The problem

The trust and its subsidiary company had a high number of invoices outstanding, most of them were identified as invoices on hold. In most cases they either needed to be matched to an existing PO or to be sent out for approval. The latter was a manual process which had to be tracked by email. In addition to delayed payments, the trust was not meeting the Better Payment Practice Code, was receiving lots of queries, accounts were going on stop and staff morale was low.

The challenge

How might we speed up the authorisation process for those invoices that could not be matched to a PO and for those invoices that do not require a PO?

The process had to ensure that full compliance with governance procedures was maintained in line with the standing financial instructions and the scheme of delegation. The process needed to embrace technology to improve efficiency and contribute to an improvement in staff morale.

The outputs

The product is a simple system generated email that once received by budget holders can be approved or rejected. This is often undertaken with a very quick turnaround, sometimes by managers using their mobile phone. In all instances a copy of the invoice is shared for the budget holder to approve. If the value is greater than their delegated power, the invoice will escalate to the next budget holder in the hierarchy.

The outcomes

Key outcomes included, improved Better Payment Practice Code performance, a reduced number of invoices outstanding on hold and awaiting approval and improved staff morale. The budget holder experience also improved and reduced reliance on paper signatures or labour-intensive email trails. The system also maintains an audit trail assisting with approval queries and internal audit reviews.