Handling of invoices at the Swedish Transport administration

Handling of invoices at the Swedish Transport Administration Our routine processing of supplier invoices starts with contacts with our suppliers, scanning of our invoices, distribution of the Administrations invoices internally, coding these and then payment to our suppliers/creditors. Scanning at Itella in Strömsund Paper invoice (scanning) Scanning at Itella in Strömsund Paper invoice (scanning) Accounts payable Registration of suppliers/creditors Distribution Accounts payable Registration of suppliers/creditors Distribution Authorizing Price and delivery approval Accounts payable Review AccountingPayment and filing Accounts payable Review AccountingPayment and filing

Distribution of invoices For distribution to work, suppliers/crediters have marked the invoice in the maner we have chosen to distribute invoices. When the invoice reaches the right recipient in CDI (our electronic invoice system) the invoice has to be price and delivery approved by one person and then forwarded for authorization by another person with operational and financial responsibility. Scanning at Itella in Strömsund Paper invoice (scanning) Scanning at Itella in Strömsund Paper invoice (scanning) Creditors Ledger unit Registration of suppliers/creditors Distribution Creditors Ledger unit Registration of suppliers/creditors Distribution

Verifying of price and delivery Involves checking that the contracts has been made in accordance with regulations an within delegated limits, that the goods or services are commisioned and delivered, that the invoice states the right price and terms of payment, and that the invoice is correctly coded and in time. Price and delivery approval Which person gets the invoice for authorization depends on how the invoice is coded. The codes are linked to our financial model. Minimum requirement is that someone has the authority of signing of each department, a project or a work order.

Authorizing of payment Involves checking that the right person has verified price and delivery, and verify that it is a justified cost of operations and to forward the invoice for accounting and payment. Authorizing

Authorization rules, guideline Authorization rules aims to define the common requirements within the Administration on the part of internal controls designed to ensure that orders, payments and accounting of payments and other financial events are properly done. Authorization includes the right to confirm that the expenditure is objectively justified and that it charged to a specific device and a specific activity or a precise mission. Managers that report directly to Director General has the right to sign authorization in their operational and financial responsibility in accordance with the powers set out in the ”rules of procedure”. Managers makes decisions on the allocation of delegation authority and other powers in its field. Authorization should normally only be awarded to those with operational and finacial responsibility. In some cases the rules and decisions of Director General entail restrictions on the ability to delegate signatory authority of the chief of activity.

Authorization of purchase Authorizing the purchase is made in our electronic invoice system. Authorization can not be made by the same person who verified the price and delivery. The authorization signed by requested document does not require authorization characterized the corresponding invoice provided the data on the supply, price and other conditions are correct.

Control of payment data All payments that exceeds SEK are checked, and spot-checks are made by 5%. All foreign payments are checked. Checks shall be made against payment basis to regularity in the amount, currency, payee name and bankaccount, expiration date and authorzation procedures.

Payment instruction The purpose of this routine is to define the common requirement on the part of the internal controls design to ensure the payments from the Administration are implemented in a correct way. Permissions/jurisdictions All operations in accounts payable are power-driven. Jurisdiction may not be awarded to one single person that can perform all the moments in accounts payable. Access to supplier database should not be given to persons with signatory authority. Powers to authorize payments and records, direct payments via the internet, are given only to employees at the Administration. Arrangement of supplier data New suppliers/crediters, or changing exicisting supplier/crediter information, shall be registered by an appointed person. Controlls are made against the bank and Bolagsverket.

Execution of payments to the supplier/crediter Execution of payment consist of several elements. For all elements in the reports and lists referenced shall be filed as part of the accounting material. - Payment proposal. - Payment confirmation, the amount has to be consistent with the amount on the payment proposal. - Payment file, check that the number series is unbroken. - Payment orders – transmission and authorization. Made by an appointed person, transmission must be confirmed with a debet authorization. Control of payment data Supplier information Clearing report INVOICEVerification and authorization Payment proposal Payment confimatio n Payment orders Payment file