OurKid1
I can't understand why, given that quite a few of the Postmasters/mistresses have paid back money which wasn't actually owed, that the auditors didn't find a discrepancy i.e. too much money in the PO coffers.
The short answer to Where Did All The Money Go is that it was either disappearing out of branches due to customer fraud or staff theft or repeated mistakes benefitting a customer OR it was disappearing out of ancillary (IT and non IT) Post Office (and non-Post Office) systems due to fraud, mistakes outside the branch and non-Horizon computer error OR it was disappearing out of Subpostmaster pockets and into the Post Office’s bottom line due to Horizon-generated discrepancies which showed up in Subpostmaster branch accounts.
It is important to remember the Post Office had no real control over its internal accounting systems for the duration of its Horizon-related prosecution spree (cf the 2013 Detica report) and so it didn’t know where money was going, nor could it properly account for where it came from. Suggesting that double-entry accounting would have revealed an obvious positive entry corresponding to an obvious negative entry assumes the Post Office systems worked and the people operating them knew what they were doing. They didn’t, and even if they did, they were not going to give any visibility of them to Subpostmasters or their legal representatives.
^The really, really short answer is that any money the Post Office was credited which it couldn’t make sense of ended up one of many internal suspense accounts^.
^It is therefore perfectly likely that the Post Office took money which rightfully belonged to its Subpostmasters and used it to bolster its bottom line. This was part-admitted by Post Office CEO Nick Read in a parliamentary committee meeting in January 2021:^
Chair: But you have to do a profit and loss account, do you not, Mr Read, with money coming in and money going out? If victims were putting money into the Post Office, surely you know that money came in from somewhere. Did it just go to your bottom line?
Nick Read: It went into a general suspense account.
What Mr Read didn’t tell the Committee was that after three years (according to one source I have spoken to), if entries in the suspense account were not identified and/or claimed, the cash was swept into the Post Office’s P&L account and counted as profit. Trebles on the back of Subpostmaster misery all round.
www.postofficescandal.uk/post/podcast-where-did-all-the-money-go/