A recent review has highlighted a concerning trend: more than 30% of invoices paid either had a purchase order (PO) raised after the invoice date or did not quote a valid PO number at all. This is a non-compliance issue and is not aligned with our organisational expectations.
Purchase Orders are a critical part of our financial controls. They:
- Formalise the goods/services ordered, including quantities and pricing.
- Serve as legally binding documentation between Council and suppliers.
- Help prevent purchasing errors and reduce the risk of fraud.
- Ensure compliance with our procurement policies.
- All goods and services must have a PO raised at the time of ordering — not after the invoice is received. Exceptions are rare.
When invoices are submitted without a valid PO number, Accounts Payable staff are forced to spend significant time chasing down the correct approver, delaying payment and creating inefficiencies across the organisation.
To ensure timely and accurate processing:
- POs must be raised before the invoice is issued.
- All invoices must quote a valid PO number in the format: e.g 076803-001. (Please do not state the PO number in the email but must be displayed on the invoice).
- Invoices must be sent directly to invoices@cgd.vic.gov.au and not to individual staff members.
- Always check the notes section in the Procurement Portal for instructions from Accounts Payable.
- Do not use someone else’s PO. Ensure you select the correct one.
- Please ensure that the PO has sufficient funds to cover the full amount of the invoice, including GST, which might not be included on the quote.
We all have a role to play in maintaining strong financial governance.