POL00056076 - Memo/ Report from Dennis Watson to Paul Williams, Re: Audit of Post Office Birkenshaw Branch Code 163306

Evidence on official site

POL00056076
POL00056076

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Exhibit Number:
Identifying Mark: DW/1
IN CONFIDENCE enuving Ma
To: From: ce:
Paul Williams Dennis Watson Lesley Frankland
Contracts Advisor Field Support Advisor Fraud Team Manager

Pete Jackson
Field Support Team Leader

Outlet Intervention Team

Date: 11.02.2011

Audit of Post Office@Birkenshaw, Branch Code 163 306

On the 08 Feb 2011 I conducted an audit of the above named branch, the purpose of
this audit was to perform a check of the cash. I arrived at the branch at 08.30 am and
awaited the arrival of the Postmaster who arrived at approximately 08.45 am. I
introduced myself to the Postmaster Mr Khayyam Ishaq and advised him that I was to
Perform an audit of his cash on behalf of Post Office Ltd,

Mr Khayyam Ishaq allowed me access to the secure area, and was. present in the
secure area whilst the audit was carried out. I contacted the Network Business
Support Centre (NBSC) at approximately 08.55 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: Drighlington & Tong Street and a notice placed on
display at the branch detailing this information. The audit revealed a shortage of £536
and ! asked Mr Khayyam Ishaq if that was what he expected he said it was different
from when he had declared the cash the previous day but he was prepared to accept
it. At this point at 09.401 phoned yourself and made you aware that not only was
there a shortage on the day of £536 but also the balance snapshot was carrying a net
discrepancy of £2100+. I was then instructed to carry out a Tier 2 audit, I explained to
Mr Khayyam Ishaq what I had been instructed to do and proceeded to perform a full
audit of all the cash and stock. At 11.40 am Kath Smith Field Support Advisor arrived
at the office to assist me with the audit

The audit revealed a shortage in the branch of £21181.54. A breakdown of the audit
result and details of the audit findings are as follows:

(+/-) Identified as a difference in cash figures
(+/-) Identified as a difference in cheque on hand figures
12.90 (+) — Identified as a difference in stock figures

(+/-) Identified as a difference in postage figures
(+/-) Obsolete stock not included in audit figures
(+/-) Identified as a difference in foreign currency figures

him mmm

V6.5 Aug 2010
Exhibit Number;
Identifying Mark: DW/4.

(+/-) Transaction errors revealed to documentation

(+/-) Outstanding transaction corrections not processed
)

+

(+/-)_ Other

£ -)

£

€ 21181.54 (- Discrepancy as per office snapshot
£ f:

£

21168.64 (-) _ Total Shortage/surplus (delete as appropriate)

The audit revealed major discrepancies in the stock of the large books (sheets) of
400X 1 & 2™ class stamps and 50 X 1* & 2 class stamps hiasked’Mr Khayyam 7°
‘ifhe:knew.why this might be but he replied that he had no idea why it was 50. I”
s ered that it could:be-a result ofitems: being remitted in.incorrectlyand-based-on*
that-Kath Smith phoned:the Remittance Team at P&BA Chesterfield and spoke to Julie
Crampton who said she would look in to it and phone back. When Julie Crampton
phoned back she informed us that there had been quite a number of sales reversals
for large books (sheets) of stamps at Birkenshaw post office. Julie read out some of
the figures to Kath Smith and said she Uulie) would send an email with full
chayyarh IsHagif He knewanything about:these
rt -eplied that he:hadno' knowledge of any sales’ being reversed. Mr
arm Ishaq said that there-had:been-a:relief postmaster working at the office and
_thatit,could have been him:-that was responsible for the. reversals: I-explained,to Mr
Khayyam Ishaq that the majority of the reversals had taken place under his own user
name to which he replied that the relief had been using his, Mr Khayyam Ishaq, user
name.
.Mr Khayyam Ishag was then advised that he should satisfy himself that the figures of
the audit team were correct. Therefor “asked: Mr-Khayyam:lshag if he-would:de

: ad the cas again;whichvhe'declin
It lephoned Andy Carpenter at [E828fim to report a shortage of approximately
£21648.00, Andy Carpenter then asked to speak to Mr Khayyam Ishaq and the
decision taken was to precautionary suspend Mr Khayyam Ishaq at 12.45
pm and the assets were secured in safe until a relief could be found and
the keys taken by Dennis Watson.

The audit and subsequent transfer of the branch was concluded at 12.20 pm on. Fri

44 Feb 2011. The branch was rolled into TP 10 BP**06 and a Final Account
produced.

The amount of £21648,12 was posted to Late Account.

I advised the NBSC that the branch would be re-opening on Mon 14 Feb 2011 at
09.00 am.

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

Dennis Watson

Le i

V6.5 Aug 2010

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