Dáil Éireann Debate, Thursday - 5 March 2020
483. Deputy Michael Fitzmaurice asked the Minister for Business, Enterprise and Innovation the auditing and oversight mechanisms in place in her Department to ensure that standard processes are in place across each Department and State body to ensure that suppliers' invoices are processed in full compliance with the prompt payment of accounts legislation. [3847/20]
View answer484. Deputy Michael Fitzmaurice asked the Minister for Business, Enterprise and Innovation the international auditing standards, such as ISO 9001, in place to ensure that standard processes are in place across each Department and State body to ensure that all suppliers' invoices are processed in compliance with the prompt payment of accounts legislation. [3848/20]
View answerI propose to take Questions Nos. 483 and 484 together.
The European Communities (Late Payment in Commercial Transactions) Regulations 2012 - SI 580 of 2012 gives legal effect to Directive 2011/7/EC of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions.
The 2012 Regulations provide that public authorities must pay for goods and services they procure within 30 days of receipt of a valid invoice or as specified in a contract (which cannot exceed 30 days). Failure to do so incurs the automatic payment of interest and compensation. Details of the value and number of Departments’ payments made within 30 and 15 days are published on a quarterly basis.
It is the responsibility of each Government Department and state body to ensure its systems and processes are in order to meet obligations under the Late Payment in Commercial Transactions Regulations.
The Department of Public Expenditure and Reform issues an annual Circular (for example Circular 27/2019: Requirements for Appropriation Accounts 2019) which sets out the requirements to be followed by Government Departments in relation to the preparation of their Appropriation Accounts and specifically provides that in the case of interest and compensation under the Late Payments in Commercial Transactions Regulations, 2012 information must be included in a Department’s Account where the total of interest payments due was €10,000 or more, or an individual payment was €10,000 or more.
The Appropriation Accounts of Departments are subject to audit by the Comptroller and Auditor General. The external audit of non-commercial state bodies is also carried out by the Comptroller and Auditor General.
All Departments must publish their compliance figures on a quarterly basis. In 2018 and 2019 respectively, 98% and 98% of all invoices received by Government Departments were paid within 30 days and did not incur late payment interest or compensation.
All Departments must also publish the compliance levels of the bodies under their aegis on their respective websites. In 2018 and 2019, 99% and 98% of all invoices received by the agencies of this Department were paid within 30 days and therefore did not incur late payment interest or compensation payments.
These figures indicate strong compliance with statutory obligations under the 2012 Regulations.
