POL00087409
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Write Off Process
Product and Branch Accounting
Content: Write Off Process
Deployment Date: May 2008
Revised: July 2009
Version 2.1
Role Name Version Signature Date
Author Carole Cross 1.0 24/04/08
Lorraine 2.0 27/05/09
Garvey
Lorraine 2.1 30/7/09
Garvey
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Write Off Process
Table of Contents
Area Contacts...
Product.
Form...
Document Control...
1.1 Version History...
1.2 Document Reviewers
Scope we
Extract from OLA.
Decision Making Process
Write Off Postingg.....
Ad Hoc Write Off Process
Low Value Write Off Process .....
Summary of Responsibilities
wee LO
Appendix A - Write off Authorisation
213
Appendix B - FSA Write off Authorisation form
-15
Appendix C - FAD Map for Non Network Profit
Centres... oe 16
Appendix D - Cash Centre & Depot Profit
seine LT Appendix E - Network and Product
18
Appendix F - Low Value Tolerances By
19
Appendix G - Amend Low Level Write Off
21
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1.1 Version History
1.
Document Control
VERSION DATED
0.1 INITIAL DRAFT FOR REVIEW
1.0 FINAL DOCUMENT FOR
IMPLEMENTATION
1.1 Marco 09 REVISED DraFT FoR REVIEW
1.2 APRIL 09 SECOND REVISION FOR REVIEW
2.0 may 09 FINAL DOCUMENT FOR
IMPLEMENTATION
2.1 JuLy 09 UPDATE FOR CHANGE IN WHAT TO INLCUDE
WITH PROBITY STATEMENTS AND PUP
ACCOUNTS ARE NOW COVERED BY THIS
1.2 Reviewers
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Rod Ismay
Head of P&BA
Alison Bolsover
Financial Serv’s & Bill
Payments - P&BA
Marie Cockett
Branch Conformance & Liason
- P&BA
Martin Knights
Reporting & Analysis Manager
- P&BA
Kay Wilson
Government, Mails & Stock -
P&BA
Matt Hibbard
Billing , Debt & Payment -
P&BA
Lynne McMeekin
POLFS Control Manager - P&BA
Andrew Winn
Relationship Manager- P&BA
Andrew J Thompson
Head of Area South East -
Network
Gayle A Laverick
Co-ordination Manager —-
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Network
Mick Graham Finance Analyst SE - Finance
2. Scope
The purpose of this document is to ensure that a
consistent, controlled write off process is deployed
across all Open Item Managed Accounts (matched).
In order to clear down these G/L accounts, teams may need
to perform three types of write off.
e The ad hoc write off of individual open items that
cannot be resolved following the usual investigative
process.
o For example; matching with client files shows
an error, but there is no error in the branch.
Value is over the maintained error limit.
Normal investigations do not find a resolution,
decision taken to write off the unmatched
error.
e The ad hoc clearance of aged open items
o For example; transactions requiring
investigation from over 1 year, all relating to
one product. The volume of these items is
preventing P&BA from resolving all current
issues in a timely manner, which means that the
backlog is continuing to grow. One solution
would be to write off all items that are in
‘backlog’.
e The regular write off of open items, which fall
below the agreed low value tolerance for the product
(“maintained errors”).
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o For example; lp error on a, A&L transaction.
Would cost more to investigate the error,
therefore, a maintained error write off would
be made automatically.
It should be noted that this cannot be applied to
differences visible to the Branch.
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3.
The p
regar
Extract from OLA document
urpose of this is to provide the principles for with
ds to Losses write offs,
If timescales have been met by Product & Branch
Accounting then default is for all losses to be
charged to Network and to Product budgets
If timescales have not been met by Product & Branch
Accounting, default is to charge to P&BA budgets
If postings originate from Horizon as in the case of
Crown office losses / gains and Transaction
corrections and retail line write off, these will
automatically be charged to the Network
If Product & Branch Accounting makes a decision on
disputes, then the default is to charge to P&BA
budgets
Aged debt outside of the current financial year
should be charged to P&BA budgets.
In the event of dispute, and only as last resort,
Finance Analysis to mediate on whose budget
P&BA will operate the attached write off process to
ensure that all steps have been followed before
write off.
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4 Decision Making Process
Before the write off is processed a decision needs to be
made as to which area of Post Office Ltd the write off
will be posted to; Network, Product, Cash Services, P&BA
or Central Finance. This process only covers Ad-Hoc Write
Offs and not those for which no manual intervention is
required.
Before write off to Product or Network, Team Leaders
should have a discussion with the relevant business
partner, which is noted on Appendix A.
4.1 Decision 1 Write off to Network
If the decision is to write off to the Network, then the
Profit Centre used should be the Branch FAD code. For
relevant business partner please contact Relationship
Manager, currently, Andy Winn.
4.2 Decision 2 Write off to Product
If the decision is to write off to the Product, the
appropriate Product Profit Centre must be used, not the
Branch FAD Code - please refer to Appendix C.
4.3 Decision 3 Write off to Security
If the decision is to write off to Security, Profit
Centre 981999 must be used, not the Branch FAD Code.
4.4 Decision 4 Write off to Cash Services
Write offs for Cash Services are managed by the Cash
Depot or Cash Centre. The Finance Team at the depot or
Cash Centre will make the postings to SAPADS/POLFS as
applicable. For reference purposes only, Cash Services
Profit Centres are attached in Appendix D.
4.5 Decision 5 Write off to P&BA
If the decision is to write off to P&BA, Profit Centre
950999 must be used.
4.6 Decision 6 Write off to Central Finance
If the decision is to write off to Central Finance,
Profit Centre 950999 must be used, not Profit Centre 1.
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5 Write Off Postings
Debits
The appropriate ledgers for the posting of write offs is
dependent on the product - please refer to POLFS Chart of
Accounts. Latest version can be found on the P&BA Public
Drive, within POLFS_COA (Do Not Remove) folder.
Credits
Unresolved credits should be transferred to Miscellaneous
Client Creditor suspense account (626200). Values will
be held there pending client/customer/Branch enquiries
and written to Profit after 3 years.
Documentation
Back up will be required for all proposed Write Offs. As
a minimum this will be the following;
1. Completed Write Off Form - Appendix B for
Formers Subpostmasters or Appendix A for all
others
2. Narratives to justify why the loss is being
written off and not recovered.
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6 Ad Hoc Write Off Process
6.1 Individual Open Items identified by the Duty
Holder
1. Duty completes Write Off form (See Appendix A) and
passes to Team Leader.
2. Duty annotates Text on G/L Line Item Display with
w/off.
3. Team Leader checks form and passes to Senior Manager
for authorisation - the following authority limits
apply:
Up to £1,000 Team Leader
Up to £5,000 Senior Manager
Up to £100,000 Head of P&BA
£100,001+ Finance Director
4. Form is returned to duty holder.
5. Duty holder completes using Post With Clearing - SAP
training notes refer - ensuring that the text box is
completed and attaches screen print to Authority
form.
6. The authorised forms should be attached to the
period Probity document. Original to be attached to
the account with the Credit entry and copy to the
account where the Debit is posted.
6.2 Multiple Aged Open Items
1. Team Leader analyses Aged Open Items.
2. Having established that all Client files have been
received, Team Leader identifies appropriate level
of write off and completes form (Appendix A).
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3. Team Leader passes to Senior Manager for authority
and appropriate ledger code for postings.
4. Senior Manager checks proposal - the following
authority limits apply:
Up to £5,000 Senior Manager
Up to £100,000 Head of P&BA
£100,001+ Finance Director
5. The proposal authorised and passed back to Team for
action.
6. Proceed from Step 6.1 ‘Individual Open Items
identified by the Duty holder’ above.
6.3 Former Subpostmaster Debts
1. Duty completes Write Off form (See Appendix B) and
passes to Team Leader.
2. Duty annotates Text on G/L Line Item Display with
w/off.
3. Team Leader checks form and passes to Senior Manager
for authorisation - the following authority limits
apply:
Up to £1,000 Team Leader
Up to £15,000 Analyst
Up to £25,000 Senior Manager
Over £25,001 Head of P&BA
4. Form is returned to duty holder.
5. Duty holder completes using Post With Clearing - SAP
training notes refer - ensuring that the text box is
completed and attaches screen print to Authority
form.
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7. Low Value Write Off Process
Write Off tolerances are applied to products as shown
at Appendix B and any amendment to these levels must be
Team Leaders should
agreed with the Senior manager.
collate data to support any proposed variation and
complete the Authority form at Appendix F.
Should the Senior Manager agree the variation, the
completed Authority form must be attached to the
period’s Probity document. Original to be attached to
the account with the Credit entry and copy to the
account with the Debit entry.
8. Summary of Responsibilities
Individual Open Items
Complete Ad Hoc write off form
Duty Holder
Write off open item
Duty Holder
Attach form and screen print to
monthly Probity document. Original
documents to be with the Account
that has the Credit Posting. Copy
documents to be with the Account
that has the Debit Posting.
Duty Holder
Check form and enter write codes
(GL_& Profit Centre)
Team Leader
Pass to Senior Manager for
signature
Team Leader
Check & authorise form
Senior Manager/Head
of P&BA/Finance
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Director
Amend Provisions to account for
write offs
Senior Manager
Multiple Aged Open Items
Analyse and propose write off of
aged open items, checking all
Client files have been received
Team Leader
Check form, enter write off code
and authorise
Senior Manager/Head
of P&BA/Finance
Director
Write off open items
Duty Holder
Attach form and screen print to
monthly Probity document. Original
documents to be with the Account
that has the Credit Posting. Copy
documents to be with the Account
that has the Debit Posting.
Duty Holder
Amend Provisions to reflect the
write off
Senior Manager
Amendment to Low Value Write-off Level
Analyse and propose
increase/decrease to low value
write-off level, attaching
supporting documentation to
Authority form
Team Leader
Authorise/reject proposal
Senior Manager
Retain Authority form with monthly
Probity document. Original
documents to be with the Account
that has the Credit Posting. Copy
documents to be with the Account
that has the Debit Posting.
Team Leader
Amend Provisions to reflect the
variation
Senior Manager
Former Subpostmaster Write Offs
[Complete Ad Hoc write off form
[Duty Holder
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Write off open item
Duty Holder
Attach form and screen print to
monthly Probity document. Original
documents to be with the Account
that has the Credit Posting. Copy
documents to be with the Account
that has the Debit Posting.
Duty Holder
Check form and enter write codes
(GL_& Profit Centre)
Team Leader
Confirm details with Network or
Product Analyst
Team Leader
Pass to Senior Manager for
signature
Team Leader
Check & authorise form
Senior Manager/Head
of P&BA/Finance
Director
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Appendix A
Write off authorisation form
WRITE OFF RECOMMENDATION
To be completed by Proposer
GL ACCOUNT
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PROFIT CENTRE
VALUE (DEBIT/CREDIT)
REASON FOR WRITE OFF
PROPOSER
DATE
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DISCUSSION NOTES,
INCLUDING WHO WAS
SPOKEN TO
To be completed by Authoriser
WRITE OFF LEDGER
AUTHORISER
DATE
2"> LINE AUTHORISER
(If required)
DATE
- Team Leader I Senior
Manager
Up to £1,000 I Up to £5,000
Up to
£100,000 Head
of P&BA
£100,001 +
Finance
Director
WRITE OFF COMPLETED AND ATTACHED TO PROBITY
(original with credit entry, copy with debit entry)
I DATE
Appendix B
Former Subpostmasters Write Off Authority
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FORMER SUBPOSTMASTERS ACCOUNTS
WRITE OFF AUTHORITY
Office FAD Code:
Office Name:
Former Subpostmaster’s Name:
Reason for Leaving:
Amount to be written off:
Agents Debt Team Member:
Telephone number: 01246 54
Date:
Summary Of Action Taken To Recover Debt
GL Code;
Profit Centre;
Authorised Signatories.
Signed -------------------------------Former Agents Debt Team Leader
(up to £1k)
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Signed ------------------------------ Branch Accounting Analyst
(up to £15k)
Signed -------------------------------Branch Accountant
(up to £25k)
Signed -------------------------------Head of P & BA
(up to £1,00k)
Signed -------------------------------Finance Director
(over £1,00k)
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Appendix C
FAD Map for Non Network Profit Centres
Profit Centre - Cost Centre -
POLFS Description ESFS
1 Central Finance (DO NOT USE) 2540000
950999 PBA Losses 2540026
951999 Bureau 2542620
952999 Passports 2541152
953999 Postal & Money Order 2541629
954999 Bank Client Mang PB 2541877
955999 Lottery 2543935
956999 Broadcast Media 2541641
957999 TICKET and TRAVEL 2543937
958999 UNBLOCKED/CALIBA 2543941
959999 Stake Holder Pension 2541630
960999 POL Finance Cent Man 2541877
961999 ATM Losses 2542138
962999 ATM Matching Losses 2542138
963999 Moneygram Losses 2541156
964999 Personal Bank Loss 2543928
965999 India Postal Orders 2541567
966999 E PAY CHARGES 2541031
967999 TMC Colleague Fee 2541155
968999 CIT Ext Pouch Losses 2544138
969999 CIT Ext Coin Bag Los 2544138
970999 tlcoms provisions 2542135
971999 TLCOMS W/OFFS 2542135
972999 DISCOUNTS/OFFERS 2542135
973999 FRT Preorder Losses 2540026
974999 Travel Money Card Lo 2541155
975999 A&lL WE & W/O 2540026
976999 Coin & Note Gains 2541500
977999 Cheque M/E 2540026
978999 Former Spmr Losses 2540006
979999 Multiple Write Offs 2540026
980999 Card Account Adj 2541567
981999 Robbery & Burglary 2540773
982999 AON Travel Insurance 2541153
983999 Incentive Paymts 2541564
984999 Camelot Fraud Losses 2543935
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Appendix D
Cash Centre Profit Centres
Profit Ctr POLFS PC Description Cost Ctr
1004 London East CC 2544139
1127 Hemel (BDC) 2543021
1201 Birmingham Midway CC 2544124
1422 Manchester CC 2544108
1704 Belfast CC 2544111
1832 Glasgow CC 2544152
4201 Birmingham Merlin CC 2544130
Cash Depot Profit Centres
Profit Ctr POLFS PC Description Cost Ctr
127188 Aberdeen CIT 2544143
130188 Belfast CIT 2544112
116188 Birmingham CIT 2544125
114188 Bristol CIT 2544122
121188 Chester CIT 2544114
105188 Dartford CIT 2544133
106188 Eastbourne CIT 2544134
128188 Edinburgh CIT 2544144
129188 Glasgow CIT 2544153
107188 Guildford CIT 2544135
108188 Hemel Hempstead CIT 2544137
123188 Hull CIT 2544146
126188 Inverness CIT 2544142
122188 Leeds CIT 2544145
117188 Leicester CIT 2544127
110188 London Central CIT 2544141
109188 London East CIT 2544140
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Profit Ctr POLFS PC Description Cost Ctr
119188 Manchester CIT 2544109
125188 Newcastle CIT 2544150
113188 Newton Abbott CIT 2544120
104188 Norwich CIT 2544131
111188 Oxford CIT 2544115
112188 Peterborough CIT 2544117
102188 Poole CIT 2544118
103188 Portsmouth CIT 2544119
120188 Preston CIT 2544110
101188 Reading CIT 2544116
124188 Sheffield CIT 2544148
118188 Stoke CIT 2544128
115188 Swansea CIT 2544123
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Appendix E
Contacts
Network Analysts
Area/ Role Contact
Finance Analyst (HOBD 41,48 & 49) Mick Graham
Finance Analyst (HOBD 43,45 & 47) Swarnjeet Bhamra
Finance Analyst (HOBD 42,44 & 46) _I Karen Deykin
Finance Analyst (HOBD 40 & Multiples) I John McGeechan
Finance Analyst (Crowns) Janice Tonks
Finance Analyst (Crowns & FSS’s) Steve Etherington
Finance Analyst (WHSmiths) James Driver
Finance Analyst (WHSmiths) Stuart Nesbit
Marketing Analysts
Product Area Contact
All Telephony Jim Lockwood
Bill Payments, Banking & Other Financial Services I Elana Flasher
All Travel, POFS & NS&l Ravi Dudala
All Government Services Adam Page
Photo Booth Dave Gregson
All Mails Maria Chong
Retail & Lottery Terry Pendred
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Appendix F
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Low Value Tolerances By Product - those with an (S) are
system maintained tolerances assigned to individuals.
Code Account Low Value I Write-off I Team Leader
Tolerance Account
627010 Camelot Online Sales 0.99 250725 Paul Smith
627011 Camelot Scratchcard 0.99 250725 Paul Smith
Activation
627012 Camelot Prize Payments 0.99 250725 Paul Smith
627020 FRES Settlement Matching I 69.99 250127 Ryan Skidmore
Account
627021-2 I FRES Preorder & Change _I 69.99 (S) 250127 Ryan Skidmore
627023-4 I FRES Trav Chq Sales & 49.99 (S) 250726 I Ryan Skidmore
Returns
627025-8 FRES Bulk purchase, 69.99 250105 Ryan Skidmore
returns, margins and
commission
627030-1 Moneygram Sent/Received I 40.00 (S) 250775 _I Chris Clarke
627040-74 I ATMs 40.00 (S) 250774 I Ryan Skidmore
627090 Sodexo 10.00 New Dave Hardie
Code
required
627220 - Personal Banking 40.00 (S) 250776 Katrina Holmes
35 Withdrawals and Deposits
530120 DWP Errors 250.00 250172 Chris Clarke
530121 A&L Manual Errors 250.00 250720 Chris Clarke
531100 Agent Debtors in Customer I 20.00 debit 250511 Paul Dann
Accounts 5.00 credit
533303 Unpaid Cheque Postage 25.00 250712 Pete Jepson
losses
533305 Personal Banking Unpaids _I 25.00 250704 Pete Jepson
533306 PABA Cheque Control 25.00 250701 Pete Jepson
553010 Northern Ireland Cheques 69.99 250710 Tracy Mather
553040 Cheques to EDS 69.99 250710 Tracy Mather
553001 - 2 I Cash in transit 1.00 (S) 250111 Carol King
553101 -2 I Bureau in transit 1.00 (S) 250111 Carol King
69.99
99.99 for
closed
branches
559506 Vouchers on Hand and in 69.99 250111 Carol King
Transit 99.99 for
closed
branches
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Vendor AP Products (excluding 29.99 250797 Michelle
Accounts _I AON) Stevens
Vendor AON Travel 1.00 250717 Ryan Skidmore
Account
Vendor DVLA Northern Ireland 9.99 250721 Dave Hardie
120379
Vendor DVLA 29.99 250721 Dave Hardie
121072
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Appendix G
Authority to amend Low Level Write Off Limit form
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AUTHORITY TO AMEND LOW LEVEL WRITE OFF
‘LIMIT
[PRODUCT I
[G/L CODE ]
[CURRENT LIMIT ]
[NEW LIMIT I
[PATE FROM/TO (If appropriate) ]
[REASON FOR VARIATION
TEAM LEADER I I
SENIOR MANAGER L]
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