No Purchase Order No Pay Policy

1. Introduction/Overview

Caerphilly County Borough Council (‘the Council’) is committed to improving its financial management across the Council by ensuring we only pay for goods, services and works which have been formally ordered and authorised in accordance with the Council’s governance procedures. Furthermore, this approach will also support the Council with ensuring that all invoices received are processed efficiently to minimise delay to the Supply Chain and meet local and national targets on the processing of invoices.

As part of our commitment to improve financial management across the Council, with effect from 1 July 2024 a No Purchase Order No Pay Policy (‘No PO No Pay’) will be implemented, to ensure that staff within the Council only pay for goods, services and works that have been ordered in accordance with the Council’s governance procedures such as but not limited to Financial Regulations and Standing Orders for Contracts.

The implementation of this policy will mean that payment will only be made to Suppliers, Contractors and Service Providers where a submitted invoice contains a valid Council generated Purchase Order reference (‘P/O Ref’). Invoices that are missing a valid P/O Ref will have payments delayed whilst the relevant information is obtained. The Council will work with the Supply Chain to ensure compliance to this policy, those Suppliers, Contractors and Service Providers who continually choose not to comply with this requirement will be removed from the Council’s financial systems and no future transactions will be permitted.

This policy must be adhered to by all service areas across the Council for the purchase of all goods, services and works.

2. The Policy and who it Covers?

The Policy covers all Council Staff, Suppliers, Contractors and Service Providers, exceptions may be approved in certain circumstances, however these will need to be agreed by staff within Finance and Procurement in advance of any provision of goods, services or works and will be recorded on an exception list.

Roles and Responsibilities

  • Council Staff with responsibilities for ordering goods, services or works (including authorisation) must ensure that a valid Council generated P/O Ref is issued in advance of goods, services or works being supplied.
  • Council Staff that receipt goods, services or works must ensure that the goods, services or works have been delivered are marked as received as soon as possible within the Proactis P2P system.
  • Invoice processors must ensure that a valid Council generated P/O Ref is stated on all invoices to ensure they can be processed for payment (unless they are identified on the exceptions list, please refer to point 4 below).
  • Suppliers, Contractors and Service Providers must ensure that a valid Council generated P/O Ref is stated on all invoices to ensure they can be processed for payment.
  • Finance & Procurement Staff will be monitoring this policy and report any non- compliances.

3. Purchase Orders

A Council generated P/O Ref must be issued by email to Suppliers, Contractors and Service Providers in advance of any goods, services or works being supplied to the Council.

It is also the responsibility of the Suppliers, Contractors and Service Providers to ensure there is a valid P/O Ref associated with the specific requirement and if there is any queries contact must be made with the relevant Council representative.

The valid Council generated P/O Ref must be stated on all invoices and failure to state the valid P/O Ref will result in a disputed invoice.

4. Exceptions

This policy will not apply in certain circumstances and an exceptions list will be held by Corporate Finance. Further information on the exceptions can be obtained via Corporate Finance.

5. Invoices

The following information must be included on all invoices and failure to provide the information will result in a disputed invoice, which will delay the processing whilst the relevant information is obtained:

  • All invoices should contain the reference “Invoice”.
  • Invoice number.
  • Valid Council generated P/O Reference.
  • Company name, address, and contact details.
  • Name and address of the department you are invoicing.
  • Clear description of what you invoicing.
  • Date the goods, services or works were provided.
  • Date the invoice was created.
  • Amount being charged.
  • VAT (if applicable).
  • Total amount owed.
  • Only contain the items on the P/O Ref, unless a substitution is agreed.

6. Payments

Payment of invoices will be in accordance with the terms and conditions. It is the Council’s aim to pay valid invoices within 28-day period.

Any invoice not meeting the requirements outlined in point 5 above will be classed as a disputed invoice and payment will be delayed. The invoice will be sent back to the Suppliers, Contractors and Service Providers explaining the reasons and requirements for resolution.

Supply Chain Frequently Asked Questions (FAQs)