EU/IMF 15 Day Rule

Extension of 15 day Prompt Payment Rule -IMF, European Commission, ECB Requirement Circular OU 01/11 -Prompt Payment -Reduction of payment period to 15 days for valid invoices received on or after 1st July 2011 issued on Monday 28th March 2011 from Organisation Unit of the Department with responsibility for prompt payments. The circular outlined the Government decision taken on 2 March 2011 to extend the 15 day prompt payments obligation to the wider public sector. Some key points in relation to the decision are as follows: Local Authorities are required to ensure that any alterations needed to their internal payment systems are completed not later than 30 June 2011 so that payments to suppliers in respect of all valid invoices received on or after 1 July 2011 are made within 15 days of receipt. For the purpose of the obligation reference to days means calendar days, i.e. 15 calendar days

Extension of 15 day Prompt Payment Rule -IMF, European Commission, ECB Requirement The report template has been provided and is included at the end of this section The first of these reports will be due by 15 October 2011. It is vital that these reports are submitted by the 15th day of the month following the end of the quarter -beginning with the quarter 1 July 2011 to 30 September 2011 It should be noted that the Department will publish these returns on its website. Local authorities and agencies are also required to publish their data on their websites. Guidelines were provided with the circular to assist local authorities and cover requirements around provision of information to suppliers and valid invoices. LGMA is undertaking some work to facilitate the capturing and reporting on compliance with the 15 day rule.

Extension of 15 day Prompt Payment Rule -IMF, European Commission, ECB Requirement While the extension of the 15 day prompt payment rule is not compulsory and there is no legislative basis to underpin it (2002 Prompt Payments regulations continue to apply), it does form part of the EU / IMF Programme and the Government decision taken on the 25th January requires that the work to fulfil the conditions of the Programme be given the highest priority. As with all other elements of the Programme, progress will be monitored and in this case through the quarterly reporting the first of which will be the 15th October 2011.

Extension of 15 day Prompt Payment Rule -IMF, European Commission, ECB Requirement Details Number Value (€) Percentage (%) of total Invoices Paid Percentage (%) of the total amount paid Total Invoices paid in the Quarter Number of invoices paid within 15 days Number of invoices paid within 16-30 days Number of Invoices in excess of 30 days Number of Invoices Disputed in quarter Total

Extension of 15 day Prompt Payment Rule -IMF, European Commission, ECB Requirement Details Number Value (€) Percentage (%) of total Invoices Paid Percentage (%) of the total amount paid Total Invoices paid in the Quarter 3987 €7,304,256.06 100% Number of invoices paid within 15 days 3220 €6385,406.61 80.76% 87.40% Number of invoices paid within 16-30 days 655 €817,068.88 16.43% 11.20% Number of Invoices in excess of 30 days 112 €101,780.57 2.81% 1.40% Number of Invoices Disputed in quarter 15 €16,159.53 0% 0.20% Total

Extension of 15 day Prompt Payment Rule -IMF, European Commission, ECB Requirement Invoice Number Amount Date Received in Section Description of Goods or Services Reason For Dispute Action Taken Date Issue Resolved 5001 €127.50 29/09/2011 Ink Cartridge for Fax Machine Query on cost to original quote Contacted supplier by phone 15/11/2011

Changes for Louth Local Authorities Need for all invoices to be sent to a central location We will be writing to all suppliers to advise them of this The following information must be on all invoices It must contain a valid Tax reference number (Usually VAT or PPS Number) Must have an invoice number Must have a Purchases Order Number from the local Authority Must contain a description of goods delivered or services supplied Must have the correct calculations. Must match the value of the Purchases order number quoted. Must have a proof of delivery Docket attached. Order must also be approved Otherwise Invoices will be returned to supplier

Changes for Louth Local Authorities Sections will no longer receive invoices Sections will be responsible for putting their GRNS onto the Agresso system The GRN will act at the “signature” to pay for goods and services Purchases orders must match the value of the invoice Delivery dockets must be kept and filed within each section. Payment Vouchers These must be signed by the budget holder before being submitted to finance for payment

Sections Must Do – Purchase Order Purchases order (PO) must be raised before an order is placed with supplier The following information must be known to enter a PO Supplier Cost of the goods or service Quantity The vat that is applicable Does Professional Services With holding Tax apply Does Construction Tax (RCT APPLY) What’s the correct Job Code, op code and Product code

Sections Must Do Purchases Order Where costs are not Known at the time of the PO being raised eg plant hire, vehicle hire, advertisements, skips etc : The supplier must be told that to advise you of the cost as soon as possible and before they submit the invoice The sections then need to amend the PO to reflect the cost on the invoice and the amended PO needs to be approved When the Purchases order is approved it must be printed off and attach it to the payment voucher. When the goods are received the GRN must be put onto Agresso and the number recorded on the payment Voucher

See Copy of Payment Voucher Attached Sections Must Do See Copy of Payment Voucher Attached

Sections Must Do – Payment Voucher Enter Details of the PO Number Supplier ID Job Code, Op Code , Account Element Ordered By Out of State Capital Payment Payment to be recouped From Tender Received Approved by (Can be completed by Approved or requester) GRN Number Authorised Signature is to be signed and dated by the approver

Sections Must Do – Payment Voucher When payment voucher is complete it should be sent to accounts payable without delay and it will be matched to the invoice and paid