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POL00029733
Message
From: Alwen Lyons [/O=MMS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=ALWEN.LYONS648EESC4-F2A8-40E2-9F55-1B9B1E4F6D52]
Sent: 04/06/2014 18:27:41
To: Rodric Williams [/O=MMS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=Rodric Williamse9c114f4-b03f-4595-b082-ce89be5c79d47b]
Subject: Fwd: Deloitte Briefing - Message from Chris Aujard and Lesley Sewell - Strictly Private & Confidential - Subject to
Legal Privilege
Attachments: Project Zebra - Board Briefing 040614 v13.pdf; ATTO0001.htm; image010.jpg; ATTO0002.htm
Sorry should have cc'd you in as you did all the work!
Thanks
Alwen
Alwen Lyons
Company Secretary
Begin forwarded message:
From: Alwen Lyons:
Date: 4 June 2014
To: Alice Perkins
>, Neil McCausland
virginia. holmes. t21"
Alasdair Marnochi.
"Callard Richard (ShEx)"
Paula Vennells!” “1, Chris M
timfranklin1 ¢,
Subject: Fwd: Deloitte Briefing - Message from - Strictly
Private & Confidential - Subject to Legal Privilege
Please find below a message from Chris Aujard and Lesley Sewell, and attached the Deloitte's
Briefing.
Thanks
Alwen
ps The papers for the Board away day will be with you first thing tomorrow moring.
Dear All,
As detailed in the Board update sent last Saturday, please find attached Deloitte’s
final draft “Board Briefing”, received by us late this afternoon.
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The briefing focuses on those features of the Horizon system which operate to
provide subpostmasters with full ownership and visibility of their Branch ledger,
and which maintain a complete and accurate audit trail. The briefing thus helps
address allegations made by Mediation Scheme Applicants that their branch
losses may have been generated by “phantom” Horizon transactions.
The briefing strives to be succinct and intelligible. However, given the subject
matter and scope of the review, it remains somewhat technical. Furthermore, it is
based on a desktop review of currently available information (which, as is to be
expected given its age, did not include any documentation conceming the original
implementation of Horizon in 1995). It is therefore heavily caveated.
In the briefing, Deloitte expressly identify a number of limitations and
assumptions which underpin their findings (see Section 3 “Limitations and
Assumptions”). The briefing must be read in this context. That said, its key
findings are:
- Deloitte has “not become aware of anything to suggest that the system as
designed would not deliver the objectives of processing of baskets of transactions
and keeping copies of them in the Audit Store with integrity”;
- Deloitte’s review of “extensive operational documentation” identified
features in Horizon “which, if implemented, would support the robust operation
of the system”;
- Those features would operate to protect transaction data integrity from
when it enters the system in a Branch until stored in the Audit Store, and provide
visibility to subpostmasters of any centrally generated (i.e. non-Branch)
transactions;
- Those features were not impacted by the 2010 upgrade to the current day
Horizon “On-Line” system (and hence were not independently tested at that
time);
- POL has in place key controls over the day to day IT management of
Horizon. These have been independently tested and assured by Ernst & Young
since 2012.
The briefing has been the subject of intensive discussions between Post Office
and Deloitte, and has been escalated to, and reviewed and approved by a number
of senior partners, all of whom are independent of the engagement team.
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It is unlikely that there will be any time at this Friday’s Sparrow sub-committee to
consider the briefing, though it is hoped that the session can be used to agree how
the briefing can be properly and thoughtfully presented to the Board.
Kind regards,
Lesley and Chris
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