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Message
From: Mark Underwood! [,_
Sent:
To:
73; Rodric Williams [#
; Amy Prime
J) Andrew Parsons
ngela Van-Den-Bogerd
Subject:
Hi Ben,
Suspense accounts are accounting tools for temporarily holding differences in payments moving between Post Office
and its clients, where the client and Post Office’s view of what is payable or receivable differ.
Differences are investigated but in some cases neither Post Office , the client, nor the branch are able to determine the
identity of the customer who performed the transaction in question or the specifics of the transaction. For example,
Post office may not be able to determine the details of the bank account to be credited. In such situations, and following
enquiries with branches, unresolved differences are moved to Post office Suspense Accounts. Such discrepancies are
held in its suspense accounts to give time for customers and clients to put forward more information to explain what has
happened. If no new information is provided, then after 3 years values held in suspense are released to Post Office’s
P&L.
Second Sight requested details of the credits released from Post Office’s suspense accounts to profit for the period 2008
to 2013. As there is a 3 year retention period — no amounts at that time had been released for the years 12/13 and
13/14. The total gross credits released from suspense to profit from 2007/8 onwards was as follows:
Years released to profit Value
2010/11 £612,000
2011/12 £207,000
2012/13 £234,000
2013/14 £104,000
2014/15 (YTD at the point provided) £8,000
These released amounts should be considered within the overall context of Post Office performing around 2.5 billion
transactions per annum, with a combined value in the order of £60bn. The amount of unresolved credits that end up in
Post Office’s P&L is therefore less than 0.001% of all transactions (by value) undertaken by branches.
The Second Sight report cites “unreconciled” balances for the 2014 financial year of c£96 million in respect of Bank of
Ireland ATMs and c£66 million in respect of Santander.
Second Sight misunderstood the information provided by Post Office. The balances of £96m and £66m were taken from
routine trading balances yet to be settled with other organisations at a particular month end. In other words, they
represented amounts due to other parties, not amounts that are unreconciled and which may be due to
Subpostmasters.
I hope this helps
Mark
Mark Underwood
Portfolio Director
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20 Finsbury Street
London EC2Y 9A\
Mobife number! GRO
Advanced nolit® oF le
23 December 2019 - 3 January 2020
From: Ben Foat
Sent: 20 December 2019 15:02
To: Mark Underwood! <.
5 Rodric Williams
>; Amy Prime;
Subject: RE: GLO
Hi Mark
On the suspense account issue - what is POL’s defence to this. Ostensibly it looks outrageous so Im assuming that there
are more facts or an explanation around this.
Kind regards
Ben
Ben Foat
Group General Counsel
Ground Floor
20 Finsbury Street
LONDON
EC2Y 9AQ
Mobile :!
From: Mark Underwood] }.
Sent: Friday, December 20, 2019 10:16:59 AM
To: Ben Foat } “GRO
I GRO
, Angela Van-Den-Bogerd
>; Lord, William
>; Patrick Bourke
andrew.parsons < as Amy Prime
Hi Ben,
1. The only suicide which I am aware of and presume is the same as that referred to in the Independent article is
that of a Mr Martin Griffiths on 23.09.2013. From memory, I think Mr Griffiths stepped out in front of a bus. A
summary of events and the conclusions reached as a result of the investigations performed during the
Complaint Review & Mediation Scheme are attached. Please note a settlement agreement was made with Mr
Griffths wife — details of which are included in the attached.
Mel / Patrick ~ is there some way to confirm the case referred to in the independent is indeed Mr Griffiths?
2. Assertions made in relation to POL’s suspense accounts can be summarised as per the below:
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e Post Office operated one or more “suspense accounts" in which it held unattributed surpluses including
those generated from branch accounts;
e = After a period of 3 years, such unattributed surpluses were credited to Post Office's profits; and
e Post Office therefore stood to benefit and/or did benefit from apparent shortfalls wrongly attributed to the
Claimants, which did not represent real losses to Post Office (and were actually taken to POL’s suspense
accounts).
Further information is provided at paragraph 53 ~ 55 of the attached Report (“Scheme Report — Final”), which
Post Office produced upon the closure of the Complaint Review & Mediation Scheme and in the attached “3. P2
Reply ~ Suspense Accounts Statements” which is an extract from POL’s reply to Second Sight’s Report.
In preparation for later breach trials, I had been working with WBD (Amy) and Deloitte to extract the necessary
data to be able to determine whether, for the period of time the branches were operated by claimants, any
monies were actually taken to suspense account. This work (which has been ongoing for 2 years ...) has now
paused. We could complete this work, if that would give the business assurance regarding the operation of its
suspense accounts.
3. Please find attached the final Second Sight Part 2 report dated 9 April 2015 (Final Briefing Report Part Two”).
Asummary of the ‘thematic issues’ covered in that report and Post Office’s findings are provided within he
attached report (“Scheme Report — Final”) at paragraphs 34 -39 and then in greater detail on pages 105 -116.
Let me know if you need anything further.
Mark
“a Mark Underwood
Portfolio Director
Ground Floor
20 Finsbury Street
London EC2Y 9AQ
Mobile numbe
Advanced notice of leave: 23 December 2019 ~ 3 January 2020
From: Ben Foat
Sent: 20 December 2019 09:27
To: Rodric Williams ¢..,
Mark Underwood! I
Emanuel, Catherine
Cc: Watts, andrew.parsons
Subject: GLO
Good morning
Could someone send me today a summary of
1. the case which involved a postmaster suicide
2. the suspense account issue
3. second sight report (including attaching the report)
Thanks
POL-0039842
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Ben
Ben Foat
Group General Counsel
Ground Floor
20 Finsbury Street
LONDON
EC2Y SAQ
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