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Message
From: Rodric Williams
on behalf of — Rodric Williams
Sent: 29/05/2014 21:
To: Chris Aujard
Subject: Fw: Project Zebra
Hi - happy to talk, but initial thoughts are:
- we do pre-2010 as a "reach back", relying on Fujitsu's assertions about the continuity of the core audit store;
- as to use, the end destination for Deloitte's work is something public.
Happy to take a call anytime,
Rod
From: Paula Vennells
Sent: Thursday, May 29, 2014 09:50 PM
To: Chris Aujard; Colin Stuart; Martin Edwards
Cc: Alwen Lyons; Julie George; Rodric Williams
Subject: Re: Project Zebra
Chris, thank you for your tenacity. This is tedious.
Getting those questions answered is helpful but there are two challenges: firstly, the Board were very clear that we
needed something that referred to pre-2010, there is no reference; is that because the four 'questions' apply before and
after 2010? And secondly, the intention was to have a document that could actually be used eg., in case reviews,
circulated to Spmrs. le., for public consumption. How does a ‘board briefing’ respond to that?
We need this tomorrow - particularly if it is only a board briefing. Not next week. And if I don't get that, then I shall
personally escalate. It is a serious undermining of the relationship if it gets to that stage. To do so, I shall need a
chronology of this fiasco (Chris) and a rough estimate of the cost of all work that has gone their way over the last couple
of years, plus any ongoing (Colin). Inc Bol and Fres if they have any involvement.
And yes, I think we have to let the board know as you indicate.
Martin did you get me the details of the CEO we met a couple of weeks ago?
Thanks,
Paula
Sent from my iPad
On 29 May 2014, at 21:14, "Rodric William: wrote:
All,
l agree with Chris's email.
Deloitte are moving in the right direction but, with the background work they have done, I think they
can turn something around quicker than indicated.
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I will follow up with Deloitte tomorrow morning to make sure they can deliver against Chris's email.
Kind regards, Rod
From: Chris Aujard
Sent: Thursday, May 29, 2014 07:25 PM
To: Paula Vennells; Martin Edwards; Alwen Lyons; Julie George; Rodric Williams
Cc: Chris Aujard
Subject: FW: Project Zebra
Dear all - following the 2 longish calls that I have had with Deloitte today, they have now come back in
the email below with a revised statement of the "deliverable" that they are proposing to produce for us.
From my read of matter, it looks basically OK, but I would be interested in feedback (especially from
Rod). If the general consensus is that it is OK, I would propose to ask Alwen to circulate the email to the
Board with following message from me:
Dear all - as was trailed last Friday, Deloitte have been running significantly behind schedule in the
production of their report for the Board. A further draft version of it was produced on Bank Holiday
Monday, but unfortunately (and despite the involvement of additional partner from the forensic team
and verbal assurances to the contrary) the document produced was both opaque and failed properly to
address the "exam questions" they had been set. The matter was accordingly escalated further within
Deloitte this week and in consequence they have now agreed to re-work the document into a more
succinct "Board Briefing" note, addressing head on the alleged failings in the system. The email setting
out their approach is set out below.
The situation is far from satisfactory and Deloitte are in no doubt that they have significantly blotted
their copy book. They are also suggesting they need until Wednesday next week to finish the job, which
again we are pushing back on, hard. That said, we felt it important to let the Board know where matters
stand currently, and the reasons for the delay. I should add that there is no suggestion from Deloitte
that there is somehow something "wrong" with the system, or that it is not fit for purpose, rather our
experience is that their internal review partner approach is such that any positive (and helpful)
statements that are made in early drafts are edited out before the draft is released to us.
lam very sorry to be the bearer of the news of yet another delay.
Regards
Chris
From: James, Gareth (UK - Manchester) [mai
Sent: 29 May 2014 18:37
To: Chris Aujard; Rodric Williams; Julie George
Cc: Whitton, Andrew J (UK - London); Noon, David A (UK - London); White, Ian (UK - Leeds); Tantam,
Mark (UK - London)
Subject: Project Zebra
CONFIDENTIAL AND SUBJECT TO LEGAL PRIVILEGE
Chris,
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Further to our conversations today, I wanted to confirm the next steps we propose to take regarding
Project Zebra. These seek to create a shorter document for you (intended for Board circulation) which
focusses on certain key (and most relevant) aspects of our wider work to date.
This "Board Briefing" document will focus on the four questions we agreed by phone, being:
1. <!--[if !supportLists]--><![endif]-->What comfort can be taken that Horizon only allows complete
transactions (baskets) to be processed?
2. <!--[if !supportLists]--><![endif]-->What comfort can be taken that the transactions completed in
Horizon are ‘digitally sealed’, to protect their integrity and make it evident if they have been
tampered with?
3. <!--[if IsupportLists]--><![endif]-->What comfort can be taken that Horizon's Audit Store
maintains and reports from a complete and unchanged record of all sealed baskets?
4. <!--[if !supportLists]--><![endif]-->What comfort can be taken that Horizon provides visibility to
sub-postmasters of all centrally generated transactions processed to their Branch ledgers?
For each of the above questions, we will:
2? <!--[if !supportLists]--><![endif]-->List those relevant high level system design and process
control features that we identified in documentation provided to us;
2 <!--[if lsupportLists]--><![endif]-->Describe the facts relating to the extent and nature of the
Assurance Work we have seen;
2 <!--[if !supportLists]--><![endif]-->State what additional work could be undertaken to increase
the level of comfort.
Our comments will be framed in the context and limitations of our work.
We estimate that this deliverable will take until close of play on Wednesday next week to produce and
issue through our review and signoff activities.
Please confirm that these points of focus are an accurate view of the next steps discussed this
afternoon.
Thanks and regards
Gareth
Gareth James
Partner
UK Futures
How can UK business drive growth?
http:/ Awww. deloitte.co.uk/ukfutures
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