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Audit finds invoice timing improved after training but identifies process gaps and late payments tied to late purchase orders
Summary
The audit of invoice timeliness found 58% of invoices were paid within 30 days during the review period, improvement after mid‑2023 training, but noted delays when purchase orders were created after invoice dates and recommended procurement and finance take steps to reduce late payments.
A performance audit presented May 14 found the City of Atlanta has improved invoice payment turnaround since a mid‑2023 accounts‑payable training, but still faces delays when purchase orders are created after vendors submit invoices and when departments delay transmitting invoices to Oracle.
Brandy Bell, who presented the timeliness of payments audit, said auditors analyzed invoices from July 1, 2021, through Dec. 31, 2024, for purchased/contracted services and supplies. The city paid 217,796 invoices totaling roughly $4.9 billion during the period, and payment terms for most invoices were immediate or net‑30. Bell said 58% of invoices in the scope were paid within 30 days from the invoice date and that the median turnaround time improved after accounts‑payable citywide training in mid‑2023.
The audit identified several causes of delayed payments: invoices entered into Oracle before a purchase order exists; invoices with invoice dates earlier than purchase‑order creation dates; holds created by Oracle (more than 96% were system‑generated and most were resolved within days); and instances where departments physically held invoices and entered them into Oracle months later. Bell gave an example in which the Department of Grants and Community Development held invoices for nearly four months before entering them into Oracle because the department reimburses subrecipients after review.
Auditors noted that fewer than 20% of invoices were submitted through the supplier portal, the fastest processing channel, and recommended procurement establish a service level agreement for departments to submit requisitions to ensure purchase orders are created before work occurs. They also recommended clearer vendor communication and a process to track vendor payment inquiries so vendors would have a point of contact for resolution.
Mohammed Bala, the city chief financial officer, said the recommendations require coordination across procurement, accounts payable and user departments, and he thanked audit staff. Bala said outreach and training could yield improvements and noted possible financial benefits of timelier payments, such as capturing early‑payment discounts.
The committee accepted and filed the audit and asked finance and procurement to follow the report’s recommendations to reduce late payments and strengthen vendor communications.
