IN CONFIDENCE
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To: From: ce:
Elaine Ridge Keith Noverre Paul Dawkins
Contracts Advisor Audit Officer Investigation Team
Manager
Gerry Conran
Business
Development
Manager
Tony Hills
Network Compliance
Audit Manager
Outlet Intervention
Team
Date: 16 January
2008
Audit of Post Office®West Byfleet, Branch Code 126023.
On the 14 January 2008, accompanied by my colleagues Sue Le May
and Chris Stevens, I conducted an audit of the above named branch.
The purpose of this audit was to verify financial assets due to the Post
Office® and confirm compliance with a range of Business processes,
procedures and regulatory requirements.
The audit revealed a shortage in the branch of £77643.87. A
breakdown of the audit result and details of the audit findings are as
follows:
£ 37882.37 (
£ 3173.60 (
£ 2891.25 (-
£ 267.45 (
£ 27000.00 (-)
Identified as a difference in cash figures
Identified as a difference in stock figures
Identified as a difference in cheque figures
Identified as a difference in foreign currency
figures
Cash in pouches
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£ 3930.07 (. Currency in pouches
-)
£ 3034.03 (-) Outstanding debt
£ 77643.87 (-) Total Shortage
We arrived at the branch at 0830 am and introduced ourselves toa
member of staff Mr Ali Raza when he arrived at approximately 0840 am
and advised that we were to perform an audit on behalf of Post Office
Ltd®.
Mr Raza allowed us access to the secure area, and was not present in
the secure area whilst the audit was carried out. Shortly afterwards, Mr
Davinder Misra arrived and he informed me his wife, Mrs Seema Misra
was the postmistress, but she will be late in attending the branch today
as she is in Luton visiting relatives. I explained to Davinder we would
need access to all stock units and it would be essential he is in
attendance while the audit is taking place.
I contacted the Network Business Support Centre (NBSC) at
approximately 0845 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: Woodham, Byfleet and Woking and
a notice placed on display at the branch detailing this information.
As Davinder did not have manager's access, I contacted NBSC to
obtain a one shot password.
Once I had full access to the horizon system, I obtained an office
snapshot and other reports required to carry out the audit. The branch
is set up using 6 individual stock units. We began to check the three
counter stock units which had all been left in the drawers overnight. All
3 date stamps had been left out on the counter overnight. It was also
noted all MVL’s on hand were not secured in the safe.
Whilst checking the stock units, it was noted that three of the stocks
were in TP9 and the other three in TP10. TP 9 had concluded on
Wednesday 9 January 2008 and a final balance and trading statement
had not been completed. As Seema was the only one with manager's
access I informed Davinder to contact his wife as she will be required
to attend to complete the account for TP 9.
I contacted yourself at 10.05 am to inform you of our initial findings and
would contact you later once TP 9 is completed and a result is known.
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Despite numerous occasions I informed Davinder, a member of staff
must be in attendance whilst we carry out the audit, we were left on our
own in the secure area.
At approximately 10.45 am, the postmistress, Mrs Seema Misra arrived
at the branch. She immediately asked if she could talk to me at the
back of the branch and duly informed me the account would be
between 50k and 60k short. Seema explained that over a year ago,
some previous staff had taken 89k from the branch. She had not
informed anyone from the Post Office as she was worried the branch
would be closed. Seema also explained they had made some of the
loss good and would look at ways of making the remaining outstanding
amount good. Seema confirmed all balances had been adjusted to
show a clear trading position at the end of each period.
I then telephoned you, Paul Dawkins, Investigation Team Manager and
Tony Hills, Network Compliance Audit Manager to relay this
information.
I asked Seema to complete the balances for the three remaining stock
units in TP 9 and a final trading statement.
TP 9 was finally completed at 1.35 pm and I obtained a new office
snapshot and reports required to carry out the audit.
In the suspense account, there was an amount held in cash in pouches
of £27000.00 and an amount held in currency in pouches of £3930.07.
Seema showed me two grey pouches with rem slips dated 9 January
2008 enclosed but no cash. Both pouches had been remmed out using
Seema’s log on ID, SMI001. Seema explained that she was hoping to
get the cash from her family today to be able to send the £27000.00
back to the cash centre. The currency pouch was not on hand and
Seema had no explanation regarding this.
I was also informed by lan Smith; there was an outstanding debt
amount of £3034.03.
We continued checking the other stock units, which revealed the
following discrepancies shown in the table below:
AA 37395.47_I(-)
BB 209.68 _I (-)
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cc 2444.60 (-)
DD 738.77 (-)
OOH Clear
SMI 2891.25 (-)
At approximately 2pm, Investigators, Adrian Morris, John Longman and
Lisa Allen arrived at the branch.
The decision taken was to precautionary suspend Mrs Misra and that
the branch would be transferred to a relief Postmaster, Mr Vipin
Varsani.
A giro banking of £1240.00 received at the branch on Saturday 12
January 2008 had also been left out of the safe and had not been
entered into horizon. This transaction was checked by Seema and
Chris Stevens and entered into the system.
No MVL reconciliation had been completed. A shortage of 25 tax discs
is shown on the p32.
As the cash in pouches was not on hand, I contacted Jenny Smith,
Suspense Team in Chesterfield. Jenny confirmed she would issue a
transaction correction to clear the £27000.00 from suspense. There is
no structure in place to clear the currency amount of £3930.07.
I informed the relief postmaster, Vipin Varsani a Transaction Correction
would be issued to clear the cash in pouches, but the currency figure
would have to remain in suspense.
Vipin arrived at the branch with a member of his staff and they checked
all the cash and stock in each stock unit. Once each stock had been
confirmed and verified, each stock unit was rolled into BP 02.
I then contacted you, Adrian Morris and Tony Hills of the final audit
result.
The audit and subsequent transfer of the branch was concluded at
6.45 pm. The branch was rolled into TP 10 BP02 and a Final Account
produced.
The amount of £43679.77Amount was posted to Late Account.
Adrian Morris obtained original copies of the Branch Trading
Statements which were requisitioned as part of the investigation into
discrepancies.
No Compliance Tests were carried out at this audit other than those
control gaps that were observed whilst on site
If you require any additional information, please contact me on the
telephone number below
Keith Noverre
Audit Officer
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