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Computer Weeklyco Q
warns subpostmasters of flaw 2
in Post Office Horizon
accounting system
Karl Flinders
Services Editor
05 Nov 2015 13:00
vy Gt in &%
The union that represents Post Office subpostmasters has warned of a problem
with the Horizon accounting system at the centre of a long-running dispute
Post Office subpostmasters have been warned of a problem with the Horizon
computer system they use for accounts, which can lead to cash shortfalls if
undetected.
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An email to members of the Communication Workers Union (CWU) branch
representing postmasters, seen by Computer Weekly, was sent to advise them
what to look out for regarding the alleged fault, which incorrectly duplicates
payments.
This is a small but potentially NETAPP NAMED A LEADER IN THE
significant development in a dispute SARTNER 2016 MAGIC QUADRANT
FOR SOLID-STATE ARR
over the Horizon system that has
been running for years. The finding,
if proved, could call into question
Post Office claims that Horizon has
no systemic flaws.
Post Offices use an IT system Wi NetApp
developed by ICL/Fujitsu Services,
called Horizon, for their accounts. In 2009 Computer Weekly first revealed the
stories of subpostmasters who had received heavy fines and even jail terms for
alleged false accounting ~ which they blamed on the Horizon accounting system.
The Post Office has vehemently denied this claim. (See timeline below for more
on the dispute).
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The alleged problem investigated by the CWU involves the process where
subposimasters transfer money from a core Post Office branch to a remote
branch created to serve rural areas, Known as an outreach, which is basi
branch on a laptop. These processes are known as remittances.
According to the CWU, branch payments can in certain circumstances be
duplicated ~ in effect creating a record of money that does not exist, recorded by
the system as being in the outreach branch. It would be the subpostmaster’s
responsibility to make up this sum unless the duplicated payments are removed.
The CWU said that, in a case documented by investigators, a core branch
transferred cash to an outreach branch and Horizon reduced the accounts of the
core by the amount transferred. The outreach transferred in the amount sent and
Horizon accepted the correct amount.
But Horizon did this four times, causing a foss of three times the actual amount
sent. The discrepancy was for money that did not exist.
“We have evidence that Horizon has duplicated the accepting in of a remittance
{on at least three occasions). This is despite the [payment’s] barcode having only
been scanned in once,” said the CWU email.
The Post Office helpline - the Network Business Support Centre ~ and the IT
helpline were contacted, but neither was able to help the postmaster, said the
CWU.
JA Post Office department recognises duplication
problem
Following a post on a web forum, another postmaster recognised the problem as
something she had experienced in the past, and the financial department of the
Post Office in Chesterfield was contacted on her advice.
According to the postmasters’ branch of the CWU, the financial department
recognised the issue and told the postmaster they would need to send 4 positive
monetary change to the Horizon branch accounts to negate the non-existent loss
that had been created by the duplication
The alleged fault, if proved, would question the Post Office's continued claims that
there are no systemic faults in Horizon.
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The Post Office denies system-wide problems with Horizon and stressed that no
technical fault has been found to have been responsibie for a postmaster being
“wrongly held responsible for a loss”.
“[We have] robust back-office reconciliation processes to identify and address
account balancing issues when they arise,” said the Post Office.
“The Post Office provides extensive support, including visits to branches, if
posimasters need support about branch accounting or other aspects of running
their branch, and we encourage them to contact us if they have any concerns,” it
added.
“it rernains the case that more than three years of investigations have not
identified any transaction caused by a technical fault in Horizon which resulted in
a postmaster wrongly being held responsible for a loss.”
Mark Baker, secretary of the CWU postmasters branch, said: “If we get
complaints we have people with the skills to investigate the Horizon system on
behalf of subpostrnasters. In the process of doing this recently, we believe we
have found another systemic flaw.”
Wi Horizon ‘systemically flawed' says Second Sight's
independent report
The CWU claims this is one exan f a glitch that could happen anywhere
across the network, and is not restricted to one type of transaction or branch,
Features [tre tuture of connected
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Enjoy the benefits of Eline
CW+ membership, iearn inI How Microsoft aims to tackie
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While the Post Office has said that occasional problems occur, it stresses there
are no systemic glitches.
There have however been claims of alleged probiems in the past by experts, but
the Post Office has always denied they represent evidence of systemic flaws.
‘The results of an independent investigation, commissioned by the Post Office and
carried out by forensic investigation company Second Sight, were published in
April 2015. The report said there can be systemic problems for users: “As we have
previously stated, when looking at the totality of the Horizon experience we
remain concerned that, in some circumstances, Horizon can be systemically
flawed from a user's perspective and Post Office has not necessarily provided an
appropriate level of support.”
When Computer Weekly put the clairns to the Department for Business.
Innovation and Skills (BIS) at the time of the report, the BIS press office said:
“Systemic flaws would refer to errors or faults in the Horizon system capable of
causing the accounting discrepancies that have been alleged
“Rather, the sentence summarises the conclusions Second Sight reached, based
on their findings having looked at not only the Horizon system but other directly
and indirectly associated elements, such as training and support processes, and
individual subpostmasters' circumstances.”
Campaigners want an independent inquiry. “The only way we will get to the
bottom of it is to have a truly independent inquiry, which Post Office is not
involved in.” said one.
The Criminal Courts Review Commission (CCRC) is currently reviewing
subpostmasters’ claims of wrongful prosecution.
The CCRC has set up a team te focus on the cases including subpostmasters that
raceived suspended or non-custodial sentences, including community service, but
others that received custodial sentences for between six and 18 months.
Read Computer Weekly timeline of events
rand dis:
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form action group after accounts shortfall
November 2009:
Post Office theft case deterred over 17 questions
February 201t: Post Office faces le
jal action over alleged accounting syst
failures:
October 2011 85 subpostmasters seek legal support in claims against Post Oftice
computer system
June 2012: Post Of
@ launches extemal review 0%
system at centre af legal
disputes
January 201 + Oltice admits that Horizon system nea:
nore investigation
January 2018: Post Office announces amnesty for Horizon evidence
January 20%: Post Office wan o boltom of IT system allegations
June 2012: investigation into Post Office accounting system to drill down an
strongest cases
July 2013: Post Office Horizon system investigation reve:
October 2013.
taster
n sight for
stem
3S
&
o
&
@
z
8 of Appeal Hooper
jovember 2013: 180 subpostmasters
ims over faully’ Horizon accounting
system
September 2014: Fresh questions raised over Post Office !T system's role in fraud
eS
December 2014: MP:
backing
De 0 2014: Wry
to fight on
December 2014: MPs to debate suopostmasie:
Post Office of
mber 2014: MPs &
NQuiry into Post Office subpost
ang by MPs aver Hor
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* February 2015: Post Office ClO would talk to any subpostmaster about IT
problems, promises CEO
= March 2015: Post Office ends working group for IT system investigation day before
potentially damaging report
= March 2015: MPs seek reassurance over Post Office mediation scheme
March 2015: Retiring MP aims to uncover truth of alleged Post Office computer
system problems
April 2015: Post Office failed to investigate account shortfalls before legal action,
report claims
* April 2015: Criminal Courts Review Commission set to review subpostmasters’
claims of wrongful prosecution
May 2015; IT system related to subpostmaster prosecutions under review by CCRC
«June 2015: Post Office looking to replace controversial Horizon system with IBM,
says MP
July 2015 Campaigners call for independent inquiry into Post Office Horizon IT
system dispute
* October 2015 James Arbuthnot takes Post Office IT fight to House of Lords
hn
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