IBC Update
Governor Update
4 December 2014
Summary of actions
• Invoicing:
•
20 Oct
dedicated team of 12 FTE commenced to clear backlog
•
21 Oct
payment released for all invoice received (17,698) up to the 20 Oct (if
invoices not received by the IBC then not paid)
•
22 Oct
letter issued to each supplier where payment made outlining the
reason for payment and including a list of the invoices that
payment made against
•
22 Oct >
contact made with admin officer to gain approval that payment made:
• was correct and if so posted to school budget line (held on HCC
budget line until confirmed as correct)
• if incorrect to resolve with supplier
•
28 Nov
all invoices paid
84.2% cleared to budget line out of original 17,698
15.8% held on HCC contract account until approval gained
1,377 (7.7%) awaiting goods receipting and being chased
•
IBC business as usual team focusses on all new invoices from 21st Oct (and any invoices not
previously received from before 21st Oct sent in as a result of current piece of work)
•
Summary of current aged analysis of invoices that are unpaid to suppliers
•
Therefore we currently have 4,456 invoices that are overdue for payment
• 1,445 are the complex cases from the original advance payment work
• 3,011 linked to:
• invoices in dispute
• invoices that have been sent in by suppliers following the advance payment work
that are already overdue and now being worked through
• a number of specific suppliers where invoices are very complex (i.e. Grundon,
SITA)
•
The IBC receives between 1,200 and 1,500 per day (c. 250,000 to 300,000 per annum) and
so the current unpaid invoices represents the equivalent of 3.5 days of invoices
•
IBC continues to receive in invoices that are overdue that have not previously
been received or correctly received which are due to:
• PO’s not being on invoices and so under the No PO No Pay Policy they will
have been returned
• Invoices that are pre IBC (e.g. one supplier of supply teachers recently sent
in over 60 invoices that all relate to pre IBC and would have been paid by the
school directly. These now come into the IBC for payment are already
overdue)
• Invoices sent to the wrong location (i.e. line managers / admin officers) and
not forwarded on
•
Continued customer engagement, including:
• Hart and Rushmoor District Head Teachers Conference
• Special Head Teacher Conference
• IBC Admin Officer Network Group
• Communications
• 3 x fortnightly communications issues and well received by Admin Officers
•
Developing an enhancement plan following feedback with a focus on buying and
invoicing:
• enhancement plan developed
• approach presented to IBC Admin Officer Network Group:
• seen as very positive and would significantly resolve the current issues
on buying & invoicing
• gained agreement that PO required prior to placing order
• overall feedback that although current situation has been very
challenging that it has also re-set many AO governance frameworks
that have ‘loosened’ over time
Summary of proposed enhancements
for School Customers – Option 1
Change
Process solution
Quick shop for Schools
•
•
Easy to use purchase order entry screen with minimum fields and defaults for
Schools order creation.
This will replace the Can’t find method for items that can’t be found in a
catalogue
Goods receipting not required
for Schools
•
•
No goods receipting (2-way match)
Invoices matched to purchase orders which will be value based only
MIRO portal entry for Schools
invoices
•
•
•
Invoices will be sent directly to Schools by suppliers for local entry
POs are still mandatory
Schools PO forms to contain the billing address of the School instead of the
IBC
Invoices without order numbers will be returned
If the IBC receive Schools invoices they will scan them and workflow them for
local entry at the School
•
•
Summary of proposed enhancements
for School Customers – Option 2
• Largely similar model to current approach with the enhancement as follows:
Change
Process solution
Invoicing plans
• Regular recurring and fixed payments with contracted Suppliers (e.g.
bins)
• Achieve form to be submitted to IBC team to create an invoicing plan PO
Service orders
• Purchase of services (i.e. supply teachers)
• No goods receipts
• Invoices matched to purchase orders which will be value based only
Complex orders / invoicing
controlled locally
• Current process for all invoicing with the ability for complex orders to be
routed to the business for payment (via MIRO entry form)
IBC 4 –Layer Operating Model
Schools currently
operating here
Schools will
operate here
Business change required in
enhanced model
•
Value for money assessment regarding purchasing decisions – Not New
•
PO must be raised prior to placing order – Not New
•
Invoices that are sent centrally to IBC will be scanned and sent via Universal Work List to
approver
•
Invoices sent centrally with no PO will be returned to the supplier without payment (under
the no PO no payment policy)
•
Missing invoices will be the responsibility of the individual school to chase
•
If suppliers put a school ‘on block’ then IBC will be unable to support as unaware of invoices
outstanding and where they sit (unless non payment sat with HCC / HC / HFRS)
Financial Controls
•
Scheme of Financial Controls – Financial regulations, Standing Orders, Best Practice
Guide for Procurement, School’s Finance Manual
•
Schools Financial Value Standard
• the role of Governors (self assessment)
• and the role of the Section 151 Officer (assurance)
•
Value for money assurance on Procurement
•
Financial control frameworks:
• it has been identified that some Admin Officer do not have segregation of
duties for key financial tasks:
• Purchasing – AO accesses the AO IT access (to purchase) and HT IT access
(to approve)
• P-Card – buyer, approver, posting to budget line
•
Discussion / decision on the role of Governors and the Section 151 Officer
Next Steps
•
Dec
Communicate proposed enhancements to all Governors / Head
Teachers / Admin Officers and associated timescales
•
Dec >
Maintain focus and current resource levels to clear
remaining backlog of invoices and maintain stability moving
forward
•
Jan
Engage with school customers around preferred model for
implementation in April
•
March
Testing (system and customer) of enhancements
Training to support enhancements and financial reporting (dates
endorsed by IBC AO Network Meeting) – dependent on system
availability
•
April
Proposed enhancements delivered for start of new financial
year
Supplementary information
Summary of enhancements for schools
Enhanced purchasing and invoicing model 1
Appendix 2 – Enhanced purchasing and invoicing model 2
Business change – a real example
1. AO creates
order on
system
1. Order created
off system by
AO (telephone or
email)
2. Order sent
electronically
(incl PO) to
supplier
2. No PO raised
or provided to
supplier
3. Goods
delivered and AO
goods receipted
on system
3. Goods
delivered
9a. If PO, GR and Invoice match then
invoice automatically paid by the
system
9b. If mis-match between PO, GR and
invoice then blocked on price or
quantity and routed to appropriate
person for approval
4. Invoice sent
centrally to
IBC by supplier
and scanned
into system
4. Invoice sent
by supplier
locally to AO
8. Invoice sent
by AO to IBC
and scanned
into system
5a. If PO, GR and Invoice match then
invoice automatically paid by the
system
5b. If mis-match between PO, GR and
invoice then blocked on price or
quantity and routed to appropriate
person for approval
5. AO creates
PO on system
6. AO goods
receipt on
system
7. PO written on invoice or
PO provided to supplier and
request to return invoice with
PO back to AO