Appendix A: Submissions and comments
Download a PDF copy of Appendix A: Submissions and comments.
5. How agencies pay invoices
We looked at 6 agencies in detail to see how they process and pay invoices. This section contains case studies which look at the business practices that support agencies to pay their invoices on time.
Covered in this section:
4. How agencies calculate timeliness
We looked at 6 agencies in detail to see how they record and report their payment timeliness data. We found that agencies apply and interpret the Policy differently. This makes it difficult to compare agencies’ performance.
Covered in this section:
3. Reporting on payment timeliness
In 2021, the state amended the Policy. It requires agencies to pay invoices with a contract value up to $3 million in 10 business days.
In 2024–25, agencies reported collectively that they paid 81.5 per cent of invoices on time. On average, it took 10.8 calendar days to pay invoices.
But payment timeliness data collected by DJSIR and published by the VSBC is not checked. We found gaps in the collected data. Agencies also told us, on review, that some of the collected and published data is incorrect.
Covered in this section:
2. Our recommendations
We made 9 recommendations to address our findings. The relevant agencies have accepted 7 recommendations and 2 recommendations in principle.
1. Our key findings
What we examined
Our review followed 2 lines of inquiry:
1. Does the government pay its private sector suppliers according to contracted or otherwise agreed payment terms?
2. Is the data agencies provide to the Department of Jobs, Skills, Industry and Regions (DJSIR), and published by the Victorian Small Business Commission (VSBC) about their invoices, timeframes and compliance rates reliable and do entities fairly present performance publicly?
Appendix C: Audit scope and method
Download a PDF copy of Appendix C: Audit scope and method.
Appendix B: Abbreviations, acronyms and glossary
Download a PDF copy of Appendix B: Abbreviations, acronyms and glossary.
Appendix A: Submissions and comments
Download a PDF copy of Appendix A: Submissions and comments.
6. Strategy and tender processes
DTP ran a comprehensive market research process to help the government understand options for a new ticketing system. Its tendering process also helped to achieve the government's cost and functionality objectives.
But DTP did not follow government guidelines to appoint an independent probity auditor for the project. Independent probity auditors give assurance that a project’s tender process and outcome comply with legal, regulatory and ethical standards.
Covered in this section: