POL00448331
POL00448331
Postmaster support
policy
Version 4.0
_POST-
OFFICE
POL00448331
POL00448331
Post Office is determined to reset its relationship with
postmasters and has introduced policies that set out guidelines
on how Post Office should support postmasters, specifically for
use across twelve areas.
The policies stand on their own but should be reviewed in
conjunction with each other. Support teams should have an
awareness of all twelve policies and how they link together.
The twelve Postmaster Support Policies are listed in section
3.2 of this policy and can be found on the hub, here.
INTERNAL Network cash and stock management policy V4.0 Page 2 of 28
POL00448331
POL00448331
Contents page
1 Definitions...
1.1 Definitions
2 Overview
2.1 Introduction.
2.2 Purpose...
2.3 Core principles.
2.4 Application...
2.5 The risk...
3 Risk appetite and required operational standards.
3.1 Risk appetite
3.2 Policy framework...
3.3. Who must comply?.
3.4 Roles and responsibilities.
3.5 Policy required operational standards...
4 Procedures...
4.1 Forecasting and planning cash...
4.2 Excess cash and stock...
4.3. Stock orders and returns...
4.4 Emergency orders:
4.5 Cash remittance discrepancies...
4.6 Foreign Currency remittance discrepancies...
4.7 Stock remittance discrepancies
4.8 Requiring more information about, or disputing, a Transaction Correction...
49 Service failures.
4.10 Control framework (controls reporting risks and process)
4.11. Contingency planning...
4.12 External assurance...
5 Where to go for help.....
INTERNAL Network cash and stock management policy V4.0 Page 3 of 28
POL00448331
POL00448331
5.1 Additional policies
5.2 How to raise a concern .
5.3. Who to contact for more information...
6 Governance...
6.1 Governance responsibilities...
7 Document control ...
7.1. Document control record...
7.2 Oversight committe
7.3. Company details...
INTERNAL Network cash and stock management policy V4.0 Page 4 of 28
POL00448331
POL00448331
1 Definitions
1.1 Definitions
1. Cash - sterling notes, coins and foreign currency.
2. Remittance Discrepancy - the difference between (i) the actual Cash and Stock received and
{ii) the amount of Cash and Stock that the remittance notification states should have been
delivered.
3. Service Level — in this policy, this would be the maximum agreed time taken to carry out an
action.
4. Special Issue Stamp Stock — philatelic stock that is issued on occasions such as Christmas
stamps, First Day Covers and commemorative stamps.
5. Stock —in this policy, meaning stock items that have a value when sold, such as stamps.
6. Transaction Correction — corrections to errors made in branches, or by other Post Office
areas, that have been (i) identified in the reconciliation between files received from third
parties (clients or suppliers), or cash and stock centres, and the data recorded by the branch
in Horizon, or (ii) caused by mis-keys notified by the branch or a third party/client, or (iii) to
provide funds to the postmaster in some cases where repayment is required.
INTERNAL Network cash and stock management policy V4.0 Page 5 of 28
POL00448331
POL00448331
2 Overview
2.1 Introduction
The Supply Chain Director has overall accountability for the provision of Cash and Stock to branches
in the network?. Cash and Stock management is an agenda item for the Risk and Compliance
Committee and the Post Office? board is updated as required.
This policy is a non-contractual document provided for information. It does not form part of the
contract between any postmaster? and Post Office.
2.2 Purpose
This Policy details the minimum operating standards to be met by Post Office in relation to the
management of Cash and Stock. All Cash held in branches is owned and funded by Post Office
through the central funding agreement that exists between Post Office and central government.
This policy details the procedures for providing Cash and Stock to branches and is intended to ensure
that Post Office branches have the optimum amount of Cash and Stock so that they are properly
funded.
It is one of a set of policies which provide a clear risk and governance framework and facilitate an
effective system of internal controls for the management of risk across Post Office. Compliance with
these policies is essential to Post Office in meeting its business objectives and to balance the needs
of postmasters, clients, and other stakeholders including our shareholder.
As many postmaster are limited companies or partnerships (and as individual postmasters may
appoint managers to operate a branch on their behalf) any steps that need to be taken by a
postmaster under this policy can be taken by someone authorised to act on that postmaster's behalf
(such as a director, partner or manager).
2.3 Core principles
Under agreements between postmasters and Post Office, postmasters provide products and services
to customers on behalf of Post Office. The cash and stock used to affect those transactions is owned
and funded by Post Office, unless the branch is self-funded. Post Office will manage Cash and Stock
1 In this policy, “network” means branches not directly managed by Post Office
? In this policy “Post Office” means Post Office Limited
3 In this Policy “postmaster” refers to a limited company, partnership, limited liability partnership, other entity or individual that
contracts with Post Office for the operation of a Post Office® branch.
INTERNAL Network cash and stock management policy V4.0 Page 6 of 28
POL00448331
POL00448331
services in good faith with fairness, transparency, and professionalism (being the underpinning
behaviours of Post Office).
Post Office has an obligation to its customers and clients to ensure that all branches are providing a
quality of service and adhering to agreed standards. Post Office is committed to supporting its
postmasters in this process by maintaining optimum Cash and Stock levels in the network. This
policy sets out clear and consistent guidelines to ensure that:
e Post Office effectively supports branches by planning and forecasting their Cash needs to
ensure that each branch has adequate amounts of each in stock at all times to carry out Post
Office's business.
e Post Office uses planning and forecasting to avoid excess Cash being held by a branch.
e All reasonable requests from branches for Cash are considered by Post Office and a standard
and consistent process is followed when responding to such requests.
«Branches can order Stock via online channels on Horizon and Branch Hub.
e Branches can order Coin via online channels, including Branch Hub, and the majority of
branches are able to view and adjust their note and ATM orders on Branch Hub.
* Branches are provided with an emergency Cash and Stock order facility.
e Methods are employed to minimise discrepancies in Cash and Stock distributed to branches,
such as quality assurance on remittances.
* Branches are notified promptly and support is offered if discrepancies are found in Cash and
Stock sent back from the branch to Post Office or, in the case of Cash remittances,
counterfeit notes are found.
e Branches are notified promptly and support is offered if discrepancies are found in Foreign
Currency buybacks sent from the branch to Post Office, includes mis-count errors, incorrect
currency type, counterfeit notes, unacceptable and outmoded notes.
* Support for branches is available by telephone if they have questions and concerns about
their Cash and Stock holdings or deliveries.
« Apostmaster has the right to challenge any decisions pertaining to a branch loss as a result
of a discrepancy or a transaction correction, and will be supported in any challenge by Post
Office. Post Office will analyse Cash and Stock remittance data to improve services to
branches and optimise Cash and Stock levels in the network.
* Post Office will use available feedback and data to understand and work to resolve the root
causes of issues that affect postamsters and their branches.
It is vital that the procedures in place in relation to managing Cash and Stock are as clear as possible
to ensure a fair, transparent, robust and consistent process for all concerned.
INTERNAL Network cash and stock management policy V4.0 Page 7 of 28
POL00448331
POL00448331
2.4 Application
This Policy is applicable to all Post Office employees* who deal with Cash and/or Stock supply and
management and defines the minimum standards to control financial loss, postmaster impact,
regulatory breaches and reputational damage in line with the Post Office's Risk Appetite.
2.5 The risk
Cash or Stock levels that are too high or too low in branches in the network can cause difficulties for
Post Office, postmasters and customers. Maintaining optimum levels of Cash and Stock ensures that
the branch is able to trade effectively and does not have to deal with issues associated with holding
excess volumes of Cash and Stock, including additional complexity in day-to-day accounting
procedures, and increased security risk.
The risks in relation to Cash and Stock supply include:
* Branches may not be able to trade due to a shortage of Cash.
e Excess Cash or Stock, or both, is not being managed effectively in branch.
* Branches are not performing accounting procedures in a timely manner.
e Branches may run out of, or be left with excess, Cash or Stock.
¢ Insufficient monitoring of inbound and outbound Swindon Stock centre levels.
e Internal fraud is completed successfully
* Failure to adhere to legal regulations required by the Note Circulation Scheme (NCS).
« Branches do not receive Cash or Stock deliveries in time.
Section 3.5 sets out the required operational standards that the Post Office has implemented to
control these risks.
‘In this Policy “employee” means permanent staff, temporary including agency staff, contractors, consultants and anyone else
working for or on behalf of Post Office and, for clarity, does not include postmasters or postmasters’ staff.
INTERNAL Network cash and stock management policy V4.0 Page 8 of 28
POL00448331
POL00448331
3 Risk appetite and required operational standards
3.1 Risk appetite
Risk appetite is the extent to which the Post Office will accept that a risk might happen in pursuit of
day-to-day business transactions. It therefore defines the boundaries of activity and levels of
exposure that Post Office is willing and able to tolerate.
Post Office takes its legal and regulatory responsibilities seriously and consequently has:
© Averse risk appetite to risks around service and support provided to postmasters.
* Averse risk appetite to being non-compliant with our statutory and regulatory obligations.
e Averse risk appetite for financial crime to occur within any part of the Post Office or the
network.
* Averse risk appetite in relation to unethical behaviour by Post Office employees.
* Averse risk appetite to risks around disputes and litigation.
e Averse risk appetite towards risks around our core operational processes that impact
postmasters.
e Cautious risk appetite towards the risk of service interruptions that would considerably
reduce branch availability across the network resulting in the inability to serve customers.
Post Office acknowledges however that in certain scenarios even after extensive controls have been
implemented a risk may still sit outside the agreed Risk Appetite/Risk Tolerance. Risks outside of
Appetite/Tolerance may be presented to the relevant governance forums for escalation/agreement of
the risk position.
If a risk is identified which is outside of agreed policy a risk exception note will be required, details of
which can be found here.
3.2 Policy framework
This policy is part of a framework of postmaster support policies that has been established to set the
minimum operating standards relating to the management of postmaster contract risks throughout
the business and network in line with Post Office's risk appetite. The framework includes the
following policies:
e Postmaster Onboarding
* Postmaster Training
* Postmaster Complaint Handling
e Network Monitoring and Branch Assurance Support
INTERNAL Network cash and stock management policy V4.0 Page 9 of 28
* Network Cash and Stock Management (this policy)
e Network Transaction Corrections
e Postmaster Account Support
* Postmaster Accounting Dispute Resolution
« Postmaster Contract Performance
* Postmaster Contract Suspension
« Postmaster Contract Termination
« Postmaster Contract Termination Decision Review
3.3 Who must comply?
Compliance with this Policy is mandatory for all Post Office employees who deal with Cash and/or
Stock supply and management.
Where non-compliance with this policy by Post Office employees is identified by Post Office, Post
Office will carry out an investigation. Where it is identified that an instance of non-compliance is
POL00448331
POL00448331
caused through wilful disregard or negligence, this will be investigated in accordance with the Group
Investigations Policy.
3.4 Roles and responsibilities
« Audit, Risk and Compliance Committee - is the Committee of the Post Office Limited Board
which reviews and approves Postmaster Support policies.
* Risk and Compliance Committee - is the standing committee of the Strategic Executive Group
who review and approve Postmaster Support policies for recommendation to the Audit, Risk
and Compliance Committee.
e Retail Engagement Director — is the policy owner, who must comply with the governance
responsibilities set out at section 6.1.
« Head of Cash Production, Planning and Optimisation — is accountable for the deployment
of this policy with respect to Cash and supports the team that manages Cash in the network.
This role is jointly responsible, with the Head of Stock Operations, for regularly reviewing
the effectiveness of this policy in their respective area (ie. Cash or Stock) and for drafting any
amendments to this policy that may be required.
e National Cash Centre Accounts Manager and team of National Cash Centre Accounts
Advisors — should:
© be conversant with this policy and linked policies;
INTERNAL Network cash and stock management policy V4.0 Page 10 of 28
°
POL00448331
POL00448331
manage correspondence with branches and offer support following the discovery of
a discrepancy or counterfeit note in a cash centre;
support branches when a discrepancy in outbound remittances is discovered;
guide branches through the steps to dispute the discrepancy;
support with contingency arrangements when these are invoked;
adhere to agreed Service Levels, where applicable.
e National Bureau Manager and team of National Bureau Processing Clerks — should:
°
be conversant with this policy and linked policies;
© manage correspondence with branches and offer support following the discovery of
a discrepancy or counterfeit note in the National Bureau;
© support branches when a discrepancy in outbound or inbound remittances is
discovered;
© guide postmasters through the steps to dispute the discrepancy;
© support with contingency arrangements when these are invoked;
o adhere to agreed Service Levels, where applicable.
e Head of Network, Resource and Inventory - is responsible for the National Cash Centre
Account Team and team of Inventory Managers and Inventory Support Advisors. They
should:
© be conversant with this policy and linked policies;
o° work with branches to ensure that the planned amounts of Cash are sufficient for the
branch to properly funded;
© offer support to branches who have missed a collection or delivery of Cash or Stock;
© proactively contact branches to discuss Cash level issues;
© proactively contact branches to advise of delivery failures;
© proactively contact branches where there is an indication that they are unaware of
the service provided by Post Office;
© support with contingency planning;
© accept and arrange fulfilment of emergency Stock orders where necessary;
© support branches with changing philatelic Stock level requirements;
© support postmasters when a Stock discrepancy in outbound remittances is
discovered;
INTERNAL — Network cash and stock management policy V4.0 Page 11 of 28
POL00448331
POL00448331
0 offer support to branches who have had a CVIT service failure;
o adhere to agreed Service Levels, where applicable.
* Head of Stock Operations — is accountable for the deployment of this policy with respect to
Stock and supports the team that manages Stock in the network. This role is jointly
responsible, with the Head of Cash Production, Planning and Optimisation, for regularly
reviewing the effectiveness of this policy in their respective area (i.e. Cash or Stock) and for
drafting any amendments to this policy that may be required.
e Head of Branch Support Centre and team of Support Advisors (Branch Support Centre) —
should:
© be conversant with this policy and linked policies;
© support branches with Stock discrepancies caused by incorrect accounting of Stock
items and Stock adjustments;
© provide advice on the management of Special Issue Stamp Stock.
« Head of Network Monitoring and Reconciliation — is responsible for identifying issues in
branch (such as Stock not being booked in) and highlighting and addressing these issues.
INTERNAL Network cash and stock management policy V4.0 Page 12 of 28
3.5 Policy required operational standards
POL00448331
POL00448331
A required operational standard defines the level of control that must be in place to manage inherent risks so that they remain within the defined Risk
Appetite statements. This section of the policy also sets out the Business Area(s) responsible for managing that risk through their controls, and all employees
must ensure that they comply with the policy requirements. There must be mechanisms in place within each business unit to demonstrate compliance. The
policy required operational standard can cover a range of control types, i.e., directive, detective, corrective and preventive which are required to ensure risks
are managed to an acceptable level and within the defined Risk Appetite.
The table below sets out the relationships between identified risk and the required policy operational standard in consideration of the stated risk appetite.
The subsequent pages define the terms used in greater detail:
Risk area Description of risk(s) Required operational standard Business Control Frequency
owners
Forecasting Branches may not be able to Preventive control Head of Branch When
and trade due to a shortage of Cash. I Manual Cash forecasting, using information on Network, complaints — I required (at
planning in Cash levels in branch, combined with expected Resource and I 3 complaints I least every 8
relation to payments and pay-outs, is carried out and Inventory ineach cycle I weeks)
Cash updated. trigger a
review of the
forecasted
plan
Preventive control Head of System Where
An online planned order message showing the Network, upload orders are
value and denominational breakdown of notes Resource and Fujitsu/ planned
is to be provided to the branch to review. Inventory Horizon
INTERNAL Network cash and stock management policy V4.0 Page 13 of 28
POL00448331
POL00448331
Risk area Description of risk(s) Required operational standard Business Control Frequency
owners
Excess Cash Excess Cash or Stock, or both, is I Detective control Head of Monitoring Daily
not being managed effectively Branches identified as holding excess Cash will be I Network, branches
in branch. contacted to offer support and understand why Resource and _I with surplus
there is a surplus. Requests are made for branches I Inventory Cash
to return surplus Cash. Non-compliance with
requests to return Cash will be escalated to the
Network Monitoring Team.
Detective control Head of Identification I Weekly
Surplus Cash escalations will be reviewed and any I Network of branches
other risk factors will be considered. The actions Monitoring and with excess
taken, dependent on the findings, can be a Reconciliation Cash and
combination of a phone call, visit, training, or Stock
support, or requesting a Branch Assurance visit in
order to verify the Cash at the branch.
Detective control Head of Return of During a
Where a support visit or Branch Assurance Visit Operational excess Cash I Support
identifies excess Cash or Stock, the Branch Excellence & Stock Visit or
Assurance Advisors will support the postmaster in Branch
creating a return of the excess to the Cash Centre Assurance
or Swindon Stock Centre. visit
Branch Branches are not performing Detective control Head of Monitoring I Daily
obligations accounting procedures in a A report is created to show branches that Network branches
timely manner. have not produced a branch trading statement Monitoring and who haven't
in the last 60 days. Network Monitoring Reconciliation rolled over in
will contact the branch to offer support. 60 Days
INTERNAL Network cash and stock management policy V4.0 Page 14 of 28
POL00448331
POL00448331
Risk area Description of risk(s) Required operational standard Business Control Frequency
owners
Detective control Head of Notifying the I Upon
Where Cash and Stock accounting issues are Network Business identification
identified, the Network Monitoring Team will notify I Monitoring and I Support of an
the Business Support Managers, in the first 6 Reconciliation I Manager exception
months of the term of a postmaster’s contract, and
the Area Managers thereafter, to advise them the
postmaster may require extra support.
Branch ability Branches may run out of, or be Preventive control Head of Dynamics On demand
to adjust left with excess, Cash or Stock. I More than one channel is provided (Branch Network, cases for
planned Hub, Horizon, Telephone) for postmasters to Resource and I Cash and
orders and work with Post Office to amend planned Cash Inventory Stock
make orders and make emergency Cash orders requests
emergency where necessary. (telephone)
orders
Preventive control Head of File requests I On demand
More than one channel is provided (Branch Network, for Cash and
Hub, Horizon, Telephone) for postmasters to Resource and _I Stock are
work with Post Office to amend planned Stock Inventory retained
orders and make emergency Stock orders (Branch Hub,
where necessary. Horizon)
Remittance Insufficient monitoring of Detective control Head of Stock Outbound Daily
Discrepancies I inbound and outbound Swindon I Stock and Cash orders are quality assured to Operations Stock Quality
support and __I Stock centre levels. minimise discrepancies before being sent to (Stock) Assurance
disputes branch. Stock orders are subject to secondary Check Daily
Internal fraud is completed checks before they are sent, and Cash is assured Outbound
successfully. through the make-up process which is covered by Stock
CCTV in case of discrepancies and all notes are Processing
machine counted notes through the high-speed
INTERNAL Network cash and stock management policy V4.0
Page 15 of 28
POL00448331
POL00448331
Risk area Description of risk(s) Required operational standard Business Control Frequency
owners
Failure to adhere to legal note sorters which are calibrated daily.
regulations required by the Note National Cash I CCTV Daily,
Circulation Scheme (NCS). Centre archiving weekly, and
Accounts Calibration Monthly
Manager (Cash) I checks -
counters and
scales
National Bureau I Manager Weekly and
Manager confirmation I Monthly
(foreign of unit tasks
currency) completion
Detective Control National Bureau I Manager When a
Communication is initiated promptly between a Manager confirmation I discrepancy
Cash Centre and the postmaster when a Cash (foreign of unittasks I or issue is
remittance discrepancy is identified. currency) completion _ I discovered
Detective control National Cash Branch When the
Discrepancies in remittances are investigated. Centre Requests for I event occurs
Accounts review
Manager (Cash)
National Bureau I Manager When a
Manager confirmation I discrepancy
(foreign of unittasks I occurs
currency) completion
INTERNAL Network cash and stock management policy V4.0 Page 16 of 28
POL00448331
POL00448331
Risk area Description of risk(s) Required operational standard Business Control Frequency
owners
Detective control National Bureau I Allocation of I When the
Bureau Centre makes every endeavour to recoup _I Manager obsolete event occurs
partial value against unacceptable or outmoded FX I (foreign foreign
notes from regulated currency dealer and from currency) currency
value received, reimburses branches against note gain
original loss. back to
branches
Stock and Branches do not receive Cash or
Cash Stock deliveries in time. Preventive control Head of Planned /ad_ I Annually or
Distribution Cash distribution route reviews are carried out Network, hoc (based when the
and feedback given to the depot on a regular Resource and on service event which
basis. Inventory quality) review
review of occurs, if
Depots sooner
Preventive control Head of Stock Daily planner I Daily
New Stock introduced by Post Office will be Operations and
distributed up to a week before the on-sale (Stock) Distribution
date. timescales
Preventive control Head of Stock Galaxy and Daily
Within 48 hours of the branch's last order time Operations WCS data
for their scheduled service, Stock orders are (Stock)
picked and aligned to specific order timescales.
INTERNAL Network cash and stock management policy V4.0 Page 17 of 28
POL00448331
POL00448331
Risk area Description of risk(s) Required operational standard Business Control Frequency
owners
Preventive control Head of Cash Planning in Every 6
Cash and Stock teams carry out contingency Production, place for months
planning to prepare for known and unknown Planning seasonal
events that could impact distribution of Cash and factors and
and Stock and Cash, and Stock levels more Optimisation, outside
generally. and Head of influences
Stock (eg.,a
Operations national fuel
(Stock) shortage)
INTERNAL Network cash and stock management policy V4.0 Page 18 of 28
POL00448331
POL00448331
4 Procedures
4.1 Forecasting and planning cash
Post Office aims to meet trading requirements as they vary throughout the year, whilst keeping Cash
holdings as low as possible. This ensures that the branch does not need to deal with issues
associated with holding excess volumes of Cash and Stock, including additional complexity in day-to-
day accounting procedures and increased security risk.
The Cash Management team support branches by planning and forecasting their cash (including
foreign currency) needs based on data that is supplied by branches on a daily basis when open for
trading. Coin is not planned and is ordered by the branch via online channels, including Branch Hub.
Planned note orders are provided online to the branch, automatically, by the Cash Centre once the
order has been planned, and the Inventory Support Centre will work with postmasters, via telephone
or Branch Hub, to ensure the branch is properly funded.
4.2 Excess cash and stock
The Network Monitoring and Support team monitor Cash declaration compliance and offer support to
branches where required. The Inventory Team make proactive calls to a branch, in respect of excess
cash, when data suggests that their branch has Cash holdings that will either exceed or not meet
their expected payments.
Branches are expected to follow guidance (as per Stamps and Stock guide) to keep 6-8 weeks of
products available in branch. This will allow for adequate time to reorder whilst not raising the risk
high levels of stockholdings in branch. Any stocks held above 12 weeks’ supply would be considered
excess stock and will be asked to be returned to the central stock supply.
4.3 Stock orders and returns
Standard Stock is ordered by branches via Horizon or Branch Hub.
Special issue philatelic products are distributed to branches automatically, based on sales and returns
figures where possible. Branches can order additional quantities of philatelic products via Horizon or
Branch Hub. Post Office will notify branches of the date of expiry and withdrawal of any special issue
stamp stock, and branches should either destroy these or return them to the National Stock Centre
upon instruction.
Any non- deliveries can be reported to the Branch Support Centre.
INTERNAL Network cash and stock management policy V4.0 Page 19 of 28
POL00448331
POL00448331
4.4 Emergency orders
In exceptional circumstances, for example, where there is unexpected demand for Stock or delivery
failures, branches can place emergency Stock and Cash orders via the Inventory Support Centre
(0333 3455572), to ensure that Cash and Stock remains at optimum levels in branch.
4.5 Cash remittance discrepancies
The National Cash Centre Accounting Team receive notifications from the Cash Centres (for inward —
i.e., coming into a Cash Centre from branch) and from the branch (for outward —i.e., sent from a Cash
Centre to branch) about discrepancies in remittances and counterfeit notes. In the case of inward
discrepancies, they send out notification letters to the branch and outward discrepancies will be
raised by the branch. An investigation into the discrepancy, if requested, will be carried out, such as
viewing CCTV of the pouch being opened/sealed in the Cash Centre.
The Branch Reconciliation Team will issue Transaction Corrections to the branch to correct inward
discrepancies where necessary, according to the Network Transaction Correction policy’.
4.6 Foreign Currency remittance discrepancies
The National Bureau Finance Team receive notifications from the Bureau Centre (for inward ~ i.e.,
coming into the Bureau Centre from branch) and from the branch (for outward —ie., sent from the
Bureau Centre to branch) about discrepancies in remittances, including outmoded, unacceptable and
counterfeit notes. In the case of inward discrepancies, they send out notification letters to the branch
and outward discrepancies will be raised by the branch. An investigation into the discrepancy, if
requested, will be carried out, such as viewing CCTV of the pouch being opened/sealed in the Bureau
Centre.
The Branch Reconciliation Team will issue Transaction Corrections to the branch to correct inward
discrepancies where necessary, according to the Network Transaction Correction policy.
4.7 Stock remittance discrepancies
100% of Stock orders sent to branches are checked for accuracy, in order to minimise discrepancies.
However, if the contents of the order do not match the relevant advice note, the branch should
contact the Inventory Support Centre if who will provide appropriate support.
® The Network Transaction Correction policy can be found on the hub, here.
INTERNAL Network cash and stock management policy V4.0 Page 20 of 28
POL00448331
POL00448331
4.8 Requiring more information about, or disputing, a Transaction
Correction
Should a branch require more information about a Transaction Correction than is contained in the
narrative for that Transaction Correction, the branch can call the Branch Reconciliation Team for
support. The relevant phone number and the name of the relevant Support Advisor is set out on the
Transaction Correction notification.
If the postmaster wishes to dispute a Transaction Correction, a dispute can be raised with the
Transaction Corrections Disputes Team on a dedicated telephone number GRO j}and
email address {~
If the Transaction Correction dispute is still not resolved to the satisfaction of the postmaster, the
case can be further escalated internally.
Please refer to the Postmaster Accounting Dispute Resolution policy® for more information on the
processes in place when a Transaction Correction is disputed.
4.9 Service failures
The Inventory Support team will notify branches when there are CVIT service failures (for instance, a
delivery/collection may not happen when expected or is cancelled).
In exceptional circumstances, the Inventory Support team may not be aware of a problem, so if
branches don't receive their CVIT service at the expected time, they can call the Inventory Support
team for support.
4.10 Control framework (controls reporting risks and process)
Self-assessment controls are in place around the risk descriptions, in section 3.5 of this policy, and
these must be adhered to.
4.11 Contingency planning
Cash and Stock teams have contingency plans to mitigate against the risks of collection delays, or the
unexpected depletion of Cash holdings, in order to maintain Cash and Stock optimum levels.
4.12 External assurance
The end-to-end cash operation (from collection at branch to final verification at the cash centre) is
ISO 9001 compliant and is also assured independently each year.
© The Postmaster Accounting Dispute Resolution policy can be found on the hub, here.
INTERNAL Network cash and stock management policy V4.0 Page 21 of 28
POL00448331
POL00448331
External assurance from PwC will scrutinise and validate our end-to-end cash processing cycle,
including how we identify and pass back discrepancies to Post Masters.
INTERNAL Network cash and stock management policy V4.0 Page 22 of 28
POL00448331
POL00448331
5 Where to go for help
5.1 Additional policies
This Policy is one of a set of policies. The full set of policies can be found on the SharePoint Hub
under Postmaster Support Policies.
5.2 How to raise a concern
Any postmaster, any postmaster’s staff or any Post Office employee who suspects that there is a
breach of this Policy should report this without any undue delay.
Ifa postmaster or any postmaster's staff are unable to raise the matter with the area manager of the
relevant branch or if a Post Office employee is unable to speak to her or his line manager, any person
can bring it to Post Office's attention independently and can use the Speak Up channels for this
purpose. Any person can raise concerns anonymously, although disclosing as much information as
possible helps ensure Post Office can conduct a thorough investigation.
For more details about how and where to raise concerns, please refer to the current Speak Up Policy
which can be found on The Hub under Post Office Key Policies, accessed here, or report online at:
http://speakup.postoffice.co.uk or call the Speak Up Line on
Please note that a postmaster may also contact the National Federation of Sub-Postmasters (NFSP)
for help and support, by contacting their helpline on: “Jor by emailing
5.3 Who to contact for more information
If you need further information about this policy or wish to report an issue in relation to this policy,
please contact the Retail Engagement Director, Tracy Marshall, by emailing
tracy.marshalé’ Si
INTERNAL Network cash and stock management policy V4.0 Page 23 of 28
POL00448331
POL00448331
6 Governance
6.1 Governance responsibilities
The Policy sponsor, the Group Chief Retail Officer of Post Office, takes responsibility for policies
covering their areas.
The Policy Owner is the Retail Engagement Director who is responsible for ensuring that the content
is up to date and is capable of being executed. As part of the review process, they need to ensure
that the minimum controls articulated in the policy are working or to identify any gaps and provide an
action plan for remediation
Additionally, the Retail Engagement Director and the Supply Chain Director are responsible for
providing appropriate and timely reporting to the Risk and Compliance Committee and the Audit,
Risk and Compliance Committee as required.
The Audit, Risk and Compliance Committee is responsible for approving the Policy and overseeing
compliance.
The Board is responsible for setting Post Office's risk appetite.
INTERNAL Network cash and stock management policy V4.0 Page 24 of 28
POL00448331
POL00448331
7 Document control
7.1 Document control record
Summary
indard owner
Martin Roberts (Group Tracy Marshall (Retail Russell Hancock (Supply R&CC/ARC
Chief Retail Officer) Engagement Director) Chain Director)
Document review
Version Policy — effective date Policy location
period
Postmaster Support
4.0 Annual 05/2024 Policies on SharePoint
Hub
Revision history
Chang:
O.1 13th February 2021 Draft Version Jo Milton
0.2 15th February 2021 Amendments following review by Tim Perkins Jo Milton
03 2nd March 2021 Amendments following legal and SME review Jo Milton
0.4 8th March 2021 Amended risk appetite statements Jo Milton
0.4.1& 9thand 19th March Amendments following operational review Jo Milton
0.4.2 2021
0.4.3 29th March 2021 Amendments following ARC review Jo Milton
1.0 30th March 2021 Final Version approved by ARC Jo Milton
at 27th April 2021 Second legal review Jo Milton
Alignment with other postmaster support policies
12 4th May 2021 Risk appetite amendment Jo Milton
13 11th May 2021 Updated TC Disputes contact number in 4.7 Jo Milton
14 25th May 2021 Added linked policy statement to front page Jo Milton
Added reference to the Group Investigations Policy
to section 3.3 Who Must Comply?
Updated link to section 5.1
Added footnotes to link to other policies referred to
in this policy.
15 17 February 2022 ‘Annual Review Jo Milton
2.2 Addition of section stating that a postmaster
may authorise someone to act on their/its behalf
INTERNAL Network cash and stock management policy V4.0 Page 25 of 28
2.0
21
2.2
23
3.0
3.1
3.2
4.0
INTERNAL
1* April 2022
10" May 2022
5 July 2022
14" November 2022
27" January 2023
8" December 2023
18" March 2024
21% May 2024
2.5 and 3.5 Amended risk to clarify insurance issues
relate to Post Office insurance
3.1 Updated risk appetite statements to include
Operational statements
3.4 Updated job role responsibilities
Minor changes to wording in 3.5 Minimum Control
standards
Revised section 4.5 to reflect new disputes process
around cash discrepancies.
5.2 Added reference to NFSP
Amended version number following approval
2.5 and 3.5 Further amended risk to clarify
insurance issues relate to Post Office insurance.
6.1, 7.1 Updated policy sponsor
Font updated to Nunito Sans
Annual Review
2.3 Extra principle added about root cause
3.4, 3.5 and 4.4 Changed the responsibility for
stock orders and missed deliveries from BSC to
Inventory Support.
3.5 Added in about machine counting notes,
amended sample stock order checks from quarterly
to bi-annually and Clarification given to the point
about stock orders being picked within 48 hrs
4.4 Added in emergency order contact details
5.2 Added Speak Up contact details
Updated to full version number following approval
at ARC
Updated owner
3.1 Amended risk exception statement
3.2 Updated framework policy name — Contract
Termination Decisions Review
Annual Review
2.3 New principle of Foreign Currency discrepancies
Rewording of the dispute principle
2.5 Risks updated
3.4 Moved two stock responsibilities from BSC to
Inventory
3.5 Minimum Control Standards changed to Policy
Required Operational Standards
4.2 Added in a note on stock levels branches are
advised to keep
4.4 Replaced BSC with Inventory team
4.5 Removed reference to the Decision Review
Panel
4.6 Additional section on Foreign Currency
discrepancies
4,9 Now includes all CVIT failures
4,12 New section on external assurance
5.2 Added in NFSP contact details
Updated to full version number following approval
at ARC
Network cash and stock management policy V4.0
Jo Milton
Jo Milton
Jo Milton
Jo Milton
Jo Milton
Jo Milton
Jo Milton
Jo Milton
Page 26 of 28
POL00448331
POL00448331
POL00448331
POL00448331
7.2 Oversight committee
Oversight Committee: Risk and Compliance Committee and Audit, Risk and Compliance Committee
Committee Date approved
POL R&CC 7 May 2024
POL ARC 21% May 2024
Next review: 31 MAY 2025
7.3, Company details
Post Office Limited and Post Office Management Services Limited are registered in England and Wales. Registered numbers 2154540 and
08459718 respectively. Registered Office: Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ.
Post Office Management Services Limited is authorised and regulated by the Financial Conduct Authority (FCA), FRN 630318. Its Information
Commissioners Office registration number is ZA090585.
Post Office Limited is authorised and regulated by Her Majesty's Revenue and Customs (HMRC), REF 12137104. Its Information Commissioners
Office registration number is 24866081.
VAT registration number GB 172 6705 02. Registered office: Finsbury Dials, 20 Finsbury Street, London, England EC2Y 9AQ
INTERNAL Network cash and stock management policy V4.0 Page 27 of 28
POL00448331
POL00448331