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Roll-out Decision - Demand Position Paper
In anticipation of the criteria due to be met by 24" November not having been met by that date, and
given POCL’s associated concems, POCL is proposing that the existing monitoring activities should
continue and be strengthened, and is also proposing the introduction of some new activities. POCL
proposes the following.
1. AI 298 - System Stability
Objective:
© toensure that Pathway continue to reduce the level of instability.
¢ the current recording at the HSH does not facilitate the analysis and identification of faults
and trends. POCL believe the best way of doing this is for PATHWAY, AT THEIR OWN
EXPENSE, TO DEVELOP A CODIFIED AND STRUCTURED FAULT RECORDING
SYSTEM THAT WILL ALLOW ANALYSIS TO SUPPORT THE COMBINED
PROBLEM MANAGEMENT AND RESOLUTION FUNCTION
¢ the current monitoring should continue for a further four weeks. The target for this period
should be the same as the current period.[DN: CCN560 Schedule 4 Part A para 27]
2. AI376 - Data Integrity
© toensure that the integrity control is capable of detecting all relevant incidents
© to continue to monitor error levels so POCL has an appropriate view of the level of
disruption and cause of new incidents
© to increase POCL’s level of understanding of the design and operation of emerging
reconciliation controls: .
a) tobe ina position for POCL to design complementary operational procedures
‘b) obtain confidence that the new controls will be effective - given the constrained
level of testing, POCL require greater level of assurance before release into the
live environment. This is necessary in order for POCL to be assured that criteria
376 iii and iv are being met
© The EPOSS/TIP reconciliation feature must be proven to be capable of detecting all data
errors that would be detected by the TIP cash account compare process[DN: CCN560 para
7.1); for the avoidance of doubt, this includes an explicit check that receipts are equal to
payments. This to be achieved by :
¢ logical assurance of authorised design documentation
© analysis of all previous root causes to determine that errors would be detected
¢ TESTING TO A JOINTLY AGREED STRATEGY AND HIGH LEVEL TEST
PLAN
© dual running of EPOSS/TIP reconciliation and TIP Cash Account processes on
test and live environments, over the periods described in CCN560, and subject to
known stress conditions including outlet migration, reference data changes,
transaction level data corruption
© the current monitoring should continue as defined in the second supplemental agreement
for criteria 376 i-iii with the monitoring period commencing on the 18" November[DN:
CCN560 Schedule 4 Part B (i)-(iii).]
© Pathway should demonstrate that they have met criterion 376 iv, if necessary by enhancing
their Integrity Control design. THIS SHOULD INCLUDE FAULTS IDENTIFIED
BEFORE SEPTEMBER 24™ and any faults found in the current monitoring period which
would not have been detected by the current integrity control design[DN: CCN5S60
Schedule 4 Part B (iv).]
« PATHWAY SHOULD CO-OPERATE WITH POCL TO REVIEW AND REVISE THE
RECTIFICATION PLAN TO INCLUDE NEW ACTIVITIES NECESSARY FOR THE
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SUCCESSFUL DEVELOPMENT AND IMPLEMENTATION OF OPERATIONAL
PROCEDURES AND ANY OTHER NEW ACTIVITIES SHOWN TO BE NECESSARY
BY THE REVIEW
« PATHWAY TO EXTEND THE LOGICAL DESIGN INFORMATION THAT IS
CONTRACTUALLY CONTROLLED TO COVER THOSE AREAS THAT POCL’S
EXPERTS REASONABLY SAY NEED TO BE SUBJECT TO POCL’S AGREEMENT,
MAINLY INTERFACE AND OPERATIONAL PROCEDURES
« MINDFUL OF THE SHORT TIME SCALES AND THE DESIRE NOT TO IMPEDE
PROGRESS, THE POCL ATM TO BE INTEGRATED INTO PATHWAY’S DELIVERY
TEAM SO THAT POCL CAN GAIN THE APPROPRIATE LEVEL OF VISIBILITY IN
THE DESIGN AND PROGRESS TO GIVE POCL CONFIDENCE IN THE RELEASE
« PATHWAY’S PROGRESS IN DEVELOPING THE INTEGRITY RELEASE TO BE
INCLUDED IN THE SCOPE OF THE REVIEW OF READINESS FOR ROLL-OUT
WHICH HAS BEEN AGREED AND WILL BE CARRIED OUT BY PA CONSULTING
¢ TIP checking shall continue at Pathway’s expense until both of the following have
occurred:[DN: CCNS60 para 7.2]
- four weeks parallel running without faults as in the current contract[DN: CCNS60
para 7.1, does not say ‘without faults’ but that both systems identify the same
faults]
— Pathway to have modified their integrity contro to detect all error types that have
occurred by that date.[DN: CCN560 Schedule 4 Part B (iv).]
3. Al 408 - HSH Performance
© to give POCL confidence that HSH can support roll-out especially:
a) to ensure that the HSH is appropriately resourced for the peak periods within a
week
b) to ensure conformance to scripts. ©
(DN: References in the original section below to criteria 408(i) and (ii) were reversed, this has been
amended below.]
¢ continue to monitor HSH criteria ii, iii and iv for a further four weeks. The six week
monitoring period to be 1" November to 12" December. As per the original criteria, the
aim being to attain the target levels in four out of the six weeks.[DN: CCN560 Schedule 4
Part C] In addition, 408 i and v criteria should be enhanced (see below)
¢ TO FACILITATE A DETAILED ANALYSIS OF THE ROOT CAUSE OF THE
PROBLEMS AND ALLOW POCL TO HAVE A MORE TRANSPARENT
UNDERSTANDING OF ICL PATHWAY’S PERFORMANCE, CRITERION 408 i
(CALLS ANSWERED WITHIN 20 SECONDS) SHOULD BE REPORTED DURING
THE FOUR WEEK EXTENDED PERIOD ON A DAILY BASIS. THE TARGET OF
80% OF ALL CALLS ANSWERED WITHIN 20 SECONDS SHOULD BE MET EVERY
WEDNESDAY AND THURSDAY FOR THREE OUT OF THE FOUR WEEKS AND
ACHIEVED AS A WEEKLY AVERAGE FOR THE SAME THREE OUT OF THE
FOUR WEEKS.
« TO PERMIT POCL TO PERFORM AN AUDIT OF ACTUAL PHYSICAL RESOURCE
TO THE PLANNED RESOURCE LEVELS, PATHWAY TO SUPPLY THE FOUR
WEEK DETAILED RESOURCING MODEL BROKEN DOWN INTO 30 MINUTE
SLOTS. POCL SHOULD BE PERMITTED TO UNDERTAKE AN AUDIT OF
PHYSICAL RESOURCE TO THIS MODEL AT ANY TIME DURING THE 4 WEEK.
PERIOD WITHOUT PRIOR NOTICE. THE ACTUAL RESOURCE LEVELS SHOULD
BE WITHIN 95% OF THE PLANNED LEVELS FOR EVERY AUDIT PERFORMED
© paragraph 4.3.2.9 of schedule G10 (as amended by Schedule 5 of CCN560) to be further
amended so that the compliance with the scripts shall be measured using call recordings
which have been in operation since 1* November. A JOINT PATHWAY AND POCL
TEAM TO REVIEW AND AGREE WHETHER THE OPERATOR HAS CONFORMED
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TO THE SCRIPTS. The call logs detailing the scripts that have been used by the operator
can be used as supporting evidence for the call recordings and can form part of the review
to determine compliance. PATHWAY MUST ACHIEVE THE TARGET FOR THE
FINAL THREE WEEKS OF THE AUDIT. For this method of monitoring compliance to
be effective:
a) PATHWAY TO SATISFY POCL THAT PATHWAY AUDITORS HAVE THE
EXPERTISE TO UNDERTAKE THE REVIEW
b) POCL to select the calls at random.
c) all cash account calls to be recorded.
Note that this also has the effect of changing the method of measuring criterion 408v
Pathway to continue to work with POCL to review the quality of script to improve the
accuracy leading to timely resolution of incidents. Additionally this will allow Pathway to
acquire business knowledge from POCL.
Reference Data
Obiccti
© to give POCL confidence that Pathway’s service is robust and can accurately account for
POCL’s transactions during reference data changes
¢ THE REFERENCE DATA INTERFACE AGREEMENT MUST BE RE-INTRODUCED,
AGREED AND BROUGHT UNDER CONTRACT CONTROL.
« PATHWAY MUST ANALYSE ALL POSSIBLE REFERENCE DATA CHANGES IN
RELATION THEIR IMPACT ON THE TARGET APPLICATION(S) AND DERIVE A
SET OF RULES WHICH PROTECTS THE APPLICATIONS FROM ALL
UNINTENDED EFFECTS.
« AROBUST MANAGEMENT PROCESS IS DEFINED, AGREED AND BROUGHT
UNDER CONTRACT CONTROL TO ENFORCE THIS SET OF RULES.
e A“REFERENCE DATA PROVING” TEST ENVIRONMENT IS CREATED AND
MAINTAINED WITHIN THE PATHWAY DOMAIN, ON WHICH ALL REFERENCE,
DATA RELEASES ARE SUBJECT TO FORMAL (JOINTLY AGREED) TEST.
e ALL RECOMMENDATIONS EMERGING FROM THE JOINT END-TO-END
REFERENCE DATA PROCESS REVIEW TACTICAL STAGE WHICH RELATE
DIRECTLY TO ACCOUNTING INTEGRITY ARE IMPLEMENTED.
¢ IN PRINCIPLE AGREEMENT IS REACHED ON THE DELIVERABLES AND COSTS
FOR THE JOINT END-TO-END REFERENCE DATA PROCESS REVIEW:
STRATEGIC STAGE. TO INCLUDE AS A MINIMUM THAT...
¢ THE PATHWAY OWNED TARGET APPLICATIONS ARE REVIEWED SUCH THAT
THEY ARE MORE RESILIENT TO REFERENCE DATA CHANGES AND LESS
RELIANT ON PROTECTION MECHANISMS EXPRESSED IN THE ABOVE RULE
SET.
¢ THE DIFFERENT APPROACHES TAKEN BY THE TWO ORGANISATIONS TO
ACCOUNTING PRINCIPLES IS REVIEWED AND HARMONISED WHERE DEEMED
APPROPRIATE,
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This CCN amends the Second Supplemental Agreement, CCN560, and as part of that
change indirectly affects elements of the Codified Agreement. The details of the
change are set out in the attached paper, and the table below specifies which elements
of CCN560 are amended by this CCN and attached paper:
chedule 4, Part A, f para 27 i
: New paragraph to be added to Schedule 4 }
! Part A after para 28 !
i
i
-2(0)first part of second sentence chedule 4 Part B section (iv)
.2(d) H New paragraph to be added to Schedule 4 +
! part B after para (v)
H {New paragraph to be added to Schedule 4
26)
I part B after para(v) __-__
lew paragraph to be added to Schedule 4
! part B after para (v)
t Schedule 4, Part C, paragraph below
I heading (a)
chedule 4, Part C, subparagraph (i)
‘Additional subparagraph (iv) to Schedule
J
.2(d), 1* sentence Schedule 5, section 4 , new paragraph
Fa
if
a
.3.2.9 of Schedule G10
1 3.2(d) remainder 4 Extends Schedule 4, Part C, subparagraph }
1) i
3.2) ; New paragraph to be added to Schedule 5 }
I section 4, adding a new paragraph
i 4.3.2.10 to Schedule G10 of the Codified
apo eemeemenaeemeeeeme
Ww paragraph to be added to .
t New paragraph to be added to ....
H iNew paragraph to be added to .
1426)
i £42) I
: "New paragraph to be added to .
1 4.2(g) t New paragraph to be added to ....
~_T New paragraph to be added to ....
POL00043723
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Roll-out Decision - Demand Position Paper
In anticipation of the criteria due to be met by 24" November not having been met by that
date, and given POCL’s associated concerns, POCL is proposing that the existing monitoring
activities should continue and be strengthened, and is also proposing the introduction of some
new activities. POCL proposes the following.
1.
11.
1.2,
21,
AI298 - SYSTEM STABILITY
Objective:
(a) to ensure that Pathway continue to reduce the level of instability.
Activities:
(a) the current recording at the HSH does not facilitate the analysis and
identification of faults and trends. POCL believe the best way of doing this is
for Pathway, at their own expense, to develop a codified and structured fault
recording system that will allow analysis to support the combined problem
management and resolution function
(&) the current monitoring should continue for a further four weeks. The target for this period
should be the same as the current period.
AI376 - DATA INTEGRITY
Objectives:
(a) _ to ensure that the integrity control is capable of detecting all relevant incidents
(b) to continue to monitor error levels so POCL has an appropriate view of the
level of disruption and cause of new incidents
(c) to increase POCL’s level of understanding of the design and operation of
emerging reconciliation controls:
i, to be in a position for POCL to design complementary operational
procedures
ii. obtain confidence that the new controls will be effective - given the
constrained level of testing, POCL require greater level of assurance
before release into the live environment. This is necessary in order for
POCL to be assured that criteria 376 iii and iv are being met
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2.2. Activities:
(a) The EPOSS/TIP reconciliation feature must be proven to be capable of
detecting all data errors that would be detected by the TIP cash account
compare process; for the avoidance of doubt, this includes an explicit check
that receipts are equal to payments. This to be achieved by :
i. _ logical assurance of authorised design documentation
ii. analysis of all previous root causes to determine that errors would be
detected
iii. . testing to a jointly agreed strategy and high level test plan
iv. dual running of EPOSS/TIP reconciliation and TIP Cash Account
processes on test and live environments, over the periods described in
CCNS560, and subject to known stress conditions including outlet
migration, reference data changes, transaction level data corruption
(b) _ the current monitoring should continue as defined in the second supplemental
agreement for criteria 376 i-iii with the monitoring period commencing on the
18" November
(c) Pathway should demonstrate that they have met criterion 376 iv, if necessary
by enhancing their Integrity Control design. This should include faults
identified before September 24" and any faults found in the current monitoring
period which would not have been detected by the current integrity control -
design
(d) Pathway should co-operate with POCL to review and revise the Rectification
Plan to include new activities necessary for the successful development and
implementation of operational procedures and any other new activities shown
to be necessary by the review
(e) Pathway to extend the Logical Design information that is contractually
controlled to cover those areas that POCL’s experts reasonably say need to be
subject to POCL’s agreement, mainly interface and operational procedures
(f mindful of the short time scales and the desire not to impede progress, the
POCL ATM to be integrated into Pathway’s delivery team so that POCL can
gain the appropriate level of visibility in the design and progress to give POCL
confidence in the Release
(g) Pathway’s progress in developing the integrity release to be included in the
scope of the review of readiness for roll-out which has been agreed and will be
carried out by PA Consulting
(h) TIP checking shall continue at Pathway’s expense until both of the following
have occurred:
i, four weeks parallel running without faults as in the current contract
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‘«
ii. Pathway to have modified their integrity control to detect all error types
that have occurred by that date.
3. AI 408 - HSH PERFORMANCE
3.1. Objectives:
(a) _ to give POCL confidence that HSH can support roll-out especially:
i, to ensure that the HSH is appropriately resourced for the peak periods
within a week
ii. to ensure conformance to scripts.
3.2, Activities:
(a) continue to monitor HSH criteria i, iii and iv for a further four weeks. The six
week monitoring period to be 1% November to 12" December. As per the
original criteria, the aim being to attain the target levels in four out of the six
weeks. In addition, 408 ii and v criteria should be enhanced (see below)
(b) to facilitate a detailed analysis of the root cause of the problems and allow
POCL to have a more transparent understanding of ICL Pathway’s
performance, criterion 408 ii (calls answered within 20 seconds) should be
reported during the four week extended period on a daily basis. The target of
80% of all calls answered within 20 seconds should be met every Wednesday
and Thursday for three out of the four weeks and achieved as a weekly average
for the same three out of the four weeks.
(c) to permit POCL to perform an audit of actual physical resource to the planned
resource levels, Pathway to supply the four week detailed resourcing model
broken down into 30 minute slots. POCL should be permitted to undertake an
audit of physical resource to this model at any time during the 4 week period
without prior notice. The actual resource levels should be within 95% of the
planned levels for every audit performed
(d) paragraph 4.3.2.9 of schedule G10 (as amended by Schedule 5 of CCN560) to
be further amended so that the compliance with the scripts shall be measured
using call recordings which have been in operation since 1" November. A joint
Pathway and POCL team to review and agree whether the operator has
conformed to the scripts. The call logs detailing the scripts that have been used
by the operator can be used as supporting evidence for the call recordings and
can form part of the review to determine compliance. Pathway must achieve
the target for the final three weeks of the audit. For this method of monitoring
compliance to be effective:
i. Pathway to satisfy POCL that Pathway auditors have the expertise to
undertake the review
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aur
Mrs
ii. I POCL to select the calls at random
iii. all cash account calls to be recorded.
Note that this also has the effect of changing the method of measuring criterion
408v
(e) Pathway to continue to work with POCL to review the quality of script to
improve the accuracy leading to timely resolution of incidents. Additionally
this will allow Pathway to acquire business knowledge from POCL.
4. REFERENCE DATA
41. Objective
(a) to give POCL confidence that Pathway’s service is robust and can accurately
account for POCL’s transactions during reference data changes
4.2. Activities:
(a) The Reference Data interface agreement must be re-introduced, agreed and
brought under contract control.
(b) Pathway must analyse all possible reference data changes in relation their
impact on the target application(s) and derive a set of rules which protects the
applications from all unintended effects.
(c) A robust management process is defined, agreed and brought under contract
control to enforce this set of rules.
(d) A “reference data proving” test environment is created and maintained within
the Pathway domain, on which all reference data releases are subject to formal
(jointly agreed) test.
(e) All recommendations emerging from the joint end-to-end reference data
process review Tactical stage which relate directly to accounting integrity are
implemented.
(In principle agreement is reached on the deliverables and costs for the joint
end-to-end reference data process review: Strategic stage. To include as a
minimum that ...
(g) The Pathway owned target applications are reviewed such that they are more
resilient to reference data changes and less reliant on protection mechanisms
expressed in the above rule set.
The different approaches taken by the two organisations to accounting
PI
principles is reviewed and harmonised where deemed appropriate.
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