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From: Mark Underwood'cro!_
To: "Parsons, Andrew"
Subject: FW: Future Arrangements and Part II
Date: Wed, 8 Apr 2015 16:30:27 +0000
Importance: Normal
fyi
Mark Underwood
Complaint Review and Mediation Scheme
From: Patrick Bourke
Sent: 08 April 2015 17:29
To: Ian Henderson; Jane MacLeod
Cc: Rodric Williams; Tom Wechsler; 'Chris Holyoak'; ‘Ron Warmington'; Mark Underwoodi=!
Subject: RE: Future Arrangements and Part II
Tan
Thanks for your email below and the opportunity to comment on the new Section 14 of the Part Two Report.
Comments on Section 14
As we have always said, Horizon does not have functionality that allows Post Office or Fujitsu to edit or delete the
transactions recorded by branches and we have previously provided you with details of the controls in place to ensure
the integrity of Horizon's data. As you are aware, there has been no evidence in any case reviewed as part of the
Scheme that shows that these controls have failed or that the above statement is incorrect.
It has however always been possible for Post Office to correct errors in and/or update a branch's accounts. This is most
commonly done by way of a transaction correction however it could also be by way of a balancing transaction or
transaction acknowledgement. A Post Office employee could also, in special circumstances, log on to a branch
terminal locally (i.e. by being physically in a branch) using a new User ID and password and then conduct transactions
(though these would register against that unique User ID).
The two Post Office / Fujitsu documents you refer to in the new Section 14 relate to the Receipts / Payments issue that
affected a small number of branches that were the pilot branches for Horizon Online in 2010. This information was
disclosed to Second Sight back in 2013 and I thought that this matter had already been resolved.
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However, in the short time available, I have been able to speak to Fujitsu and can confirm that most of the branches
affected by the Receipts / Payments issue were resolved by Post Office writing off the discrepancies (being "Solution
2" as you correctly state at paragraph 14.12). In one branch, a balancing transaction was used, working with the
Subpostmaster, to correct the discrepancy in the branch's accounts (being "Solution 1" in the documents). The affected
branch was not a branch in Scheme - we know this because Horizon automatically logs any use of balancing
transactions and this log shows that a balancing transaction has only ever been used once across the entire Post Office
network since the roll out of Horizon Online. Given the passage of time, we have not been able to conclusively
determine why this one branch was treated differently however the overall effect is the same: no branch suffered a loss
as result of the Receipts / Payments
All of the above processes for correcting / updating a branch's accounts have similar features. All of them involve
inputting a new transaction into the branch's records (not editing or removing any previous transactions) and all are
shown transparently in the branch transaction records available to Subpostmasters (as well as in the master ARQ data).
The language used in the documents produced by Post Office / Fujitsu and to which you refer is
unfortunate colloquial shorthand used by those working on the Horizon system. I can see how it
could be read to suggest that Post Office was "altering" branch data but the above explains why
this is not the case.
Final Part Il Report
Your email to me yesterday confirmed that, save for the issue addressed above, the report was
indeed complete and Chris confirmed this on the phone earlier. Accordingly, I look forward to
receiving Second Sight’s Final Report no later than close of business tomorrow, 9 April 2015.
Best wishes
Patrick
From: Ian Henderson {
Sent: 07 April 2015 12:31
To: Patrick Bourke; Jane MacLeod
Cc: Rodric Williams; Tom Wechsler; 'Chris Holyoak'; ‘Ron Warmington’
Subject: RE: Future Arrangements and Part II
Importance: High
Patrick
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We have a proposed final version of our Part 2 Report ready for release.
However, before we do so, we believe that in the interests of transparency and natural justice, we should give
Post Office a short opportunity to comment on a revised section of our Report together with the relevant
supporting evidence. This is material change from the draft of the Report previously provided to you for
comment.
I therefore attach an extract from the Report (Section 14) together with two documents that we mention and
quote from in that Section.
In view of the need to finalise this Report as soon as possible, I would be grateful to receive any comments
that you wish to make on this Section of the Report by close of business on Wednesday 8 April. I would also
be grateful if you would let me know if you do not wish to make any comment.
We would then plan to finalise our Report and make it available to you on 9 April.
With best wishes
Ian R Henderson CCE CISA FCA
Advanced Forensics - London, UK
Forensic computing expert witness and electronic disclosure specialist
UK Mobile:
Email: irh¢”
Website: http://advancedforensics.com
LinkedIn: http://linkedin.com/in/forensicgod
Twitter: http://twitter.com/forensicgod
CONFIDENTIALITY. This email and any attachments are confidential and may also be
ivi t the intended recipient, please notify me at
and delete the email and any attachments.
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From: Ian Henderson [7
Sent: 02 April 2015 15:!
To: ‘Patrick Bourke’
Cc: 'Rodric Williams'; ‘Tom Wechsler’; ‘Chris Holyoak'; 'Ron Warmington’
Subject: RE: Future Arrangements and Part II
Thank you Patrick
All very positive and helpful
With best wishes
Ian R Henderson CCE CISA FCA
Advanced Forensics - London, UK
Forensic computing expert witness and electronic disclosure specialist
Website: http://advancedforensics.com
LinkedIn: http://linkedin.com/in/forensicgod
Twitter: http://twitter.com/forensicgod
CONFIDENTIALITY. This email and any attachments are confidential and may also be
privileged. If you are not the intended recipient, please notify me at
ir ind delete the email and any attachments.
From: Patrick Bourke
Sent: 02 April 2015 15:46
To: ‘irhi_. ; ‘Ron Warmington’; Chris Holyoak
Cc: Rodric Williams; Tom Wechsler
Subject: Future Arrangements and Part IT
Dear Ian, Ron and Chris
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Jane has asked me to forward you the text of her reply to Ian’s email of 30 March to you on her behalf since
she is currently travelling and will be away until 13 April. I reproduce it below.
lam, of course, available to you for any queries and, with that in mind, I confirm that I am not planning to be
away (save for the bank holidays tomorrow and Monday).
Best wishes
Patrick
Patrick Bourke
Sent on behalf of Jane MacLeod in her absence — 02 April 2015
Dear Ian
Many thanks for your email of 30 March and I am pleased that we have a broadly shared view about the
future arrangements for the work which remains to be done for Applicants.
As you correctly point out, the slightly tricky bit we will need to bottom out is what remains to be done post
10 April. I acknowledge your suggestions in this regard and it doesn’t seem to me that we will find it
difficult to come to a final decision.
I know that Patrick is working closely with Chris on case scheduling, picking up from where Tom left off
before he went on leave. I am now myself on leave, returning to the office on 13 April, but Patrick is able to
reach me. Can I suggest that he and Chris continue to work together on the scheduling (and I know he is
working hard to get outstanding prosecution files to you), with a view to having agreed pretty precise
numbers in the second half of next week ? We will then be able to see exactly where things stand and be able
to agree the Engagement Letter and its Annex, and record the appropriate payment arrangements.
On the other points in your email, Patrick is chasing down progress on M118 and will let you have an update
shortly. Thank you for agreeing to treat it as an exceptional case. On your Final Part II Report, thank you for
the work you are doing on this and I confirm that we are looking forward to receiving it on 7 April.
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Yours sincerely
Jane MacLeod
General Counsel
The Post Office
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