Introducing "No PO, No Pay" policy

This July 2024, Notre Dame University will adopt a "No PO, No Pay Policy" to streamline our procurement processes and enhance financial controls. This policy mandates that all payments to suppliers require a pre-approved purchase order (PO). This move is designed to ensure transparency, accountability, and improved compliance in our procurement operations.

Understanding the No PO, no pay policy

Under the new policy, payments to suppliers will only be processed if they are backed by an officially approved purchase order. This means no invoice will be paid unless it matches a previously issued PO. This change is crucial for maintaining stringent control over university expenditures and ensuring that all purchases are pre-authorized and budgeted. Certain exemptions will apply based on item type, risk, etc.

Support measures to ease the transition

Recognising the adjustments required for this transition, Procurement has implemented several measures to support all university stakeholders:

• Enhanced contracts management system - As part of our ongoing commitment to improve procurement processes, the recently implemented contracts management system will help manage and track all contracts efficiently, ensuring all expenditure is pre-approved and documented as per the new policy requirements.
• Training and resources - Comprehensive training sessions will be available to help department heads and business areas understand the new system and policy. Detailed guides, FAQs, and resource materials will be provided to ensure a smooth transition.
• Dedicated support team - Support will be available to address any queries or concerns related to the new policy or procurement processes. The team will assist in resolving issues and ensuring compliance with the policy. We will create a dedicated Teams channel to provide direct communications and assistance, including help for areas with temporary capacity limitations that may restrict them from complying with the policy.
• Regular updates and communications - We will keep you informed through regular updates via email, newsletters, and our Procurement webpage. These communications will provide timely reminders and additional support resources as needed.

Act now to ensure a smooth transition

• Gathering all current contracts and ongoing engagements to update and register them in the Procurement Contracts Management system.
• Familiarising yourself with the supplier onboarding process to ensure that suppliers are onboarded prior to engagement.
• Raising a PO for all engagements, big or small, to get accustomed to the new process.

To further support this transition, we ask that you begin to avoid sending voucher requests directly to Accounts Payable and instead raise a PO for every purchase. This practice will help break old habits of bypassing the PO system, ensuring compliance with the new policy. By proactively adopting this practice, you will contribute to a smoother transition and help establish more robust procurement habits across the university.

If you would like to discuss how your area can work towards compliance and clarify any queries, please reach out to us at procurement@nd.edu.au.

Why this matters

The "No PO, No Pay Policy" is not just a procedural change; it's a strategic enhancement to our procurement system. By ensuring that all payments are preceded by authorised purchase orders, we strengthen our financial oversight, improve budget management, and reduce unauthorised spending. This policy also supports our ongoing efforts to automate and simplify procurement processes, making them more efficient and less time-consuming.

Looking ahead

We are committed to making this transition as seamless as possible and are confident that these changes will benefit the entire university. Together, with your cooperation and our continued support, we can achieve a more efficient and accountable procurement system.

Stay tuned for more updates and resources as we approach the rollout date. Remember, Procurement is here to support you every step of the way as we embrace these positive changes together.