NSW Audit Office - Financial Reports - 2004 - Volume 4 - Compliance Review of Payment of Accounts

Compliance Review of Payment of Accounts The Public Finance and Audit Regulation 2000 and the Treasurer’s Directions require government agencies to pay their accounts promptly. Suppliers paid late may claim interest from the agency involved. To inform suppliers of this fact, agency order forms must contain specified information to assist them with the process. In addition, annual reports legislation directs agencies to disclose in their annual reports details of their performance in paying accounts promptly and, if necessary, details of action taken to improve the performance in the future. If an agency pays interest to a supplier or contractor because of late payment, this must also be disclosed. A Treasury Circular issued in 2001 requires each agency to provide its Chief Executive Officer (CEO) with a report each quarter on the status of outstanding claims. Each agency must also set targets to be achieved in the prompt payment of its accounts. CONCLUSION Agency performance in complying with the various requirements regarding the paying of suppliers is still very poor. The reminder issued by the NSW Treasury in 2001 has not resulted in increased compliance by agencies. In addition, many agencies are not complying with the new requirements imposed at that time by Treasury. In arriving at this conclusion we have included the results of reviews at three Health entities. Requirements relating to the payment of accounts are contained in the Public Finance ...