POL00046550 - Audit report from Paul Field to Glenn Chester re Audit of Post Office Ibstock, Branch Code 223217

Evidence on official site

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IN CONFIDENCE a
To: From: cc
Glenn Chester Paul Field
Contracts Advisor Audit Officer Investigation Team
Manager
Paul Hermely
Business Development
Manager

Network Compliance Audit
Manager

Outlet intervention Team.

I Date: 21 August 2008

Audit of Post Office@lbstock, Branch Code 223217.

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conducted an audit of the above named bran ae
The purpose of this audit was to v financial assets due to the Post Office’

requirements,

The audit revealed a SEfSeEage in the branch of BSBBREES. A breakdown of the audit
result and details of the audit findings are as follows:

£ 43894.15 () Identified as a difference in cash figures
£ 43894.15 () Total Shortage

We arrived at the branch at figilam and introduced ourselves <0 A __--7 {Deleted the
ty

of subpostrnaster Mr Michael Rudkin when §fi@ arrived at approximate! am and
advised that we were to perform an audit on behalf of Post Office Ltd®.

80S RERIRIA allowed us access to the secure area, and was not (Bin the secure area
whilst the audit was carried out.

I contacted the Network Business Support Centre (NBSC) at approximately BEG am and
advised that an audit would be performed at the branch, and that it would remain closed
until its conclusion. The nominated branches offered were:

and a notice placed on display at the branch detailing this information. I also asked the
NBSC to notify the Outlet Intervention Office that an audit was being performed and
that the branch would remain closed until it’s conclusion.
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Mrs Rudkin asked if she could have a word in the back room after she had opened the
safe and logged onto the Horizon system. When we were both in the back room Mrs
Rudkin, broke down in tears and stated that the safe would be a little short and that her
husband did not have any idea that the safe and therefore the office would be short. I
asked if she knew approximately how short she stated it would be approximately £40K. I
immediately asked her not to tell me anything else. As Glenn Chester, Contracts Advisor
for this office was on annual leave, I spoke to Paul Wiiliams, Contracts Advisor, advising
him of the situation and he stated that the subpostmaster would have to be suspended.
(was asked by Paul that if I was happy to do so then I would suspend the subpostmaster
this I did.

When Mrs Rudkin first told me of the shortage she immediately stated that her husband
had not worked behind the counter in over 12 months and he had no idea of what had
taken place. As she was very nervous of telling her husband I asked if she would like me
to be present when she told him, which she did.

went with Mrs Rudkin upstairs and spoke to Mr Rudkin. It was obvious to me that he
knew nothing of what was happening in the office as his first thought was horror that
this was happening and that they would now lose both the office and business. I then
advised Mr Rudkin that he was suspended immediately and that we would carry on with
the audit and notify him of the shortage on completion of the audit.

As Diane Matthews, Fraud Manager North was on annual leave I contacted Dave Pardoe
and advised him of the situation. Colin Price from the Fraud section contacted me and
advised that Mike Wilcox and Gary Thomas would attend the office and interview both
Mr and Mrs Rudkin.

Due to the nature of the shortage neither Mr or Mrs Rudkin were in the secure area until
we had completed the audit and got a shortage figure. Mr Rudkin was happy for this
situation to take place.

Paul Williams advised me that a relief subpostmaster would be sought and we would be
informed of the outcome.

The office was transferred to Mrs Mary Stewart. Unfortunately Mrs Stewart was unable
to attend the office but asked if a member of staff Mrs Sue Ball could check and sign for
her this she did. All cash and stock was secured in the safe and Mr Rudkin passed to Mrs
Ball 3 sets of safe and office keys

The audit and subsequent transfer of the branch was concluded at SGM I. Stock unit
AAwas rolled to TP05 BPO1 but the lottery stock was left in TPO4 BPO1. This allowed the
office to continue with the Lottery as it was a rollover and Mrs Stewart was attending the
office the next morning to roll the lottery over and produce the Branch Trading
Statement for TP 04

The shortage amount of BASBSAMS was posted to Late Account.

No Compliance Tests were carried out at this audit other than those control gaps that
were observed whilst on site
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If you require any additional information, please contact me on the telephone number
below

Audit Officer

I nthe BH accompanied by mn
«oles ql
conducted an ausitat! I

:
‘The purpose of this audit was to vesity
financial assets due tothe Post Office
and confirm compliance with a range of
Business processes procedures and
regulatory cequirerients &

q

The audit revealed a in
the branch ofI ‘breakdown
of the audit result and details ofthe
audit findings reas folows
y

£