This statement follows the Australian government’s spending watchdog being criticised for not following its own purchasing compliance rules over a nine month period. The internal audit reported the government’s Department of Finance and Deregulation “failed to meet its own compliance rules in 19 procurements out of a sample of 27 that occurred between 1 July 2009 and 31 March 2010”, as reported in SupplyManagement.com
The audit revealed “procurement processes did not encourage competition in accordance with Commonwealth Procurement Guidelines” and highlighted issues including “poor value for money”, “poor risk assessments” and “discrimination based on location”.
In his briefings, Paul describes the essential controls that make it practical to ensure organisation-wide compliance with all sourcing, budgetary, and approval policies. “Many government executives and departments are held back by manual process and the limitations of existing Finance and ERP systems that do not provide necessary controls” continued Paul.
PROACTIS - Built-in controls to ensure compliance:
- Automated finance coding and validation ensure proper expense allocation while saving users time
- Interactive encumbrance/commitment checks ensure budgetary compliance
- Authorisation engine ensures that the right people approve each request based on organisational hierarchies as well as type, size, and nature of request
- Invoice matching with automated exception reporting and troubleshooting ensures only valid invoices are paid
- Audit trails provide transparency, accountability and fraud prevention
Sourcing process controls
- Catalogue access controls ensure buying from approved suppliers and established contracts
- Transaction templates ensure correct buying from supplier, location, item, value, account code, etc. for specific individuals or departments
- Sourcing projects automatically direct procurement of items not under catalogue or contract through proper procedure using a fully transparent process
- Organisation-specific rules guide users through the proper sourcing process for each commodity or service without the need to understand or remember corporate standards
- Authorisation engine ensures proper authorisations throughout each type of sourcing project to ensure due process and visibility
Interested in purchasing compliance and want to learn more about the essential controls? Contact us.