Improving the Productivity of Federal Payment Centers Could Save Millions
Highlights
Inefficiencies in processing payments to vendors for goods and services cost the Federal Government millions annually. For example, productivity rates achieved by Federal payment centers in the vendor bill-payment function varied by about 600 percent. Although the bill-payment function is a readily measurable, repetitive process, most payment centers GAO examined did not have productivity measures. Thus, GAO constructed many of the measures on which the performance data were based. GAO determined three primary reasons for the large variance: (1) the degree of management concern for, and use of efficiency measures; (2) the volume of workload processed by the centers; and (3) the degree to which automation or improved processes and procedures were used in the payment process.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Heads of Federal Agencies | The heads of individual departments and agencies should carefully evaluate the structure, processes, and procedures for their bill-paying activities. To improve productivity they should: (1) eliminate or consolidate payment centers which, due to low volume, cannot be made efficient; (2) use statistical sampling techniques in auditing payment transactions in accord with GAO requirements; (3) use alternatives to receiving reports such as fast-pay procedures, where possible; (4) analyze the processes and procedures used in examining payment transactions to identify and eliminate unnecessary or redundant steps; and (5) initiate periodic exchange of information on methods and procedures between payment centers that are within the same agency and with other agencies. In addition, for payment centers and related financial management functions, the Joint Financial Management Improvement Program has a role which the Office of Personnel Management should consider drawing upon. GAO further recommends that the Executive Director, Joint Financial Management Improvement Program, request that agencies report the progress made in measuring and improving productivity within their payment centers as part of the agency's annual financial management improvement report. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|