POL00084012 - Transaction Correction / Debt Recovery Process (undated) Date estimated from content

Evidence on official site

Transaction Correction/Debt Recovery Process

Background

The objective of Product and Branch Accounting (P&BA) is to balance the
ledgers between clients and Post Office® branches, in order to produce
accounts for clients and Post Office® Ltd that accurately reflect the
transactions that are conducted over our branch counters. If any
discrepancies are found during this process of matching the data, a
Transaction Correction is issued to the relevant Post Office® branch to rectify
the account. This usually has a financial impact on the branch, by either the
subpostmaster having to make good any shortfall in cash, or receiving a
credit for mistakes that have been identified.

If the Post Office® branch makes a mistake that cannot be identified and
linked to a client, i-e., too much change has been given to a customer, this
would result in a Branch Discrepancy which would be realised at Branch
Trading. The subpostmaster would be responsible for making good any
losses.

What is a transaction correction for?

1. Correct Horizon & POLFS from Client perspective — identified by non
matched POLFs data

2. Correct Horizon & POLFS for a Cash/Bureau REM discrep

3. Correct stock levels — either caused by remittance discrepancies or
branch adjustments

4. Correct Non Accounting data (not used currently)

5. Writing off value from Branch (exceptional circumstances only)

Transaction Correction identification and issue

This is covered within P&BA duty instructions. The document “Issuing
process for transaction corrections” (17/7/06) is held on the “P&BA public
drive: to be archived; open item management”.

Transaction Correction Disputes

Document under this heading v2.1 is held under the above file. (“P&BA public
drive: to be archived; open item management”.)

A further step within the dispute process has been agreed whereby
subpostmasters can further dispute a debt (branch discrepancy/transaction
correction by providing a written submission of evidence to the Branch
Analyst.

This process is summarised under T:Finance:Finance Product & Branch
Accounting:Finance P&BA Branch:Branch Analyst:Flag Cases:AW Dispute
Process.

Branch Process
This is documented within the branch trading operations manual section 7
page 9.

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Debt Collection Process

This process has been varied from original documentation. It is not proposed
to fully document at this stage as a trial with Contracts managers concurrence
reports is underway at time of writing.

To summarise current practices there are two discrete approach’s.

Singleton branches
Statement of centrally settled debt to branches — week 1 (after branch

trading)

Reminder letter — week 3

2° reminder letter — week 4

Concurrence spreadsheet to Contracts Advisors — week 6

Contracts Advisors recover debt or agree deduction from remuneration —
week 6-8.

Agents debt team set up deductions from remuneration from next pay run.

National Multiple branches
Weekly transaction correction summary spreadsheet to each multiple head

office.

Monthly statement of account sent to each multiple head office — week 1.
Individual repayment terms agreed with each multiple partner.
Appendix 1

TC process
Identified
Papas
/ Branch

Process for Transaction
Corrections & Branch
Discrepancies to Deduction
from remuneration (DFR)

No-

Does the postmastérs
[<< accept the Transaction

Transaction \
Correction I
\ssued by P&BA/
\ /

Transaction Correction
received by Branch,
via Horizon

_ASe0s Branch
<r opten
\ avatabe)

PABA obtain &
provide evidence

Branch press
‘Seek evidence’
patton

YES.

‘correction

VES

Branch prepares

AS there a Branch lo33

Branch Trading
‘Statement

gain discrepancy
identified

¥

It Postmaster refuses
to complete Branch

¥

Instigation of dispute
Process,

oe
(( Send to Contracts
Ackisor i> £1000

(Confirmation of
payment

yes

Trading statement

“Bid the postmaster
settle centrally

Readjusts cash
figure to reflect
‘amount of cash

putin of taken out

YES

PRBA issue Request for
Payment/Statement aiving
14days to pay from date
of request letter

Spat pays by
Cheque or card
Papa

account to zero

to balance

_ASthe amouiit
<t1000 >]

Postmasters
makes cheque

‘and sends to EDS.

Items totaling less than
£1k Reminder letter sent
hing 7 days to pay from —
date of reminder letter or
DFR process starts

Tems totaling more than

" Ertkare listed on report

>I and sent Current Agent

Debt team from FRBA to
Contracts Advisors

Contracts Advisor
‘contacts the Spmr
for payment

payable to POL #YES<

_/, Postmaster

Settles using "make YES

‘good cheque’
\ button

_ASthe amouiit
<

£150
No
a

Postmaster chooses
Settle Centrally on.
‘amounts >£150 only

[DFR process instigated)

Please note: The acceptance of a TC may still result in a dispute. Branch

Trading forces the acceptance of the TC on the Horizon system to enable the

kit to roll over.

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Appendix 2

Dispute
Branch contacts TC ‘Subpostmaster
issuer in P&BA to yes} makes good! the
alsputo vay ‘mount
Process for Transaction
Correction disputes X
_”P&BA resolves over 18 the amount
“<< the telephone 7S ce180
y
oe
<Spmr makes good >—yES-p{ Dpute resolved)
No YES

No

¥
“Amount is settled I

centraly and debe Somme pays by

‘ccna prose aorta
‘clones ae
a
TC issuer to apply
dhnnng boc an
anneate non ie TC PSEA ak ranch >
clisputed and when p ence
‘evidence is expected in one week
‘ermat en)
AC csr roamsones 0S Yeon
tne te ctnvees >———— etal anda
conning the evens componcstng
vs vie ued
Te suposimaar L .
Ceanisinhe steeree >
Cote amount #189>
~_ totimescale ms a
ves
‘TC valid. The debt recovery ves
Wrote Sonmonees
oy
/
(ecnch nasty to be)
"
No. /Branch has liabilty for the TO, No

‘The amount is unblocked and the

debt recovery process
‘commences

The above process is effectively repeated if written submission is made
via the Branch Analyst. In those cases the debt is often at Contract
Manager stage and no system generated blocks occur — deduction from
remuneration is suspended.
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