an)
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NORTHERN IRELAND.
OMAGH CROWN COURT OFFICE
OU RT High Street
¢ ; OMAGH
Tel 8224 2056 Fax 8225 1198
SERVICE DX 3602 NR, OMAGH.
6" August 2004
Dear Sir/Madam
BILL NUMBER: 47/2004
R-y-—Maureen McKelvey
The above case has been listed for:
Asraignment / Trial / Mention / Sentence / State of Readiness / Application
On Monday 13" September 2004 at 10.30am
At DUNGANNON Crown Court.
Yours faithfully
For CHIEF CLERK
cc: Probation
cc: DPP
John J McNally Solicitors ,
2 Moneymore Road
Magherafelt
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aveRy® 17168" Jam-Free” Laser Adaress Lape 19D AO UM Ae
a
c
TO: PHILIP MATEER BL
BAR LIBRARY
BELFAST CHAMBERS
CHICHESTER STREET
Re: R-v- MAUREEN McKELVEY .
OMAGH CROWN COURT SITTING AT DUNGANON ~ 13" SEPTEMBER 2004
Please find enclosed correspondence in relation to the above case. You have the brief in this
case at the moment. Ifit is to be passed to Charles McKay BL please include this
correspondence. Many thanks.
for Director of Public Prosecutions
JAANDT ceAINNW IAGPT AALI-INIPS ~ROT/1 = OAMSAW
Our Ref.:
Your Ref.:
Date:
SA/EM/M61
Ref 258267 {Dpp Belfast]
28" July, 2004
Dept of the Director of Public Prosecution,
The Courthouse,
OMAGH
Co Tyrone
Dear Sirs,
RE: Queen —v- Maureen McKelvey
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JOHN J. MCNALL
Solicitors
2 Moneymore Road, Magherafelt, Co. Derry BT45 6AD
Telephone: (028) 7963 1537 * Facsimile (028) 7963 3715
Also at: Draperstown, Friday 12 p.m.—3 p.m.
DX 3308 NR Magherafelt
Ref Unknown Interview 4/4/02
We refer to previous correspondence in above and now enclose herewith copy
correspondence which our Accountants Goldblatt McGuigan have forwarded to Suzanne
Winter for your information.
Yours faithfully
John J McNally & Co.
RECEIVED
I 29 JUL Lue
IWESTERN CIRCUIT,
J.MeGeown LL.B.
M.Kelly,LL.8. * — G, Truesdale LL.B.
+ C.O'NEIILLB. * — C.CullenB.C.L.
W.McFarlaneLL.8. * S.AtheronL.LB. + J. McClure LL.B.
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GoLDBLATT
McGuiIiGaAN
ACCOUNTANTS
ALFRED HOUSE, 19 ALFRED STREET, BELFAST BY2 8EQ TEL: 028 9031 1113 FAX: 028 9031 0777
E-MAIL: accountants@
www.goldblattmeguigan.com
Strictly Private and Confidential Bull/AHN/NO411
Suzanne Winter
23 July 2004
Dear Suzanne
Maureen McKelvey
Please find enclosed our revised notes of our meeting of 23 June 2004 updated based
on information provided at our subsequent meeting on 1 July 2004. We would be
obliged if you would review the amendments (which are in italics) and sign the notes
to show that you believe them to be accurate and precise.
As discussed at our meeting on 23 June we would be obliged if you would have
available statistics as to the levels of inaccurate P&A reports submitted to the Benefits
Agency, notably:-
(a) Number of inaccurate returns as compared to accurate retums tested.
(b) Value of the inaccuracies in the inaccurate returns submitted to the Benefits
Agency compared to the value of returns tested.
We note that Lisahally carry out checks for the UK as a whole and therefore we
would be obliged if the information. provided would be for both the UK and Northem
Ireland.
We met with Mrs McKelvey and her solicitor, Stephen Atlerton, on 20 July and in our
discussions with them certain queries have come to light. We would be obliged if you
would provide us with the following information:-
1. ‘We are informed that in the period prior to the intervention of the Post Office
Mrs McKelvey had cause to call out an area manager to assist with preparing
reports. Could you provide details of such call outs for the year to 5 April
2002 including:-
(a) Date
(b) Purpose
(c) Individual who responded to call out
Partners: Sam Goldblatt, Tony Nicholl, Jackie Smith, Philip Caughey, Michael Gibson, Gabriel Greene, Lyn Hagan
Directors: Kay Collins, Susan Dunlop Consultant: Michael McGuigan
CHARTERED ACCOUNTANTS, CHARTERED TAX ADVISORS, FORENSIC ACCOUNTANTS, ADVISORS TO BUSINESS,
CORPARATE FINANCE AND CORPORATE RECOVERY CONSULTANTS
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2. Provide copies of reports arising from the call outs referred to in 1 above.
3. We have been informed that on one of the occasions Mrs McKelvey requested
assistance Gary Groogan came to the Post Office to assist in the reconciliation
ofa P&A Report. The report could not be reconciled and Mr Grogan asked
Lisahally to check a number of weeks for any inconsistencies in P&A reports.
Can you provide details of:-
(a) When Mr Groogan contacted Lisahally in relation to this matter?
(b) What week originally prompted the checking of P&A Reports?
(c) What other weeks were checked and what, if any, inconsistencies were
found?
(d) Provide details of reports produced by Lisahally, either written or
verbal, in relation to Mr Groogan’s request.
4. In one of the taped interviews conducted between yourselves and
Mrs McKelvey there is a discussion regarding the annotation of the add lists
for week 32. Are these annotations by Gary Groogan. Please confirm.
5. Again in the taped interviews with Mrs McKelvey a discussion takes place in
which Mrs McKelvey provided a batch of lost pension foils. What happened
to these foils?
6. In relation to the Horizon Computer System what is the procedure for
inputting cash introduced when the Post Office receives cash from Royal
Mail.
7. We require the transaction reports for Clanabogan Post Office for weeks 36,
46, and 53.
8. Have Lisahally carried out any checks on P&A Reports for Clanabogan since
the Post Office was sub-leased by Mrs McKelvey. If so please provide details
of their findings.
9. In the last year how often have Lisahally referred a Post Office to the
Investigation Unit. How many Post Offices are checked by Lisahally.
Thank you for your time and assistance in this matter. If you have any queries
regarding the information we have requested please do not hesitate to contact Simon
Bull of our office.
We look forward to hearing from you.
Yours faithfully
GRO
GORDBLATT McGUIGAN
Email: accountants},
Enc
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R-V-MAUREEN MCKELVEY
Notes on discussions with Suzanne Winter and Rosemary Curran of Post Office
regarding accounting system at Post Office Counters. Held 23 June 2004. Updated
following discussions with Suzanne Winter on I July 2004.
BACKGROUND
. Each Post Office has a separate computer terminal and cash drawer for Post
Office transactions. This should be kept completely separate from other cash
terminals in the retail unit. Transactions from the shop for example should not
be processed, and cash relating to those transactions, should not be handled,
through the Post Office terminal or cash drawer.
. The cash and stock (e.g. stamps) are held in the cash drawer and the cash is
checked every morning and evening and a float is not established but rather
there is rolling stock of cash and other items. A cash declaration is required
in the morning before the computer can commence operation. Cash is
counted then input into the computer which then produces a discrepancy
report. It is possible to commence operation without counting cash. Cash can
be declared as zero and the discrepancy report ignored. The computer will
then be able to commence operation.
. It is recommended that the cash drawer holds within it 1% hours of trade with
additional stock in cash held in a safe.
. A Post Office, if it receives large deposits from nearby businesses will have
more receipts in than payments out however the reverse can also be the case.
In which case stock and cash will be provided on a weekly basis to the Post
Office. These are standard amounts based on the trading history of a
particular post office.
. A small regional Post Office, like that operated by Maureen McKelvey, would
typically have held approximately £1,000 worth of cash and stock in the cash
drawer and another £15,000 to £20,000 worth of cash and stock in the safe at
any particular time. We await discussions with Ms McKelvey as to level of
cash held by Clanabogan Post Office at the time the alleged thefts took place.
PROCESSING OF BENEFIT PAYMENTS
. When a Post Office terminal is switched on the operator must log in with user
name and password.
. When a customer presents a benefit book for payment the operator will pick
Northern Ireland on the touch screen terminal then P & A for pension and
allowances.
Bull/AHN/TM/PostOfficeNotes
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. Appendix A is a specimen foil from a benefits book. Each sheet of the book
has two tear away segments, each segment refers to a single payment of
benefit and will contain a date on it on / after which the benefit may be paid.
The benefit may not be paid prior to that date. The book stub will contain two
stamp dates, one for each segment. In the top right hand comer of the segment
will be a reference number that refers specifically to that type of benefit e.g.
disablement benefit is 12.
. The benefit foil and stub are both date stamped and the foil is removed for
retention by the Post Office.
° The operator, having picked the P&A Option on the touch screen, will type in
the benefit / allowance payable eg 12, the amount to be paid out, and then
press “finish”. On pressing “finish” the operator will open the cash drawer
and pay out the appropriate amount to the person who presented the benefit
book.
The cash drawer does not open electronically, it opens manually, and access
can be gained at any point in time regardless of whether or not a transaction is
being processed.
. By pressing “finish” the transaction is recorded as a payment and the cash
record on the computer is debited accordingly.
REPORTING
. A “snapshot” can be printed off at any time and shows expected stock and
cash in the cash drawer and the receipts and payments made from date of last
balancing report (see below). There is no requirement upon the Postmaster to
print a “snapshot” at the end of each day or after every till operator logs out
during the day.
. At end of each day an Adding Up report, or Cash Declarations, is meant to be
produced showing what is expected in the drawer and requiring details of what
is in the drawer to be inputted into the computer. A discrepancy report is
produced, any shortfall is the responsibility of the Postmaster to make good.
This is for the use of the Postmaster and remains at the Post Office.
Pp & A WEEKLY REPORT
° Every Wednesday the Postmaster must complete a P & A (Pensions and
Allowance) weekly report. This shows the number and total value of each
type of benefit paid out. The P & A weekly report is sent with the foils to the
Benefits Agency. The P & A report does not show a cash reconciliation.
. The Benefits Agency will periodically check the P&A Report for a particular
week, If there is one error, or errors, they will check the subsequent 4 weeks.
If this results in no further errors being found an Error Notice is issued to the
Post Office in relation to the initial error. If further errors are found then the
Bul/AHN/TM/PostOfficeNotes
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matter is not referred to the Post Office but rather to the Royal Mail
Investigation Unit.
BALANCING REPORT
° Each Wednesday a balancing report should be produced.
° A weekly printout should be produced for each transaction category eg P&A,
pensions and allowances, Inland Revenue etc.
e Initially the Postmaster should print off a “snapshot” and reconcile it to cash
and stock within the cash drawer.
° Any stock discrepancies should be put through as stock adjustments. By
correcting stock cash will be amended for the relevant amount and any cash
discrepancies must be made good by the Postmaster.
. When the reports and cash drawer have been reconciled (with cash
discrepancies made good / extracted) a trial balance report should be produced
and checked to see if correct.
. Once this is done a “Rollover” report is generated which records the weekly
takings and cannot be changed.
° The balancing report goes to the Post Office along with a P2311MA form
which shows the split in benefits.
. If discrepancies are not made good they show up as errors. If errors are
located then an error notice is sent to the Post Office.
° A transaction report can be produced which shows every transaction that has
taken place including time and operator.
‘TRAINING
. The computer system as shown to Goldblatt McGuigan is the same system that
was introduced to Maureen McKelvey’s Post Office in 2000.
. At that time she received 1% days of computer training in the new system and
had to show that she was proficient in order to have the new system installed.
In addition she would have received a certificate showing that she could
operate the system.
. The Post Office itself does not keep a record or did not keep a record at that
time of whether Maureen McKelvey received the appropriate training.
e In addition she would have received a manual, “Balancing with Horizon” and
had access to a support helpline.
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. Training for Postmasters currently is 10 days, which includes 5 days class
training and 5 days training in the shop. Training on the computer system is
spread over the 10 days and the 5 days in-shop involved working the counter,
which includes the computer, while a trainer is available in the shop. Jn 1990
training was still 10 days with 5 days based in a Post Office. This could
include training in the old manual system.
BulVAHN/TM/PostOfficeNotes
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APPENDIX A
ee
Soe sen
ba Reape 195
+ I Raignee Shapshot - office Lory
xeerexbigcrepancies in this Accaunteree®
sdiscrepancy OVER 9.00%
Discrepancy SHORT
¥
Nett discrepancy
*
alll
VALUE STOCK & woe = VOLUME VALUE
Cash
Cash
if
WV ean £2 200
BRC TY LICENCE STANE
ist class stap 200
First Class Stamps
end class stu 200
Second Class Stamps
Postage stp
Other Postage Items
POSTAGE
PG phonecrd £5
PO phonecrd Fi0
FO phonecnd £20
0 Holidyerd £10
PO Iranded Call Cards
PHONE CARDS
BO 50p
een
Face Value
PO fee SOP
PO fee £1
PQ fee ft
f0 fee fa
0 fee £4
Gift PO fee £5
Fees.
POSTAL ORDERS
HL sti
AVL SAVINGS ‘STAHP
TOTAL STOCK & HOP
23
e
ta
oh
=)
te
BR
pepe Re
S
RECEIPTS VOLUKE VALUE
Balance E/Fwd 9.00
Transfers In 0.00
fem In Supp Div 9.00
fea In Dther Pos 9,00
fen In Client 0.00
Rea In Auto Dist 1675.30
RERITTANCES 18 1675.30
Reval Up 0.00
TOTAL RECEIPTS 1675.30
PAYMENTS YOLUAE VALUE
HL gp 12 1 75.60
Pensions 75.60
PENSTONSRALLOWANLES Ti.60> ©
Transfers Out 9.00
Rem Out Supp Div 0.00
Rea Out Other Pos 0,00
Ren Qut Data Cen 9.00
fem Dut Client 9.00
Ren Gut Auto Dist 0.00
REMITTANCES OUT 9.00
Reval Down 0.00
Total Stock & Hof 4599.70
Nett discrepancies 0.00
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APPENDIX B