POL00003060 - Post Office Limited Process Documentation - Branch Correction Process. Version 2.0. Doc is not dated.

Evidence on official site

Wests

@

Post Office Limited

Process documentation

Branch Correction Process (TCs)

POL00003060
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Contents

1. BACK QFOUNG 0... eeeseeeseeescsescsesceeececececececscscececscacscscecscesesieceassceeserssesssersnssausvasscseaevasesaseacscacesasscacasecacscacecececececesaceeesesecessseeesasseeesueceesseeeresseeeececaeacaresereeee! 4

1.2 Systems

1.3 Key contacts

. Policy...

2
3. Documentation Governanc:
4. Key to process flOW ...........ceceeecccescseseeesesesescsescseecevececacacscecacecacecseacesscacacacasececesececacesieacececessceeesescnessesesesseeecevececeeecenesaeecaneseeeeeceseeaeecesesieasesitisseseneeeeseseeeedl 6

5. Abbreviations.

6.3 Automated Payments
6.4 BUREAU & CASH REMS FROM BRANCH
6.5 CAMELOT

6.6 Cheques to IPSL ooo... eeesecececececesesecesesesesssessecseesaeecacscseeescseseacsesesessecscseacecscessaneessasesssecesassnessuasseavaeececacecacecseecanecaeacseacseseacacesaceeseaseeseeseeeenseeeeeseeneeseeeeeed 37
6.7 Debit Cards oes cecceceeceecseseeseesessessnesessesressessesssessesssneeseessenssrseussussussassussessssessussessesseesseseesesssesssnseissueessussissessnssessessessiseeeeeeseeieseeeeseieeetseeeeeeeesaeeee A
6.8 DROP & GO... eeceececccecs cess esseeeseeesessneessnesnsesnsrssssssisssnsssesssessissimeensesesssessnassuserastsesssessisrsttsnntsesssastinsristsasssestiostieseaeesnsssusesaseseseasssssssnsssesesessneesesenntea’ 49
6.9 DVLA

6.10 FIRST RATE — TRAVEL MONEY CARD ........cccccscsessesseeseesessessesseensessssensesueaveesssisssesscsussessisssessssesssaneenecsssussisauessscussnsisseassssnenisiessecneaseeneesseseaneenees 58
6.11 GOVERNMENT SERVICES .
6.12 MONEYGRAM .

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6.14 PAYSTATION...........cccscsssesseseessessesussusssssssssssussusssssscsssueesesssessssssussseenseussusssssussussussussssssssssssssesseesssseesssusenseissussussussuseussussussessessesseesesssesesseaueeneeseeneaneeeeee 76
6.16 POSTAL ORDER ..0....scscecseseesseeeessesneseseessssssucsecseensseesecssenessssussseensesssuessssussssenssissessssussessesisesssseeseateenseiseisesssussussussnsssseeessessnenusssesesseaseeneeseeseaneeneed 86
6.18 SANTANDER ONLINE BANKING
6.19 STOCK NON REM...
6.20 SUSPENSE......
6.21 UNPAID CHEQUES

APPROVED BY: (TITLE & DEPT.) XXXXXXXXXAXXXX, Sponsor
Alison Bolsover Process Owner
Kay Wilson Process Owner

VERSION 2.0

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1. Background

This document provides a high level summary of the end to end Branch Correction process (Transaction Corrections) process and controls at Post
Office Limited (‘POL’).
For all sub processes noted below, underlying processes and controls have been documented.

The Branch Correction process includes the following sub-processes:

B Corrections Products (Sub-Processes)

6.1 ATM

6.2 ATM Retracts

6.3 Automated Payments

6.4 Bureau & Cash Rems from Branch
6.5 Camelot

6.6 Cheques to IPSL

6.7 Debit Cards

68 Drop & Go

6.9 DVLA

6.10 First Rate

6.11 Government Services

6.12 MoneyGram
6.13 Online Banking
6.14 Pay Station

6.15 Personal Banking
6.16 Postal Orders

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6.17

Bra

Pre-Order

h Corrections Products (Sub-Processes)

6.18

Santander Online Banking

6.19

Stock - Non Rem

6.20

Suspense

6.21

Unpaid Cheques

6.22

Appendices

All products above relate to Post Office Limited (company number 1000)

Each of the sub-processes is supported by:

a Flowchart - This outlines a high level end-to-end flow of transactions, the process and control steps within the process

a Narrative - Details the flow chart and allows the reader to better understand the who, how, why, what and when of the process
« Risk and Controls Matrix — A tracker collating all the main risks and controls identified through the process mapping exercise
= Remediation tracker — A collation of the control gaps identified and remediation plans

1.2 Systems

Key systems used in the Record to Report process are:

a POLSAP is a SAP-based bespoke front end financial accounting system that maintains transactional data for Post Office Limited.
a CFS is a SAP-based reporting tool that allows Post Office Limited to carry out Management Reporting and Financial Reporting

Other Systems

a Credence — Software used by the branch network to measure and manage transaction information

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= Horizon — Software used by the branch network to account for branch transactions
a Microsoft Office — Office suite (Microsoft Excel) is used to maintain reconciliations and calculations

1.3 Key contacts

Dave Carter- Financial Controller, Process Sponsor

Phil Birds - FSC Head of Accounting and Reporting, Process Owner
Danielle Goddard — Financial Accounting and Governance Manager

2. Policy

Please refer to POL GAAP on intranet.

3. Documentation Governance

Insert link to governance of documentation. - TBC by POL

4. Key to process flow
I Flowehiart Symibor escription
cc Process
oO Decision Point
CO System/Database

Peay

Off-page Connector

‘On-page Connector

Controls

5. Abbreviations

Abbr Description
POL Post Office Limited

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POMS Post Office Management Services Limited
FRES First Rate Exchange Services Limited

GL General Ledger

CFS Core Finance System

RMG The Royal Mail Group

MDT Master Data Team

FSR Financial Services Representative
TC Transactional Correction
HR Human Resources

6. Transaction Corrections GL codes

The Probity reconciliation process covers all balance sheet accounts associated with TCs, however responsibilities of balance sheet reconciliations
and analytics is spread across various teams within the Branch Correction processes. Every product is associated with a GL account or range of GL
accounts and at Month End these are subject to Probity Reconciliation who are reviewed by team lead and operations managers to ensure accuracy.
Completeness is ensured via the Record to Report team who as per Closing timetable ensures all GL accounts have been reconciled and sample
checks a set of accounts each month.

Issuing of a cash TC (can be Dr or CR)

531210 I Agents TCs Outstanding

629310 I Outstanding Transaction Corrections TC

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AA, SA, ZZ,
DG, DR,

532110 I Site Cust Rec Acc BD, TX, RV
628XXX I ETLIDOC Control Account KH, RV

Issuing of a Stock TC

531210 I Agents TCs Outstanding

Outstanding Non Accounting Transaction
629320 I Correction TC

Cash TC brought to account in branch

531210 I Agents TCs Outstanding

TR

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629310 I Outstanding Transaction Corrections TR
AA, SA, ZZ,
DG, DR,
532110 I Site Cust Rec Acc BD, TX, RV
628XXX I ETLIDOC Control Account KH, RV
551100 I Physical Cash Balance RV

Stock TC brought to account

531210 I Agents TCs Outstanding Tc
Outstanding Non Accounting Transaction
629320 I Correction TC

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6.1 ATM

Background

Process covers discrepancies between Branch and Client banks as per above. Normally approx. 10 weeks behind.
High value TC’s must be issued within 90 days, as CREDENCE only keeps the breakdown for 90 days.
ATM

© Bank of Ireland (daily)

¢ —YourCash (daily)

¢ Note Machine (weekly)

e TRMB (settlement do upload)

Glossary of Control Owners

Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

6.1.1 ATM - Process Flow

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6.1.2 ATM — Process Narrative

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Activity ATM Link to

desk
procedure

Chronological steps in the process:

1. Bank of Ireland e.mails ATM team all transactions dispensed from ATM machine belonging to Bank of Ireland (this is ATM machines physically
located inside the Branch) (the report covers from 16:30 to 16:30 following day) (reports shows total dispense per ATM machine identified via
Merchant ID )

2. Upload report into POLSAP (ATM team)

3. Branch runs ATM report (16:30) and manually keys into HORIZON the 16:30 figure from the ATM report

4, Check G/L account 627047 “Post Office ATM matching”, should ideally balance to zero each day

5. Investigate any open items (in POLSAP transactions with RED.

6. Run CREDENCE report in order to get the breakdown of HORIZON entries.

7. \ssue TC (<=GBP 10,000 - >10,000 fill in high value forms and signed by LM (up to 250,00) >250,000 senior LM)

8. If TC > 1,000 send enquiry form to Branch explaining the Branch error and turnaround time for Branch to correct in HORIZON is 10 WD

9. If Branch corrects in HORIZON this will then clear in POLSAP.

10. If Branch do not correct in HORIZON an issue a TC

11. If by any chance both POL and BRANCH corrects, then POL will issue a compensating TC the following day

12. Evidence of HORIZON entries are download to excel and save on desk top

13. At month end do the reconciliation and probity (justifying the balance) Reconciliation of 627047 and 627046 (Settlement matching account)
and save on Sharepoint and team lead reviews and signs and send to 2" senior manager for their review.

6.1.3 ATM — Risk & Controls

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-actively.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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Controls): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control 'A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

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6.2 ATM Retracts

Background
ATM (PostOffice + Bank of Ireland machines) retracts the cash that is being dispensed by customer back into the machines. This is due to “time out”, if the
physical cash is not taken within 59 seconds the ATM retracts the money and put in a “retract” tray within the machine. Customer account has been debited.

If there are communication failures on the machine, it can also happen that cash is never dispensed, however the customer account has been debited. A
surplus can also consist of a combination of retracts and communication failures etc.

Bank of Ireland normally refunds customer within 3-5 WD.

Glossary of Control Owners

Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.2.1 ATM Retracts — Process Flow

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CREDENCE

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6.2.2 ATM Retracts — Process Narrative

Activity - ATM Retracts Link to

desk
procedure

(Chronological steps in the process:
1. Customer requests cash, however machine retracts the money (if cash is not taken within 59 seconds) / or money never comes out of the machine at all
due to e.g. “communication error”, machine jammed etc. etc. (Customer)
2. Raise enquiry with own bank or Branch (Customer)
3. Bank of Ireland automatically get alerted of re-tracts (via Link) (Bank of Ireland)
4. PostMaster should notice same day a £ surplus in their re-tract box and declare in HORIZON (Branch)
5. PostMaster does weekly balance and any re-tract should show as a surplus, (Branch)
6. Scan the “weekly balance” in HORIZON through APADC, (Branch)
7. Log into CREDENCE and run report “weekly balance sheet” and download to excel, (Camelot, Debit Card & ATM Team)
8. Filter on “surplus” and verify in POLSAP if the Branch has declared the surplus , (Camelot, Debit Card & ATM Team)
9. If “surplus” declared = End (POLSAP will balance)
10. If not declared —issue TC, (Camelot, Debit Card & ATM Team)
11. Gather all TC’s in auto TC spreadsheet and weekly upload to POLSAP (normally on Fridays), (Camelot, Debit Card & ATM Team)
12. Branch accepts the TC in HORIZON, (acceptance of the TC replaces the “declare”) (Branch)
13. Weekly e.mail “refund file” to Camelot, Debit Card & ATM Team (sent to individuals in the team and not a team box), (Bank of Ireland)
14, Upload Bank of Ireland “refund file” directly in POLSAP, (Camelot, Debit Card & ATM Team)
15. Run report “POL FS Automatic matching” in POLSAP for applicable period, (Camelot, Debit Card & ATM Team)
16. Check any remaining open items G/L acc. display 627077 and investigate, (Camelot, Debit Card & ATM Team)
17. Issue aTC as a resolution and where necessarily utilise Acc. 626206 “creditor holding acc.” in order to balance, (Camelot, Debit Card & ATM Team)
18. Probity and account reconciliation monthly, (Camelot, Debit Card & ATM Team)

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6.2.3 ATM Retracts — Risk & Controls

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Retracts

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‘ontrol(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B conrons C4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control 'A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310' as
evidence of review.”

6.3 Automated Payments

Background

Customer pays a bar coded bill or swipe card to pay a utility bill, council, tax, rent etc. Responding to queries being raised etc.

A dedicated team member updates the “Enquiries spreadsheet”, the log has macros for SLA and turnaround times.

Glossary of Control Owners

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Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

6.3.1 Automated Payments — Process Flow

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6.3.2 Automated Payments — Process Narrative

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Activity - Automated Payments Link to

desk
procedure

Chronological steps in the process:
1. Receive enquiry from NBSC/Customer care/Client(s) (AP9 form) (via AP enquiry mailbox) (Automated Payments Enquiry Team)

Log query into “Enquiries spreadsheet”, (Automated Payments Enquiry Team)

Move Query from AP enquiry inbox to relevant subfolder, (Automated Payments Enquiry Team)

Investigate and establish nature of error, check in CREDENCE/BANK TECH, (Automated Payments Enquiry Team)

Where required request further information/documentation from Client, (Automated Payments Enquiry Team)

Update any AP9 form and return to client and fill in form “POL/CLIENT incident report” (Overpayment / Underpayment) (all form have

incident number), system generated incident number and add own initial and (A=TC, E=Internal adjustment,) (Automated Payments Enquiry

Team)

7. Update log “Enquiries spreadsheet” with Status (1=Require pre-approval from “re-sellers”, 2=Sent to Settlement, 3=Completed (form
received back from Settlement and TC issued where required)

8. Print 3 hardcopies, keep 1 and file, 2 copies to settlement team in-tray, (Automated Payments Enquiry Team)

9. Receive 1 signed and dated copy back from Settlement team (they have actioned what was on the form), (Automated Payments Enquiry
Team)

10. File signed copy from Settlement team in team folder, (Automated Payments Enquiry Team)

11. Determine next step: a)No action and file, b)Action with TC

12. Where applicable issue TC in POLSAP with ref number=Incident number

13. Branch accept TC

14. End

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6.3.3 Automated Payments — Risk & Controls

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Risk & Control Automated Payments

Bcontrovs C4,9.a.11-16 (same control, however assigned to 6 different Team Managers)
Risk: Workload and peaks are not monitored resulting in build up of back log.
Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.
Frequency: Monthly
Control owner: FSC Team Manager(s)
Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310".
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

Link to
desk
procedure

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6.4 BUREAU & CASH REMS FROM BRANCH

I Background

‘Cash rems from branch (POLSAP G/L acc. 553002 Cash in transit-notes and coin collect from branches)

Cash Control team

Purpose of process: (please fill in a paragraph)

The overall purpose is to send physical cash from Branch to central Postoffice as a Branch should only have a certain amount of cash in the Branch.

Glossary of Control Owners

Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.4.1 BUREAU — Process Flow

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6.4.2 BUREAU — Process Narrative
Activity - BUREAU Link to

desk
procedure

(Chronological steps in the process:

1. Branch bundles up cash in POUCHES for shipment to Post Office cash centre (Branch)

2. Enter POUCH into Horizon, POUCH number identifies the POUCH (POLSAP=ASSIGMENT) (Branch)

3. CVIT picks up the POUCH and scan and delivers to cash centre. (Courier CVIT)

4. Processing in Cash Centre — (via surveillance cameras) — match up in POLSAP by POUCH number (POLSAP will reflect the 40 trans. Coming from
Horizon and Cash centre match this per assignment with a 50 entry in POLSAP) (Cash Processing Centre)

5. To investigate what is outstanding run report GL Open Item Ageing Report (no variant) (classified as aged if > 3 months old, however the reportI
shows all periods. (Cash Control Team)

6. Select from Ageing report own item as per Branch Code and run report GL Acc Line Item Display (Cash Control Team)

7. Run report in POLSAP GL Acc Line Item Display with variant. (Cash Control team)

8. Investigate and error resolution : (Cash Control Team)

a. Resolution can be resolved within Cash Control Team
b. Resolution needs a Transaction Correction to the Branch (TC issued from Cash Control Team)

9. Where applicable TC is issued in POLSAP (Cash Contro/ Team)

10. Branch picks up the TC in Horizon and Accepts or Rejects (Branch)

11. Branch accepts in HORIZON and this triggers the 50 transaction in POLSAP (Branch)

12. Next day the error transaction will disappear from GL Open Item Ageing Report (System)

13. If rejected error resolution and where applicable escalation etc. resulting in acceptance. (Cash Control Team)

14. Ona monthly basis (usually at month end) perform a probity (balance sheet showing all outstanding for the period) and reconciliation
(breakdown, account specification with explanations) and this is being sent to Line Manager Dawn Wall who checks, keeps and files. (Cash
Control Team Lead)

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6.4.3 BUREAU — Risk & Controls

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Risk & Control BUREAU & CASH REMS FROM BRANCH

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Link to
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‘ontrol(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B conrons C4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control 'A/C 629310.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

6.5 CAMELOT

Background

item reports are generated from Camelot system and TC's are issued to rectify any open item.

Lottery tickets - 3 accounts: Cash prices (manual), Online sales (automated) (Lottery), Scratch card activation (automated)

Branch divided into groups A B C D (each group represents roughly 4000 branches)

‘Camelot is the Lottery process and it shows what has been paid out in prizes and the reconciliation between Camelot system and HORIZON — POLSAP. Daily open

of Control Owners

Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.5.1 CAMELOT — Process Flow

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POLSAP

6.5.2 CAMELOT — Process Narrative

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(Chronological steps in the process:
I1. Camelot sends report SRC (contains volumes of sales, prizes etc.) to PostOffice (check who in Postoffice receive this report??) (CAMELOT)
2. PostOffice uploads report SRC into CREDENCE (PostOffice which team?)
3. CREDENCE interface to POLSAP (CREDENCE)
4. POLSAP interface HORIZON (POLSAP)
5. One G/L account 627012 — contains prizes (POLSAP)
6. Choose group of Branches (A, B, C, D) where each group represents roughly 4000 branches (Lottery team)
7, Each morning retrieve the CAMELOT file and rename to : CAMdd.mm.yy in POLSAP (Lottery team)
8. Weekly rename the CAMdd.mm.yy files for TC issue — rename to TE OPEN (the TE OPEN contains the total of all errors across all groups (A B C D)
(Lottery team)
9. Run POLSAP G/L Acc Line Item with variant “SALES PRIZE”, (Lottery team)
I10. Download report to Excel — report shows FAD code for Branch and total amount of errors associated with the Branch, (Lottery team)
\14. For each group (ABCD) rename the TE OPEN to “6yyyy/mm/dd/P X (P=period) (X=group) (POLSAP), this splits the TE OPEN file as per step 8 into
individual errors per group (A B C D), (Lottery team)
I12. For each group (ABCD) rename the HORIZON file in POLSAP to “6yyyy/mm/dd/P X (P=period) (X=group) this splits the HORIZON file into individual
errors per group (A B C D), (Lottery team)
a) Knut: how do you identify the total TE open into groups? Its via Branch lookup, where each Branch is identified as group A BC or D.
b) Knut: How do you identify the HORIZON file to be renamed? (search in POLSAP for file “TE OPEN” and a date range of Month month.)
(13. Does POLSAP do any automatic matching within the file as it now has identical file names originating from 2 sources (HORIZON and POLSAP) (No
matching, however POLSAP now gives the total open per Branch, etc. Credits from CAMELOT postings and Debits from HORIZON.
44. Anything less than 1 GBP (Deb/cr.) no TC is issued, (Lottery team)
a) Knut: How are amounts less than £1 being written off?
(45. Select from spreadsheet amounts over GBP 300, (Lottery team)
a) Knut: Is that just the priority? Cheque value starts normally at GBP300
(16. Type in FAD code into POLSAP G/L acc display to bring up the total error, (Lottery team)
47. Identify error (open item) in Trading period
118. Fillin template for TCs (spreadsheet “Group x period yyyy” (stored on Sharepoint)
149. TCs are issued monthly per Branch (per Group), working on a group per week so each group is covered during the month.
20. POLSAP screen “automatic TC correction” — meaning POLSAP uploads from TC template and posts automatically all TC’s that has been filled.
23. Run first in Test run
22. When test run is successful — run in normal mode

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23. TCs issued in POLSAP

124. Transaction posts in “Lottery Stock Unit”, GL acc 629310 (Outstanding Transaction Corrections) Debit in Stock Unit OoH (Out of Hours) money in to
Stock Unit, Credit paying money back to Branch (no physical transfer of money is happening between POL and Branch)

25.

6.5.3 CAMELOT (Other) — Process Flow

Background
Main purpose of this process is to monitor the below G/L accounts and keep Open items to a minimum. Any Open item > 90 days is considered aged. In POLSAP
the matching is compared between the uploaded CAMELOT file and CREDENCE (via Interface to POLSAP) and data source coming from HORIZON

1. G/L acc: 627016 (CAMELOT Online Sales Matching), (Pinged into HORIZON automatically )
2. G/L acc: 627011 (CAMELOT Scratch card activation acc.) (Pinged into HORIZON automatically)
3. G/L acc: 627012 (CAMELOT Prizes) (Manual into HORIZON)
4. _G/Lacc. 622046 (CAMELOT Barclay Cheques) (manual into HORIZON) prizes, max £500 in Cash and rest in Barclay cheque)
Glossary of Control Owners
Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.5.4 CAMELOT (Other) — Process Narrative

Activity - CAMELOT (Other)

‘hronological steps in the process:
Customer buys/checks winning ticket lottery via “Lottery terminal” (Branch)
2. Transaction is recorded on Lottery terminal as a sale in CAMELOT
. Lottery terminal “PINGS” automatically to HORIZON G/L 1 & 2, whereas 3 & 4 is entered manually)
4. Upload daily file from CAMELOT to CREDENCE (ACCENTURE? ?)
. Interface to POLSAP with daily total, (POLSAP)
6. Check open items G/L Acc. Line Item display in acc. 627016, 627011, 627012 (Camelot team)
Investigate open items (aged > 90 days) (POLSAP compare CAMELOT data vs. HORIZON), (Camelot team)
8. Issue resolution — either raise a TC or correct without TC

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6.5.5 CAMELOT — Risk & Controls

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Risk & Control

CAMEL!

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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Controls): C4.9.a.18

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.
Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629320 "Outstanding non
Accounting Trans Corrections'. All issued TC’s related to "Volume" are also posted on Control account 'A/C 629320 ‘ to enable overall monitoring, and an e.mail
reminder is sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action against each
open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control 'A/C 629320'.

Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629320! as

evidence of review.”

6.6 Cheques to IPSL

Background

Cheques paid in to the Branch are being sent to iPSL for processing. The principle of this process is to balance entries from Horizon with the upload file coming
rom iPSL. In POLSAP the 40 entry comes from HORIZON and 50 entry is the upload file (physical cheque).

Job Title
FSC Operations Manager

Gillian Hoyland

FSC Operations Manager

Paul Smith

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6.6.1 Cheques to IPSL — Process Flow

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Cheque and MoneyGram team

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6.6.2 Cheques to IPSL — Process Narrative

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heques to IP:

Link to desk
procedure

(Chronological steps in the process:

‘Cheque and MoneyGram team)

1. Customer writes cheque to pay e.g. utility bill (bulk cheques) and pays via Post Office (Customer)

Post Office scan in bill and enters into Horizon (amount, method of payment (Cash, Cheque, debit card etc.) customer etc.) (Branch)
Post master balance the days taking, and sends cheques for the day to iPSL for processing (Branch)

iPSL scans the cheques and uploads the file into POLSAP.
Checks that POLSAP balance between the 2 data sets (40 entry comes from HORIZON and 50 entry is the upload file (physical cheque)!
(Cheque and MoneyGram team)
Works on a 14 days in arear situation (bounced cheques are dealt with Nikki’s team) (Cheque and MoneyGram team)

Run report from POLSAP — “Open Item Errors” and checks per Office code and date (Cheque and MoneyGram team)

Investigates error and determine resolution, (Cheque and MoneyGram team)
Correction without TC, (Cheque and MoneyGram team)
10. Or raise TC to Branch, (Cheque and MoneyGram team)
11. Once a week, runs an aged report to check no ageing of balances. (Cheque and MoneyGram team, Team Lead)

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6.6.3 Cheques to IPSL — Risk & Controls

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Risk & Control

Cheques to IPSL

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

6.7 Debit Cards

Background
Reconcile debit card accounts for all products/services either in a Branch or Online web services (top up a Drop & Go card). Majority of TCs are issued to
refund money directly to Customers card (that was used for payment). Requests for refunds would normally come via e.mail from NBSC.

GL Acc. — Bureau (555079), Retail (555078), Online Drop&Go (555083), Paystation (555080), Self Service Kiosk (555095), AMEX Bureau (555085), AMEX Retail
555084)

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Job Title

FSC Operations Manager

Glossary of Control Owners

Gillian Hoyland

Cc

Owner

FSC Operations Manager

Paul Smith

FSC Team Manager

Andrea M Green

6.7.1 Debit Cards — Process Flow

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Branch Global Pay Customer Bg

HORZON

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PO.SAP

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6.7.2 Debit Cards — Narrative

Activity - Debit Cards

nk to desk
procedure

(Chronological steps in the process:

Debit Card Team
1. Customer uses a debit/credit card in a Branch to pay for a service/product (Customer)

Branch enters transaction into HORIZON (Branch)

HORIZON interface to CREDENCE & POLSAP (HORIZON)

Global Pay process card payments and send file through FUJITSU/ACCENTURE, (Global Pay)

Daily uploads file into POLSAP (FUJITSU/ACCENTURE)

Weekly Sweep file for all GL accounts in POLSAP that match (FUJITSU/ACCENTURE)

Run GL Acc LI Display for GL acc, and investigate Open item (majority of POLSAP can be resolved without TC) (Debit Card Team)

Requests for refunds — receive e.mail request for refund from NBSC (Call Centre - Helpline etc.) (NBSC)

Determine product and how the Branch has accounted for the transaction (e.g. reversal, cancellation, duplicates etc. etc.) (Debit

Card Team)

10. Based on type of error (as in 8 above) determine whether or not to issue a TC (Debit Card Team)

11. No TC Issued — resolution within FSC (Debit Card Team)

12. Issue TC in POLSAP — screen “Enter Outgoing Invoices” and fill in Branch, customer, date etc. (Debit Card Team)

13. POLSAP interface to HORIZON — Branch has pending TC — Accepts TC, (POLSAP)

14. Same day as Issuing TC — request Global Pay (fill in spreadsheet “Refund Request Form” in order to refund the card (that was used for
the transaction) (Debit Card Team)

15. Encrypt spreadsheet and e.mail to Global Pay. (Debit Card Team)

PONAAAWHN

16. Global Pay reviews request form and query (e.mail) if required, otherwise action the refund (Global Pay)
17. Global Pay payment file is reflected (interface into POLSAP) (POLSAP)
18. Branch accepts the TC in HORIZON and via Interface to POLSAP (Branch)

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6.7.3 Debit Cards — Risk & Controls

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Debit Cards

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

ontrol(s): C4.9.a.1

Risk: Erroneous or unauthorised card refunds to customer resulting in fraud or misstatement.

Control objective: To ensure that all requests for card refunds to customer are checked and documented.

Frequency: weekly

Control owner: FSC Team Manager

Control description: “To ensure that all requests for card refunds to customer are checked, documented and authorised, the Camelot, Debit Cards & ATM Team
Leader verifies on a weekly basis that all refund requests as per log “Refund Request Form” are supported, documented and authorised in the “Request Sheet”.
The Camelot, Debit Cards & ATM Team Leader queries where applicable with the Camelot, Debit Cards & ATM Team and dates, signs and retain as evidence of
review.”

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Bh contro 4.9.2.8

Risk: SLA's are not met resulting in penalty and/or incurred loss to POL and/or reputational damage

Control objective: To ensure that all SLA's between POL and third party are met.

Frequency: weekly

Control owner: FSC Team Manager

Control description: “To ensure timely responses to Global Pay all queries are logged in respective spreadsheet logs per product with date of received and

responded to Global Pay and stored on Sharepoint with restricted access. Queries from Global Pay to POL are subject to a SLA of 10 Business days response time.

To prevent any queries from Global Pay falling outside the SLA timeframe, the FSC Team Manager monitors on a weekly basis the log for timely response times
and dates, signs and files as evidence in spreadsheet ‘Debit Cards Conformance’ and stores in Sharepoint link
https://poluk.sharepoint.com/sites/A1013/PBankCamelot/DCProduct/Forms/Allltems.aspx”

B contro 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

Controls): C4.9.a.17
Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

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Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

6.8 DROP & GO

Background
Drop and Go is a service where one apply for a D&G card (up to GBP 750) to be used for postage. This service is specially geared towards e.g. e.bay sellers etc. who

ave frequent parcels to ship. They don’t need waiting in a queue and can drop off parcels quickly.

‘ol Owl

Glossary of Co Ss

lob Title
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.8.1 Drop & Go — Process Flow

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6.8.2 Drop & Go — Narrative

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Link to desk
procedure

(Chronological steps in the process:
‘Cheque and MoneyGram team)
Part of APOP (Automated Payments Out Payment) team
[Drop and Go is a service where one apply for a D&G card (up to GBP 750) to be used for postage. This service is specially geared towards e.g.
e.bay sellers etc. who have frequent parcels to ship. They don’t need waiting in a queue and can drop off parcels quickly.
ICREDENCE shows all transactions that has happened in HORIZON
1. Customer applies/sets up an account with CDP (Accenture supported system) (where transactions are recorded and balances held)
(Customer)
The branch scans the parcel labels and enters into HORIZON (postage paid) (Branch)
Branch process the postage payment part via the D&G card which debits the card balance (Branch)
Accenture sends daily “daily pending Closure Report” sitting on QUATRIX system (Accenture)
D&G team logs on to QUATRIX system and download daily reports to excel (Drop & Go team)
Unblock all cards on report in CDP system (D&G team) (Drop & Go team)
Check the transaction in CREDENCE using a) Office code, b) date, to identify the amount of the error (Drop & Go team)
Enter into CDP system and double check that the payment has not gone out (Drop & Go team)
Issue a credit TC (in POLSAP) to the Branch and debits the customer drop and go card (Drop & Go team)
10. The branch will see the TC in HORIZON next day and need to accept in order to clear transaction. (Branch)

penanawn

[Each day all items are resolved.

6.8.3 Drop & Go — Risk & Controls

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Risk & Control

Drop & Go

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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Control(s): C4.9.a.17
Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

6.9 DVLA

Background
‘ehicle tax payments to DVLA.

Glossary of Control Owners
Title Control Owner
FSC Team Manager Tracy Middleton
FSC Team Manager Dawn Phillips

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6.9.1 DVLA — Process Flow

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CREDENCE/
Bank TECH

POLSAP

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6.9.2 DVLA — Narrative

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ink to desk
procedure

(Chronological steps in the process:

Receive enquiry from NBSC/Customer care/client (AP9 form) (DVLA) (via AP enquiry inbox) (Automated Payments Enquiry Team)

Log query into “Enquiries spreadsheet”, (Automated Payments Enquiry Team)

Move Query from AP enquiry inbox to relevant subfolder, (Automated Payments Enquiry Team)

Investigate and establish nature of error, check in CREDENCE/BANK TECH, (Automated Payments Enquiry Team)

Where required request further information/documentation from Client, (Automated Payments Enquiry Team)

Update any AP9 form and return to client and fill in form “POL/CLIENT incident report” (Overpayment / Underpayment) (all form

have incident number), system generated incident number and add own initial and (A=TC, E=Internal adjustment,) (Automated

Payments Enquiry Team)

7. Update log “Enquiries spreadsheet” with Status (1=Require pre-approval from “re-sellers”, 2=Sent to Settlement, 3=Completed (form
received back from Settlement and TC issued where required)

8. E.mail “POL/CLIENT incident report” to Settlement team and DVLA and print 1 hardcopy for own filing, (Automated Payments
Enquiry Team)

9. Receive 1 signed and dated hard copy back from Settlement team (they have actioned what was on the form), (Automated Payments.
Enquiry Team)

10. File signed hard copy from Settlement team in team folder, (Automated Payments Enquiry Team)

11. Determine next step: a)No action and file, b)Action with TC

12. Where applicable issue TC in POLSAP with ref number=Incident number

13. Branch accept TC

14. End

Sy PpuUnrp

6.9.3 DVLA — Risk & Controls

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Risk & Control DVLA

Bcontrovs C4,9.a.11-16 (same control, however assigned to 6 different Team Managers)
Risk: Workload and peaks are not monitored resulting in build up of back log.
Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.
Frequency: Monthly
Control owner: FSC Team Manager(s)
Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > S weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310".
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

Link to
desk
procedure

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6.10 FIRST RATE — TRAVEL MONEY CARD

Background
Travel money card is a card where you can load money on the card and use e.g. abroad. (Multi-currency card, e.g. can put multiple currencies on it). There are no
day to day involvement from the team, only via queries from First Rate, Branch etc.

Glossary of Co I Owner:

Job
FSC Team Manager Tracy Middleton
FSC Team Manager Dawn Phillips

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6.10.1 First Rate Travel Money Card— Process Flow

‘TC. First Rate — Travel Money Card
Sei Tavel Money ecopt TC
card to Customer ecole proposed
‘seton/sdise

Teiewed Terceegted

Trterface Tawlce

QS Teissued i
Record of V TeAcconted
transaction Emad Fiat Rateor Branch t

Email First Rateor Beanch

Cres fanepee cea
Vall / approved
‘Authonty mat tc

Ly 29310 ca

~

a8 nal aon T u
No I I
I
Waveduey tom Gonsiete e
tog anyine I [Nevecwertom I [ imerteneant I [coum oropeea coca i
Receveencuiry -—} "Enauties fy [3 exabish tare of Ly acvon wen rt sory LY tauete
somashot Travel Moray Cart wor ratfbrsch econ

*
Return Settlement sheet

Interface

is}
&
8
5

Team

Tasais
Send Settlement sheet weekly FSC Team
t Manager meoting

Receive acts to
debiverelt First
Rate

Settlement Automated Payments Enquiry
team

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6.10

Ac!

.2 First Rate Travel Money Card — Process Narrative

irst Rate

Chronological steps in the process:

1.

Cernauawy

10.

12.
13.
14,
15.
16.

Customer buys Travel Money Card from branch

Branch input into Horizon......... (Branch)

Upload file to CREDENCE (Accenture)

Receive enquiry from First rate/Branch etc. (via AP enquiry inbox) (Automated Payments Enquiry Team)
Log query into “Enquiries spreadsheet”, (Automated Payments Enquiry Team)

Move Query from AP enquiry inbox to Travel Money Card folder, (Automated Payments Enquiry Team)
Investigate and establish nature of error, check in CREDENCE, (Automated Payments Enquiry Team)
Confirm proposed action with First rate/Branch (Automated Payments Enquiry Team)

Determine if TC is required (Automated Payments Enquiry Team)

. Where no TC is required — transaction seems OK and advise Frist rate/Branch (Automated Payments Enquiry Team)
11.

If TC needed complete Settlement Sheet to inform Settlement Team to debit/credit First Rate accordingly and await
signed sheet to be returned (Automated Payments Enquiry Team)

Update “Enquiries spreadsheet” , (Automated Payments Enquiry Team)

Issue TC in POLSAP (Automated Payments Enquiry Team)

Update “Enquiries spreadsheet” , (Automated Payments Enquiry Team)

Branch accept TC, (Branch)

End

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procedure

©
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6.10.3 First Rate Travel Money Card — Risk & Controls

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Risk & Control

First Rate Travel Money Card

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procedure

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B controver C4.9.a.11-16 (same control, however assigned to 6 different Team Managers)
Risk: Workload and peaks are not monitored resulting in build up of back log.
Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.
Frequency: Monthly
Control owner: FSC Team Manager(s)
Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control 'A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

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6.11 GOVERNMENT SERVICES

Background
License applications for e.g. UK border agencies, bouncers etc.

Glossary of Control Owners
Job Title Control Owner
FSC Team Manager Tracy Middleton
FSC Team Manager Dawn Phillips

6.11.1 Government Services — Process Flow

©
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Te - Government Services

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SUA Ux order Agency, VIA CREDENCE, Paspers=SQk

‘Sharepoint

‘Settlement
team

‘Team Manager
Automated
Payments

EnquiryTeam

6.11.2 Government Services — Narrative

©
LL€SLVis

(Chronological steps in the process:

1.

2.
3.
4,

aw

10.
11.
12.
13.
14.

Receive enquiry from Client (e.g. SIA, DVLA, Branch etc.) (via AP enquiry inbox) (Automated Payments Enquiry Team)

Log query into “Enquiries spreadsheet”, (Automated Payments Enquiry Team)

Move Query from AP enquiry inbox to Client/Branch folder, (Automated Payments Enquiry Team)

Investigate and establish nature of error , check in CREDENCE for (SIA, UK border Agency, DVLA renewals), (For Passport enquiries
check database SQL) (Automated Payments Enquiry Team)

Confirm proposed action with Client (If query is from Branch fill in Incident report), (Automated Payments Enquiry Team)

Fill in form -where applicable for Client- the “POL/CLIENT incident report” (Overpayment / Underpayment) (all forms have incident
number), system generated incident number and add own initial and (A=TC, E=Internal adjustment,) (Automated Payments Enquiry
Team)

Update log “Enquiries spreadsheet” with Status (1=Require pre-approval from “re-sellers”, 2=Sent to Settlement, 3=Completed (form
received back from Settlement and TC issued where required), (Automated Payments Enquiry Team)

Print 3 hardcopies, keep 1 and file, 2 copies to settlement team Intray, (Automated Payments Enquiry Team)

Receive 1 signed and dated copy back from Settlement team (they have actioned what was on the form), (Automated Payments
Enquiry Team)

File signed copy from Settlement team in team folder, (Automated Payments Enquiry Team)

Determine next step: a)No action and file (Code=E), b)Action with TC (code=A), (Automated Payments Enquiry Team)

Where applicable issue TC in POLSAP with ref number=Incident number, (Automated Payments Enquiry Team)

Branch accept TC, (Branch)

End

procedure

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6.11.

3 Government Services — Risk & Controls

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Risk & Control First Rate Travel Money Card

Bcontrovs C4,9.a.11-16 (same control, however assigned to 6 different Team Managers)
Risk: Workload and peaks are not monitored resulting in build up of back log.
Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.
Frequency: Monthly
Control owner: FSC Team Manager(s)
Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310".
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

Link to
desk
procedure

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6.12 MONEYGRAM

Background
Investigates differences between Moneygram system and Horizon system

MoneyGram transactions in POLSAP are identified with doc type KC whereas Horizon transactions in POLSAP are identified with doc type RV. The team also
receives a breakdown of Horizon and MoneyGram files and these are downloaded to Excel and saved in Sharepoint. Majority of all TCs issued for MoneyGram are
related to SEND transactions. MoneyGram send the file via e-mail to our Settlement team who then upload it into POLSAP

Glossary of Control Owners.

Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

6.12.1 MoneyGram — Process Flow

©
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T+ MoneyGram

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Branch

‘MoneyGram HORIZON

POLSAP

che

Settlement team

6.12.2 MoneyGram — Narrative

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MoneyGram Link to desk
procedure

(Chronological steps in the process:
1. Customer require a cash sum to be sent (normally abroad)

2. Customer fills in form, name, address, etc.

3. Postmaster takes the money from customer and enter into HORIZON

4. Atransaction reference receipt is generated from Horizon and this reference number is the customers proof of purchase

5. PostOffice must be sure that no transaction reference is given to the customer if customer has not paid the money (because the
transaction can be” live” in the MoneyGram system.

6. Customer send the reference to end receiver

7. End receiver goes to either a post office or Moneygram agent with ID and transaction reference number and funds are paid out.

8. In POLSAP doc type = KC is MoneyGram and RV comes from Horizon

Log into POLSAP G/L account 627030 (Send) transaction and G/L 627031 (Receive) transaction. (Cheque and MoneyGram team)
POLSAP screen shows wherever there is a discrepancy between MoneyGram and Horizon

Download into excel HORIZON file and save in Sharepoint, (Cheque and MoneyGram team)

Download into excel MoneyGram file and save in Sharepoint, (Cheque and MoneyGram team)

TC for SEND — a TC is issued to correct Branch account in POLSAP by either placing liability or receivable back to Branch. E.g. A
Transaction has been reversed in HORIZON but not cancelled in MoneyGram (Branch needs to retrieve money back from Moneygram
or take the hit), or a transaction has been cancelled in MoneyGram and not reversed in Horizon, TC is issued to replace the missing
reversal., (Cheque and MoneyGram team)

6. Issue TC to Branch, (Cheque and MoneyGram team)

7. Accept TC (Branch)

yPwnyre

6.12.3 MoneyGram — Risk & Controls

Le/eszba

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Risk & Control

MoneyGram

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

©
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Branch Corrections

Control(s): C4.9.a.17
Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

6.13 ONLINE BANKING - LINK

Background
Link is a “middleware” between PostOffice and all other banks for PostOffice customer (any bank Debit card holders)

Glossary of Control Owners

Job Title
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

pelesltis

©
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6.13.1 Online Banking Link - Process Flow

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6.13.2 Online Banking Link — Narrative

Activity - Online Banking Link to desk

procedure

(Chronological steps in the process:

1. Debit Card holder does either a cash deposit / (cheque deposit is dealt with Cheque team) or cash withdrawal in a branch, (Branch)

2. Branch (attempts) to enter transaction into HORIZON (either cash route or Cheque), (Branch)

3. Branch prints authorization receipts from HORIZON and gives this to the customer, (Branch)

4, Branch log mistake/transaction with NBSC (Network Business Support Centre), (NBSC)

5. NBSC (help line for Postmaster - part of POL) send to e.mail box “Linkenqueries!_
form detailing the nature of the error, (NBSC)

6. Check and verifies information on Mis-key form in TESQA system (shows all transactions made by card in a Branch), (Personal
Banking Team)

7. Determine error and amend the mis-key form where applicable, (Personal Banking Team)

8. Log case in “Link Mis-key yyyy” spreadsheet (Sharepoint and restricted to team access), this log contains all enquires coming from
various sources, (Personal Banking Team)

9. E.mail mis-key form from “Linkenqueriesf
electronic copy of mis-key form (stored in restricted Sharepoint) (no confirmation is received back from Bank source), (Personal
Banking Team)

10. Receive advise from POL Treasury that they have received amount with reference number, (Personal Banking Team)

11. Check reference number and identify Open Case, (Personal Banking Team)

12. Issue TC in POLSAP — gives TC reference number — Vendor account, (Personal Banking Team)

13. Update “Link Mis-key yyyy” spreadsheet with TC reference number and date, (Personal Banking Team)

14. Branch accepts TC in HORIZON, (Branch)

15. Transaction error clears in POLSAP

16. End

(restricted access) a “Mis-key”

”” box to Bank (whichever was involved in the transaction) advising as per

6.13.3 Online Banking Link — Risk & Controls

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Risk & Control

Online Banking

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Branch Corrections

Link to
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procedure

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Branch Corrections

Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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Control(s): C4.9.a.17
Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

6.14 PAYSTATION

Background
Payment terminal used for payments of certain bills, top up of Mobile phones and Energy top up etc.

Glossary of Control Owners

Job Title
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.14.1 PayStation — Process Flow

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6.14.2 PayStation — Narrative

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ayStation ink to desk

procedure

(Chronological steps in the process:
1. Receive enquiry from Branch/NBSC/Customer care, IMR form (via AP enquiry inbox) (Automated Payments Enquiry Team)
2. Log query into “Enquiries spreadsheet”, (Automated Payments Enquiry Team)
3. Move Query from AP enquiry inbox to “Client” inbox, (Automated Payments Enquiry Team)
a. Query related to IMR — receive IMR form from Ingenico
b. Review IMR form and Issue TC (where applicable)
c. Update Enquiries spreadsheet and check that TC is accepted on G/L acc. 627236
d. Once TC is accepted move TC from G/L 627236 to Creditor Holding acc 629122
e. File and end.
4. Investigate and establish nature of error, check in CREDENCE/BANK TECH, (Automated Payments Enquiry Team)
5. Fillin form “POL/CLIENT incident report” (Overpayment / Underpayment) (all form have incident number), system generated incident)
number and add own initial and (A=TC, E=Internal adjustment,) (Automated Payments Enquiry Team)
6. Update log “Enquiries spreadsheet” with Status (1=Require pre-approval from “re-sellers”, 2=Sent to Settlement, 3=Completed (form
received back from Settlement and TC issued where required)
7. Print 3 hardcopies, keep 1 and file, 2 copies to settlement team intray, (Automated Payments Enquiry Team)
8. Receive 1 signed and dated copy back from Settlement team (they have actioned what was on the form), (Automated Payments
Enquiry Team)
9. File signed copy from Settlement team in team folder, (Automated Payments Enquiry Team)
10. Determine next step: a)No action and file, b)Action with TC
11. Where applicable issue TC in POLSAP with ref number=Incident number
12. Branch accept TC
13. End

6.14.3 PayStation — Risk & Controls

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Risk & Control

PayStation

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Branch Corrections

Link to
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procedure

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Branch Corrections

Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

©
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Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

6.15 PERSONAL BANKING

Background
Receive and log bank enquiries to resolve customer enquiries regarding cash deposits. Transaction corrections are issued to either debit the office and credit the I
bank (via settlement email) or vice versa. I

Glossary of Control Owne:
Job Title
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.15.1 Personal Banking — Process Flow

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6.15.2 Personal Banking — Narrative

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& Branch Corrections

Activity - Personal Bankin Link to desk
procedure

(Chronological steps in the process:
1. Incoming General inquiry - fax / e.mail (Personal Banking Admin)

2. By end of business — check all central mail boxes, Print all e.mails and keep all faxes/e.mails and file by date (Personal Banking Admin)
Identify branch FAD number (unique identifier) (Persona! Banking Admin) fax and log in central spreadsheet (New bank Enquiry
Spreadsheet), kept on Sharepoint, (Access rights etc.) (Personal Banking Admin)

SLA turnaround time is 2 weeks (Personal Banking Admin)

Distribute work load amongst staff, (Approx 18 queries per day (Personal Banking Admin team approx. 4 staff, team Huddles)
(Personal Banking Admin)

Identify nature of query (Personal Banking Admin)

Confirm transaction in CREDENCE system (today optional but make mandatory) (Personal Banking Admin)

Identify “session number” (Transaction number) in CREDENCE (Personal Banking Admin)

Issue transaction correction in POLSAP (Post Master Customer Account in POLSAP) (Personal Banking Admin) Post (Issue transaction
correction ) in POLSAP and its feeds into HORIZON (CORRECT ARTICLE FOR BANK must be filled in — system control) (Personal Banking
Admin)

(used for mapping between POLSAP and HORIZON) (Personal Banking Admin)

9. Fill in Personal Banking Settlement Breakdown sheet (UP or OP) (Personal Banking Admin)

10, Send (e.mail) “Settlement team for processing in POLSAP (Personal Banking Admin)

11, POSTMASTER checks HORIZON for new TC (Branch)

12. POSTMASTER accepts/close TC (Branch)

13. POSTMASTER sign off end of month Trading statement (Roll over) (Branch)

14, POSTMASTER roll over in HORIZON (system prevents roll over if any pending TC’s) (Branch)

15. End

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6.15.3 Personal Banking — Risk & Controls

66/€SLW4

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Risk & Control

Personal Ban!

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Branch Corrections

Link to
desk
procedure

©
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Branch Corrections

Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

©
ZOLESLL/s

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Branch Corrections

Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

6.16 POSTAL ORDER

Background
Majority of this process is regarding sending postal orders for people without bank account.
Code 5 and 22 (coded as Ns) will trigger a TC
GL Acc 622014 & 554546
Max Postal Orders a person can buy is GBP 250
NB: Postal Order process will change - no longer dealing with IPSL.

Glossary of Control Owners

lob Title
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

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6.16.1 Postal Order — Process Flow

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& Branch Corrections

6.16.2 Postal order — Narrative

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& Branch Corrections

Link to desk
procedure

(Chronological steps in the process:
\Team: APOP database — Postal Order team

Customer buys Postal Order from Branch (Customer)

Branch scans barcode on a blank Postal Order who automatically gets into HORIZON, (Branch)
Branch enters into HORIZON name and amount, (Branch)

Branch issue receipt and postal order to customer, (Branch)

Log into APOP system and Uploads daily exception report , (Postal Order team)

AARWNH

Reformat report and check and code each transaction (coding as per predefined list of actions) which via lookup/macro determines a

Y=return to bank (TC not issued) (goes to IPSL who does the clearing with Barclays) who or a N=Dealt with within postal order team.

(Postal order team)

Filter on report for anything to go back to IPSL (Ys) and send to IPSL by 10AM same day, (Postal order team)

IPSL sends back to Postal Order team the same file with further explanations, (/PSL)

Postal Order team advise IPSL either “PAY / NO PAY” and sends to IPSL by 2PM same day, (Postal order team)

10. IPSL amend the file and sends final file back to Postal Order team with final decision (NO PAY goes back to PostOffice bank account
(IPSL refund the money via Barclays), PAY goes to end Customer, CASE RAISED and IPSL investigates further. (IPSL)

11. IPSL also sends copy of NO PAY report to Postal Order team, (IPSL)

12. Investigate “Bank File Analysis dd.mm.yyyy” (normally next WD), and check on all N’s and look for code 5’s and 22’s who will trigger a
TC, (Postal order team)

13. For code 5 investigates if transaction exist in CREDENCE? If yes (Spoil or Branch sale) then no further action required, if Not on
CREDENCE issue a TC Invoice POLSAP “Enter Outgoing Invoices”. (Postal order team)

14. For code 22 are cases where the branch has given the postal order back to customer by mistake. Validate on the bank file (Exception
report) that the money has been cashed twice. Raise a TC (invoice) to the branch to gain back the money.

15. Branch accepts TC in HORIZON, (Branch)

16. Period End reconciliation between POSTAL Orders and BANK, (Postal order team)

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6.16.3 Postal order — Risk & Controls

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Branch Corrections

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Risk & Control

Postal Order

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Branch Corrections

Link to
desk
procedure

©
BOL/eszt/d

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Branch Corrections

Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controve: C4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

©
6OL/ESZL/4

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Branch Corrections

Control(s): C4.9.a.17
Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.
Frequency: Monthly

Control owner: FSC Team Manager
Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control 'A/C 629310.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

6.17 PRE-ORDER

Background

Branch.

This process is for pre-order of foreign currency.
Customer can either a) Order direct from Branch, Order direct Online with First rate and pick up in Branch, or order direct via phone to First rate and pick up in

POLSAP G/L acc: 629310 — Outstanding Transaction Corrections (The whole Branch Corrections team uses this account)
Settlement team would have an open item in case the team forgets to issue a TC.

FSC Team Manager

lob Title

Glossary of Co!

‘ol Owners

Tracy Middleton

FSC Team Manager

Dawn Phillips

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6.17.1 Pre-Order — Process Flow

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Branch Corrections

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Te- Pre Order

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Branch Corrections

Rasequery
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care/Client(s)

Branch / First

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Payments
Enquiry Team

Confirm pronase

Upto

Update log wth Adon TC / NOTE

Sharepoint

Settlement
team

Payments
Enquiry Team

‘Automated

Team Manager

6.17.2 Pre-Order — Narrative

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& Branch Corrections

Ac!

ink to desk
procedure

'y — Pre-Order

(Chronological steps in the process:
1. Customer buys Postal Order from Branch (Customer)

2. Branch scans barcode on a blank Postal Order who automatically gets into HORIZON, (Branch)

3. Branch enters into HORIZON name and amount, (Branch)

4. Branch issue receipt and postal order to customer, (Branch)

5. Log into APOP system and Uploads daily exception report , (Postal Order team)

6. Reformat report and check and code each transaction (coding as per predefined list of actions) which via lookup/macro determines a
Y=return to bank (TC not issued) (goes to IPSL who does the clearing with Barclays) who or a N=Dealt with within postal order team.
(Postal order team)

7. Filter on report for anything to go back to IPSL (Ys) and send to IPSL by 10AM same day, (Postal order team)

8. IPSL sends back to Postal Order team the same file with further explanations, (/PSL)

9. Postal Order team advise IPSL either “PAY / NO PAY” and sends to IPSL by 2PM same day, (Postal order team)

10. IPSL amend the file and sends final file back to Postal Order team with final decision (NO PAY goes back to PostOffice bank account
(IPSL refund the money via Barclays), PAY goes to end Customer, CASE RAISED and IPSL investigates further. (IPSL)

11. IPSL also sends copy of NO PAY report to Postal Order team, (IPSL)

12. Investigate “Bank File Analysis dd.mm.yyyy” (normally next WD), and check on all N’s and look for code 5’s and 22’s who will trigger a
TC, (Postal order team)

13. For code 5 investigates if transaction exist in CREDENCE? If yes (Spoil or Branch sale) then no further action required, if Not on
CREDENCE issue a TC Invoice POLSAP “Enter Outgoing Invoices”. (Postal order team)

14. For code 22 are cases where the branch has given the postal order back to customer by mistake. Validate on the bank file (Exception
report) that the money has been cashed twice. Raise a TC (invoice) to the branch to gain back the money.

15. Branch accepts TC in HORIZON, (Branch)

16. Period End reconciliation between POSTAL Orders and BANK, (Postal order team)

6.17.3 Pre-Order — Risk & Controls

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Risk & Control Pre-Order

Bcontrovs C4,9.a.11-16 (same control, however assigned to 6 different Team Managers)
Risk: Workload and peaks are not monitored resulting in build up of back log.
Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.
Frequency: Monthly
Control owner: FSC Team Manager(s)
Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash’. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310".
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control 'A/C 629310' as
evidence of review.”

Link to

desk
procedure

©
vLleslla

@

6.18 SANTANDER ONLINE BANKING

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Branch Corrections

Background
Cash deposits or withdrawals from Santander card based transaction made in a PostOffice branch.

‘Only covers cash transactions — e.g. cheques is not covered here)

Glossary of Control Owners.

b Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

©
SLWeslva

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6.18.1 Santander Online Banking part 1 & 2— Process Flows

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9LWeslWa

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6.18.2 Santander Online Banking part 1 & 2— Narrative

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Acti

k to desk
procedure

'y - Santander Online Banking — part1

(Chronological steps in the process:

Part 1 covers an error done in Branch and where Branch contacts Network Support centre regarding own mistake (mis key):
1. ASantander Customer does either a cash deposit or cash withdrawal in a PostOffice branch (Customer)

Branch enters transaction into HORIZON (Branch)

Branch issues receipts (generated via HORIZON) (Branch)

Mistake made in Branch? (Branch)

Branch log mistake/transaction with NBSC (Network Business Support Centre) (Branch)

NBSC send to “network Banking mail” (restricted access) box a “Mis-key” form detailing the nature of the error (NBSC)

Check and verifies information on Mis-key form in TESQA system (shows all transactions made by card in a Branch), (Agent Accounting & Santander banking)

Determine error and amend the mis-key form where applicable and add the PAN (cust. long card number — only visible in TESQA system) + the action required by

Santander, (Agent Accounting & Santander banking)

9. Log case in “Santander NWB enquiries” spreadsheet (Sharepoint and restricted to team access), (Agent Accounting & Santander banking)

10. E.mail mis-key form from “network Banking mail” box to Santander advising as per electronic copy of mis-key form (stored in restricted Sharepoint), (Agent
Accounting & Santander banking)

11. Receive Confirmation e.mail from Santander of adjusted mis-keys, (Agent Accounting & Santander banking)

12. Retrieve the hard copies of mis-key for cases being adjusted as per Santander e.mail, and verify the action required on the hardcopy with the adjustment advise
as per Santander e.mail, (Agent Accounting & Santander banking)

13. Adjust the “Santander NWB enquiries” log with the adjustment amount and settlement date (always today + 1 business day), (Agent Accounting & Santander
banking)

14. Bring hardcopies of mis-key forms for cases above to the Settlement team, (Agent Accounting & Santander banking)

15. Settlement team adjust the Santander settlement and e.mail Santander with overall Settlement -/+ any adjustments as per above and CC in Shaun., (Settlement
team)

16. Checks that e.mail from Settlement team to Santander includes all transaction as per requested (“Santander NWB enquiries” log vs. Settlement teams
spreadsheet “Network Banking Adjustment Schedule”, (Agent Accounting & Santander banking)

17. Check POLSAP if discrepancy has been declared (Branch should declare discrepancy), (Agent Accounting & Santander banking)

18. If discrepancy has been declared and shows in POLSAP then issue a TC, (Agent Accounting & Santander banking)

19. If POLSAP does not show that the discrepancy has been declared contact the Branch and advise that a discrepancy declaration must be made before a TC can be
issued., (Agent Accounting & Santander banking)

20. End

PNANRWN

SLb/eszt/s

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6LL/ESzb/d

part 2

(Chronological steps in the process:
Part 2 covers where a Santander customer contact and raise a query with Santander Bank:

yoo wWNS

oN

10.
11.

12.

13.
14,
15.

16.
17.
18.
19.
20.

Customer raise a query with Santander (Customer)

Log query and e.mail case to “network Banking e.mail” (Santander)

Retrieve query, save to Sharepoint and verify transaction is in TESQA, (Agent Accounting & Santander banking)

Verify transaction in CREDENCE and identify the Stock Unit (COUNTER) the transaction was performed from, (Agent Accounting &
Santander banking)

Verify transaction in POLSAP to identify where a discrepancy has been declared, (Agent Accounting & Santander banking)

Verify transaction in HORICE to identify “cash declarations” made in branch for +/- dates near the transaction date as per enquiry
form/ CREDENCE, (Agent Accounting & Santander banking), access to HORICE is limited to Gill Hoyland)

Call the Branch and explain case, (Agent Accounting & Santander banking)

Branch investigates case and verifies, a) surplus, b)shortage, c) Branch balanced, (Branch)

Feedback to Agent Accounting & Santander banking a, b or c as per above, (Branch)

Validate information from Branch in HORICE, (Agent Accounting & Santander banking)

Log case in “Santander NWB enquiries” spreadsheet (Sharepoint and restricted to team access), (Agent Accounting & Santander
banking)

Update hardcopy (as per 3) of case for Settlement use and electronic copy of case for Santander use, (Agent Accounting &
Santander banking)

E.mail case to Santander — (electronic copy), (Agent Accounting & Santander banking)

E.mail action taken to “network Banking e.mail” with case reference (Santander)

Retrieve hardcopy of case and Update “Santander NWB enquiries” with Amount and Settlement date (next WD), (Agent Accounting
& Santander banking)

Send hardcopies to Settlement team, (Agent Accounting & Santander banking)

Settlement team CC in Agent Accounting & Santander banking in e.mail settlement to Santander, (Settlement team)

Issue TC (via file automatic Transaction Corrections), (Agent Accounting & Santander banking)

Branch accept TC, (Branch)

End.

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6.18.3 Santander Online Banking part 1 & 2— Risk & Controls

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Risk & Control

Sant:

jer Online Banking part 1 & 2

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Link to
desk
procedure

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e2ves.bis

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

‘)
ezLescbis

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Controls): C4.9.a.17

Frequency: Monthly
Control owner: FSC Team Manager

evidence of review.”

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.
Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as

6.19 STOCK NON REM

Background

‘rongful stock adjustments could potentially lead to

Monitoring of Royal Mail stock products, (Stamps) and adjustments.
REMIT IN is a means of accounting for received stock (stamps) and has no cash effect on the Branch, whereas a Stock adjustment has a Cash effect. When a branch
receives stock it should always be REMIT IN. The ownership of stamps sits with Royal Mail and the Branch gets a commission for each stamp sold.

misstatement of sales data from Royal Mail.

Glossary of Co!

‘ol Owners

Job Title Co
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

Automated Payment Enquiry Team Leader

Tracy Middleton

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Process Flow

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6.19.1 Stock non Rem (part 1 & 2) -

Courier ~ CVIT Stamps delivery

End of Wo

counts. HORZON)

th

om
(Physial vs,
(ORZON)

rock

cow a sir off balance

No} Sale / Sale reversal

Advice of REMIT

REMIT Nard act

T
Manuaby

Manual

Record of

Transaction

REMITIN &
‘Stock
adjustment

vale

Record ofall
transactions

a TCT

Tieertce

Record ofall

Mails and Stock team

! oe
t
i faven Bach
fan rons cepot recat Run on sts repo
despues I
Aandaitepot
me GALA == Gaaa7
1 erry
for Bran we report in f Log int 1¥¢ non sa ‘weekly FSC Team
Secxasusonens I__ shunpontana I_ Memiyenesoct I I sh CiomotiasI renee mcteDeNee Advise Bach Rec faloving Operon
& dowload reportI 9] kero highest [9] PrOdN within -—J cs shyscaly I to despatched stock REMITIN and adust day the Non Sales ‘meeting
toece vabe Loe despatched from GAY stoek feport
T chase up Branch

Gong

FSC TeamMarager Morchly
‘moniter TCeante account

"€29320 Stock

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‘TC - Part 2 Stock - Non Rem

Branch

HORIZON

—
s
2
3
2
Z
S
=
=

Negative /positve
Stockadjustment

———Manvaly

Accept TC

Value of stock
adjustment
(or)

Telssued

TCAccepted

Record of

transactions

interface

mire

>

interface

Record of
transactions
(suspense
account)

Telssued

*

AD HOC requests
i

Yes, & advise Branch to doa stock

Investigate and
establish the nature
oferor

log request/auery
with supporting
documentation

Relates to
pen Post

No, Issue a Volume T

Issue TCto offset
POLSAP Suspense

Reconciliation &
roby

aaa)
cag
‘weekly FSC Team
Operational
meeting

C9820
‘Telseued as per
Authority mats

Crery
Valid / approved
Authority matt

Gat
FSC TeamManager Monthly
moniter TC control account

“629320 Stock”

Goals
weekly FSC Team
Manager meeting

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6.19.2 Stock non Rem— Narrative

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Acti

y - Stock non Rem

ink to desk
procedure

(Chronological steps in the process:
1, Scheduled delivery / Request for extra (additional to already scheduled) Stamps to NBSC Helpline (Branch)
Swindon courier (CVIT) a Pouch and despatch to Branch (Swindon)
Check content and REMIT IN (manually) into HORIZON (Branch)
Selling of stamps enter into HORIZON (Branch)
End of Month (Balancing period) take physical stock count (Branch)
Print off balance in HORIZON and compare to physical stock (Branch)
if any difference — do a sale or a sale reversal (Branch)
Run daily report in CREDENCE and download to excel to check for Branch Stock adjustments (report shows all stock adjustments made by all Branches) (Mails and Stock
team)
9, Save daily report in Sharepoint “Stock Adjustments dd.mm.yy”, (Mails and Stock team)
10. Filter on highest positive value/volume (Positive means increase in stock, negative means decrease in stock), (Mails and Stock team)
11. Run non sales report in CREDENCE to identify the Stock products (within Stamps), (Mails and Stock team)
12. Log into GALAXY and verify what has been physically despatched from Swindon, (Mails and Stock team)
13. Compare non sales report in CREDENCE to despatched stock from GALAXY, (Mails and Stock team)
14. If not REMIT in, advise branch to REMIT IN and advise to do a Negative Stock adjustment (in order to balance the REMIT IN), (Mails and Stock team)
15, Update daily report in Sharepoint “Stock Adjustments dd.mm.yy” with stock product, volume, value, contact person in Branch and advise given. (Mails and Stock team)
16. REMIT IN and Adjust the Stock in HORIZON, (Branch)
17. Re-run following day the Non Sales report in CREDENCE to verify that Branch has REMIT In and adjusted Stock. (Mails and Stock team)
18. End

PN AL EWN

[ICs are AD HOC and involves receiving requests for TC from Branch, Audit, NSC. G/L account 539106 “REM shortages Suspense” and G/L 629452 “REM Surplus Suspense” ~ these
faccounts are monitored for aged balances by the Cash Team.

[Transaction Corrections:

1. Receive request for a TC, via e.mail, calls, NBSC spreadsheet (Branch, Audit team, NBSC), (Mails and Stock team)

2. Log request/query in hardcopy sheet with supporting documentation, (log from NBSC is electronic) (Mails and Stock team)
3. Investigate and establish the nature of error, (Mails and Stock team)

4, Iferror relates to “Open Postage” ~ Branch do a negative/positive Stock adjustment in HORIZON (Branch)

5, The value of Stock Adjustment is posted in HORIZON against a suspense in HORIZON (Branch)

6. _ Interface to POLSAP (suspense account)

7. _ Issue TC to offset POLSAP Suspense (Open Postage), (Mails and Stock team)

8. If error does not relate to “Open Postage”, do a Volume TC, (Mails and Stock team)

9. Branch accepts TC

10. End

8zL/esctid

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6.19.3 Stock non Rem — Risk & Controls

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Risk & Control

Stock non Rem

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Link to
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procedure

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LeVesza

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Branch Corrections

‘ontrol(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.4.4

Risk: Erroneous stock adjustments resulting in misstatement of sales data

Control objective:

To ensure accurate records of sales data and the correct usage of sales adjustments vs. stock adjustments.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “On a monthly basis the Mails and Stock team performs an analysis of non-sales data in CREDENCE to verify that Branch has REMIT In stock

correctly and any pending REMIT IN transaction(s) in CREDENCE is annotated with explanations.

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The analysis is sent to the Automated Payment Enquiry Team Leader for final review and approval who signs, dates and files.”

B controve) C4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

I C4.9.a.18

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629320 "Outstanding non
Accounting Trans Corrections’. All issued TC’s related to "Volume" are also posted on Control account 'A/C 629320 ‘ to enable overall monitoring, and an e.mail
reminder is sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action against each
open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control 'A/C 629320’,

Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629320' as
evidence of review.”

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eeLeszbs

@

6.20 SUSPENSE

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Branch Corrections

Background

Cash shortages/surplus related to Cash Rems from Branch. This process relates to cash rems from Branch, whenever the cash centre counts up either a surplus or a

shortage of cash send by pouches from Branch.

539106 — Shortage suspense
539104 — Surplus — surpluses from Cash Centre (input by Cash Centre)

Glossary of Co

I Owners

Job
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

6.20.1 Suspense — Process Flow

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6.20.2 Suspense — Narrative

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& Branch Corrections

uspense

ink to desk
procedure

(Chronological steps in the process:
1. Cash Centre receives cash pouches and counts (Cash Centre)
2. Where discrepancies (shortage/Surplus), post to respective suspense account (Cash Centre)
3. Download to excel templates transactions from POLSAP G/L account surplus / shortages (Cash Control Team)
4. Prepare excel template for TC upload to POLSAP, (Cash Control Team)
5. Log into POLSAP — “automatic TC”, find correct file and do a test run, (Cash Control Team)
6. Review test run and where applicable correct test run, re-run test run, (Cash Control Team)
7. Once test run is successful — run TC’s in final mode, (Cash Control Team)
8. Annotate in POLSAP the G/L acc. with “TC issued, dd.mm.yy and counterparty suspense acc.), (Cash Control Team)
9. Branch accepts in Horizon, (Branch)
10. Message re TC to Branch, redeem transaction Correction? (Branch)
11. Follow up on issued TCs — await until next period (one month), any open items? (Cash Control Team)
12. Ensure no open items falls into aged (3 Months), (Cash Control Team)
13. Issue new TC to offset un-actioned (from Branch) original TC, (Cash Control Team)
14. Rec & probity

6.20.3 Suspense — Risk & Controls

SeWesla

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9eLesLa

Risk & Control

Suspense

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Link to
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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controvs 4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.

On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

©
seL/esztis

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Control(s): C4.9.a.17

Risk: Control accounts are not monitored on a regular basis resulting in unjustified and unexplained aged balances.

Control objective: Control accounts are monitored on a regular basis and action taken to clear any aged items without unnecessarily delay.

Frequency: Monthly

Control owner: FSC Team Manager

Control description: “The FSC Team Manager monitors on a monthly basis all outstanding TC's over 5 weeks on control account 'A/C 629310 Outstanding
Transaction Correction Cash'. All issued TC’s related to “Cash” are also posted on Control account 'A/C 629310 ‘ to enable overall monitoring, and an e.mail
reminder is automatically sent each month to TC issuer for all open TC's > 5 weeks. The TC issuer annotates for own area of responsibility an explanation/action
against each open TC. The information from each TC issuer with open TCs are collated, monitored and followed up with TC issuer via control ‘A/C 629310'.
Once satisfied that all open TCs have a justification with action - the FSC Team Manager signs, dates and files the open item report on control ‘A/C 629310! as
evidence of review.”

©
6EL/eszb/s

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> Branch Corrections

6.21 UNPAID CHEQUES

Background
This is a debt recovery process as once a cheque has been received unpaid POL have the debt that they need to recover either by unpaying a customer’s bill our

requesting a debit to the customer savings/current account.

G/L accounts:

e 533306 PABA Unpaid Cheques Control

533301 Unpaid Cheques Branch non-conformance (TC)

e@ 533309 BOI Unpaid Cheques.

e@ 533304 Royal Mail Business Redirection Unpaid Cheques
539594 Giro Schemes Unpaid Cheques (daily balance to zero)

554078 Unpaid cheques Bank account
e@ 533315 POL ISA Unpaid cheques
e 250701 Misc. losses returned cheques (internal POL acc)
Glossary of Control Owners
Job Title Control Owner
FSC Operations Manager Gillian Hoyland
FSC Operations Manager Paul Smith

©
OvL/eszt/s

6.21.1 Unpaid Cheques — Process Flow

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Branch Corrections

TC - Unpaid cheques ~ Priority - by noon same day- (Early Waming proces

x
x

BANK TECH

&
2
&
g
s
=
=
2
é

CREDENCE

Bank of ireland

Sean alcheaues)
into BANKTECH I

Bounced cheques
san

Fax by 1AM sameday

hog into sank TECH

Interface

Retieve cheque (ar

ecehve fax from per fax) rom BANK

"Teci system —by
‘nd Value

etiove cheque

from CREDENCE
FAD code Office
code) and date

Uplate ean

peace

‘wang
Lo sevogsand >— Ver sous” &
“ mato

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g

Weekly FSC Team
Operational
meeting

Va

Chea

36 into CREDENCE:

Crees
Unpaid/bourced
cheques related to
“Savings” or
‘current’ Aecounts
SUA of spores to
(Go) byaPMeame
business day

Block customer

Graal
LL] sty FSC Team

Manager meeting

©
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Cheque MoneyGram

Settlement

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Branch Corrections

inpaid cheques ~ Normal [by noon next WD}

Chartenasioned

——

cera are

aur 88 Pk

Irectace

erty regent
remade

eon PSL it
tured reques

‘pte sora

Rezonsle UNPAD

enishet cecal sheaves

raquisarstie
aes

i
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6.21.2 Unpaid Cheques — Narrative

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y - Unpaid Cheques

(Chronological steps in the process:
Unpaid Cheques Priority (e.mail Early Warning by noon same day, no TC issued in Early Warning process). The purpose of Early Warning process is a Pre-warning of bounced
cheques and customer account has to be blocked as soon as possible in order no funds can be redrawn from cust. savings acc. etc...

Scan all cheques received into BANK TECH system (iPSL)
Post Office processing Centre (iPSL) sends fax to Cheque/MoneyGram team regarding returned cheques (iPSL)

Receive fax from iPSL by 11:00 or call iPSL by 12:00 to chase up (Cheque/MoneyGram team)

Retrieve the cheque (as per fax) from BANK TECH system — by SORT CODE, ACC and Value, (Cheque/MoneyGram team)

Retrieve from CREDENCE — FAD code (Office code) and date, (Cheque/MoneyGram team)

Investigate and determine if product relates to Savings and current, (yes) update “Early Warning spreadsheets” , SLA 3pm same day, (if No, process ends)
(Cheque/MoneyGram team)

E.mail Bank of Ireland the “Early Warning spreadsheets”, (Cheque/MoneyGram team)

Account blocked — (Bank of Ireland)

Unpaid Cheques normal (by noon next WD) (these are the same cheques as in Early warning Spreadsheet). The purpose of this process is to advise clients (e.g. BG, BT etc.
fetc.) of bounced cheques so they can correct customer account from PAID to UNPAID. The process is that when a customer pays a bill in a PostOffice branch with a cheque,
he PostOffice stamps the bill as PAID and credit the client (BG, BT etc.) account. The consequence is that it is the PostOffice who is bearing the payment until the cheque

Bundle up bounced cheques and produce list “returned Cheques Batch Order Report”, (iPSL)

Send via Courier bounced cheques & list to (Cheque/MoneyGram team), (iPSL)

Chase up iPSL if not received by 4:45 (Cheque/MoneyGram team)

Receive physical cheques & “returned Cheques Batch Order Report” and date stamp with todays date (Cheque/MoneyGram team)

Verify the number and amount of cheques received and reconcile to IPSL list “returned Cheques Batch Order Report”, (Cheque/MoneyGram team)

Investigate each cheque in CREDENCE to establish Client (recipient) , (Cheque/MoneyGram team)

Update UNPAID daily spreadsheet, sheet for unique client (e.g. BT, BG etc.), (Cheque/MoneyGram team)

Reconcile UNPAID total for the day with number 5 (cheques and total value) (NB: a cheque can be split,), (Cheque/MoneyGram team)

Photocopy all cheques and file together with clients “summary form”, (Cheque/MoneyGram team)

POLSAP entries: GL posting to individual vendors D, GL Control account Cr., D total of all individual Vendor GL accounts and Cr GL Bank acc., (Cheque/MoneyGram
team)

Leave physical paperwork for the day in Settlement team In Tray. Who in turn will adjust the settlement to the client with the POLSAP G/L posting,
(Cheque/MoneyGram team)

Transaction corrections: If there are any cheque in the pouch received where the client cannot be identified (as per step 5 above) then a TC is issued to the branch.
It is then for the branch to accept the TC in HORIZON and do further investigation as to what client was the payment meant for. (Cheque/MoneyGram team)

Link to desk

procedure

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pyLesla

6.21.3 Unpaid Cheques — Risk & Controls

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Risk & Control

Unpaid Che

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Link to
desk
procedure

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OPLesLla

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Control(s): C4.9.a.2 & C4.9.a.3

Risk: Balance sheet accounts are not reviewed resulting in error and misstatement or fraud

Control objective: To ensure that all BS accounts are reconciled and analysed and have evidence of balance justification

Frequency: Monthly

Control owner: FSC Operations Manager(s)

Control description: “All BS accounts within FSC area are reconciled at month end by the relevant Admin team members. Any open items are explained /
annotated by the Admin team member and the reconciliation is sent to respective FSC Team Managers for review and approval. The FSC Team Manager(s) followsI
up any unreconciled/unexplained items with the respective Admin team member and once satisfied the reconciliation is approved (sign and dated as evidence)
and forwarded to the FSC Operations Manager for final review and approval. The FSC Operations Manager reviews and queries where applicable with the FSC
Team Manager(s) and sends/signs as evidence of final approval. The reconciliation(s) with approvals and any supporting documentation is dated, stored/printed
and filed on Sharepoint.”

‘ontrol(s): C4.9.a.5 & C4.9.a.6
Risk: Build-up of aged balances - unapproved aged balances of affected account resulting in loss of reputation to PostOffice.

Control objective: To ensure close monitoring of aged balances and prevent where possible any aged build-up of accounts affected.

Frequency: Weekly

Control owner: FSC Operations Manager(s)

Control description: “On a weekly basis the FSC Operations Manager performs an ageing analysis of all open items matching account per product area. The main
objective is to prevent wherever possible any open item(s) falling into an aged (>3 months) category.

The respective Team Managers explains the analysis for their product area at the weekly Team Operational meeting. Open items are prioritised by highest value,
date and/or other steer from Management.

Agreed actions are followed up with respective FSC Team Managers.

The FSC Operations Manager signs and dates the analysis and minutes from meeting with any other supporting documentation and retain as evidence.”

B controve: C4.9.a.11-16 (same control, however assigned to 6 different Team Managers)

Risk: Workload and peaks are not monitored resulting in build up of back log.

Control objective: To ensure there are frequent monitoring of the teams workload and any necessarily actions are taken pro-activily.

Frequency: Monthly

Control owner: FSC Team Manager(s)

Control description: “The FSC Team Manager monitors on a weekly basis their teams workload and escalates areas of concern with their reporting line.
Issues affecting the team’s ability to process workloads are flagged by the FSC Team Manager and discussed in the weekly FSC Team Leader meeting.
On a monthly basis the FSC Team Manager signs, dates and retains the “weekly Stats” as evidence.”

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B contovey 4.9.4.9

Risk: SLA's are not met resulting in penalty and/or incurred loss to POL and/or reputational damage

Control objective: To ensure that all SLA's between POL and third party are met.

Frequency: Daily / evidenced monthly

Control owner: FSC Team Manager(s)

Control description: “To ensure timely responses to Bank of Ireland (Bol) regarding all bounced cheques related to "Savings" or "Current" Accounts these are
logged in spreadsheet “Early Warning spreadsheet” with date of received and responded to Bank of Ireland (Bol) and stored on Sharepoint with restricted
access.

Unpaid/bounced cheques related to "Savings" or "Current" Accounts are subject to a SLA of response to Bank of Ireland (Bol) by 3PM same business day as
received. To prevent responses to Bank of Ireland (Bol) falling outside the SLA timeframe, the FSC Team Leader monitors daily the “Early Warning spreadsheet”
to ensure POL meets the SLA and/or explains any missed SLAs.

On a monthly basis the FSC Team Leader signs, dates and files the “Early Warning spreadsheet”.

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6.22 APPENDICES

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Background
Appendix 1: Issuing of TCs — e2e daily process

Appendix 2: TC - Month End Procedures

Appendix 3: Issuing TC: 1) Enter Outgoing Invoices, Il) Auto upload

Job Title
Senior Debt Recovery Manager

Control Owner
Alison Bolsover

Senior Settlement Manager

Kay Wilson

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6.22.1 Appendix 1

Appendix 1: issuing of TCs — e2e daily process

Issuing of TCs — e2e daily process — Process Flow

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Information
Management

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6.22.2 Appendix 2 - TC - Month End Procedures — Process Flow

Appendix 2: lonth End Procedures

t

Reconaiiation &
Probity of own
‘accounts

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& i

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= FSC Team Manager FSC Team Manager

Q Monthly monitor TC Monthly monitor TC

2 control account control account
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6.22.3 Appendix 3

Issuing TC:

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1) Enter Outgoing Invoices, Il) Auto upload— Process Flow

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