POL00166616 - Audit report from Brian Trotter to Doug Heed, Mandy Neeson, Diane Matthews and others re Audit of Post office- Paible branch

Evidence on official site

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POL00166616

POL00166616

To: From: cc:
Brian Trotter Doug Heed Mandy Neeson
Contracts Advisor Audit Officer Field Team Leader,

Diane Matthews

Fraud Team Leader,
Outlet Intervention Team,
Paul Dann

Agent Debt 3.

Date: 23/07/08

Audit of Post Office® Paible branch, Branch Code 147869

On Wednesday 237 July 2008 accompanied by my colleague Mr Alex McKenzie, I
conducted an audit at Paible Post Office® Branch. The purpose of the audit was to verify
Post Office® assets and to examine compliance with regulatory requirements and
business procedures across a range of products. The audit revealed a shortage in the
branch of £40277.76 and resulted in the suspension of the Sub Postmaster Mr William
Quarm. Details of the audit findings are contained in this report.

Financial assets to the value of £3943.84 were physically verified compared to the
amount due to Post Office® of £44221.60.

The difference between these figures is broken down as follows:

£ 4026454 (-) Identified asa difference in cash figures

£ 0.12 () Identified asa difference in stock figures

£ 13.10 (-) Shortage declared in previous balance period of present trading
period

£ —_40277.76 Total shortage

Mr McKenzie and I arrived at the branch at about 08:30. Mr Quarm was present in the
retail area and allowed us access to the secure area. I asked Mr Quarm to log onto the
Horizon system. Mr McKenzie was added to the Horizon system in order to obtain the
reports necessary to complete my P32, audit spreadsheet.

Cash on hand in the branch was counted and compared to the office snapshot obtained
at the time from the system. The discrepancy detailed was revealed. The cash was
counted a second time to verify the initial count. Mr Quarm was unable to offer an
explanation for the shortage but advised us that he had had some problems which dated
back to last winter. Cash declared in the “AA’ stock unit was understated by £568.04, cash
declared in the “ATM” stock unit was overstated by £2840.00. Cash declarations did not
match the system figure or the actual amounts found on site.
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Stock items in the branch were checked and compared to the snapshot. The discrepancy
detailed was revealed. Discrepancies in stock items were checked a second time to verify
the figures.

Examination of vouchers on hand did not reveal any discrepancies. ATM transactions for
the previous day were processed during the audit.

Contact with the relevant Post Office® department confirmed that there were no
existing amounts held centrally.

On reporting my audit findings, I was advised that Mr Quarm was to be awarded a
precautionary suspension and that the branch was to be defunded. I relayed this
decision to Mr Quarm. The stock units in the branch were balanced and the resulting
shortage accounted for as a “Final Account Deficiency’. Cash and stock was rem’d out
and despatched to the relevant departments by special delivery from another branch.
The trading statement was produced. Mr Quarm was removed from the system, the
datestamp was secured in the safe and the safe keys forwarded to the contracts support
department.

Mr McKenzie and I left the branch at about 12:45. No compliance tests were carried out
during this audit.