Timeliness of payments - April 2025
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Timeliness of Payments Released: April 2025 Download the Full Report here At the end of 2023, the city undertook an effort to reduce the number of invoices over 30 days and train employees on accounts payables policies and procedures. This audit assesses whether vendors are paid within credit terms and identifies barriers to making prompt payments. We recommend that the chief procurement officer provide more training and support to suppliers and that the chief financial officer provide periodic training refreshers to departments. We also recommend the chief financial officer develop a centralized channel for vendors to communicate with the city about invoice issues and ensure resolutions are tracked. |
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We found:
- 58% of invoices were paid within 30 days from July 2021 through December 2024
- Payment turnaround times have improved since 2021; there remain opportunities for further improvements
- Almost 20% of the invoices that were matched to purchase orders had significantly delayed payments due to purchase orders created after the fact
- Some departments delay submitting invoices, which in turn delays payment
- The city does not have a process for tracking vendor inquiries and concerns