The ANAO also identified that it was common practice for full verification processes to be applied unecessarily to payments that fell within the prescribed classes for which reduced levels of verification was permitted. That is, Finance Regulation 45 checks were being made when Finance Regulation 45A was applicable. The ANAO recommended that agencies review their procedures with a view to reducing unnecessary verification. It will be up to management in individual agencies to establish procedures to ensure that accounts are properly verified and paid. Finally, the ANAO recommended that, where practicable, all inter-agency payments be made by way of direct credit, immediately following any verification processes.
Finance strongly encourages the use of direct credit.
It is recognised that for inter-agency payments there is no disadvantage to the Commonwealth, in a cash management sense, if payment is made immediately, rather than waiting for the standard 30 days. Indeed, there may also be efficiency gains realised to both the payee and payer.