POL00050062 - Julian Wilson case study: [Draft Audit of Post Office Astwood Bank, Branch code 346246]

Evidence on official site

POL00050062

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IN CONFIDENCE
To: From: cc:
Glenn Chester David Patrick
Contracts Advisor Senior Auditor Investigation Team
Manager
Steve WR Taylor
Business Development
Manager
Network Compliance Audit
Manager
Outlet Intervention Team
Date: 11 September 2008
Audit of Post Office®Astwood Bank, Branch Code 346246.
I On the 11" September 2008, accompanied by my colleagues Kevin Watkin atid Faith Deleted iiamistonkit I
Lavehider, I conducted an audit of the above named branch. Pr I
1
- on
The purpose of this audit was to verify financial assets due to the Post Office® and I 1 _
confirm compliance with a range of Business processes, procedures and requlatory
requirements,
The audit revealed a SHortage in the branch of £ 27,811.98. A breakdown of the audit
result and details of the audit findings are as follows:
£ 27 006.01 (-) Identified as a difference in cash figures.
£ 109.70 (-) Identified as a difference in stock figures
£ 696.27 () Declared discrepancy Wk 24
£ 2781198 (-) Total Shortage
I We arrived at the branch at 8am and introduced ourselves to, the Subpostmaster Mr _ + (Deleted: tne Fesimeats )

Julian Wilson when he arrived at approximately 8.15 am and advised that we were to
perform an audit on behalf of Post Office Ltd@.

Mr Wilson allowed us access to the secure area, and was present in the secure area whilst
I the audit was carried out.

! contacted the Network Business Support Centre (NBSC) at approximately 8.15 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: Crabs Cross, Alcester and

Studley and a notice placed on display at the branch detailing this information.

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At the commencement of the audit Mr Wilson informed me that there would be a
shortfall in the cash of around £27k. He said that this was shortages accumulated at the
branch over the last 5 years or so. He had been inflating the cash figures in order that
the office show a balance each month

I produced an office snap shot. The ‘office snapshot’ is a Horizon generated report that
details the cash and stock on hand that should be present at the time it is printed, in
addition to the business transacted through the branch during a ‘said period’

I produced a report of the amount of cash declared as on hand by the branch on the
night prior to the audit and noted the cash shortfall of £27 006.01 after a physical count
was undertaken by my colieagues Kevin Watkins and Faith Lavender.

Ashortfall was also noticed in the stock figure of £109.70.

Mr Wilson was then advised that he should satisfy himself that the figures of the audit
team were correct. Therefore, we then confirmed all differences with Mr Wilson and he
confirmed the audit shortage.

I telephoned yourself at 8.30 am to report a preliminary suspected shortage of
approximately £27k and that I would ring you back with the final figure once I had
completed the audit. This I did at 11.00 am to report an overall Shortage in the branch of
£27 811.98.

I also notified Graham Brander, Fraud Advisor Team manager and subsequently Gary
Thomas, Fraud Advisor at about 12 noon to relay these findings.

The decision was then taken to precautionary suspend Mr Wilson at 13.00 pending
further investigation

A final account was prepared and the branch rolled into the next balance period. The
deficiency was put to the Late Account.

An interim manager, Mary Stewart was put in charge at the branch with all assets
transferred to her colleague Sue Wallace on day of audit.
The audit and subsequent transfer of the branch was concluded at 4.45/pm.

I advised the NBSC that the branch would be re-opening on Friday 12" September at
gam.

No Compliance Tests were carried out at this audit.

If you require any additional information, please contact me on the telephone number
below

David Patrick

Senior Auditor