Pickles, Potatoes and Government Overspend
5 months, 1 week ago #1
Eric Pickles, the Secretray of State for Communities and Local Government, recently highlighted the need for local councils to review their supplier payments. He suggested, on the back of recent research, that there could be an annual overspend of c. £150m from overpayments to suppliers through, for example, invoice duplication - not "small potatoes" in Mr. Pickles' view when such sums would "pay the wages of nearly 9,000 care workers". Do Procurement and Finance Managers consider that their systems adequately catch overspend and that the problem is of such a scale?
Re: Pickles, Potatoes and Government Overspend
5 months ago #2
Hi James, councils don't only overpay, they often underpay, then go all through the painful process of getting it right.
They also can have arrangments across a large council where the same commodities are bought from the same suppliers at a dozen different price agreements.
Some services are bought that are entirely predicatable through a whole year, such as home to school bus journeys which would enable a profiled payment process to be set up based on the number of school days per month.
This could be established by a journal process each September, obviating a dozen individual invoices.
Even more crazy is where a single provider has twenty five taxi contracts, all being invoiced seperately, creating 300 invoices a year, rather than a single aggregated profile left to auto-run, simply monitoring variences (plus and minus journeys) through the year.
Less payments, fewer disputes, more time to add value?