POL00039024
POL00039024
Transaction Correction Process V6b draft
Transaction Corrections Process Review for Agency
Branches
Nicky Barraclough — Network Co-ordination Advisor
Draft V6b
I October 2007
Shaun Turner — Network Co-ordination Advisor
Andrew Winn — Branch Improvement and Liaison
Gayle Laverick — Network Co-ordination Manager
John Breeden — National Contracts Manager
9 October 2007 Feedback from Shirley Foster
stakeholders P&BA
John Breeden
National Contracts
Manager
Andrew Winn
P&BA
POL00039024
POL00039024
Transaction Correction Process V6b draft
Transaction Correction Process
Background
The objective of Product and Branch Accounting (P&BA) is to balance the
ledgers between clients and Post Office® branches, in order to produce
accounts for clients and Post Office® Ltd that accurately reflect the
transactions that are conducted over our branch counters. If any
discrepancies are found during this process of matching the data, a
Transaction Correction is issued to the relevant Post Office® branch to rectify
the account. This usually has a financial impact on the branch, by either the
subpostmaster having to make good any shortfall in cash, or receiving a credit
for mistakes that have been identified.
If the Post Office® branch makes a mistake that cannot be identified and
linked to a client, i.e., too much change has been given to a customer, this
would result in a Branch Discrepancy which would be realised at Branch
Trading. The subpostmaster would be responsible for making good any
losses.
Purpose
A number of issues have been identified with the Transaction Correction
Process that has a negative impact both within the Network Directorate and
on the financial performance of Post Office® Ltd. The purpose of this
document is to highlight the issues and make recommendations as to how
they can be resolved. What will not be addressed will be those issues that
require a system change to resolve as these must be progressed by P&BA.
Scope
This document will highlight the process for independent agency branches
within the commercial and community segments. It will not deal with the
process for settling the branch account within the Crown and multiple
networks. Although these Post Office® branches receive Transaction
Corrections, the method of collecting outstanding debt follows a different
process.
Issues
Timeliness of Issuing Transaction Correction
The time taken to issue Transaction Corrections can be slow, including some
cases where it has taken 2 years to clear the ledger. Not only does this delay
the time taken to recover outstanding debt, but it also leaves the
subpostmaster feeling frustrated that they are being notified to rectify a
mistake that they may not remember, or where the evidence has been
destroyed that would support a dispute to the Transaction Correction.
Transaction Correction Process V6b draft
Disputing the Transaction Correction
The current process for disputing Transaction Corrections allows the
subpostmaster to challenge the error at every stage of the process, even after
pressing the button on the Horizon system to settle the debt centrally. This
delays the process in recovering any outstanding monies, and can be used as
a deliberate delaying tactic in order for to delay making payment.
Where the subpostmaster has challenged the Transaction Correction, despite
the Product and Branch Accounting Team being confident that it is correct to
issue, these disputes are currently being passed to the Outlet Intervention
Team and Business Development Managers to resolve. Prior to the
Organisation Design Review, visits could be requested through Area
Performance Managers who would arrange intervention to branches to
resolve the issue. The resource to do this since the restructure has
dramatically reduced and it is arguable whether the field teams would have
the knowledge to find a suitable resolution.
There is an unclear escalation process both within P&BA and within the retail
line. This is not helped by the fact that the information that is passed to the
teams to resolve the issue is often vague.
Timeliness of recovering debt
If a subpostmaster chooses to settle any outstanding debt centrally by
pressing the button on the Horizon system and they do not make payment, a
formal concurrence is sent to the Contracts Advisor for authorisation,
regardless of the amount. This means that a piece of paper needs to be
agreed for amounts as little as £150 for a Post Office® branch that receives
an annual remuneration of £60,000. This is not only resource hungry for the
Contracts Advisor, but it delays the time in recovering the outstanding debt.
There is the opportunity to delay the recovery of debt for 27 days for
subpostmasters who opt to settle centrally. This option can be selected on the
Horizon system for discrepancies of over £150, where the subpostmaster
chooses not to make good immediately. The subpostmaster currently has 10
days to settle the account from when the first statement is issued, a further 10
days after the second reminder and finally a further 7 days after a third
reminder.
Recommendations
The revised process that incorporates the suggested changes has been
included in the Appendices. Appendix 1 outlines the process for issuing a
Transaction Correction, Appendix 2 outlines the process for disputing a
Transaction Correction, and Appendix 3 outlines the process for Deducting
Debt from Remuneration. However, the key proposals are outlined below.
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Transaction Correction Process V6b draft
Timeliness of the Transaction Correction
The timeliness of issuing the Transaction Correction can be attributed to
resource levels within P&BA, which is outside of the control of the Network
Co-ordination Team. However, an improvement opportunity is to have more
effective communication between P&BA and Network. This will ensure that
Network are aware in advance of delays with issuing Transaction Corrections,
understand the reasons for the delay and anticipate the impact on Post
Office® branches and subpostmasters. It will then be the role of Network Co-
ordination to communicate the messages to key stakeholders who include:
Contract Advisors, BDMs, P&BA, OIT and the Helpline. The result will be a
consistent message given to all who may be involved in any future disputes.
Disputing the Transaction Correction
1. Opportunity to dispute
The proposal is to continue to give the subpostmaster opportunity to dispute
the Transaction Correction, at any point within the process.
2. Full dispute investigation with P&BA
Any dispute that is raised by the subpostmaster should be fully investigated
within P&BA. This should involve examining paperwork and supporting
documents that the subpostmaster submits to dispute the Transaction
Correction. If the issuer of the Transaction Correction is challenged and
cannot agree with the subpostmaster, the case and supporting evidence
should be passed to the team manager. If the manager cannot resolve the
issue, it should be passed to the second line manager/accountant for the
relevant product. It is the P&BA team who have all the knowledge relating to
the TC and the reasons for the issue, and therefore the authority on the
validity of the issue should remain in the team. If after investigation, the team
are confident that the TC should stand and the subpostmaster refuses to
accept it, the issue should be passed to the Contracts Advisor to take the
relevant Corrective Action to ensure that the debt is repaid.
Timeliness of Recovering Debt
The acceptable agreement is that any combined repayment of new and
existing debt would be no more than 25% of remuneration for branches with a
remuneration of £25,000 and over and 15% for those branches with
remuneration of less than £25,000. The debt must be repaid within a 12
months maximum period. The formula will be based on the previous 6
months remuneration payments as a method of averaging subpostmasters’
monthly pay to ensure a fair deduction. This process will also require the
Contracts Advisor to manually check for existing hardship payments or current
deductions from remuneration. If the debt exceeds the amounts, concurrence
must be passed to the National Contracts Advisor for authorisation.
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Transaction Correction Process V6b draft
The formula for establishing the monthly payment is identified below:
Month 1: Month 6 = £x
£x + 6 = Average remuneration per month
Average remuneration x (25%) = Monthly payment for branches with
more than £25,000 remuneration
Average remuneration x (15%) = Monthly payment for branches with
less than £25,000 remuneration
1. 14 days to pay debts over £1000
Where the subpostmaster chooses to settle centrally, statements will be sent
to branch giving 14 days in which to pay their outstanding account. Where
payment has not been made within the 14 days, the branch name will appear
on a weekly spreadsheet that will be sent to the Contracts Advisors in
Network, along with a current DFR report, (Appendix 4 and 5), from P&BA in
Chesterfield. This will be for amounts of £1000 or over. The Contracts
Advisor will contact the subpostmaster regarding payment for the debt. The
subpostmaster, during this call will then have the opportunity to respond to
how the amount will be settled. They have the option to pay by cheque, credit
or debit card by giving their details at the time of the call.
Where the subpostmaster wants to repay the debt in instalments, the amount
must be agreed with the Contracts Advisor. The reason for involving Contracts
Advisors at this stage is that they have proven to be able to recover debt, due
to their knowledge of the subpostmaster contract and the clauses within which
they can quote.
2. 21 days to pay for debts under £1000
Items for less than £1000 will receive a reminder letter giving 7 further days in
which to pay. If payment is not made in this time then debt recovery
processes will be instigated by P&BA. to timescales outlined within POLFS.
Next Steps
1. The spreadsheets are sent on a weekly basis to the Contracts Advisors for
action by the Current Agents Debt team within P&BA. (Appendix 4 and 5).
2. A check is to be made if an ACC is required
3. Communication to Network and stakeholders
4. Communication will be sent if necessary, to the Federation of
Subpostmasters
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Transaction Correction Process V6b draft
Costs
There will be a risk to resource time for the Contracts Advisors who will make
calls and liaise with P&BA. Hopefully this will be outweighed by the amount of
debt recovered and reduced admin time in processing concurrence.
Review
The National Contracts Managers have given their teams this as a personal
objective and may require changes depending on its success. Amounts
reclaimed from subpostmasters will be recorded for monitoring purposes.
Measures
Reduction of debt
Spmr repaying debt more quickly
Issues resolved within P&BA
Customer Satisfaction from the Network
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Transaction Correction Process V6b draft
Appendix 1
TC process
/“\éentifed / vransaction \ P&BA obtain & I
{Transaction \ yrovide evidence I
geen ———»I Correction I ia I
anc \issued by PABA) 4
t I
Process for Transact!
val Transaction Correction
Corrections & Branch received by Branch, I
Discrepancies to Deduction via Horizon I
from remuneration (DFR) 1 I
Kees aren. Branch press I
NO- eutopton YES. "Seek evidence”
available) 7 button I
_ Bees the postmastan. a
—< accept the Transaction
corecton
Branch prepares AS there a Branch 088.
ves > Branch Trading I<" gain discrepancy
0 Slatoment ented
No
Readjusts cash
i Postmasor fuses fue treet
to compete Branch — «Yes
ara statement putin or taken out
to balance
‘account to 210
Instigation of dispute No
recess
, y
TAN
—— Postmasters _/ Postmaster
\ ing "mak YES
{Branch trading statement produced Ja —I makes chegue leyeg_< Sates using "make Vy
‘Send to Contracts
( / I and sends to EDS ston
\_ Advisorit> £1000.) “ .
tems totalling less than I NO
£1k Reminder letter sent I
No. Die ne ostrast > giving 7 days to pay from I Ba
FR process stats I LAB the aout
_ OR prceese Sens <<e150
- Z items totaling more than I ~
> Sontmation of YES NC NOI “etk are listed on report I
payment / t Land sent Current Agent I No
a Debtteam from P&BA to I ¢
PABA issue Request for Contracts Advisors
PaymentStatement giving Postmaster chooses
14 days to pay from date Setle Gormallyon
ch reget iter Contracts Advisor =
rea Gonwact mei amounts >£150 only
for payment
yes No
“Spm gays By
yes < Cheque or card to > No FR process instigated
PaBA
Please note: The acceptance of a TC may still result in a dispute.
Branch Trading may force the acceptance of the TC on the
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Transaction Correction Process V6b draft
Horizon system to enable the kit to roll over.
Transaction Correction Process V6b draft
Appendix 2
Dispute
@mnch contaas 6 I bportnasir
Process for Transaction
Correction disputes
PBA resolves ove
telephone
I (Dispute resohved \
I YES mind closed
No ves
I Arun setled
certaly ard dest
I recovery process
I ‘plowed .
¥
TC issuer to apply
akanming Block ane PABA ask Branch to I
ented amen + provide evidence within I
evidence is expected in one week I
format dd.mm.yy I
; . TC issuer informs
(C issuer re-assesses the” the branch TC is
: TC.Isthe TC stil valid > No- > not valid and a
I considering the eviden ‘compensating TC
vis willbe issued
1
Lhe subpostmasta
< sends in the evidence >—!
Yes
TC issuer informs the branch
TC valid. The debt recovery yes
process commences
(Branch as iby forthe
Te
No Branch has lability forthe TO, NO
Ll The amount is unblocked and the \
debt recovery process
Please Note: There is a blocking process in a separate document
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Transaction Correction Process V6b draft
Appendix 3
Process for Deduction from Remuneration (DFR)
DFR process instigated
Check ifthere are
existing hardship
repayments in place
1Sthis Branch on
£25,000
Ne __ remuneration or ves
}
Provide evidence!
information for
Increased DFR
YES. ‘YES.
v—
{Send to Contracts I
I Advisor for decision I
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Transaction Correction Process V6b draft
Appendix 4
Concurrence Report
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Pmr Remuneration
DFR Number of
Instalment Months
& Instalment
Details
‘Cheque
Payment Made
Credit’
Debit
Card
Option
Customer
‘Account
Number
Document Type
(BD, TC or DZ)
Document Date
(Date of BD or TC
settled centrally)
Branch
Trading
Date
CAD Team
Comment
2,225.26
BD
21/06107
20/06/07
Tetter sent
to Pm
26107/07
4,431.51
BD
21112106
20/06/07
Letter sent
to Pmr
26/07/07
4,431.54
BD
24/01/07
20/06/07
Tetler sent
4,431.54
BD
21/02/07
20/06/07
2,353.04
8D
26104107
20/06/07
Tetter sent
to Pm
26/07/07
2,353.04
BD
21103107.
20/06/07
‘etter sent
to Pmr
26/07/07
2,353.04
BD
2102107
20/06/07
4,613.62
BD
21/06/07
20/06/07
1,613.62
Te
20/06/07
20/06/07
Tetter sent
to Pmr
26107/07
1,613.62
Te
20/06/07.
20/06/07
Letter sent
to Pmr
26107/07
4,613.62
Te
20/06/07
20/06/07
Tetier sent
1,826.88
BD
25105107.
20/06/07
1,826.88
BD
2511/06
20/06/07
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Transaction Correction Process V6b draft
Appendix 5
DFR report
Total loss
Date settled Approximate
Contracts I Current I deductions I Date deductions No of Deduction I centrally Monthly
FAD Code Office Name. Head of BD BDM Advisor Loss started due to end instalments. Amounts by branch Remuneration Comments
123456 2O0KDOOKHOKK, NIA NA NA £304.80
‘125458 2O0HXIOKHOK, NIA NA NA £301.63
123456 YOK XXIIOK NIA NIA NIA £633.50
ad YOOX May-06 Jul-06 3 £145.28
123456 OKXXIOHXKKK NIA NIA NIA £250.00
123456 OOOOOOOOAKK May-06 Nov-06 7 £47.75
123456 XXXII May-06 Sep-06 5 £127.08
123456 XXXXXIIIOOOK NIA NA NA £81.38
123456 XXXXXKKIOHK May-06 Sep-06 5 £110.05
123456 2O0HXOKHOOKK May-06 Dec-06 8 £200.00
T2sa58 2002100000 May-06 Mar-07 1 £119.20
123456 2O00XXKIIOK May-06 Mar-07 “4 £73.28
123456 XXX May-06 ‘Aug-08 28 £330.00
123456 2OO0HKXXIOOK May-06 Jul-06 3 £100.00
123456 2OOOKKXXIIOK May-06 Jun-06 2 £107.57
123456 YOK May-06 Mar-07 4 £224.57
123456 YOO XKKIIOK, May-06 Jul-06 45 £1,451.02
123456 XXXXXKIOHK May-06 May-06 1 £258.16
25456 YOOX NIA NA NA £2,500.00
123456 200XIOKHOHK NIA NA NA £331.32
123456 YOK May-06 Jul06 3 £308.51
123456 XXX HHH May-06 Sep-06 5 £25.44