- should be borne by the liable party, but that, as part of the normal trial
activity during the operational trial period (cf. L2 above), the costs of
investigating any errors should be borne each to their own, Within this
context, the provisions of Clause 808 of the Authorities’ Agreement and
Schedule B08 do still apply to service faults and fraud during operational
trial.
5.4 Liability arising from Phased Releases and Declared Deficiencies
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Ref. Liability Assignment Principle ‘Action By
The change from the original contract intentions for a relatively small IGL I All
in parallel to operational trial and prior to acceptance, compared to the
current phasing of releases and significant live operation prior to
acceptance makes this issue more important.
L8
«¢ Where the contracting authorities agree to the implementation
of releases which contain declared deficiencies, Pathway will
accept any consequent liability caused .
© In the specific context of Release 1c, Pathway will therefore
accept liabilities arising as a direct consequence of the
restricted EVP, the reduced security functionality and the 10
minute timing problem that could allow a payment to be
encashed twice.
© Where reduced functionality or declared deficiencies require
the contracting authorities to adopt extra “work around”
costs these cannot be recovered from Pathway - if such costs
are considered excessive, the release contents should be
declined
5.5 Liability issues related to availability of data (e.g. EVP)
Ref. Liability Assignment Principle ‘Action By
The risk/liability should remain with whichever party makes an I All
assumption (e.g. over the availability of data and the ability of customers
and service users to understand and use that data; or how historic data
represents future trends). Hence each party needs to be careful about how
we present information and assumptions.
Lo
Where specific data is found to be less reliable than could reasonably be I All
expected from its specification, the party that provided the data should be
liable. Hence if EVP fails because of poor data quality from DSS systems,
Pathway should not be liable.
L10
Tn the particular context of EVP it was agreed that for the limited number I DSS/ICL
of cases where first name was not available, DSS and Pathway will split I Pathway
rah any consequent loss 50-50.
5.6 Liability and Recovery Costs
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Ref.
Liability Assignment Principle ‘Action By
The principles involved in liability and recovery costs are largely covered I All
Liz I mder 5.1 above. It was however also agreed that there needs to be some
baseline for standard recovery costs to enable each party to assess the
level of exposure and agree the way forward.
5.7 Liability impact of CCNs
Ref. Liability Assignment Principle Action By
Tt was agreed that variations to liability should be a specific point on CCN I All
LI3 impact assessments.
In the context of CCN117 specifically it was agreed that cards and I All
temporary token liability at the point of encashment were identical. DSS
L14 , ‘ 5
are responsible for ensuring a temporary token is issued accurately, but at
the post office, the same principles apply to temporary tokens as for cards.
DQ Are principles 11 and 14 really low level principles or caselaw?
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6 ICL Pathway Caselaw Database
The Caselaw Database has been introduced in order to provide a comprehensive log of all
reconciliation incident types which can act as the legal precedent for any future incidents of an
identical nature. The forerunner to this is the ‘Error Matrix’ which is a table of liability
allocations based on different ‘error’ scenarios. The Error Matrix will be retained until the
Caselaw Database has mirrored all the liability ‘error’ scenarios on the Error Matrix. The
Caselaw Database is kept within a secure unit at ICL Pathway’s Bracknell site where the
Business Support Unit is based.
Further information can be found in the Draft Document ICL Pathway Case Law Database
(CS/SPE/009 Version 0.1), however the main principles are as follows;
6.1 Caselaw Principles
Ref. Caselaw Principle ‘Action By
CLI New incident types will be entered on the Case Law Database by a BSU ICL Pathway
Analyst. BSU
CL2 A Case Law Referral Form will be used in the escalation process to refer to ICL Pathway
the appropriate Level. (See Paragraph 7). BgU
cL3 The Case Law Precedent will be referred to by its unique Caselaw number I ICL Pathway
and used on the supporting reconciliation exception documentation used BSU
by the contracting authorities.
CL4 The database will include details of any investigation costs. ICL Pathway
BSU
CLS The database fields are designed to fulfil 3 functions:- ICL Pathway
© provide a complete incident history in a manner which makes BSU
the subsequent allocation of liability logical and consistent
with existing documentation.
© allow for searches and statistical analysis to be made
© provide sundry information that allows cross referencing to
supporting documents and finance information.
CL6 The actual time reimbursement is made to the appropriate party is I ICL Pathway
recorded, thus giving an expected time for completion of the process. Bey
CL7 A Case Law Referral Form will be used in the escalation process for ICL Pathway
reference to the appropriate Level. _
DQ Do we need to include any other principles?
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7 Generic Escalation Process Model for Cross Liability Assignment
The following high level process map describes the escalation processes for liability assignment,
where liability needs to be agreed between any of the three parties, the DSS, ICL Pathway or
POCL.
The lower level principles found later in this document, describe the generic processes that the
operational areas and various Forums undertake to assign liability.
The various levels of escalation are;
LEVEL 1 Working Level e.g. BSU, COLS and POCL Service Management.
LEVEL 2 Operational Forum (BPS Accounting and Reconciliation Review Meeting)
LEVEL 3 Commercial Forum(s)
LEVEL 4 Senior Managers Commercial Forum
LEVEL 5 Courts or Independent Arbitration/Alternative Dispute Resolution.
The Terms of Reference for the Operational Forum can be found in draft document
PCL/SVM/TOR/001 Benefit Payment System Accounting and Reconciliation Review Meeting.
DQ Is this the latest version of the document?
They meet on a calendar month basis and consist of representatives from;
e ICL Pathway, in particular BSU
e DSS, in particular COLS, BAB/COBAP, CAPS Financial Controls
e POCL, in particular TP and POCL Accounting Team
e and any others on an ‘as and when’ basis e.g. Help Desks.
Briefly, the meetings will deal with liability at the operational second level and;
¢ assess and agree liability for incidents of recognised types based on evolving ‘case law’
agreed with the Commercial Forum;
e escalate other cases to the Commercial Forum with an agreed description of the incident(s),
perhaps comparing and contrasting differences in opinion or interpretation between the
parties;
e feed the decisions into the appropriate accounting functions.
The Commercial Forum(s) (Level 3) will decide on incidents which;
are new incidents not included on the caselaw database
¢ are incidents which can be matched against the caselaw but liability cannot be agreed
or caselaw confirmed at the Operational Level.
There are two Commercial Forums;
¢ DSS/ICL Pathway,
¢ POCL/ICL Pathway,
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They each have the option to extend their scope to cover 3-way issues. If the Operational Forum
refer any cases to the Commercial Forum(s) they should decide which Commercial Forum to
refer the issue. Any cases that cannot be resolved by the Commercial Forum(s) should be
referred to Level 4 the Senior Managers Commercial Forum (George McCorkell, Dave Miller)
before reference to the Courts or other final resolution stage. The Senior managers Commercial
Forum can use any appropriate steering Groups or Programme Boards to aid agreement.
The last decision for liability will rest with the Courts an/or Alternative Dispute Resolution-
Independent Arbitration (Level 5).
Once liability has been assigned then costs are calculated. However the decisions/assignment of
costs and timing fall outside the scope of this document (see Part 8 Liability Invoicing). The
decision may well be made by the Commercial Forum.
Role of Service Management Group(s) in the Liability Escalation Process
Wherever it is deemed appropriate in the escalation process to obtain more information or
advice then reference to the appropriate Service management Group(s) can be made. This can
include holding joint Service Management meetings.
7.1 Summary of Processes
The following should be read in conjunction with the process model that follows;
e Incident management models in Part I describe where incidents are likely to arise and how
they are managed. If fraud is suspected then there are specific processes to follow which are
contained in Part V. Part II describes how incidents are resolved. All of the processes
described in these documents will feed into this process. (Processes a and 1).
¢ For each reconciliation incident, before closure is agreed, liability assignment must be
considered. Each operational area must consider if liability needs to be agreed with one or all
of the other domains. If it does not , then each area will record the fact that liability has been
accepted within the domain, (Local procedures will contain further details). (Process 1a).
If liability needs to be agreed with one or all of the other domains and although the incident
can be matched and agreed against existing caselaw, refer the incident to the Operational
Forum for ratification. By doing this we are ensuring that precedents are not being set which
may conflict with contractual obligations or agreements. (Processes 1b,1d and 4).
© Once the decision has been ratified at the Operational Forum then the liable amount should
be calculated, (see Part VIII), allocated and settlement arranged. (Processes 4a, 5-8). If the
decision is not ratified by the Operational Forum then the incident should be escalated to the
Commercial Forum and beyond if necessary. (Processes 4a and 11 et seq).
¢ The raising of a problem should be considered, for instance, if liability is consistently being
accepted rather than the problem being fixed, (see Part IV). The incident should be closed,
once all appropriate accounting implications have been considered. At this stage the caselaw
database held by ICL Pathway BSU should be updated. (Processes 4b and 9).
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e Ifthe incident cannot be matched against existing caselaw and it is appropriate to obtain
more information or advice then the appropriate service Management Group(s) should be
contacted. (Processes le and 10).
¢ The incident should be referred to the Operational forum, who will consider whether all
information/advice has been obtained before referring to the Commercial Forum to agree
liability. (Processes 11a, 12, 13,13a).
¢ The Operational Forum are advised when liability is agreed at the Commercial Forum and (as
above) the amount calculated, allocated, and settlement arranged. The caselaw database is
also updated. (Processes 14,4b, and 5-9).
e The Commercial Forum may decide that they need more information/advice from the
appropriate Service Management Group(s) before agreeing liability. The Commercial Forum
will once liability is agreed advise the Operational Forum. The amount will be calculated,
allocated, settlement arranged and caselaw database updated. (Processes
13b,15,16,16a,14,4b and 5-9).
¢ Ifthe Commercial Forum cannot agree liability even after trying to obtain more
information/advice then they must escalate to the Senior Managers Commercial Forum, who
will agree liability and advise the Operational Forum of their decision. The amount will be
calculated, allocated, settlement arranged and caselaw database updated. (Processes 17,
17a,18,4b and 5-9).
e Ifthe Senior Managers Commercial Forum cannot agree liability and feel they need more
advice/information they can refer to the appropriate Service Management Group(s). Once the
Senior Managers Commercial Forum can agree they advise the Operational Forum
accordingly. The amount will be calculated, allocated, settlement arranged and caselaw
database updated. (Processes 17b, 19, 20 20a,18 and 4b, 5-9)
¢ The last decision if necessary will last with the Courts although resolution may be sought at
an alternative panel, e.g. between Directors of ICL Pathway, the DSS or POCL, or
Independent Arbitration. The amount will be calculated, allocated, settlement arranged and
caselaw database updated.(Processes 21,22 and 4b,5-9).
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PAGE LAYOUT
GENERIC ESCALATION LV =
PROCESS MODEL FOR CROSSI 1
LIABILITY ASSIGNMENT
Does Liability Need
10 be Agreed with Ether Liabtey
” Resolve Incident 1] PSS? way/POCL Caselaw? Agreed
Incident Raised
for Reconciliation
fer to Operational
4 Te oe I —$ pm
System Customs
. andor Fraud Investig
Exception andr perpen Yes Yes Yer Ratton
Bonus
No No
No
fesen 2] tae, afer to Appropriate I yoy, fr to Appropriate
See Incident See Fraud and Incident Mgt Lisbithy needed? Service Mgt needed? Service Mgt
Mgt Model) Model(s) Pats Land V Group 4 3
Go 10 Processes 4h and S Refer to Referto 24
Operational Operational
Forum Forum
Ismore
Info
needed?
efer to Appropriate
Se
Li
Operational 1
Forum Refer to
Commercial Forum
Go to Process 13a
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ICL Pathway Benefit Payment End to End Ref: CS/PRD/036
BA Reconciliation Process For ICL Pathway Version: oe 09
Release NR2 - PART 3 (Liability °
POCL Assignment)
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See Liability Invoicing
Past VIL
7 4 7
catculte Lp I Authority Decides > Funds Allocated
Amount I Recovery Method or Service Credit
See Problem Mgt Model(s)
Close inewlent 9 4
and Take Any
I Appropriate Action
From Process 4
Should Problem
be raised?
<=
Go 10 Process Ia
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ICL Pathway
BA
POCL
Reconciliation Process For ICL Pathway — «sion:
Release NR2 - PART 3 (Liability
Benefit Payment End to End Ref: CS/PRD/036
0.C
Date: 6/2/99
Assignment)
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Courts
2
Refer to
Liability
Agreed?
Ismore
fli
From Process 13,
a
cesses
‘Advise gs
PH I operational Forum
of Decision
Ya
A Liabiiy
Agreed?
Senior Managers
Commercial Forum
Refer to
Liability
Agreed?
Ismore
Iinfoladvice
needed?
—_
i Service Mat >I. Unit “><
1s
‘Advise 18
Operational Forum
ofDevision I <j
Yed
eter to Appropriate
Service Mgt
Grow,
20" Update Senior
Managers ><); Labiy
‘Commercial Forum e
No]
Altemative
Dispute Resolution
I___»—_
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BA Reconciliation Process For ICL Pathway C09
Release NR2 - PART 3 (Liability
POCL Assignment)
8 Low Level Principles for the Assignment of Liability
For each reconciliation incident before closure is agreed, liability assignment must be
considered. Each operational area determines whether liability needs to be agreed with either of
the other domains, e.g. do the DSS need to agree liability with ICL Pathway and/or POCL? (see
Part 1 Incident Management Models for the appropriate operational areas). Procedures for how
agreement for liability assignment is actually achieved will be developed by the individual
operational areas.
The following principles describe the principles that each level undertake to assign liability.
Ref. Liability Assignment Principle ‘Action By
© Liability can only be assigned at this level if it does not need to be
agreed with any of the other 3 domains. LEVEL 1
Tis © Close incident(s) after assigning liability and update as appropriate e.g
IPMS or RED
* Reference to the appropriate Service Mgt Group(s) can be made for
further advice or information on those incidents with cross domain
liability assignment, before reference to the next Level.
¢ Liability assignment is ratified at this level where incidents can be
16 matched against existing caselaw.
LEVEL 2
* Reference to the appropriate Service Mgt Group(s) can be made for
further advice or information on those incidents with cross domain
liability assignment, before liability assignment is ratified or reference
is made to the next Level.
© The Operational Forum will escalate to the next level all incidents that
cannot be matched to existing caselaw, or agreed at the Operational
Level.
¢ Liability is assigned at this level for new incidents not included in
7 existing caselaw.
LEVEL 3
© Liability is ratified/agreed at this level where liability cannot be agreed
at Level 2.
Reference to the appropriate Service Mgt Group(s) can be made for
further advice or information on those incidents with cross domain
liability assignment, before liability assignment is ratified or reference
is made to the next Level.
© If liability cannot be agreed at this level refer the incident(s) to the next
level.
© Liability is ratified/agreed at this level where liability cannot be agreed
Lis at Level 3.
* Reference to the appropriate Service Mgt Group(s) can be made for I t pvp 4
further advice or information on those incidents with cross domain
liability assignment, before liability assignment is ratified or reference
is made to the next Level.
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BA Reconciliation Process For ICL Pathway Version: C09
Release NR2 - PART 3 (Liability ate:
POCL Assignment)
L19 © DQ Stuart/John can you supply any extra info here on this level, I LEVEL 5
ice. how is case referred to the courts or is it not appropriate to
add any info other than refer to Solicitors Branch?
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