FUJ00001921 - Fujitsu Services Network Banking Data Reconciliation Service for January 2005 Version 2.0

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FUJ00001921
FUJ00001921

Fujitsu Services Network Banking Data Reconciliation Service Ref: CS/SER/018
Version: 2.0
Company-in-Confidence Date: 11-JAN-2005
Document Title: Network Banking Data Reconciliation Service

Document Type:

Release:

Abstract:

Document Status:

Originator & Dept:

Contributors:

Internal Distribution:

External Distribution:

Approval Authorities:

Contractual Definitions

S70/S75

Contractual definitions to support the Network Banking Data
Reconciliation Service

APPROVED

Mike King: Fujitsu Services Customer Service

Richard Brunskill: Fujitsu Services Customer Service

PVCS

Post Office

(See PA/PRO/010 for Approval roles)

Name Position Signature Date
Vicky Noble (*) Post Office Limited: Head of
Client Accounting and Cash
Management.
Richard Brunskill (*) Fujitsu Services: Pathway
Infrastructure Services
Manager
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©Copyright Fujitsu Services Limited 2004
FUJ00001921

FUJ00001921
Fujitsu Services Network Banking Data Reconciliation Service Ref: CS/SER/018
Version: 2.0
Company-in-Confidence Date: 11-JAN-2005
0.0 Document Control
0.1. Document History
Version No. I Date Reason for Issue Associated
CP/PinICL
1.0 20/12/02 Produced for Contract Amendment
Ll 17/11/04 Updated for the introduction of the $70/S75 (NBE I None
replaced by the NBX)
2.0 11/01/05 Sent out for Approval

0.2 Review Details

Review Comments by :

Review Comments to :

Mandatory Review Authority Name

Post Office Limited: Head of Client Accounting I Vicky Noble (*)
and Cash Management.

Fujitsu Services: Infrastructure — Services I Richard Brunskill (*)
Manager

Optional Review / Issued for Information

Fujitsu Services: Management Support I John Moran
Manager

(*) = Reviewers that returned comments

0.3 Associated Documents

Reference Version I Date Title Source

NB/PRO/002 4.0 04/12/02 Network Banking / Debit I pvcs
Card MoP Reconciliation &

Incident Management

CS/SPE/011 3.0 04/12/02 Network Banking End to I pvcs
End Reconciliation
Reporting

Unless a specific version is referred to above, reference should be made to the current
approved versions of the documents.

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©Copyright Fujitsu Services Limited 2004
Fujitsu Services

FUJ00001921
FUJ00001921

Network Banking Data Reconciliation Service Ref: CS/SER/018
Version: 2.0
Company-in-Confidence Date: 11-JAN-2005

0.4 Abbreviations/Definitions

Abbreviation Definition

DRSH Data Reconciliation Service Host

EPOSS Electronic Point of Sale Service

MSU Fujitsu Services; Pathway — Management Support Unit

NBX The term used to describe the Network Banking Engine functionality
absorbed into the Horizon domain

NBS Network Banking Service

TIP Post Office — Transaction Information Processing

TPS Transaction Processing Service

0.5 Changes in

this Version

Version

Changes

2.0

Minor change to reflect that in Section 3.1.5 as NBE is replaced by 3

separate interfaces - A&L, LINK and CAPO not simply the NBX.

0.6 Changes Expected

Changes

None

0.7 Table of Contents

1.0 INTRODUCTION...
1
1.2 DOCUMENT STRUCTURE
1.3 STATEMENT OF PRECEDENC
2.0
3.0
3.1
3.2

SUPPLEMENTARY DOCUMENTATION............

NETWORK BANKING DATA RECONCILIATION....

RECONCILIATION SYSTEM. 5
RECONCILIATION AND SETTLEMENT REPORTING

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©Copyright Fujitsu Services Limited 2004
FUJ00001921

FUJ00001921

Fujitsu Services Network Banking Data Reconciliation Service Ref: CS/SER/018
Version: 2.0
Company-in-Confidence Date: 11-JAN-2005

1.0 Introduction

1.1. Supplementary Documentation

This document supplements two (2) other Network Banking Reconciliation Service CCDs as
defined in Schedule 1 to this Agreement by providing information on the Reconciliation
Service and reconciliation and settlement reporting. In order to do this, references are
made in this document to such other Network Banking Reconciliation Service CCDs.

1.2. Document Structure

As a consequence of the interconnecting nature of the Network Banking Reconciliation CCDs
as explained in paragraph 1.1 above, the numbering in this document has assumed a particular
numbering structure. If then, as a result of Soft Change Control Procedure or otherwise, the
contents of this document are altered there may need to be consequential changes to the other
Network Banking Reconciliation Service CCDs. In order to prevent the need for such
consequential changes it is advised that in the event of changes being made to this document
the numbering is as far as possible preserved

1.3. Statement of Precedence

In the event of any conflict or ambiguity the provisions of this CCD shall take precedence over
the provisions of the following CCD’s:

e Network Banking Reconciliation & Incident Management NB/PRO/002
e Network Banking End to End Reconciliation Reporting CS/SPE/011

2.0 Scope

The reconciliation and settlement reporting services for Banking Transactions (the “Data
Reconciliation Service”) are described in this paragraph 3.0.

3.0 Network Banking Data Reconciliation

3.1 Reconciliation System

3.1.1 This paragraph 3.1 describes the functionality for that part of the end-to-end
network banking reconciliation system required by which shall be developed and
operated by as part of the NBS. Such part is referred to in this as the
“Reconciliation System”.

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©Copyright Fujitsu Services Limited 2004
FUJ00001921

FUJ00001921
Fujitsu Services Network Banking Data Reconciliation Service Ref: CS/SER/018
Version: 2.0
Company-in-Confidence Date: 11-JAN-2005
3.1.2 and shall follow the reconciliation and incident management procedures (applicable

to each of them) for the investigation, reporting and resolution of business
incidents related to the NBS as set out in the CCD entitled “Network Banking
Reconciliation and Incident Management” (NB/PRO/002).

3.1.3 shall not unreasonably withhold or delay its agreement to the design of back end
processes and Banking Transaction processing procedures required to support the
reconciliation and incident management of Banking Transactions.

3.1.4 Reconciliation between counter and Cash Account

Reconciliation of EPOSS Transactions to the Cash Account shall be dealt with at summary
level using the reconciliation functionality used for EPOSS as a Service that existed prior to
the introduction of Network Banking. Such reconciliation functionality shall ensure that all
Banking Transactions (reflected in C1 Confirmations) are included in the Cash Account,
but shall not identify erroneous Cash Account mappings which cause such Banking
Transactions to be included in the wrong line of the Cash Account, or non-Banking
Transactions to be included in Cash Account lines intended for Banking Transactions
Reconciliation to the Cash Account described in this paragraph 3.1.4 will be performed
after the electronic Cash Account is produced, which will be an indeterminate time after the
Transactions have been settled (in the same manner as for Services that existed prior to the
introduction of Network Banking .

3.1.5 Branching data-flows

(a) The Reconciliation System shall enable reconciliation of Financial Transactions
arriving at the DRSH from the following three sources:

(i) the Confirmation Agent (i.e. the Cl Confirmations received by the
Confirmation Agent from the Counter Position);

(ii) the Alliance and Leicester, LINK and CAPO Interfaces (i.e. D
Messages and C4 Confirmations), and

(iii) the TPS Host (i.e. the C1 Confirmations harvested by the TPS Agent )

which reconciliation shall be reported by in accordance with the CCD entitled
“Network Banking End to End Reconciliation Reporting” (CS/SPE/011).

In the event that a CO Confirmation is sent to Alliance and Leicester, LINK and
CAPO the relevant C1 Confirmation will indicate that a CO Confirmation has been
generated.

(b) The Reconciliation System shall monitor the Financial Transactions and report
Banking Transaction states which are:

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©Copyright Fujitsu Services Limited 2004
FUJ00001921

FUJ00001921
Fujitsu Services Network Banking Data Reconciliation Service Ref: CS/SER/018
Version: 2.0
Company-in-Confidence Date: 11-JAN-2005
(i) intrinsically anomalous, in that their occurrence implies malfunction in

3.1.6

End to End Banking; or

(ii) anomalous in that an expected state has persisted for an unexpected
duration (e.g. where Cl Confirmations are received from the Confirmation
Agent and C4 Confirmations are received from Alliance and Leicester, LINK
or CAPO but the Confirmation from the TPS Host has not been received after
an abnormal delay),

identifying any such anomalous Banking Transaction states which require human
analysis for resolution.

(c) The expected Banking Transaction states and Banking Transaction states
which constitute exceptions are those set out in the CCD entitled “Network
Banking End to End Reconciliation Reporting” (CS/SPE/011).

(d) The Data Reconciliation Service shall not produce reports which relate
Banking Transactions included in Cash Accounts to Banking Transactions included
in the Transaction files sent by the TPS Host to TIP, as these shall be covered by
the reconciliation reporting and processes used for EPOSS (as a Service that
existed prior to the introduction of Network Banking ) and for TIP.

Complete processing

(a) The Reconciliation System shall:

(i) ensure that all data received by it are processed;

(ii) check for completeness of Financial Transactions; and

(iii) report exceptions/anomalies for resolution as described in paragraphs
3.1.5 (b) and 3.1.5 (c) of this

(b) The Reconciliation System shall not regard a Banking Transaction as complete
until reported as such in accordance with the CCD entitled “Network Banking End
to End Reconciliation Reporting” (CS/SPE/011).

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FUJ00001921
FUJ00001921

Fujitsu Services Network Banking Data Reconciliation Service Ref: CS/SER/018

3.2

3.2.1

3.2.2

3.2.3

3.2.4

Version: 2.0
Company-in-Confidence Date: 11-JAN-2005

Reconciliation and Settlement Reporting

The Reconciliation System shall transmit to the TIP Gateway the reports described in
the CCD entitled “Network Banking End to End Reconciliation Reporting”
(CS/SPE/011)) at intervals set out in that CCD.

Widespread Errors (as referred to in the CCD entitled “Network Banking
Reconciliation & Incident Management” (NB/PRO/002)) shall be dealt with in
accordance with the provisions of that CCD.

shall use reasonable endeavours to resolve all exceptions in each of the following
categories within 5 MSU Days:

(a) Priority Exceptions to which the Service Level Targets set out in Schedule 15
do not apply

(b) all other exceptions in any of the system state categories set out in the CCD
entitled “Network Banking End to End Reconciliation Reporting” (CS/SPE/011).
For the purposes of paragraph 3.2.2 of this , the resolution time for:

(a) Priority Exceptions shall be measured by in accordance with Schedule 15

(b) all other exceptions shall be measured in accordance with the CCD entitled

“Network Banking Reconciliation and Incident Management” (NB/PRO/002).

shall report on a monthly basis (in the Working Document entitled “Service
Review Book” its performance against the 5 MSU Day target referred to in
paragraph 3.2.2 of this CCD.

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