Council overpayments scandal needs long-term solution
Press Release | 01st March 2016
Reading, UK — 1 March 2016: Local councils admit to overpaying their suppliers by £11 million per year, according to an investigation by news website Exaro, but this is just the tip of an estimated £147 million iceberg. Without concerted intervention like forensic audit software, and ongoing monitoring of the purchase-to-pay process, councils will never recover the substantial amounts paid in error.
Investigative news website Exaro last week reported that 112 of the largest councils in England, responding to Freedom of Information requests, said they had made average annual overpayments to suppliers of £10.9 million.
But this is likely just the tip of the iceberg. A Department of Communities and Local Government report in 2012, quoting credit experts Experian, suggested the annual figure may be up to £147 million.
David Griffiths, CEO of FISCAL Technologies, the world-leading provider of accounts payable forensic software, commented: “Considering the swingeing budget cuts at councils across the country, protecting organisational spend should be a priority for all council finance chiefs.
“Putting in place forensic audit software can deliver immediate cost savings by identifying overpayments and speeding up recovery. While calling in recovery auditors is a reactive solution to the problem, forensic audit software will, on an ongoing basis, proactively remove a layer of risk from the purchase-to-pay process and provide the much-needed visibility and insight that leads to smarter financial operations.”
FISCAL Technologies already provides forensic audit software to more than 70 councils in England, saving substantial amounts in overpayments and reducing the risk of fraud.
Alyson Wilkinson, Team Manager Process Control at Warrington Borough council said: “We’ve been really pleased with FISCAL’s solution to our problem and the management team were even more pleased when they discovered that the overpayments retrieved had recovered the cost of the software in a very short space of time.”
FISCAL Technologies’ AP Forensics® transforms the operational finance function by enabling a highly effective preventative strategy around invoicing errors and overpayments, supplier fraud and compliance issues.
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About FISCAL Technologies:
FISCAL Technologies is the leading provider of forensic solutions that empower purchase-to-pay teams across the globe to protect organisational spend.
Incorporating unique technology to reduce risk in the supply chain, FISCAL solutions are used on a continuous, preventative basis to protect supplier spend, defend against fraud, increase profitability and drive process improvement.
Since 2003, FISCAL has safeguarded hundreds of millions of payments and is now relied on by over 250 leading organisations.
For more information, please visit www.fiscaltec.co.uk.
0845 680 1905