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Mandatory Losses
& Gains Policy
Crown Office
Network
CONTENTS:
Section 1 Introduction
Section 2 Roles and Responsibilities
Section 3 Stock Units
Section 4 Supervisory Checks (misbalance checks, surprise checks)
Section 5 Loss Management
APPENDICES:
Appendix A Roles and Responsibilities
Appendix B Local Record of Stock Users
Appendix C Minimum Standards for Conducting Supervisory Stock Unit Checks
Appendix D Aide Memoire for Establishing Cause of Stock Unit discrepancy
Appendix E Reporting of Losses and Gains
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Section 1 - Introduction
is This Policy outlines business requirements relative to the management of
losses and gains within Crown Offices and incorporates criteria for checking, notifying
and actions to be taken. The aim is to reduce losses and gains whilst ensuring the
needs of the business are met. This document supersedes all previous policy
documents relating to Crown Losses & Gains.
2: In terms of this policy, a loss or gain is any misbalance of a Stock Unit (SU) or
remittance received in the Branch. It includes:
a. Misbalances which require a Transactional Correction
b. Misbalances following receipt of a Transactional Acknowledgement
Gs Unexplained losses and gains
d. Compensating gain in another stock
Section 2 - Roles and Responsibilities
Ee There are a number of managerial appointments which have responsibility for
ensuring the approved systems for controlling losses and gains are adopted and
implemented. Detailed roles and responsibilities can be found at Appendix A:
a. Branch Managers
b. Crown Area and Cluster Managers
G Crown Operations Advisors
d. Security Team
Section 3 - Stock Units
4. BMs must ensure an accurate record of all Stockholders of a Stock Unit (SU) is
maintained; a Stockholder Register template is at Appendix B.
5s To provide a deterrent and detect instances of alleged fraud and/or theft, SU
must be rotated on a regular basis.
a. Individual Stock Units. The maximum period for an individual
holding and balancing the same stock is 8 weeks.
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c. Where multiple SU are balanced by the same individual, the Unit must be
checked every 8 weeks.
6. Counter Colleagues are to complete Cash Declaration checks daily. Any
discrepancy over £30 must be reported to the BM immediately.
Bureau - Daily - When performing the daily cash declaration on the Bureau stock
unit a stock on hand of currencies must be printed and as part of the sterling cash
declaration the Euros and Dollars must be checked as a minimum to ensure they are
correct.
If any discrepancies are discovered a transaction log must be printed in an attempt
to discover the mistake and who made it - if it can be proven the mistake was made
by a specific individual and they were negligent in their actions then a investigatory
interview must be arranged.
The stock on hand report must be stapled to the cash declaration slip and filed
appropriately within the office.
Section 4 - Supervisory Checks
Tis Branch Managers are to conduct the following checks:
a. Snap Checks. Snap checks are to be conducted involving all Counter
Colleagues at least . Checks to include ATM &
b. Misbalance Checks. Where a SU misbalances by £30 or over, a
misbalance check is to be conducted. A misbalance check is in addition to
snap checks and can be performed by both managers and experienced
colleagues. SUs with losses or gains over £30 declared for 2x consecutive
days must be subject to a complete stock and cash check.
(on Supervisory Checks. Area/Cluster Managers are to conduct snap
checks on main SUs at least twice a year. Area / Cluster Managers must
maintain a suitable register of such checks for 2 years.
8. The basis of control is to provide an awareness of discrepancies levels in
conjunction with any actions necessary to implement improvements including
training support and product design. Appendix C provides the minimum standards
for conducting supervisory SU checks.
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Section 5 - Loss Management
9. In the event of a Crown Office identifying a loss or gain in excess of £30, the
BM must:
a. Conduct an initial investigation with the aim of establishing root cause
and identifying the individual colleague responsible. Where the branch
is deploying multiple SUs, the initial investigation must seek to
eliminate those colleagues who have had no access to the SU during the
period of loss and where possible identify the colleague responsible. An
Aide Memoire for establishing cause of discrepancy can be found at
Appendix D; this is by no means an exhaustive list of questions. The
BM will be required to use all their local knowledge and Branch
experience to identify the colleague responsible.
Note - so that losses from Bureau stocks, SSKs and ATMs can be
accurately measured, these stock units must be set up as BDC,
SSK, ATM._
b. All losses and gains must be reported within 24hrs using the form at
Appendix E:
(1) Up to £249.99 Detail held in Branch only
(2) £250+ Reported to Post Office Security, AM/CM &
COA,
(3) I Fraud/theft suspected Reported to Fraud Analysis Team, Post
Office Security, AM/CM & COA,
(or On all losses or gains in excess of £2000, the incident must also be
reported to NBSC on 0845 6011022.
d. Where individual colleagues can be identified as responsible for a loss or
gain of;
(1) Up to £100 the BM should consider conducting a formal
investigatory interview under the Conduct Code.
(2) In excess of £100 the BM must conduct a formal investigatory
interview under the Conduct Code.
e. Where responsibility cannot be attributed, colleagues who have access
to the SU during the period of loss or gain should receive additional guidance
and training. The BM must consider breaking multiple SUs into small user
groups in an effort to deter and detect culpability for future losses or gains.
iv Where fraud and/or theft is suspected, regardless of the amount, the
BM must report the incident in accordance with this Policy. In preparation for a
formal investigation by the Security Team, the BM should identify suspects
and witnesses and where necessary preserve any evidence, including
transactional data, documents and CCTV which will be of use to the
investigator.
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g. To ensure there is a consistent approach across the Network, all BMs
must comply with Loss Management, without exception. In doing so, a
consistent approach is delivered across the Crown network which is fair to all
colleagues.
APPENDIX A TO CROWN OFFICE LOSS AND GAIN POLICY
ROLES AND RESPONSIBILITIES
a. Branch Managers:
e Conduct snap checks on all Stock Units (SUs) as previously
described.
e Conduct misbalance checks on SUs incurring losses and gains above
£30
Implement the Loss Management Process:
o Report losses in a timely manner
o Consider and deploy the Conduct Code where necessary
Ensure all staff are routinely made aware of the requirement to keep losses
and gains to a minimum.
b. Area & Cluster Managers:
° Conduct Snap Checks of main SUs at least twice a year
. In the event of a Crown loss in excess of £250, the AM/CM is to
ensure that the appropriate action is taken by the BM.
c. Crown Operations Advisors
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APPENDIX B TO CROWN OFFICE LOSS AND GAIN POLICY
Local Record of Stock Users
Multi User & Individual Stocks
Branchi- ..sssceeeeeeeeeeeeees BC Codet- ...sesssssseeeeeeeees WEEK MOH weescseseeseeesseeees
Stock Unit I Name of Staff ** I Stock Unit I Name of Staff **
(who have had (who have had
access to stocks) access to stocks)
Create additional rows if necessary or photocopy additional hard copy forms.
** Name of clerk and branch name if clerk is borrowed temporarily.
Branch Manager Signature: -
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APPENDIX C TO CROWN OFFICE LOSS AND GAIN POLICY
MINIMUM STANDARDS FOR CONDUCTING SUPERVISORY STOCK UNIT
CHECKS
iL. To meet the minimum standard, a programme of supervisory snap checks
must:
a. Be performed by the Crown management team who will ensure
colleagues complete a cash declaration towards the end of each working day.
b. Include monitoring of the levels of cash held by all colleagues in each
Stock Unit (SU) e.g. Main Cash, ATM, Bureau, SSKs etc
fon Check all cash, stock and vouchers to hand and reconcile to the last
declared balance; print and check for ‘outstanding dockets’.
d. Main Cash Stocks held by a Branch Managers (BMs) should be checked
by AMs / CMs or a representative at least bi-annually.
e. Ensure each SU is checked at least;
e Once every 8 weeks for individual SUs
e Once every 12 weeks for MUTE stocks. (Where multiple
SUs are balanced by the same individual, the SU must be
checked every 8 weeks).
f Maintain a record of snap checks. The record must clearly show the
date and time of the check, what was checked and who was present along
with signatures. Records must be retained for two years.
g. Snap checks should be conducted infrequently, so as to avoid any
pattern that could become known to individuals.
2. Completing a Snap (Surprise) Check
Obtain trial balance.
Summarize / cut off all documents and vouchers.
Count and declare all cash
Count and declare all postage.
BM (or deputy) and stock holder sign trial balance.
Trial balance and all associated papers kept securely.
Note —- the stockholder - or other witness if stockholder absent - must be
present throughout the snap check procedure.
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There may be occasions where operational constraints and/or customer
service issues prevent a full snap check.
In these cases a part check of cash and stock is acceptable;
Part checks must be the exception rather the rule.
Note local records to show only part checked.
Keep signed cash decs. etc. securely.
Inform AM/CM that you have not been able to carry out a full check.
3: There is a requirement for BMs to maintain the following records:
a.
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Supervisory Snap & Misbalance Checks:
Financial Year
Week Number
Stock unit
Name of Stock User
Original Loss / Gain result
Type of check (surprise or misbalance)
Result of Loss / Gain, post check
Discrepancy comment, if required
Name of Crown manager or substitute performing the check
Position or grade of checker
Ensure Horizon Weekly Balance Report is signed & dated and retain
documentation relating to check for 2 years
Stock Losses and Gains of £30 or more:
Office Name
Office Code
Week number
Stock Unit ID
Value of Loss/Gain
Full name of individual or all individuals who have served from that
stock unit during the balancing period
Details of associated Transaction Corrections - values, trading
period and relevant stock units
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APPENDIX D TO CROWN OFFICE LOSS AND GAIN POLICY
AIDE MEMOIRE FOR ESTABLISHING CAUSE OF STOCK UNIT DISCREPANCY
1. Whilst not an exhaustive list, the following checklist should be used to assist
the Branch Manager (BM) identify the cause of Stock Unit discrepancies:
STOCK
Have you checked that all your stock has been booked in
correctly e.g. postage stamps?
Have you received a stock Transaction Correction and
did you adjust your stock in accordance with the
instructions on that transaction correction?
Did you report the stock discrepancies?
Did you need to redeem any values from REM Suspense?
CASH REMITTANCES
Have you had any REM discrepancies?
Did you report these to the Cash Centre?
Has the Cash Centre advised you of any discrepancies on
any returned cash?
BUREAU REMITTANCES
Have you received any Bureau currency?
Have you accounted for this correctly? —
Have you used the Sterling value when returning
currency to the Cash Centre?
METHOD OF PAYMENT
Have all cheques been ‘remitted’ out and sent to the
processing centre?
Has the correct method of payment been used for all
transactions?
Have you got more / fewer cheques than is recorded on
Horizon?
Is there a value in cheques at site, where you do not
have the physical cheques?
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APPENDIX E TO CROWN OFFICE LOSS AND GAIN POLICY
REPORTING OF LOSSES AND GAINS
Losses/Gains between £30 and £249.99
LL In the event of incurring a loss or gain of between £30 - £249.99 ona
Stock Unit (SU), the Branch Managers (BMs) must conduct the following:
a. A full mis-balance check of the cash/stock and vouchers on
hand. If the relevant colleague cannot be present at the balance
check, another colleague must be made available to witness the
check.
b. Conduct an initial investigation with the aim of establishing root
cause and identifying the individual colleague responsible. Where the
Office is deploying multiple SU, the initial investigation must seek to
eliminate those colleagues who have had no access to the SU during
the period of loss and where possible identify the colleague
responsible.
G: Any loss where dishonesty is suspected, irrespective of value,
must be reported to Post Office Security on 0161 869 7203 (Postline:
5831 7203).
b. All losses and gains must be reported within 24hrs:
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Discrepancy Reporting action to be taken
Value
>£250 Details held in-Branch only
£250+ Distribute completed for
* post.office.securityé
e AM/CM .
« COA .
e _branchcontro!
Fraud
suspected
(regardless of .
amount « AM/CM
COA
G On all losses or gains.in.excess.af £2000, the incident must also
be reported to NBSC oni GRO }
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d. Where individual colleagues can be identified as responsible for
a loss or gain of:
Discrepancy Conduct Code action to be
Value taken
>£100 The BM should consider conducting an
investigatory interview under the Conduct
Code.
£100+ The BM must conduct an investigatory
interview under the Conduct Code
e. Where responsibility cannot be attributed, colleagues who have
access to the SU during the period of loss or gain should be subject to
additional support and training. The BM must consider breaking
multiple SUs into small user groups in an effort to deter and detect
culpability for future losses or gains.
f. Where fraud and/or theft is suspected, regardless of the
amount, the BM must report the incident in accordance with Paragraph
11b to this Policy. In preparation for a formal investigation by the
Security Operations team, the BM should identify suspects and
witnesses and where necessary preserve any evidence, including
transactional data, documents and CCTV which will be of use to the
investigator.
g. To ensure there is a consistent approach across the Network, all
BM must comply with Loss Management, without exception. In doing
so, a consistent approach is delivered across the Crown network which
is fair to all colleagues.
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ANNEX 1 LOSS AND GAIN REPORT
Crown Office Loss Report I
Once loss has been identified, please submit this form to the
following email address: post.office.security! 4
If an explanation for a loss materialises, please ensure you email
the Security Team and other appropriate Stakeholders as soon as
possible with the details.
When To Complete:
This report must be completed if it meets any of the following criteria:
¢ The loss is greater than £250, even if the reason for the loss is known
and a Transaction Correction or associated surplus is expected to account
for it in due course.
e Any loss or losses, irrespective of amount where there are reasonable
grounds/evidence to suspect the cause was due to dishonest activity at the
office.
¢ Losses in general (clerk or office) are showing a worsening trend and/or
are significantly in breach of budget.
Where To Send:
This report must be emailed to the following:
e Post Office Security (for recording, analysis and assessment of case
raise or other relevant activities).
e Crown Operations Advisor and Crown Area / Cluster Manager (to
ensure that appropriate local action is taken by Crown Branch Manager,
including any support requested from Compliance and Ops Efficiency
Teams).
e branchcontrol (as pre-warning of net loss performance and also to
factor in any known reasons for losses).
Additional Requirements:
¢ For losses greater than £250, obtain a separate report from each
colleague that dealt with the stock and retain these reports, pending any
future investigation.
« Produce and retain event and transaction logs for the whole week of the
loss, detailing every activity within the stock (i.e. all sessions, all
transactions, Normal and Reversals).
¢ All losses must be reported, recorded, monitored and dealt with, in
accordance with the Losses & Gains policy (including the loss escalation
process).
Office Name:
Branch Code:
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Postcode:
Telephone Number:
Trading Period & Balance Period:
(use dd/mm/yy)
Amount: £
Date Loss Identified: (use
dd/mm/yy)
Are Cash Declarations performed
daily and are they accurate:
Are losses investigated promptly
if identified from Cash
Declarations:
List Users of Stock:
(include full names)
Type of Stock:
(i.e. Main Safe and ATM.
Counter tills individual or MUTE,
Bureau, SSK, ATM etc).
Have all Cash, Stock & Vouchers
been checked:
Have all fitments (pedestals,
safe, inserts, etc) and waste
bins been searched:
Please provide a full explanation
for the loss (Mandatory):
Is a Transaction Correction (TC)
expected, please provide details:
Were there any losses/gains of
a similar amount during this
week, or last week:
If yes, give details:
Please provide the date of the
last spot check & result on the
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individual or stock unit:
Are losses by the colleague(s)
involved giving cause for
concern.
If yes, give details of dates and
amounts
Are losses in the office giving
cause for concern.
If yes, give details of dates and
amounts
Is there anything known which
may provide the colleague(s)
involved in the loss with a
motive for dishonesty. (If yes,
please include a separate report
and only circulate to Post Office
Security & Fraud Analysis
teams).
Is there any reason to doubt the
honesty of any other members
of staff or other persons who
had access on the day
(If yes, please include a
separate report and only
circulate toPost Office Security &
Fraud Analysis Teams).
Please provide the name of your
AM/CM (mandatory)
Reported By:
(insert full name & job title)
Date: (use dd/mm/yy)
Please emai
(post. office.security¢
form to Post Office Security
3 and your AM/CM detailed above. If
you have any queries, contact Post Office Security Team in confidence. .
This report and associated documents should be retained securely within
the office for 2 years and made available upon request. If an explanation
for a loss materialises, the Post Office Security Team and other appropriate
Stakeholders must be informed as soon as possible.
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