1. EU/IMF 15 Day Rule

2. 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

3. 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 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.

4. 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.

5. 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 days
Number of Invoices in excess of 30 days
Number of Invoices Disputed in quarter
Total

6. 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 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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