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From: Swil, Jonathan
Sent: 13 May 2014 10:50
To: Band, Christa
Subject: FW: Deloitte's work for Post Office Limited
Christa
I spoke to Rodric yesterday about the Deloitte summary we have so far seen (for some reason the email below only
came through to me this morning).
He said that the job that is required in order to do a drains up assessment of Horizon is immense which is why they
are only doing the scope of work below. He asked that we let him know if we have any concerns about the outline
below. I don’t have any comments on it.
For my part, I don’t think that the Phase 1 work, the exec summary of which is what we have seen, addresses the
point we raised. The Phase 2 work seems to be closer to the mark so hopefully that is the case when we see a copy
of it.
Jonathan
From: Rodric Williams [mailto;
Sent: 12 May 2014 13:41
To: Swil, Jonathan
Subject: Deloitte's work for Post Office Limited
Jonathan — further to our discussion this morning, this is what the Board is being told about Deloitte’s work:
The Deloitte review is in two phases and is planned to conclude by the end of this week.
Phase 1.
Deloitte have been completing the assessment of Post Office’s current sources of assurance relating to the integrity
of Horizon. This is a desk top exercise and they will complete this work by examining further documents, which are
now available for their review. We expect to receive a draft of the report by close of play on 13” May.
The above also includes the move from old Horizon to the current day HNGx, assessing the testing strategy,
documentation and sign-off prior to the implementation of HNGx in 2010. Their assessment will also be included in
the draft expected by end of day 13‘ May.
In addition, they are reviewing how branch transactions are stored both pre and post HNGx, this will determine if
there has been any material changes since 1999. This part of the exercise will be limited to the documentation which
is available.
Phase 2.
Following the Board meeting, Deloitte’s work has been extended to perform a desktop review of those detailed
features of Horizon which ensure that:
. the sub-post master has full ownership and visibility of all records in their Branch ledger; and
. these Branch ledger records are kept by the system with integrity and full audit trail.
Deloitte’s work will include a technical validation of the Audit Store’s tamper proof mechanisms and they will also
consider, as far as reasonable, where key events in the past could have impacted these features, considering pre and
post 2010.
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Deloitte will also highlight where and how testing of these features could be considered by POL to provide further
assurance to the Board.
The executive summary will be completed by close of play Friday 16" May.
And this is what they are being told about the purpose and context of the work:
Purpose
In light of the specific allegations being made against Post Office by Applicants to the Mediation Scheme, Post Office
requires input from Deloitte to support Post Office’s legal position (as advised by Linklaters LLP) that:
- Horizon produces and maintains the accounts between Post Office and its agents (including subpostmasters),
and
- unless there is proof that the Horizon processing environment (“HPE”) is not functioning as intended, Post
Office can enforce its contractual rights against agents relying on those accounts.
Context
On 30 April 2014, the Board raised two specific questions and requested input from Deloitte:
1. In light of the specific allegations regarding non-traceable “phantom” transactions existing in Horizon, what
assurance could be provided over how the system records and maintains the transaction logs; and
2. In awider context, what further assurance could be given both pre and post 2010 (when there was a change
in Horizon system)?
In this context, the “assurance” sought is the level of comfort and confidence that Post Office and Horizon users can
have that the HPE is fit for purpose, functions as designed and ensures that complete, accurate and auditable
records are kept of all sub-postmaster transactions.
Rodric Williams I Litigation Lawyer
© 148 Old Street, LONDON, EC1V 9HQ.
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